Which one is the idea reducing stage that help spot good ideas and drop poor ones as soon as possible?

Chapter 8

New-Product Development and Product Life-Cycle Strategies

Multiple-Choice

1._____ is the development of original products, product improvements, product modifications, and new brands through the firm’s own R&D efforts.

a.Idea generation

b. Concept testing

c.Test marketing

d.New product development

Answer: (d) Difficulty: (1) Page: 264

2.All of the following are different ways a firm can obtain new products, except which one?

a.By acquiring a whole new company

b.A firm can obtain a new product through patents

c. A firm can obtain a new product by licensing someone else's new product

d.A firm can obtain a new product by using the R&D department of other firms in the same industry.

Answer: (d) Difficulty: (2) Page: 264

3.All of the following are accurate descriptions of reasons why new products fail, except which one?

a.Although the market size was correctly estimated, the product idea itself was not good.

b.The actual product was not designed as well as it should have been.

c.The new product was priced too high.

d.The new product was advertised poorly.

Answer: (a) Difficulty: (3) Page: 264

4.All of the following are accurate descriptions of ways companies are anxious to learn how to improve the odds of new-product success, except which one?

a.Find out what successful new products have in common.

b.To learn lessons from new product failures.

c.Companies have to learn to understand their own consumers.

d.Do not overly rely on product innovation when you can succeed by copying others.

Answer: (d) Difficulty: (3) Pages: 262-264

5.New-product development starts with _____.

a.idea screening

b.idea generation

c.concept development and testing

d.marketing strategy development

Answer: (b) Difficulty: (2) Page: 265

6._____ is the systematic search for new-product ideas.

a.Idea generation

b.Idea screening

c. Concept development and testing

d.Marketing strategy development

Answer: (a) Difficulty: (1) Page: 265

7.All of the following are major internal sources of new-product ideas, except which one?

a.Picking the brains of company executives, scientists, engineers and salespeople is a good way to generate ideas.

b.Intrapreneurial programs that encourage employees to think and develop new-product ideas is a good way to generate ideas.

c.Some companies employ creative approaches, including both "method and madness" in helping them to generate new product ideas.

d.Good ideas come from watching and listening to customers.

Answer: (d) Difficulty: (3) Page: 266

8.Major sources of new product ideas include _____.

a. internal sources, using company R&D

b.creative approaches, using both "method and madness" approaches

c.watching and listening to customers

d.all of the above are sources of new product ideas

Answer: (d) Difficulty: (2) Page: 266

9.All of the following are major external sources of new-product ideas, except which one?

a. Companies can conduct surveys or focus groups to learn about consumer needs and wants.

b.Competitors are a good source of new-product ideas.

c.Some companies employ creative approaches, including both "method and madness" in helping them to generate new product ideas.

d.Good ideas come from watching and listening to customers.

Answer: (d) Difficulty: (3) Page: 266

10. All of the following are accurate descriptions of new product ideas, except which one?

a.New product development starts with idea generation.

b.Some companies use brainstorming exercises that expand people's minds and generate new ideas around the client's problem.

c.At the beginning of the process, carefully scrutinize each idea and throw far-fetched and impractical ones out the window.

d.Customers must be careful not to rely too heavily on customer input when developing new products.

Answer: (c) Difficulty: (3) Pages: 268-269

11.Some companies have installed a(n) _____ that directs the flow of new ideas to a central point where they can be collected, reviewed, and evaluated.

a.new-product development team

b.idea management system

c.computer system

d.satellite system

Answer: (b) Difficulty: (3) Page: 269

12.In order to install an idea management system, whereby all ideas are directed to a central point, a company can do any or all of the following:

a.Appoint a respected senior person to be the firm's idea manager.

b.Create a cross-functional idea management committee comprising of people form R&D, finance, engineering and operations to meet and evaluate new product ideas.

c.Reward employees through formal recognition programs.

d.All of the above are legitimate ways to systematically collect ideas.

Answer: (d) Difficulty: (3) Page: 269

13.The purpose of _____ is to generate a large number of ideas.

a. idea screening

b.idea generation

c.concept development and testing

d.marketing strategy development

Answer: (b) Difficulty: (2) Page: 270

14.The first idea reducing stage is _____ , which helps spot good ideas and drop poor ones as soon as possible.

a.idea generation

b.idea screening

c.concept development and testing

d.marketing strategy development

Answer: (b) Difficulty: (2) Page: 270

15.A _____ is a detailed version of the idea stated in meaningful consumer terms.

a.product idea

b.product concept

c.product image

d.test market

Answer: (b) Difficulty: (2) Page: 270

16.A _____ is the way consumers perceive an actual or potential product.

a.product idea

b.product concept

c.product image

d.test market

Answer: (c) Difficulty: (1) Page: 270

17.An attractive idea must be developed into a _____.

a.product idea

b.product concept

c.product image

d.test market

Answer: (b) Difficulty: (2) Page: 270

18.All of the following are accurate descriptions of activities performed in the idea screening stage of new product development, except which one?

a.Idea screening helps spot good ideas and drop poor ones as soon as possible.

b. Companies want to go ahead only with the product ideas that will turn into profitable products.

c.Many companies require their executives to write up new product ideas on a standard form that can be reviewed by a new-product committee.

d.Setting up a toll-free number or Web site for anyone who wants to send a new idea to the idea manager.

