Marketing Management 5th Edition Dawn Iacobucci – Test Bank

Marketing Management 5th Edition Dawn Iacobucci – Test Bank

1. Companies are ever evolving and the primary way they make changes is by offering “new and improved” goods and services to customers.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 109
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Creative
TOPICS: 8-1 Why Are New Products Important?
KEYWORDS: Bloom’s: Comprehension
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:07 AM

2. Zena’s company is seeking to improve its current products. Ultimately, the company would do this only to attract new customers.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Page 109
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-1 Why Are New Products Important?
KEYWORDS: Bloom’s: Application
OTHER: MBA: Knowledge of Technology, Design, and Production
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/14/2016 3:00 PM

3. Change in the market is always occurring.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 109
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG Communication
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-1 Why Are New Products Important?
KEYWORDS: Bloom’s: Comprehension
OTHER: MBA: Generative Thinking
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

4. It’s been shown that new products increase a company’s long-term financial performance and value.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 109
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-1 Why Are New Products Important?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:08 AM

5. Companies approach the design of new products in the same way.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 110
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/14/2016 3:10 PM

6. The process of developing new products depends first on a company’s location.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 110
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Operations Skills
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

7. Some companies take a nearly exclusively top-down approach and don’t start marketing until the final launch phase.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 110
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Managing Administration and Control
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/14/2016 3:29 PM

8. Frank is a senior executive at Company XYZ and has argued that a top-down approach to new product development should be implemented. Frank explains that just because the top-down approach has few steps in the process doesn’t mean the products are simple, or that the process unfolds quickly. Frank’s explanation of the top-down approach is correct.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Page 110
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Marketing Plan
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Application
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:11 AM

9. Bottom-up is sometimes also called “inside out.”
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 110
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Marketing Plan
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:12 AM

10. In the real world, companies do not use a purely bottom-up or top-down marketing process.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 111
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Marketing Plan
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:13 AM

11. In more marketing-oriented companies, customer feedback is sought at most phases in the process.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 111
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Customer
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Managing the Task Environment
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

12. Customers and marketing research are involved in the idea generation, concept testing, product testing, and test marketing stages.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Page 112
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Research
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Generative Thinking
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

13. The new product development process is linear.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 111
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Research
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Evaluation
OTHER: MBA: Generative Thinking
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:14 AM

14. Marketing management is involved throughout the new product development process.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 112
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Research
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Comprehension
OTHER: MBA: Managing the Task Environment
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

15. Many ideas for new products come from marketers observing the world around them.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 112
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Marketing Plan
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Managing the Task Environment
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

16. The most typical method of product testing involves many good old-fashioned, coffee-fueled brainstorming meetings.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 113
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Research
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Knowledge of Technology, Design, and Production
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:17 AM

17. After many ideas have been generated, marketing starts a focus group with all ideas.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 113
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Research
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Knowledge of Technology, Design, and Production
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

18. The form of marketing research at the concept testing stage is usually focus groups and web surveys.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 113
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Research
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Knowledge of Human Behavior and Society
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:17 AM

19. In attempting to determine what drives customers’ decisions, Conny explains to Karl that conjoint analysis is a great research method because it reveals customers’ trade-offs. Conny is correct.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Page 114
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Application
OTHER: MBA: Knowledge of General Business Functions
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

20. Rarely is customer feedback surprising when developing a new product.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 114
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Evaluation
OTHER: MBA: Knowledge of General Business Functions
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

21. Typically, a company will repeat the concept testing phase until it has one product in mind. It will then make a single prototype.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 114
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Knowledge of General Business Functions
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:20 AM

22. Showing company marketing information to customers helps clarify the image of the products and allows the company to get feedback on the marketing information itself.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 115
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Comprehension
OTHER: MBA: Knowledge of General Business Functions
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

23. Area test markets are used frequently because they are inexpensive and easy to set up.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 115
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Comprehension
OTHER: MBA: Managing Administration and Control
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/14/2016 8:21 PM

24. Gary is a marketer for a new type of beer and he wants to see how well it would sell. He sets up a simulated test market by placing his beer among other types in a virtual reality situation where testers will select a beer from the shelf. The goal of this simulated test is to see how often customers will pick his beer in real life.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Page 116
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Application
OTHER: MBA: Managing Administration and Control
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

25. Upon completion of the idea generation stage, the marketing manager takes the customer data and tries to predict the product’s likely success.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 116
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Managing Administration and Control
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

26. The goal of forecasting is to estimate the stock potential ($SP).
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 116
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Marketing Plan
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:23 AM

27. Sales Potential = Market Potential × Purchase Intention × Price, or $SP = MP × PI × Pr.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 117
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Knowledge of General Business Functions
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:24 AM

28. New product development can move along fairly quickly for straightforward brand or line extensions in the context of a mature consumer packaged goods company. In other settings, the process can be very slow.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Page 118
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Operations Skills
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:25 AM

