University of Houston - MARK 3336>Marketing Chapter 9 Practice Test (ANSWER KEY)

1. Which of the following is a significant challenge presented by the product life cycle? a. increased expenses b. increased competition c. new product development d. evaluation of results e. recognizing the stages ...

1. Which of the following is a significant challenge presented by the product life cycle? a. increased expenses b. increased competition c. new product development d. evaluation of results e. recognizing the stages as a product goes through them 2. Acquisition refers to ________. a. the buying of a whole company, a patent, or a license to produce someone else's product b. an agreement between two or more commercial companies to produce a common product c. a partnership between two companies to produce a product in different countries by sharing risks d. investments made in a country's businesses by foreign citizens, often in the form of stocks e. the development of original products, product improvements, product modifications, and new brands through the firm's own product development strategies 3. Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________. a. new product development b. acquisition c. joint venture d. licensing contract e. divestment 4. Product improvements, product modifications, and original products can all be classified as ________. a. blueprints b. new products c. prototypes d. product extensions e. test products 5. Which of the following is a common reason for new product failure? a. incorrect estimation of the market size b. low product development costs c. ineffective social marketing campaigns d. low selling prices of products e. patent ownership exclusively held by the company 6. A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure? a. The products were priced too high. b. The products were advertised incorrectly. c. Competitors fought back harder than expected. d. Product research was too extensive. e. The product development costs were high. 7. New product development starts with ________. a. concept development b. idea screening c. idea generation d. concept testing e. test marketing 8. John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify? a. idea screening b. idea generation c. concept testing d. product product development e. manufacturing 9. Which of the following is an internal source for new product ideas? a. competitors b. company executives c. marketing research firms d. trade magazines e. government agencies 10. Many companies have developed ________ programs that encourage employees to develop new product ideas. a. management b. incentive c. entrepreneurial d. intrapreneurial e. crowdsourcing 11. Why are customers often considered the most important sources of new product ideas? a. Customers are close to the market and can pass along information about problems and new product possibilities. b. The company can analyze customer questions and complaints to find new products that better solve consumer problems. c. Customers buy competing new products, take them apart to see how they work, analyze sales, and then decide to purchase. d. Customers review the sales, costs, and profit projections for a new product to find out whether the product satisfies the company's objectives. e. Customers estimate the minimum and maximum sales to assess the range of risk. 12. Which of the following is an external source for ideas? a. project managers b. engineers c. salespeople d. manufacturing staff e. suppliers