Chapter-9

New-Product Development And Product Life-Cycle Strategies

Quiz

Multiple Choice
1.A company typically generates hundreds of ideas to find a few good

ones through-

1.Concept 2.Test marketing 3.Business analysis 4.Idea generation

Ans:4

2.Which one helps to spot good ideas & drop poor ones as soon as possible?

1.idea generation 2.idea screening 3.product concept

4.concept

Ans:2

3.Which can be presented to consumers symbolically or physically?

1.test marketing 2.product concept

3.concept testing 4.business analysis

Ans:3

4.A company launching a new product should give emphasize on introduction of-

1.timing 2.product strategy

3.selling 4.cost

Ans:1

5.Customer centered new product development focuses on-

1.customer satisfaction & solving their problems

 2.satisfaction& profit

3.profit only

4.above all

Ans:1

6.In fast changing & highly competitive markets which product development can
be failure?

1.systematic new product development

2.team based new product development

3.customer centered new product development

4.none of these.

Ans:2

7.. is the period of rapid market acceptance & increasing profits-

1.introduction 2.decline

3.growth 4.maturity

Ans:3

8.Sales fall & profits drop at-

1.introduction stage 2.decline stage

3.growth stage 4.maturity stage

Ans:2

9.The curve of style, fashion & fad are-

1.indifferent 2.different

3.above 1 & 2 4.none of these

Ans:2

10.Fad is for-

1.long period 2.very long period

3.temporary period 4.none of these

Ans:3

11.Which act established the Consumer Product Safety Commision?

1.The Consumer Product Safety Act of 1979

2.The Consumer Product Safety Act of 1982

3The Consumer Product Safety Act of 1975

4.The Consumer Product Safety Act of 1972

Ans:4

12. helps a company develop a consistent worldwide image-

1.commercialization 2.industrialization

3.standardization 4.service marketing

Ans:3

13.Packaging issues should be

1.subtle 2.crafty

3.skillful 4.all of these

Ans:4

14. The open innovation new product idea programme are also known as-

1.crowdsourcing 2.commercialization

3.test marketing 4.product concept

Ans:1

15.Which helps to distinguish between product ideas, product concept & product
image?

1.product development 2.product strategy

3.business analysis 4.product concept

Ans:4

16.Business analysis satisfies ---

1.consumers objectives 2.retailers objectives

3.companies objectives 4.none of these

Ans:3

17.In which stage products are introduced into realistic market settings?

1.product testing 2.test marketing

3.business analysis 4.concept

Ans:2

18.PLC stands for----

1.production life cycle 2.product life cycle

3.product life centralization 4.all of these

Ans:2

19.A detailed version of the new product----

1.product concept 2.concept testing

3.business analysis 4.idea generation

Ans:1
20.Introducing a new product into the market----

1.centralization 2.standardization

3.product concept 4.commercialization

Ans:4

TRUE-FALSE
1. New product continue to fail at a disturbing rate [T]

2. Fads are temporary periods of unusually high sales driven by consumer

enthusiasm [T]

3. Intrapreneurial programs encourage employees to think up and develop new

product ideas [T]

4. The marketing strategy statement consists of two parts [F]

5. Good new product ideas also come from watching & listening to customers [T]

6. Business analysis involves a review of the sales cost & profit projection for new
product [T]

7. When the costs of developing & introducing the product are high, the company
may do little or no test marketing [F]

8. Simulation provides a measure of trial & the commercials effectiveness against

competing commercials [T]

9. Maturity is the period when sales fall of & profits drop [F]

10. Growth is a period of rapid market acceptance & increasing profit [T]

11. Profits are negative or low because of low sales in introduction stage [T]

12. Style is a currently accepted in a given field [F]

13. Idea generation is the systemic search for new product ideas in order to find a
few good ones [T]

14. As sales & profits declines some firm withdraw their product from market [T]

15. The third part of the marketing strategy statement describes products
planned price, distribution & marketing budget for the first year [F]

Fill In The Gaps:

1.Firms can obtain new products in two ways. One is acquisition and another is
new product development.

2.Idea generation is the first step of new product development.

3.Major sources of new product ideas include internal and external sources.

4.Perhaps the most important sources of new product ideas is customers

themselves.

5.To spot good ideas and drop poor ones, we use idea screening.

6.The first idea reducing stage is idea screening.

7.One marketing expert proposes an R-W-W .

8.A product concept is a detailed version of the idea stated in meaningful
consumers terms.

9.A product image is the way consumers perceive an actual product.

10.Marketingstrategy statement consists of three parts.

11.Decline is the period when sales fall off and profits drop .

12.Standard test markets have some drawbacks .

13.Standard test markets are still the most widely used approach for major in
market testing.

14.A basic and distinctive mode of expression style.

15.Simulated test markets overcome some of the disadvantages of standard and

controlled test markets.

16.The introducing stage starts when the new product is first launched .
17.New product development process should be holistic and systematic rather
than compartmentalized and haphazard .

18.Introducing a new product into the market is commercialization.

19.Company install innovation management system to collect ,review ,evaluate

and manage new product ideas.

20.Growth is a period of rapid market acceptance and increasing profits.

Ans:1.Acquisition 2.Idea generation 3.Internal ,External 4.Customers 5.Idea

screening 6.Reducing 7.R-W-W 8.Concept 9.Perceive 10.Strategy ,Three 11.Fall
,Drop 12.Drawbacks 13.Standard 14.Distinctive 15.Overcome ,Disadvantages
16.Launched 17.Holistic ,Haphazard 18.Commercialization 19.Innovation
20.Acceptance