WorksheetsChapter 9
Total questions: 40
Worksheet time: 20mins
New product development refers to:
Original products, improvements, modifications, and new brands
Buying patents only
Copying competitor products
Dropping old products
Acquisition as a way to obtain new products involves:
Internal R&D
Crowdsourcing ideas
Test marketing
Buying another company, patent, or license
Idea generation is best described as:
Systematic search for new product ideas
Screening ideas
Commercializing products
Evaluating profits
Which of the following is an internal source of new product ideas?
Customers
Company R&D and employees
Competitors
Distributors
Crowdsourcing refers to:
Hiring consultants
Using suppliers only
Observing competitors
Inviting large communities to contribute ideas
The purpose of idea screening is to:
Generate more ideas
Test concepts
Identify good ideas and drop poor ones early
Develop products
The R-W-W screening framework asks whether an idea is:
Real, can we win, and worth doing
New, innovative, profitable
Fast, cheap, scalable
Creative, feasible, ethical
A product idea differs from a product concept because a product concept is:
Less detailed
Tested in the market
A finished product
Stated in meaningful consumer terms
Concept testing involves:
Testing product concepts with target consumers
Testing physical products
Test marketing
Business analysis
Marketing strategy development includes:
Product testing only
Idea generation
Product design
Target market, value proposition, and sales goals
Business analysis evaluates:
Consumer attitudes
Brand image
Market positioning
Sales, costs, and profit projections
Product development is the stage where:
Concepts are tested
Products are launched
Markets are evaluated
Ideas are turned into physical products
Test marketing allows firms to:
Skip commercialization
Finalize packaging only
Reduce development costs
Test products and marketing programs in real settings
Test marketing is LEAST likely when:
Investment is large
Market uncertainty is high
Product is a simple line extension
Marketing strategy is unclear
Commercialization involves:
Concept testing
Product development
Idea screening
Introducing the product into the market
Successful new product development should be:
Fast and cheap
Competitor-centered
Technology-driven only
Customer-centered, team-based, and systematic
Customer-centered new product development focuses on:
Reducing costs
Speed to market
Internal efficiency
Solving customer problems and creating value
Team-based new product development means:
One department leads
Outsourcing development
Eliminating R&D
Departments work closely and overlap steps
Systematic new product development requires:
Trial and error
Large budgets only
External consultants
An innovation-oriented culture and systems
The product life cycle (PLC) shows:
Sales and profits over a product’s life
Product costs only
Market share growth
Competitive strategies
During the introduction stage:
Profits are high
Competition is intense
Prices always fall
Sales grow slowly and profits are low or negative
The growth stage is characterized by:
Rapid market acceptance and rising profits
Declining sales
High costs and losses
Few competitors
In the maturity stage:
Sales increase rapidly
No competition exists
Sales growth slows and profits level off or decline
Promotion is reduced
Common maturity-stage strategies include:
Dropping the product
Heavy price skimming
Ending promotion
Modifying the market, product, or marketing mix
In the decline stage, a firm may:
Maintain, harvest, or drop the product
Increase R&D
Expand distribution
Enter new markets
Styles differ from fashions because styles:
Fade quickly
Are short-lived
Are unpredictable
Have cycles of renewed interest
Fads are characterized by:
Long adoption cycles
Stable demand
Strong brand loyalty
Rapid adoption and quick decline
Socially responsible product decisions involve considering:
Profit only
Speed to market
Global demand
Product safety, quality, and environmental impact
Public policy affects product decisions related to:
Promotion only
Distribution channels
Branding
Safety, warranties, and product quality
International product marketing requires firms to decide:
Promotion budgets only
Pricing only
One global product strategy always
Standardization versus customization
Standardization means:
Customizing products for each market
Changing packaging
Modifying branding
Offering the same product across markets
Customization involves:
Lower costs
Uniform marketing
Adapting products to local needs and cultures
Reduced complexity
Packaging and labeling decisions in international markets must consider:
Local laws, customs, and values
Company culture
Competitor prices
Market share
Which company example illustrates global product adaptation?
Apple
Nike
McDonald’s in France
The PLC concept is useful, but marketers must remember that:
All products follow the same pattern
PLC predicts exact sales
PLC eliminates risk
PLC patterns vary by product and market
Product deletion decisions are often difficult because:
Costs are low
Markets are stable
Competition is low
Products may have loyal customers or brand value
Managing the PLC effectively requires:
Different strategies at different life-cycle stages
One consistent strategy
Eliminating innovation
Avoiding promotion
Innovation is especially important during:
Decline stage only
Introduction stage only
Maturity stage only
All stages of the product life cycle
New product failure is often due to:
Strong competition
High promotion
Lack of meaningful customer value
Long development time
The ultimate goal of new product development is to:
Launch many products
Beat competitors
Reduce costs
Create customer value and profitable growth
