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CHAPTER 6 (PMK1213)

Total questions: 30

Worksheet time: 18mins

Name
Class
Date
1.

A company can obtain new products through new product development. Which of the following defines new products?

a)

Original product

b)

product improvement

c)

Product modification

d)

All of the above

2.

New product development starts with _____________.

a)

Idea generation

b)

Idea screening

c)

Concept development

d)

Concept testing

3.

What do we call a detailed version of new idea stated in meaningful customer terms?

a)

Product idea

b)

Product concept

c)

Product image

d)

Product proposal

4.

After concept testing, a firm would engage in this stage in developing and marketing a new product.

a)

Idea screening

b)

Marketing strategy development

c)

Business analysis

d)

Product development

5.

A review of the sales, costs, and profit projections for a new product to find out whether they satisfied the company’s objectives is called a _________.

a)

Business feasibility

b)

Feasibility study

c)

Business analysis

d)

Product acceptance

6.

This stage in the PLC is characterized by rapid market acceptance, increasing sales, and increasing profits. What is it?

a)

Introduction

b)

Maturity

c)

Growth

d)

Decline

7.

Sales decline in the stage of the PLc because of technological advances, increased competition, and _____ .

a)

Shifts in the economy

b)

Shifts in unemployment

c)

Shifts in consumer tastes and preferences

d)

Foreign import

8.

The owners will begin the first idea-reducing stage called ________ to arrive at a realistic number to adopt

a)

Idea screening

b)

Marketing strategy development

c)

business analysis

d)

Product development

9.

In ___________________, the firm must decide on introducing timing, how the product will launched, then where the product will be launched. In examples such as in single location, a region, the national market or the international market

a)

product screening

b)

commercialization

c)

idea generation

d)

all of the above

10.
The product life cycle shows the different stages that a product passes through and sales that can be expected at each stage
a)
True
b)
False
11.
What is happening at point F on the Product Life Cycle?
a)
Introduction
b)
Decline
c)
Maturity
d)
Growth
12.
Which of these are extension strategies of a product?
a)
Cut price
b)
Modify the product
c)
All of these
d)
Special Offers
13.
An established product which is bringing in revenue is a comment about which stage of the Product Life Cycle?
a)
Decline
b)
Maturity
c)
Introduction
d)
Growth
14.
Which of these comments is most suitable for Growth?
a)
Heavy investment but no sales
b)
Sales are likely to be low as the product is new to the market
c)
Revenue is increasing as the product gains popularity
d)
Likely to be characterised as a dog in the Boston Matrix
15.
Firms with a technically superior good may well engage in price skimming. This comment could apply to which stage of the Product Life Cycle?
a)
Introduction
b)
Growth
c)
Decline
d)
Maturity
16.

What is happening at point F of the Product Life Cycle?

a)

Growth

b)

Maturity

c)

Extension Strategy

d)

Introduction

17.
What happens to the cash flow of a business at the growth stage of the product life cycle?
a)
The cash flow should become more positive
b)
Cash flow is likely to be negative because money has to be spent on research and development
c)
Sales will fall and cash flow will drop
d)
There may be a need to spend money re-promoting the product. As a result, cash flow may begin to fall.
18.
Costs are incurred e.g. building new production lines, promotion and distribution costs. Likely the product will still not be profitable. The length of this stage will vary.
a)
Maturity
b)
Growth
c)
Introduction
d)
Decline
19.

Involves cultural trends and observing customer behaviors.

a)

introducing the product

b)

evaluating acceptance

c)

testing the product

d)

generating ideas

20.

Eliminating possibilities until one or two ideas are selected for development.

a)

generating ideas

b)

screening ideas

c)

introducing the product

d)

evaluating customer acceptance

21.

A prototype is made and tested.

a)

testing the product

b)

evaluating customer acceptance

c)

screening ideas

d)

generating ideas

22.

Companies make plans relating to production, packaging, labeling, branding, promotion, and distribution.

a)

Testing the product

b)

developing the product

c)

evaluating customer acceptance

d)

generating ideas

23.

This stage is also called "commercialization". New products are advertised to introduce benefits to consumers.

a)

Developing the product

b)

Testing the product

c)

Developing a proposal

d)

Introducing the product

24.

Marketers track customer responses to the product.

a)

Evaluating customer acceptance

b)

Developing the product

c)

Testing the product

d)

Testing a product proposal

25.

New product development generally involves ______ key steps.

a)

9

b)

8

c)

10

d)

5

26.

Creativity is essential in this step of new product development.

a)

Testing the product

b)

Development of the product

c)

Generating ideas

d)

Introduction of the product

27.

A model of a new product.

a)

protagonist

b)

prototype

c)

proton

d)

production

28.

Which of the following phase involve selecting the best idea and dropping poor ideas?

a)

Idea generation

b)

Business Analysis

c)

Market strategy development

d)

Idea screening

29.

Business analysis includes

a)

review of the sales

b)

review of the costs

c)

profit projections

30.

The ideas generation can come from

a)

employees

b)

customers

c)

competitors

d)

ghost