Answer: (d) Difficulty: (2) Page: 270

19. _____ calls for testing new-product concepts with groups of target consumers.

a.Concept development

b.Concept testing

c.Idea generation

d.Idea screening

Answer: (b) Difficulty: (2) Page: 271

20._____ entails testing new-product concepts with a target group of consumers to find out if the concepts have strong consumer appeal.

a.Concept development

b.Concept testing

c.Idea generation

d.Idea screening

Answer: (b) Difficulty: (1) Page: 271

21.Product concepts are presented to consumers during concept testing in any of the following ways, except which one?

a.A word or picture description is presented to consumers.

b.A concrete and physical presentation of the concept will increase the reliability of the concept test.

c.Some companies are using virtual reality to test product concepts.

d.Companies are reluctant to use the Web to test product concepts.

Answer: (d) Difficulty: (3) Pages: 271-272

22.Designing an initial marketing strategy for a new product based on the _____ is called marketing strategy development.

a.new product idea

b.product concept

c.test market results

d.product prototype

Answer: (b) Difficulty: (3) Page: 272

23.The marketing strategy statement in new product development consists of three parts: _____, _____, and _____.

a.idea generation; idea screening; concept development

b.idea generation; concept development; concept testing

c.idea generation; idea screening; idea management

d.target market description; planned product positioning; sales, market share, and profit goals for the first few years.

Answer: (d) Difficulty: (2) Page: 272

24._____ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives.

a.Idea generation

b.Idea screening

c.Business analysis

d.Concept development and testing

Answer: (c) Difficulty: (2) Page: 273

25.If a product concept passes the _____, it moves into _____.

a.business analysis test; product development

b.concept development stage; product development

c.concept testing stage; product development

d.idea generation stage; product development

Answer: (a) Difficulty: (2) Page: 273

26.Once management has decided on a product concept and marketing strategy, it can next evaluate the _____ of the proposal.

a. product idea portion

b.product development part

c.business attractiveness

d.commercial viability

Answer: (c) Difficulty: (2) Page: 273

27.In the product concept stage of new-product development, the product is merely a _____.

a.word description

b.crude mock-up

c. drawing

d.all of the above

Answer: (d) Difficulty: (2) Page: 273

28.In the _____ of new-product development, often products undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them.

a.business analysis stage

b.idea generation

c.concept development and testing stage

d.product development phase

Answer: (d) Difficulty: (3) Page: 273

29._____ is the stage of new-product development in which the product and marketing program are tested in more realistic market settings.

a.Business analysis

b.Idea generation

c.Test marketing

d.Marketing strategy development

Answer: (c) Difficulty: (2) Page: 274

30.All of the following are accurate descriptions of test marketing, except which one?

a.Test marketing is the stage at which the product and marketing program are introduced into realistic market settings.

b.Test marketing by consumer-packaged goods firms has been increasing in recent years.

c.Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.

d.Companies often do not test market simple line extensions.

Answer: (b) Difficulty: (3) Page: 274

31.Introducing a new product into the market is called _____.

a.test marketing

b.new product development

c.experimenting

d. commercialization

Answer: (d) Difficulty: (2) Page: 275

32.A company getting ready to launch a new product must make several decisions. However, the company must first decide on _____.

a.whether to launch the product in a single location

b.whether to launch the product in a region

c.whether to launch the product into full national or international distribution

d.timing of the new product introduction

Answer: (d) Difficulty: (3) Page: 275

33._____ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

a.Team-based product development

b.Simultaneous product development

c. Sequential product development

d.Product life-cycle analysis

Answer: (c) Difficulty: (2) Page: 276

34.In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called _____.

a.sequential product development

b.simultaneous product development

c. commercialization

d.introduction timing

Answer: (b) Difficulty: (2) Page: 276

35.All of the following statements are accurate descriptions of the simultaneous product development approach to new product development, except which one?

a.The simultaneous product development approach is also known as collaborative product development.

b. Company departments work closely together through cross-functional teams.

c.Companies assemble a team of people from various departments that stay with the new product from start to finish.

d.Companies often pass the new product from department to department in each stage of the process.

