MKT 3900 Chapter 9 Practice Questions and Answers

Principles of Marketing, 14e (Kotler)
Chapter 9 New Product Development and Product Life-Cycle Strategies

1) 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 life-cycle 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: E
Diff: 2 Page Ref: 259
Skill: Concept
Objective: 9-1

2) 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: 2 Page Ref: 260
Skill: Concept
Objective: 9-1

3) Product improvements, product modifications, and original products can all be classified as
________.
A) pioneer products
B) new products
C) product strategies
D) product extensions
E) test products
Answer: B
Diff: 1 Page Ref: 260
Skill: Concept
Objective: 9-1

,4) 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: 2 Page Ref: 260
Skill: Concept
Objective: 9-1

5) Your firm added three new products earlier this year to increase variety for customers. Two of
them failed to reach even minimal sales. 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) Research was too extensive.
E) The product launch was ill-timed.
Answer: D
Diff: 2 Page Ref: 260
Skill: Concept
Objective: 9-1

6) New-product development starts with ________.
A) idea generation
B) idea screening
C) concept development
D) concept testing
E) test marketing
Answer: A
Diff: 1 Page Ref: 261
Skill: Concept
Objective: 9-2

7) Executives, manufacturing employees, and salespeople are all examples of ________.
A) external sources for new-product ideas
B) internal sources for new-product ideas
C) core members of innovation management systems
D) research and development team members
E) test marketers
Answer: B
Diff: 2 Page Ref: 262
Skill: Concept
Objective: 9-2

,8) Your company decides to use only internal sources for developing new-product ideas. Which
of the following would NOT be consulted?
A) executives and professionals
B) company records and data
C) intrapreneurial programs
D) suppliers
E) salespeople
Answer: D
Diff: 2 Page Ref: 262
Skill: Concept
Objective: 9-2

9) Which of the following is NOT a recommended method for companies to tap into their
customers as sources for new-product ideas?
A) analyzing customer complaints and questions
B) relying heavily on customers to know what types of technical products they need
C) working alongside customers to get ideas and suggestions
D) turning customers into cocreators
E) putting customer-created products on the market
Answer: B
Diff: 3 Page Ref: 262
Skill: Concept
Objective: 9-2

10) Your firm asks you to consult external sources for new-product ideas. All of the following are
common external sources EXCEPT ________.
A) customers
B) suppliers
C) competitors
D) trade shows and magazines
E) the firm's executives
Answer: E
Diff: 1 Page Ref: 262
Skill: Concept
Objective: 9-2

, 11) Which of the following is the practice of inviting broad communities of customers,
employees, independent researchers, and members of the public into the new-product innovation
process?
A) brainstorming
B) idea screening
C) crowdsourcing
D) outsourcing
E) concept testing
Answer: C
Diff: 1 Page Ref: 263
Skill: Concept
Objective: 9-2

12) The purpose of idea generation is to create a ________ number of ideas. The purpose of
succeeding stages is to ________ that number.
A) small number; reduce
B) small number; increase
C) large number; increase
D) large number; reduce
E) limited number; sustain
Answer: D
Diff: 2 Page Ref: 264
Skill: Concept
Objective: 9-2

13) The owners of GrayBerry Gifts have just brainstormed a large number of ideas for adding
new products and services after visiting several buying fairs. The owners will begin the first
idea-reducing stage, called ________, to arrive at a realistic number to adopt.
A) business analysis
B) idea generation
C) concept testing
D) idea screening
E) concept development
Answer: D
Diff: 2 Page Ref: 264
Skill: Concept
Objective: 9-2