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Chapter 9 New-Product Development and Product Life-Cycle Strategies1) What are the two ways that a company can obtain new products? A) line extension and brand managementB) internal development and brand managementC) new-product development and acquisitionD) service development and product extensionE) market mix modification and research and developmentAnswer: CDiff: 2Page Ref: 258Skill: ConceptObjective: 9-12) Product improvements, product modifications, and original products can all be classified as _.A) pioneer productsB) new productsC) product conceptsD) product ideasE) test productsAnswer: BDiff: 1Page Ref: 258Skill: ConceptObjective: 9-13) Which of the following is NOT a potential reason for a new product to fail?A) an underestimated market size B) a poorly designed productC) an incorrectly positioned productD) higher than anticipated costs of product developmentE) ineffective advertisingAnswer: ADiff: 2Page Ref: 258Skill: ConceptObjective: 9-14) Which of the following is NOT a challenge presented by the product life cycle that a firm must face?A) All products eventually decline.B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages.C) A firm must be good at developing new products to replace aging ones.D) A firm must be good at adapting its marketing strategies.E) It is difficult to plot the stages as a product goes through them.Answer: EDiff: 2Page Ref: 258Skill: ConceptObjective: 9-15) The creation of a successful new product depends on a companys understanding of its _ and its ability to deliver _ to customers.A) competitors, distributors, and employees; new stylesB) customers, brands, products; product imagesC) customers, competitors, and markets; superior valueD) product, marketing mix, and marketing strategy; functional featuresE) product life cycle, legal responsibilities, and social responsibilities; innovationsAnswer: CDiff: 2Page Ref: 259Skill: ConceptObjective: 9-26) New product development starts with _.A) idea generationB) idea screeningC) concept developmentD) concept testingE) test marketingAnswer: ADiff: 1Page Ref: 259Skill: ConceptObjective: 9-27) Executives, manufacturing employees, and salespeople are all examples of _.A) external sources for new-product ideasB) internal sources for new-product ideasC) core members of innovation management systemsD) research and development team membersE) new-product committee membersAnswer: BDiff: 2Page Ref: 260AACSB: CommunicationSkill: ConceptObjective: 9-28) A detailed version of a new idea stated in meaningful customer terms is called a _.A) product ideaB) product conceptC) product imageD) product proposalE) product movementAnswer: BDiff: 2Page Ref: 262AACSB: CommunicationSkill: ConceptObjective: 9-29) A _ is the way consumers perceive an actual or potential product.A) product ideaB) product conceptC) product imageD) test marketE) concept testAnswer: CDiff: 1Page Ref: 262AACSB: CommunicationSkill: ConceptObjective: 9-210) An attractive idea must be developed into a _.A) product ideaB) product conceptC) product imageD) test marketE) product strategyAnswer: BDiff: 2Page Ref: 262Skill: ConceptObjective: 9-211) _ calls for testing new-product concepts with groups of target consumers. A) Concept developmentB) Concept testingC) Idea generationD) Idea screeningE) Test marketingAnswer: BDiff: 1Page Ref: 263Skill: ConceptObjective: 9-212) In the concept testing stage of new-product development, a product concept in _ form is presented to groups of target consumers.A) physical or symbolicB) prototypeC) finalD) market-testedE) commercialAnswer: ADiff: 2Page Ref: 263Skill: ConceptObjective: 9-213) With what groups do firms conduct concept testing for new products?A) suppliersB) employeesC) target customersD) manufacturersE) competitorsAnswer: CDiff: 3Page Ref: 263Skill: ConceptObjective: 9-214) For some _, a simple description consisting of a word or picture might be sufficient.A) concept testsB) product conceptsC) marketing strategiesD) product developmentsE) business analysesAnswer: ADiff: 2Page Ref: 263AACSB: CommunicationSkill: ConceptObjective: 9-215) After concept testing, a firm would engage in which stage in developing and marketing a new product?A) idea screeningB) marketing strategy developmentC) business analysisD) product developmentE) test marketingAnswer: BDiff: 2Page Ref: 263Skill: ConceptObjective: 9-216) The first part of the marketing strategy statement describes the target market; the planned product positioning; and goals for sales, profits, and _.A) market shareB) competitionC) secondary marketD) competitions anticipated reactionE) life-cycle durationAnswer: ADiff: 3Page Ref: 263Skill: ConceptObjective: 9-217) The second part of the marketing strategy statement outlines the products planned price, distribution, and _ for the first year.A) advertisingB) promotionC) marketing budgetD) positioningE) target marketAnswer: CDiff: 3Page Ref: 264Skill: ConceptObjective: 9-218) The third part of the marketing strategy statement includes all of the following EXCEPT _.A) long-run salesB) profit goalsC) marketing