One benefit of test marketing is that the marketing activity is sheilded from competitors.
False
Many products may experience short-term fluctuations in sales, but a long term drop in sales probably signifies that a product is in the decline stage of the product life cycle.
True
The Sumatra Coffee Company has two new products. One simple hand-cranked coffee grinder. The other is a combination grinder and a brewer that also can be used to dispense hot milk. Of these two, hand-cranked grinder will probably be diffused more quickly because it is less complex.
True
The product life cycle is a biological metaphor that traces the stages of a products acceptance, from its introduction (birth) to its decline (death.)
True
The internet offers a fast, cost effective way to conduct test marketing.
True
Profits typically reach their peak during the growth stage of the product life cycle.
True
The two techniques that are considered most useful for generating new-product ideas are customer-generation and competitive imitation.
False
The development of garlic-butter flavored cresent rolls by Pillsbury would not be considered a new product since the company was already making cresent rolls. It would simply be called a line extension.
False
Seven employees from a company are trying to come up with ideas for new-product development. The employees are all in a room together, shouting out potential ideas. The ideas are written down and evaluated as they are generated. This is an example of brainstorming.
False
The growth stage is the first stage of the product life cycle.
False
For a firm that adheres to the product concept, the logical place to start generating new-product ideas is with the customers of the firm.
False
A test market is one example of a laboratory test where consumers are encouraged to try a new product and provide feedback to the manufacturer.
False
The product life cycle concept encourages marketing managers to act reactively.
False
A firms new-product strategy links the new-product development process with the objectives of the marketing departments, the business unit, and the corporation.
True
Increasing globalization of markets and of competition provides a reason for multinational firms to consider new product development from a worldwide perspective.
True
Basically, all that happens in the development stage of the new-product process is that the first prototype of the product gets developed.
False
Anderson Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game. The firm is engaged in a new-product business analysis.
True
Consumers described as laggards tend to rely on group norms when deciding to adopt an innovation.
False
It is considered ineffecient to use concept tests during the idea screening stage of the new-product development process.
