Chapter 9 Product Management and New-Product Development

Chapter 9 Product Management and New-Product Development -...

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Chapter 9: Product Management and New-Product Development True-false Questions 1. The product life cycle concept is concerned with planning for product recycling to protect the environment. | Ans: False | Easy | LO: 1 | Pg. 223 | Definition | 2. The product life cycle is the four stages a new product idea goes through from beginning to end. | Ans: True | Easy | LO: 1 | Pg. 223 | Definition | 3. Market introduction, market growth, market maturity, and sales decline are the four stages of the product life cycle. | Ans: True | Easy | LO: 1 | Pg. 223 | Definition | 4. During the various stages of the product life cycle, the attitudes and needs of target customers do not change. | Ans: False | Easy | LO: 1 | Pg. 223-24 | Definition | 5. Sales and profits generally decrease continually throughout the product life cycle. | Ans: False | Easy | LO: 1 | Pg. 224 | Definition | 6. The market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits. | Ans: True | Easy | LO: 1 | Pg. 224 | Definition | 7. In the market growth stage of the product life cycle, firms usually earn smaller profits than they did in the market introduction stage because new competitors enter the market. | Ans: False | Easy | LO: 1 | Pg. 224 | Definition | 8. During the market growth stage of the product life cycle, industry profits usually reach their peak and begin to decline. | Ans: True | Easy | LO: 1 | Pg. 224 | Definition | 9. The market maturity stage of the product life cycle has very low promotion expenditures, little price competition, and rising industry profits. | Ans: False | Easy | LO: 1 | Pg. 224-25 | Definition | Chapter 9: Product Management and New-Product Development 9 - 1
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10. Industry profits usually decline steadily during the market maturity stage of the product life cycle. | Ans: True | Easy | LO: 1 | Pg. 224 | Definition | 11. The market maturity stage of the product life cycle rarely lasts more than one or two months. | Ans: False | Easy | LO: 1 | Pg. 225 | Definition | 12. During the sales decline stage of the product life cycle, no firm can earn a profit. | Ans: False | Easy | LO: 1 | Pg. 225-26 | Definition | 13. Product life cycles describe industry sales and profits within a particular product-market, and not the sales and profits of individual brands. | Ans: True | Easy | LO: 1 | Pg. 226 | Definition | 14. The product life cycle shows that sales of an individual firm's brand follows a general pattern--which is very useful for marketing strategy planning. | Ans: False | Easy | LO: 1 | Pg. 226 | Definition | 15. The sales and profits of an individual brand may or may not follow the life cycle pattern of the product idea. | Ans:
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Chapter 9 Product Management and New-Product Development -...

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