Answer: (d) Difficulty: (3) Page: 276

36.All of the following are accurate descriptions of new-product development approaches used by companies in the commercialization phase of the process, except which one?

a.New-product development teams in the simultaneous approach tend to stay with the new product from start to finish.

b.In the simultaneous approach, top management gives the product development team general strategic direction but no clear-cut product idea or work plan.

c. In order to get their new products to market more quickly, many companies are adopting a faster approach called sequential product development.

d.The simultaneous team-based approach can be riskier and more costly than the slower, more orderly sequential approach.

Answer: (c) Difficulty: (3) Page: 276

37.All of the following are limitations of the simultaneous team-based approach to new-product development, except which one?

a.Superfast product development can be riskier and more costly than the slower, more orderly sequential approach.

b.This approach often creates increased organizational tension and confusion.

c.The objective of this approach is to ensure that rushing a product to market doesn't adversely affect its quality.

d.Top management gives the product development team a clear-cut product idea or work plan.

Answer: (d) Difficulty: (2) Page: 276

38.All of the following statements accurately reflect the requisites of new-product success, except which one?

a.Thinking of a few good ideas, turning them into products, and finding customers for them.

b.A systematic approach for finding new ways to create value for target consumers, from generating and screening new-product ideas to creating and rolling out want-satisfying products to customers.

c.New-product success requires a total-company commitment.

d.At firms known for their new-product success, their culture does not encourage, support, and reward innovation.

Answer: (d) Difficulty: (2) Page: 277

39._____ begins when the company finds and develops a new-product idea. During product development, sales are zero and the company's investment costs mount.

a.Introduction

b.Growth

c.Maturity

d.Product development

Answer: (d) Difficulty: (2) Page: 277

40._____ is a period of slow sales growth as the product is introduced into the market. Profits are non-existent in this stage because of the heavy expenses of product introduction.

a.Growth

b.Product development

c.Maturity

d.Introduction

Answer: (d) Difficulty: (2) Page: 277

41._____ is a period of market acceptance and increasing profits.

a.Product development

b.Maturity

c. Growth

d.Introduction

Answer: (c) Difficulty: (2) Page: 277

42._____ is the course of a product's sales and profits over its lifetime, involving five distinct stages: product development, introduction, growth, maturity, and decline.

a.Product life cycle

b.Maturity

c.Growth

d.Decline

Answer: (a) Difficulty: (2) Page: 277

43._____ is the period when sales fall off and profits drop.

a.Introduction

b.Growth

c.Maturity

d.Decline

Answer: (d) Difficulty: (2) Page: 277

44.All of the following are accurate descriptions of the product life cycle concept, except which one?

a.The PLC concept can describe a product class.

b.The PLC concept can describe a product form.

c.The PLC concept can describe a brand.

d.Product forms tend to have the longest life cycles.

Answer: (d) Difficulty: (3) Page: 278

45.All of the following are accurate descriptions of the application of the product life cycle concept, except which one?

a.The PLC concept can be applied to styles.

b.The PLC concept can be applied to fashions.

c.The PLC concept can be applied to fads.

d.The PLC concept can be applied to all of the above.

Answer: (d) Difficulty: (2) Page: 278

46.All of the following are accurate descriptions of the life cycle of a style product, except which one?

a.Style products appear in homes, clothing, and art.

b.Once a style is invented, it may last for generations.

c.A style has a cycle showing several periods of renewed interest.

d.Styles last only a short time and tend to attract only a limited following.

Answer: (d) Difficulty: (2) Page: 279

47. _____ are fashions that enter quickly, are adopted with great zeal, peak early, and decline very quickly.

a.Fashion

b.Fads

c.Styles

d.Mature products

Answer: (b) Difficulty: (2) Page: 279

48.The product life-cycle stage in which the new product is first distributed and made available for purchase is called the _____.

a.maturity stage

b.growth stage

c.introduction stage

d.decline stage

Answer: (c) Difficulty: (2) Page: 280

49.All of the following are characteristics of the introduction stage of the PLC, except which one?

a.Profits are usually negative or low because of low sales.

b. Profits are usually negative or low because of high distribution and promotion expenses.

c.Lots of money is needed to attract distributors and build inventories.

d.Educating the market remains a goal, but now the company must also meet the competition.

Answer: (d) Difficulty: (2) Page: 281

50.All of the following are accurate descriptions of product launch strategies that are recommended of market pioneers, except which one?

a.The product launch strategy must be consistent with the intended product positioning.

b.The initial strategy is just the first step in a grander marketing plan for the product's entire life cycle.

c.Pioneers must avoid sacrificing long-run revenue for the sake of short-run gain.

d.Pioneers have the best chance of building and retaining market share if they decide to take risks from the start.

Answer: (d) Difficulty: (3) Page: 281

Which is the next stage after idea generation in new product development process Mcq?

Which of the following best describes the first stage of the new product development process?

What begins when the company finds and develops a new product ideas?

Is the stage at which the product and marketing program are introduced into more realistic marketing settings?