61. Sashes and Ribbons Inc. produces footwear, stoles, and sweaters based on ideas from their customers. The company also takes purchase commitments from the customers before manufacturing the products. This is an example of using the _____ approach.
A. internal manufacturing
B. line stretching
C. passive consumer
D. collective customer commitment
62. For line extensions and product improvements, where the degree of innovation is minor, relatively _____ procedures appear to be better at getting products to market quickly.
63. Keith and Andrew owns a software consulting firm. They wanted to create a new software product. They got a number of ideas from the employees of the firm. After analyzing all the ideas, they chose one particular product idea. Next, they assessed the new product’s potential market, growth rate, and likely competitive strength. Further, resources were invested in research and product prototypes were developed to support these research effects. Keith and Andrew’s firm has completed the stage of:
A. postdevelopment review decisions.
B. commercialization decisions.
C. making decisions on the business case.
D. business analysis review.
64. In laboratory test markets, the procedure by which a consumer adopts a new product includes the steps of awareness, trial and:
A. special testing.
B. repeat buying.
C. field test marketing.
65. Which of the following occurs at the end of the growth period, just before maturity, in product life cycle?
B. Pioneering maturity
C. Competitive turbulence
D. Sales decline
66. Once a product is launched by a firm, the firm’s goal should be to move it through the _____ stage as quickly as possible.
67. Which of the following stages of product lifecycle is typically characterized by narrow product line and skimming or penetration pricing?
68. Penetration pricing enables a firm to:
A. provide high levels of product differentiation.
B. strive for quick market development.
C. charge a premium for new products.
D. obtain as much margin per unit as possible.
69. The _____ stage of product lifecycle starts with a sharp increase in sales and important product improvements continue in the stage at a slower rate.
70. The advent of the shakeout stage of product lifecycle is signaled by:
A. sharp increase in the product’s sales.
B. a drop in the overall growth rate.
C. the existence of narrow product lines.
D. substantial increase in product prices.
71. Which of the following statements is true of the strategic importance of product life cycle?
A. The need for substantial investments reduces as a product moves into the growth stage.
B. The most important strategic objective of the growth stage is to accelerate overall market growth through awareness, trial, and product availability.
C. The firm with the largest share during the introductory and growth stages should have the lowest per-unit costs due to scale and learning effects.
D. The product life cycle model’s major strength lies in its normative approach to prescribing strategies based on assumptions about the features or characteristics of each stage.