201-marketing Management Mcq

MCQs on New Product Development and Product Life Cycle Strategies Learning

7. One source estimates that 80 percent of new consumer packaged goods products fail. Which of the following categories accounts for most of those failures?

1. The products such as "VHS tapes" are examples of A product classes B product forms  C branding D product perception 2. The competitors in the introductory stage of product life cycle are…. A few  B growing number C stable but begins declining D declining number 3. In the 'growth stage of product life cycle' the cost per customer is…. A high B low C average  D moderate 4. In product life cycle, the stage in which sales are zero is said to be… A product development stage  B maturity stage C growth stage D decline stage 5. The sales in maturity stage of product life cycle are A low sales B rapidly rise in sales C peak sales  D decline in sales

6. As discussed in the text, all of the following have been new product innovations used by Gillette to retain its leadership position in a number of industries EXCEPT: A B C D

Satin Care shaving gel for women. Duracell Ultra line of batteries. Gillet Burnaway for Men Hair Removal Cream  Mach 3 Turbo razor for men.

A B C D

Brand extensions. Cost reductions. Line extensions.  Positioning or repositioning of new products.

8. The first step in the new-product development process is thought to be: A B C D

Idea generation. Idea screening.  Concept development and testing. Product development.

9. Major sources of new-product ideas include all of the following EXCEPT: A B C D

Competitors. Government.  Internal sources. Customers.

10. The way consumers perceive an actual or potential product is called the: A B C D

Product image.  Product idea. Product form. Product concept.

11. Which of the following would be considered to be among the issues that would be covered in the first part of a marketing strategy statement? A B C D

Packaging strategy. Dealer strategy. Target market strategy or description.  Advertising strategy.

12. A consumer takes a tour of a new proposed store via his or her computer screen. The consumer can make suggestions as to design themes that would be attractive and he or she can also suggest merchandise options from a list provided by the Web site. Which of the following would be the form of testing that has just been described? A B C D

Store-based testing. Producer sponsored testing. Virtual reality test marketing.  Focal test marketing.

13. If a company were to decide to use team-based or collaborative product development, the form that the company would have chosen would be called: A B C D

Sequential product development. Dual product development. Simultaneous product development.  Pyramidal product development.

14. Considering a product from the time it is conceived to the time it is abandoned, the ______________ phase is characterized by zero sales and a place where the company's investment costs mount. A B C D

decline introduction maturity product development 

15. Considering that some products have special life cycles, a ___________ has a cycle showing several periods of renewed interest. A B C D

fashion style  theme fad

16. During which stage of the product life cycle does sales growth slow or level off? A B C D

Introduction. Maturity.  Decline. Growth

17. During which phases of the product life cycle are costs thought to be low on a per customer basis?

A B C D

Maturity and Decline.  Product Development and Introduction. Introduction and Growth. Growth and Maturity.

18. Profits are normally highest in which of the following stages or phases of the product life cycle? A B C D

Maturity.  Growth. Decline. Introduction.

19. During which stage of the product life cycle does the company attempt to maximize market share? A B C D

Introduction. Maturity. Growth.  Decline.

20. During which stage of the product life cycle does a company seek to build selective distribution? A B C D

Maturity. Introduction.  Growth. Saturation.

21. In considering an observed price, consumers often compare it to an internal price called a(n) _____ price. expected perceived reference  psychological tolerated 22. _____ pricing is used to maximize the company's market share. Survival Market skimming Market penetration  Reference Leadership 23. _____ costs do not vary with production or sales revenue. Open Hint for Question 3 in a new window. Variable Fixed  Expected Total Net 24. _____ cost is the cost per unit at that level of production. Fixed Total Average  Variable Net 25. In _____ pricing the firm bases its price largely on competitors' prices. high-low competitive target-return markup going-rate  26. In _____ pricing the company decides how to price its products to different customers in different locations and countries. discriminatory

regional geographical  demographic adaptive 27. The direct exchange of goods, with no money and no third party involved, is called a(n) _____. barter  compensation deal buyback agreement offset trade 28. When PepsiCo sells its cola syrup to Russia for rubles and agrees to buy Russian vodka at a certain rate for sale in Canada, this is called _____. barter compensation deal buyback agreement offset  trade 29. _____ occurs when a company sells a product or service at two or more prices that do not reflect a proportional difference in costs. Price differentiation Price discrimination  Psychological pricing Geographical pricing Non-proportional pricing 30. Coca-Cola carries a different price depending on whether it is purchased in a fine restaurant, fast-food restaurant, or a vending machine. This is called _____ pricing. channel  image location customer-segment product-form 31. The first step in setting pricing policy is: determining demand  estimating cost selecting the pricing objective selecting a pricing method analyzing competitor's costs

32. Companies pursue _____ as their major price objective if they are plagued with overcapacity, intense competition, or changing consumer wants.

French sealed-bid  Yahoo! or eBay

survival  maximum market share maximum profit share market penetration market skimming

38. A British aircraft manufacturer sold planes to Brazil for 70 percent cash and the rest in coffee. This type of practice is called a(n) _____.

33. If demand hardly changes with small changes in price the demand is _____. unitary sensitive elastic inelastic  neutral 34. The decline in the average cost with accumulated production is called the _____. demand curve supply curve variable cost accumulated cost learning curve  35. A company charging fairly low prices for highquality goods is practising _____ pricing. value  perceived-value auction-type quality competitive 36. In a(n) _____ auction the auctioneer announces a high price for a product and then slowly decreases the price until a bidder accepts the price. English Dutch  French sealed-bid Yahoo! or eBay 37. In a(n) _____ auction would be suppliers can submit only one bid and cannot know the other bids. English Dutch

barter compensation deal  buyback arrangement offset trade 39. One method of increasing prices is using _____, where the company maintains its price but removes or prices separately one or more elements that were part of the former offer. escalator clauses delayed quotation pricing demand pricing unbundling  unitary pricing 40. In _____ pricing the company does not set a final price until the product is finished and delivered. anticipatory delayed quotation  time-delayed set-point guerilla 41. A market leader can respond directly to a competitor's aggressive price-cutting strategies by :. maintaining price and adding value  cutting costs changing the packaging using a different distribution channel going out of business 42. When the local museum charges different customer groups different prices for admission, this is known as: product form pricing image pricing customer-segment pricing  location pricing time pricing