mix strategiesD) short-run salesE) A and CAnswer: DDiff: 3Page Ref: 264Skill: ConceptObjective: 9-219) A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the companys objectives is called a _.A) business feasibility planB) marketing strategy developmentC) business analysisD) product acceptanceE) proposalAnswer: CDiff: 1Page Ref: 264Skill: ConceptObjective: 9-220) During which stage of new-product development will management most likely estimate minimum and maximum sales to assess the range of risk in launching a new product?A) concept testingB) marketing strategy developmentC) business analysisD) product developmentE) test marketingAnswer: CDiff: 2Page Ref: 264Skill: ConceptObjective: 9-221) The major purpose of test marketing is to provide management with the information needed to make a final decision about _.A) how to develop a market strategyB) which market to compete inC) whether to launch the new productD) how to compete in the marketE) how long to compete in the marketAnswer: CDiff: 3Page Ref: 268Skill: ConceptObjective: 9-222) Which of the following is necessary for successful new-product development?A) a holistic and sequential product development approachB) a customer-centered, team-based, systematic approachC) a team-based, innovation-management approachD) a market pioneer mindset and a holistic approachE) an innovation management system and sequential product developmentAnswer: BDiff: 3Page Ref: 268Skill: ConceptObjective: 9-223) _ is the product life cycle period when sales fall off and profits drop.A) IntroductionB) GrowthC) MaturityD) DeclineE) DevelopmentAnswer: DDiff: 1Page Ref: 273Skill: ConceptObjective: 9-324) All of the following are stages in the PLC EXCEPT _.A) introductionB) growthC) maturityD) adoptionE) declineAnswer: DDiff: 1Page Ref: 273Skill: ConceptObjective: 9-325) In the _ stage, the firm faces a trade-off between high market share and high current profit. A) growthB) declineC) maturityD) introductionE) adoptionAnswer: ADiff: 2Page Ref: 277Skill: ConceptObjective: 9-326) Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers?A) growthB) declineC) maturityD) phase-inE) adoptionAnswer: CDiff: 1Page Ref: 277Skill: ConceptObjective: 9-327) Most products in the marketplace are in the _ stage of the product life cycle.A) growthB) declineC) maturityD) introductionE) developmentAnswer: CDiff: 2Page Ref: 277Skill: ConceptObjective: 9-328) Which of the following is a product concept?A) a battery-powered all-electric carB) a pocket-size digital music playerC) an energy efficient humidifierD) a thin, lightweight laptop with extended battery life appealing to students and young professionals who want access to their computer anywhere, anytimeE) a high-tech, stylish running shoe with built-in sensors to record the distance the wearer has walked or runAnswer: DDiff: 2Page Ref: 262AACSB: Reflective ThinkingSkill: ApplicationObjective: 9-229) Companies rarely solicit ideas from customers during the idea generation stage of product development.Answer: FALSEDiff: 1Page Ref: 261AACSB: CommunicationSkill: ConceptObjective: 9-230) A product idea is an idea for a possible product a company can offer the market, while a product concept is a detailed version of the idea stated in meaningful consumer terms. Answer: TRUEDiff: 3Page Ref: 262Skill: ConceptObjective: 9-231) The business analysis stage represents the first large jump in financial investment in the new-product development process.Answer: FALSEDiff: 2Page Ref: 264Skill: ConceptObjective: 9-232) A company launching a new product into the market must first decide on when to launch the product. Answer: TRUEDiff: 2Page Ref: 268Skill: ConceptObjective: 9-233) JumBo Games is launching a new set of game toys in the commercialization stage. The first decision to make is introduction timing and the second is where to launch the new product.Answer: TRUEDiff: 2Page Ref: 268Skill: ConceptObjective: 9-234) Sequential product development has the advantage of not only being a team-oriented approach, but it is also faster in bringing products to market.Answer: FALSEDiff: 1Page Ref: 269Skill: ConceptObjective: 9-235) To avoid too few new product ideas and the failure of many good ideas, management should install an innovation management system that collects, reviews, evaluates, and manages new-product ideas.Answer: TRUEDiff: 1Page Ref: 271AACSB: CommunicationSkill: ConceptObjective: 9-236) Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs.Answer: TRUEDiff: 2Page Ref: 277Skill: ConceptObjective: 9-337) When a company decides to maintain a product in the decline stage, it will reduce costs and hope that sales hold up to increase the profits in the short run.Answer: FALSEDiff: 2Page Ref: 279Skill: ConceptObjective: 9-338) The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition.Answer: TRUEDiff: 2Page Ref: 280AACSB: Ethical ReasoningSkill: ConceptObjective: 9-439) The international growth of many professional and business services such as accounting, consulting, and advertising led to the globalization of the client com

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