True False43. How quickly a new product will be accepted by customers and how quickly competitors will follow with their own version of a product are important factors when planning the best strategy for a new product. True False44. It is always in the best interest of the market pioneer for competitors to stay out of the market. True False10-6
Chapter 10 - Product Management and New-Product Development45. When a firm's product has won loyal customers, it can be successful for a long time—even in a mature or declining market. True False46. The strategies for all stages of the product life cycle should be growth strategies. True False47. If the prospects in some product-market are poor, a firm may need a "phase out" strategy. True False48. A product that is new in any way for the company concerned is a new product, according to the text. True False49. Variations on an existing product idea can make a product new. True False50. To be called "new" according to the FTC, a product must be entirely new or changed in a functionally significant or substantial respect. True False51. The FTC places no restriction on the length of time a product can be called "new." True False52. The risks and costs of failure in new-product development are minor when one considers the likely rewards. True False10-7
Chapter 10 - Product Management and New-Product Development53. Experts estimate that 80-95 percent of all new consumer packaged goods brands fail. True False54. A new-product development process helps make sure that new ideas for products are carefully studied and good ideas are marketed profitably. True False55. In the new-product development process discussed in the text, the burden is on the new-product idea to prove itself or be rejected. True False56. The first step in new-product development is evaluating ideas. True False57. A "deficient" product is one which provides low immediate satisfaction and low long-run welfare for consumers. True False58. When planning new products, managers need not be too concerned about safe design because it is each consumer's responsibility to decide what products are safe to buy and use. True False59. If an individual is injured by a defective or unsafely designed product, the seller's legal obligation to pay damages is called product liability. True False10-8
Chapter 10 - Product Management and New-Product Development60. Product liability means the legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products. True False61. Relative to most other countries, the U.S. has very strict product liability standards. True False62. Even in a full-scale market test, the firm is testing only the product, not the whole marketing mix. True False63. Market testing can be risky because it gives information to competitors, but not testing may be even riskier.
- Spring '14
- Marketing, Product life cycle management, Product Management and New-Product Development