300+ TOP Product Design and Value Engineering MCQs and Answers

Product Design and Value Engineering Multiple Choice Questions

1. Designs are periodically modified to
A. Improve product performance

B. Strive for zero-based rejection and waste

C. Make products easier and faster to manufacture

D. all of the mentioned

Answer: D.all of the mentioned

2. The expected qualities of a product are
A. it satisfies the needs and expectations of the customer

B. it has a pleasing appearance and handles well

C. it has high reliability and functions safely over its intended life

D. all of the mentioned

Answer: D.all of the mentioned

3. The life cycle of a product includes
A. extraction of natural resources

B. processing of raw materials

C. manufacturing of products

D. all of the mentioned

Answer: D.all of the mentioned

4. Life-cycle engineering is also called
A. green design

B. expensive design

C. easy design

D. none of the mentioned

Answer: A.green design

5. Sustainable manufacturing is required for
A. conserving resources

B. proper maintenance

C. reuse

D. all of the mentioned

Answer: D.all of the mentioned

6. The mechanical properties of good product material are
A. strength

B. toughness

C. ductility

D. all of the mentioned

Answer: D.all of the mentioned

7. The physical properties of good product material are
A. density

B. melting point

C. specific heat

D. all of the mentioned

Answer: D.all of the mentioned

8. The chemical properties of good product material are
A. oxidation

B. corrosion

C. surface treatment

D. all of the mentioned

Answer: D.all of the mentioned

9. Properties of workpiece materials are
A. geometric features of the part

B. production rate and quantity

C. process selection consideration

D. all of the mentioned

Answer: D.all of the mentioned

10. Considerations of costing systems are
A. life cycle costs

B. machine usage

C. cost of purchasing machinery

D. all of the mentioned

Answer: D.all of the mentioned

11. The following is the preliminary stage of Production planning
A. Capacity planning

B. Material requirements planning

C. Scheduling

D. Product development and design

Answer: D.Product development and design

12. The following is the source(s) for developing new or improved product
A. Research and Development department of the enterprise

B. Consumer suggestions and Complaints

C. Other competitive products in the market

D. All of the above

Answer: D.All of the above

13. Product cost can be reduced by considering the following aspect(s) at the design stage
A. Minimum number of operations

B. Unnecessary tight tolerance should not be provided

C. Design should consist of standard parts

D. All of the above

Answer: D.All of the above

14. The ultimate objective of the product is
A. To provide a new look

B. Utilizing existing manpower

C. To monopolize the market

D. All of the above

Answer: C.To monopolize the market

15. Based on their field of application, manufactured goods can be classified as
A. Primary, Secondary and Tertiary

B. Consumer, Capital and Defense

C. Essential, Market and Standard

D. Primary, Luxury and Consumer

Answer: B.Consumer, Capital and Defense

16. The following aspect of product is concerned with the ease and efficiency of the product performance
A. Functional aspect

B. Operational aspect

C. Durability aspect

D. Aesthetic aspect

Answer: A.Functional aspect

17. The “simplicity to operate and easy to understand” of product is concerned with its following aspect
A. Functional aspect

B. Operational aspect

C. Durability aspect

D. Aesthetic aspect

Answer: A.Functional aspect

18. ______ helps in establishing the interchangeability of products
A. Standardization

B. Simplification

C. Diversification

D. Specialization

Answer: A.Standardization

19. In which of the following type the manufacturing cost may go up
A. Standardization

B. Simplification

C. Diversification

D. All of the above

Answer: C.Diversification

20. Product ______ is the ultimate objective of variety reduction
A. Simplification

B. Standardization

C. Specialization

D. All of the above

Answer: C.Specialization

21. The following eases the process of stock control
A. Standardization

B. Simplification

C. Both ‘A’ and ‘B’

D. None of the above

Answer: C.Both ‘A’ and ‘B’

22. The following is the Durability aspect(s) of a product
A. Efficiency of the product

B. Easy to understand

C. Ease with which a product can be maintained

D. All of the above

Answer: C.Ease with which a product can be maintained

23. _____ is the development of original products, product improvements, product modifications, and new brands through the firm’s own R&D efforts.
A. Idea generation

B. Concept testing

C. Test marketing

D. New product development

Answer: D.New product development

24. All of the following are different ways a firm can obtain new products, except which one?
A. By acquiring a whole new company

B. A firm can obtain a new product through patents

C. A firm can obtain a new product by licensing someone else’s new product

D. A firm can obtain a new product by using the R&D department of other firms in the same industry.

Answer: D.A firm can obtain a new product by using the R&D department of other firms in the same industry.