29. The FDA is currently under investigation for requiring too much testing, which moves drugs to market too slowly.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 118
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Research
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Application
OTHER: MBA: Managing the Task Environment
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/14/2016 9:03 PM

30. The product life cycle is a popular metaphor in marketing to describe the development of a product before it is introduced to the marketplace.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 118
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Marketing Plan
TOPICS: 8-3 What Is the Product Life Cycle?
KEYWORDS: Bloom’s: Comprehension
OTHER: MBA: Knowledge of General Business Functions
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/14/2016 9:08 PM

31. Profit increases through the introduction, growth, and maturity phases of the product life cycle. Profit starts to level off and drop in the decline phase.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Pages 119–120
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Pricing
TOPICS: 8-3 What Is the Product Life Cycle?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Knowledge of General Business Functions
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/14/2016 10:42 PM

32. Sales are low and slow in the early phases because distribution is limited.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 119
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Marketing Plan
TOPICS: 8-3 What Is the Product Life Cycle?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Managing Administration and Control
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/14/2016 10:33 PM

33. At market maturity, profits decline because of higher marketing costs and lower prices.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 119
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Marketing Plan
TOPICS: 8-3 What Is the Product Life Cycle?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Managing Administration and Control
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

34. If a firm has an old product at the end of the life cycle, it can divest it, harvest it, or rejuvenate it.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Page 120
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Marketing Plan
TOPICS: 8-3 What Is the Product Life Cycle?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Managing Administration and Control
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

35. The length of product-category life cycles tends to be shorter than those of individual-brand life cycles.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 120
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
LOCAL STANDARDS: United States – OH – Default City – DISC: Marketing Plan
TOPICS: 8-3 What Is the Product Life Cycle?
KEYWORDS: Bloom’s: Evaluation
OTHER: MBA: Managing Administration and Control
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

36. Marketers can speed up imitators (make p bigger) by introducing price decreases early, or speed up innovators (make q bigger) by introducing price decreases later.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Page 124
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-3 What Is the Product Life Cycle?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Knowledge of General Business Functions
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

37. The percentage of innovators and early adopters is about 20–25% of the market.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Pages 123–124
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-3 What Is the Product Life Cycle?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Knowledge of General Business Functions
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:30 AM

38. Consumer acceptance tends to be higher when a new product is not overly complex or has a user-friendly interface.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 124
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-4 How Do New Products and Brand Extensions Fit in Marketing Strategy?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Knowledge of General Business Functions
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/15/2016 2:18 AM

39. The first to market is often the first to fail.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Page 125
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-4 How Do New Products and Brand Extensions Fit in Marketing Strategy?
KEYWORDS: Bloom’s: Comprehension
OTHER: MBA: Knowledge of Human Behavior and Society
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

40. One marketing trend is the growing concern for environmental and corporate social responsibility.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 127
QUESTION TYPE: True / False
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG Communication
LOCAL STANDARDS: United States – OH – Default City – DISC: Promotion
TOPICS: 8-5 What Trends Should I Watch?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

41. The process of developing new products depends first on a company’s
a. bottom line.
b. size.
c. location.
d. culture.
ANSWER: d
POINTS: 1
DIFFICULTY: Challenging
REFERENCES: Page 110
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Managing the Task Environment
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:32 AM

42. A(n) __________ approach is found frequently among companies with strong engineering orientations, pharmaceutical and biomedical firms, financial services, and many high-technology companies.
a. bottom-up
b. top-down
c. upward
d. downward
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 110
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Comprehension
OTHER: MBA: Knowledge of General Business Functions
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:33 AM

43. Top-down is also called __________ because the idea comes from within the company, and then feedback from the outside is sought later in the process.
a. inside-out
b. outside-in
c. long-term
d. short-term
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Pages 110–111
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG Communication
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:34 AM

44. The opposite of a top-down approach is usually called
a. outside-in.
b. inside-out.
c. co-creation.
d. bottom-up.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 111
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Marketing Plan
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Knowledge
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 9:36 AM

45. Marketing management is involved throughout the new product development process, and especially in the __________ stage.
a. test marketing
b. concept testing
c. product development
d. idea generation
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 112
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Product
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 8/26/2016 6:39 PM

46. Which of the following steps comes immediately after idea creation in the new product development process?
a. in-house winnowing and refinement
b. concept testing
c. product testing
d. test marketing
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 113
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Generative Thinking
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM

47. Saying, “Okay, maybe some ideas are in fact bad ideas” corresponds to which step in the process of creating new products?
a. in-house winnowing and refinement
b. brainstorming meetings
c. concept testing
d. design development
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: Page 113
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
NATIONAL STANDARDS: United States – BUSPROG: Analytic
LOCAL STANDARDS: United States – OH – Default City – DISC: Strategy
TOPICS: 8-2 How Does Marketing Develop New Products for Their Customers?
KEYWORDS: Bloom’s: Analysis
OTHER: MBA: Managing Strategy and Innovation
DATE CREATED: 7/11/2016 2:19 PM
DATE MODIFIED: 7/11/2016 2:19 PM