Chapter 9 New-Product Development and Product Life-Cycle Strategies
1) What are the two ways that a company can obtain new products?
A) line extension and brand management
B) internal development and brand management
C) new-product development and acquisition
D) service development and product extension
E) market mix modification and research and development
Answer: C
Diff: 2Page Ref: 258
Skill: Concept
Objective: 9-1
2) Product improvements, product modifications, and original products can all be classified as
________.
A) pioneer products
B) new products
C) product concepts
D) product ideas
E) test products
Answer: B
Diff: 1Page Ref: 258
Skill: Concept
Objective: 9-1
3) Which of the following is NOT a potential reason for a new product to fail?
A) an underestimated market size
B) a poorly designed product
C) an incorrectly positioned product
D) higher than anticipated costs of product development
E) ineffective advertising
Answer: A
Diff: 2Page Ref: 258
Skill: Concept
Objective: 9-1
349
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
Part 3: Designing a Customer-Driven Marketing Strategy and Integrated Marketing Mix
Chapter 9
New-Product Development and Product Life-Cycle Strategies
GENERAL CONTENT: Multiple-Choice Questions
1.Every product seems to go through a life cycle. Which of the following is NOT a major
challenge presented by the PLC?
a.All products eventually decline.
b.A firm must be good at developing new products to replace aging ones.
c.The firm must be good at adapting its marketing strategies.
d.It is difficult to plot the stages that a product goes through.
e.A and C
(Answer: d; p. 252; Moderate; LO3)
2.Products may fail because ________.
a.the market size may have been overestimated
b. the product’s design did not meet consumer expectations
c.they were priced too high
d.they were advertised poorly
e.any of the above
(Answer: e; p. 253; Easy; LO1)
3.All of the following are ways a company can obtain new products by acquisition EXCEPT
________.
a.buying a whole company
b.buying a patent
c.backward engineering
d.buying a license to produce a product
e.none of the above
(Answer: c; p. 253; Moderate; LO1)
4.Studies indicate that up to ________ of all new consumer products fail.
a.60 percent
b.70 percent
c.80 percent
d.90 percent
e.95 percent
(Answer: d; p. 253; Easy; LO1)
5.The first step in the new-product development process is ________.
a.idea generation
b.idea screening
c.concept development
d.concept testing
e.test marketing
(Answer: a; p. 254; Easy; LO2)
252