25. All of the following are accurate descriptions of reasons why new products fail, except which one?
A. Although the market size was correctly estimated, the product idea itself was not good.

B. The actual product was not designed as well as it should have been.

C. The new product was priced too high.

D. The new product was advertised poorly

Answer: A.Although the market size was correctly estimated, the product idea itself was not good.

26. All of the following are accurate descriptions of ways companies are anxious to learn how to improve the odds of new-product success, except which one?
A. Find out what successful new products have in common.

B. To learn lessons from new product failures.

C. Companies have to learn to understand their own consumers.

D. Do not overly rely on product innovation when you can succeed by copying others.

Answer: D.Do not overly rely on product innovation when you can succeed by copying others.

27. New-product development starts with _____.
A. idea screening

B. idea generation

C. concept development and testing

D. marketing strategy development

Answer: B.idea generation

28. _____ is the systematic search for new-product ideas.
A. Idea generation

B. Idea screening

C. Concept development and testing

D. Marketing strategy development

Answer: A.Idea generation

29. All of the following are major internal sources of new-product ideas, except which one?
A. Picking the brains of company executives, scientists, engineers and salespeople is a good way to generate ideas.

B. Intrapreneurial programs that encourage employees to think and develop new-product ideas is a good way to generate ideas.

C. Some companies employ creative approaches, including both “method and madness” in helping them to generate new product ideas.

D. Good ideas come from watching and listening to customers.

Answer: D.Good ideas come from watching and listening to customers.

30. Major sources of new product ideas include _____.
A. internal sources, using company R&D

B. creative approaches, using both “method and madness” approaches

C. watching and listening to customers

D. all of the above are sources of new product ideas

Answer: D.all of the above are sources of new product ideas

31. All of the following are major external sources of new-product ideas, except which one?
A. Companies can conduct surveys or focus groups to learn about consumer needs and wants.

B. Competitors are a good source of new-product ideas.

C. Some companies employ creative approaches, including both “method and madness” in helping them to generate new product ideas.

D. Good ideas come from watching and listening to customers.

Answer: D.Good ideas come from watching and listening to customers.

32. All of the following are accurate descriptions of new product ideas, except which one?
A. New product development starts with idea generation.

B. Some companies use brainstorming exercises that expand people’s minds and generate new ideas around the client’s problem.

C. At the beginning of the process, carefully scrutinize each idea and throw far-fetched and impractical ones out the window.

D. Customers must be careful not to rely too heavily on customer input when developing new products.

Answer: C.At the beginning of the process, carefully scrutinize each idea and throw far-fetched and impractical ones out the window.

33. Some companies have installed a(n) _____ that directs the flow of new ideas to a central point where they can be collected, reviewed, and evaluated.
A. new-product development team

B. idea management system

C. computer system

D. satellite system

Answer: B.idea management system

34. In order to install an idea management system, whereby all ideas are directed to a central point, a company can do any or all of the following:
A. Appoint a respected senior person to be the firm’s idea manager.

B. Create a cross-functional idea management committee comprising of people form R&D, finance, engineering and operations to meet and evaluate new product ideas.

C. Reward employees through formal recognition programs.

D. All of the above are legitimate ways to systematically collect ideas.

Answer: D.All of the above are legitimate ways to systematically collect ideas.

35. The purpose of _____ is to generate a large number of ideas.
A. idea screening

B. idea generation

C. concept development and testing

D. marketing strategy development

Answer: B.idea generation

36. The first idea reducing stage is _____ , which helps spot good ideas and drop poor ones as soon as possible.
A. idea generation

B. idea screening

C. concept development and testing

D. marketing strategy development

Answer: B.idea screening

37. A _____ is a detailed version of the idea stated in meaningful consumer terms.
A. product idea

B. product concept

C. product image

D. test market

Answer: B.product concept

38. A _____ is the way consumers perceive an actual or potential product.
A. product idea

B. product concept

C. product image

D. test market

Answer: C.product image

39. An attractive idea must be developed into a _____.
A. product idea

B. product concept

C. product image

D. test market

Answer: B.product concept

40. All of the following are accurate descriptions of activities performed in the idea screening stage of new product development, except which one?
A. Idea screening helps spot good ideas and drop poor ones as soon as possible.

B. Companies want to go ahead only with the product ideas that will turn into profitable products.

C. Many companies require their executives to write up new product ideas on a standard form that can be reviewed by a new-product committee.

D. Setting up a toll-free number or Web site for anyone who wants to send a new idea to the idea manager.

Answer: D.Setting up a toll-free number or Web site for anyone who wants to send a new idea to the idea manager.

