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Chapter 10—Developing, Positioning, and Differentiating
Products Through the Life Cycle
True/False Questions
The new product development process starts with profitability analysis of the ideas. False (moderate) p. 191
A product-positioning map uses selected criteria to show where a product stands in relationship to comparable products. True (moderate) p. 192
Less than 10 percent of “new” products are entirely new and innovative. True (easy) p. 189
An existing product that has been repositioned can be considered a new product. True (moderate) p. 190
In spite of the benefits of test marketing, many firms today question its value. True (moderate) p. 195
Concept testing is the most expensive part of the new product development process. False (moderate) p. 192
Some products fail because they have too much support from upper-level management True (difficult) p. 190
The basic strategy for managing the growth stage of the PLC is product expansion. False (moderate) pp. 198-199
Personal influence is most important in the awareness stage of the adoption process. False (difficult) pp. 197-198
Many of the best ideas for new industrial products originate with customer ideas. True (moderate) p. 191
The stage of the product life cycle characterized by low sales, heavy promotion, low profit, and minimal competition is the introduction stage. False (moderate) p. 199
Typically, the longest stage in the product life cycle is the maturity stage. True (moderate) p. 199
Increasing usage, frequency of use, or variety of use are all acceptable product modification strategies for a product in the maturity stage of the life cycle. False (moderate) p. 199
Alpha testing means testing a product within the firm, beta testing means enlisting customers to use the product and provide feedback. True (easy) p. 194
Differentiation is the act of designing a company’s offerings and image so that they occupy a meaningful and distinct competitive position in the targe
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