Chapter 9
Here’s a Quizlet-style practice exam study guide for Chapter 9: Product Management and New-Product Development. This format includes questions and answers that can help reinforce your understanding of the material.
### Practice Exam: Chapter 9
#### Questions
1. What are the four stages of the product life cycle?
- A) Introduction, Growth, Maturity, Decline
- B) Planning, Design, Production, Marketing
- C) Development, Launch, Growth, Maturity
- D) Innovation, Testing, Launch, Feedback
- Answer: A) Introduction, Growth, Maturity, Decline
2. What is defined as a "new product"?
- A) Any product that has been recently launched
- B) A product that is new in any way for the company concerned
- C) A product that has received positive customer feedback
- D) A product that is innovative in its design
- Answer: B) A product that is new in any way for the company concerned
3. Which stage of the product life cycle involves low sales as the product is first introduced?
- A) Market Growth
- B) Market Introduction
- C) Market Maturity
- D) Sales Decline
- Answer: B) Market Introduction
4. What type of innovation requires significant changes in customer behavior?
- A) Continuous innovation
- B) Dynamically continuous innovation
- C) Discontinuous innovation
- D) Incremental innovation
- Answer: C) Discontinuous innovation
5. What is the primary purpose of concept testing?
- A) To evaluate production costs
- B) To gather reactions from customers about a new-product idea
- C) To develop marketing strategies
- D) To finalize product design
- Answer: B) To gather reactions from customers about a new-product idea
6. What does the Federal Trade Commission (FTC) regulate regarding new products?
- A) Quality control
- B) Product safety
- C) Definitions of what constitutes a "new" product
- D) Marketing strategies
- Answer: C) Definitions of what constitutes a "new" product
7. Which law encourages awareness of safety in product design?
- A) Consumer Product Safety Act
- B) Lanham Act
- C) Federal Fair Packaging and Labeling Act
- D) Patent Act
- Answer: A) Consumer Product Safety Act
8. What is total quality management (TQM)?
- A) A method for reducing costs
- B) A philosophy that emphasizes quality in all activities of the organization
- C) A strategy for marketing new products
- D) A financial management technique
- Answer: B) A philosophy that emphasizes quality in all activities of the organization
9. What is the role of product managers?
- A) To handle all advertising tasks
- B) To manage specific products and their market performance
- C) To oversee company finances
- D) To coordinate customer service
- Answer: B) To manage specific products and their market performance
10. What is empowerment in the context of quality management?
- A) Delegating authority to lower management levels
- B) Allowing employees to make decisions without managerial approval
- C) Training employees to enhance their skills
- D) None of the above
- Answer: B) Allowing employees to make decisions without managerial approval
#### Key Terms Flashcards
- Product Life Cycle: The stages a new-product idea goes through from introduction to decline.
- Market Introduction: The stage when a new product is first introduced to the market.
- Market Growth: The stage characterized by fast industry sales growth.
- Market Maturity: A stage where sales level off and competition intensifies.
- Sales Decline: The stage when new products replace older ones.
- Continuous Innovation: New products that do not require customers to change their behavior.
- Dynamically Continuous Innovation: New products that require minor changes in customer behavior.
- Discontinuous Innovations: Innovations that require significant behavioral changes from customers.
- Patent: A legal right granted to an inventor to exclude others from using their invention.
- Concept Testing: Gathering customer feedback on a new product idea.
- Prototype: An early model used to test a product concept.
- Total Quality Management (TQM): A management approach focused on continuous improvement in quality across all areas of the organization.
- Empowerment: Giving employees the authority to make decisions and solve problems independently.