41. ____ calls for testing new-product concepts with groups of target consumers.
A. Concept development

B. Concept testing

C. Idea generation

D. Idea screening

Answer: B.Concept testing

42. _____ entails testing new-product concepts with a target group of consumers to find out if the concepts have strong consumer appeal.
A. Concept development

B. Concept testing

C. Idea generation

D. Idea screening

Answer: B.Concept testing

43. Product concepts are presented to consumers during concept testing in any of the following ways, except which one?
A. A word or picture description is presented to consumers.

B. A concrete and physical presentation of the concept will increase the reliability of the concept test.

C. Some companies are using virtual reality to test product concepts.

D. Companies are reluctant to use the Web to test product concepts.

Answer: D.Companies are reluctant to use the Web to test product concepts.

44. Designing an initial marketing strategy for a new product based on the _____ is called marketing strategy development.
A. new product idea

B. product concept

C. test market results

D. product prototype

Answer: B.product concept

45. The marketing strategy statement in new product development consists of three parts: _____, _____, and _____.
A. idea generation; idea screening; concept development

B. idea generation; concept development; concept testing

C. idea generation; idea screening; idea management

D. target market description; planned product positioning; sales, market share, and profit goals for the first few years.

Answer: D.target market description; planned product positioning; sales, market share, and profit goals for the first few years.

46. _____ involves a review of the sales, costs, and profit projections for a new product to findout whether they satisfy the company’s objectives.
A. Idea generation

B. Idea screening

C. Business analysis

D. Concept development and testing

Answer: C.Business analysis

47. If a product concept passes the _____, it moves into _____.
A. business analysis test; product development

B. concept development stage; product development

C. concept testing stage; product development

D. idea generation stage; product development

Answer: A.business analysis test; product development

48. Once management has decided on a product concept and marketing strategy, it can next evaluatethe _____ of the proposal.
A. product idea portion

B. product development part

C. business attractiveness

D. commercial viability

Answer: C.business attractiveness

49. In the product concept stage of new-product development, the product is merely a _____.
A. word description

B. crude mock-up

C. drawing

D. all of the above

Answer: D.all of the above

50. In the _____ of new-product development, often products undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them.
A. business analysis stage

B. idea generation

C. concept development and testing stage

D. product development phase

Answer: D.product development phase

51. _____ is the stage of new-product development in which the product and marketing program are tested in more realistic market settings.
A. Business analysis

B. Idea generation

C. Test marketing

D. Marketing strategy development

Answer: C.Test marketing

52. All of the following are accurate descriptions of test marketing, except which one?
A. Test marketing is the stage at which the product and marketing program are introduced into realistic market settings.

B. Test marketing by consumer-packaged goods firms has been increasing in recent years.

C. Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.

D. Companies often do not test market simple line extensions.

Answer: B.Test marketing by consumer-packaged goods firms has been increasing in recent years.

53. Introducing a new product into the market is called _____.
A. test marketing

B. new product development

C. experimenting

D. commercialization

Answer: D.commercialization

54. A company getting ready to launch a new product must make several decisions. However, the company must first decide on _____.
A. whether to launch the product in a single location

B. whether to launch the product in a region

C. whether to launch the product into full national or international distribution

D. timing of the new product introduction

Answer: D.timing of the new product introduction
55. _____ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.
A. Team-based product development

B. Simultaneous product development

C. Sequential product development

D. Product life-cycle analysis

Answer: C.Sequential product development
56. In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called _____.
A. sequential product development

B. simultaneous product development

C. commercialization

D. introduction timing

Answer: B.simultaneous product development
57. All of the following statements are accurate descriptions of the simultaneous product development approach to new product development, except which one?
A. The simultaneous product development approach is also known as collaborative product development.

B. Company departments work closely together through cross-functional teams.

C. Companies assemble a team of people from various departments that stay with the new product from start to finish.

D. Companies often pass the new product from department to department in each stage of the process.

Answer: D.Companies often pass the new product from department to department in each stage of the process.
58. All of the following are accurate descriptions of new-product development approaches used by companies in the commercialization phase of the process, except which one?
A. New-product development teams in the simultaneous approach tend to stay with the new product from start to finish.

B. In the simultaneous approach, top management gives the product development team general strategic direction but no clear-cut product idea or work plan.

C. In order to get their new products to market more quickly, many companies are adopting a faster approach called sequential product development.

D. The simultaneous team-based approach can be riskier and more costly than the slower, more orderly sequential approach.

Answer: C.In order to get their new products to market more quickly, many companies are adopting a faster approach called sequential product development.
59. All of the following are limitations of the simultaneous team-based approach to new-product development, except which one?
A. Superfast product development can be riskier and more costly than the slower, more orderly sequential approach.

