Exam 9: Developing New Products and Managing the Product Life Cycle

Refer to the scenario below to answer the following questions. Most people laughed when Evelyn Ringler explained her product idea: a solar- powered vacuum cleaner.But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys.After setting up a demonstration booth in a mall in a Chicago suburb,Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice,such as how much they would pay for the vacuum,what colors they would prefer,and why they would not buy the vacuum. The vacuum itself was dome- shaped,something like a small saucer,with a filter bag on top and sensory nodes along the edges.After being charged in the sunlight,the vacuum could run for 10 hours,covering a floor area of 600 square feet.As the apparatus lightly bumped into table legs,chairs,and so on,the sensory nodes allowed the vacuum to move around the objects in various directions.This is the same type of technology used in the manufacture of children's race cars and walking dolls. Evelyn knew that the solar- powered vacuum would be especially helpful to both elderly consumers,who may have a more difficult time with vacuuming,and on- the- go consumers who lead busy lives.The price would be above average but would likely be reduced after Evelyn recouped some of her costs. After a 500- unit production run and a substantial financial investment,Evelyn set up a multiple- city test market,in a Chicago mall and in an appliance store in New Jersey."It's such a novel idea," Evelyn added."People will notice it,even if they don't buy it right away." -When Evelyn set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner,she was doing which of the following?

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.

Which of the following is a disadvantage of a team- based approach to new- product development?

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying,the company was .

The stage at which new product and marketing programs are introduced into realistic market settings is called concept testing.

Some products that have entered the decline stage have been cycled back to the growth stage through _ .

Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the product's life cycle.

In which stage of the PLC will promotional expenditures be high in an attempt to respond to increasing competition?

What are the two advantages of an innovation management system for developing new products? Provide four strategies for a company to use to establish a successful system.

Explain concept testing.

Bonneville Communications is concerned about test marketing its new device.Which of the following is NOT a disadvantage of test marketing that would likely concern Bonneville Communications?

All of the following are stages in the PLC EXCEPT _.

Which of the following is most likely to be included in an executive's write up of a new- product idea to be presented to a new- product committee?

Sequential product development has the advantage of not only being a team- oriented approach,but also of being faster in bringing products to market.

In the concept testing stage of new- product development,a product concept in _ _ form is presented to groups of target consumers.

The team- based new- product development approach uses cross- functional teams that overlap the steps in the process to achieve which of the following goals?

The PLC concept can be applied by marketers as a useful framework for describing how .

Companies rarely solicit ideas from customers during the idea generation stage of product development.

With what groups do firms conduct concept testing for new products?

Distinguish among a product idea,a product concept,and a product image.