B. This approach often creates increased organizational tension and confusion.

C. The objective of this approach is to ensure that rushing a product to market doesn’t adversely affect its quality.

D. Top management gives the product development team a clear-cut product idea or work plan.

Answer: D.Top management gives the product development team a clear-cut product idea or work plan.
60. All of the following statements accurately reflect the requisites of new-product success, except which one?
A. Thinking of a few good ideas, turning them into products, and finding customers for them.

B. A systematic approach for finding new ways to create value for target consumers, from generating and screening new-product ideas to creating and rolling out want-satisfying products to customers.

C. New-product success requires a total-company commitment.

D. At firms known for their new-product success, their culture does not encourage, support, and reward innovation.

Answer: D.At firms known for their new-product success, their culture does not encourage, support, and reward innovation.
61. ____ begins when the company finds and develops a new-product idea. During product development, sales are zero and the company’s investment costs mount.
A. Introduction

B. Growth

C. Maturity

D. Product development

Answer: D.Product development
62. _____ is a period of slow sales growth as the product is introduced into the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction.
A. Growth

B. Product development

C. Maturity

D. Introduction

Answer: D.Introduction
63. ____ is a period of market acceptance and increasing profits.
A. Product development

B. Maturity

C. Growth

D. Introduction

Answer: C.Growth
64. _____ is the course of a product’s sales and profits over its lifetime, involving five distinct stages: product development, introduction, growth, maturity, and decline.
A. Product life cycle

B. Maturity

C. Growth

D. Decline

Answer: A.Product life cycle
65. What does the term PLC stands for?
A. Product life cycle

B. Production life cycle

C. Product long cycle

D. Production long cycle

Answer: A.Product life cycle
66. Which of the following is stage of Product Life Cycle?
A. Introduction Stage

B. Growth stage

C. Decline stage

D. All of the above

Answer: D.All of the above
67. The purchase cost of product is included into cost of maintenance and is subtracted from discounted alvage value to calculate _____
A. Purchase cycle cost

B. Cost of responsiveness

C. Life cycle cost

D. Assurance cost

Answer: C.Life cycle cost
68. Value for Value Engineering analysis purposes is defined as ________.
A. Purchase value

B. Saleable value

C. Depreciated value

D. Function/Cost

Answer: D.Function/Cost
69. Material Requirements Planning DOES NOT include _______.
A. Material price

B. Bill of material

C. Inventory level

D. Production schedule

Answer: A.Material price
70. In Total Productive Maintenance, Unplanned downtime Losses include;
A. Equipment Breakdown

B. Shift Changes

C. Unplanned maintenance

D. Options (A) & (C)

Answer: D.Options (A) & (C)

71. Productivity increases when __________.
A. inputs increase while outputs remain the same

B. inputs decrease while outputs remain the same

C. outputs decrease while inputs remain the same

D. inputs and outputs increase proportionately

Answer: B.inputs decrease while outputs remain the same
72. Which of these is correct with respect to a product developed or a service performed?
A. Neither bad grade nor quality is acceptable

B. Grade and quality is the same thing.

C. Bad quality is acceptable, but bad grade is not.

D. Bad grade is acceptable, but bad quality is not.

Answer: D.Bad grade is acceptable, but bad quality is not.
73. Value analysis examines the ________.
A. Design of every component

B. Method of manufacturing

C. Material used

D. All of the above

Answer: D.All of the above
74. Value analysis is normally applied to _____.
A. New products

B. Old products

C. Future products

D. Both (A) and (B)

Answer: B.Old products
75. Value can be defined as the combination of _______ which ensures the ultimate economy and satisfaction of the customer.
A. Efficiency, quality, service and price

B. Efficiency, quality, service and size

C. Economy, quality, service and price

D. Efficiency, material, service and price

Answer: A.Efficiency, quality, service and price

76. Value is the cost directly proportionate to ________.
A. Price

B. Function

C. Product Material

D. All of the above

Answer: B.Function
77. The price paid by the buyer is ________.
A. Cost value

B. Use value

C. Esteem value

D. Exchange value

Answer: B.Use value
78. The cost incurred by the manufacturer beyond use value is called
A. Cost value

B. Esteem value

C. Exchange value

D. None of the above

Answer: B.Esteem value
79. Value analysis is a ____ process
A. Remedial

B. Preventive

C. Continuous

D. None of the above

Answer: A.Remedial
80. Value analysis should be applied when the following symptom(s) is (are) present
A. Rate of return on investment is reducing

B. Reduction in sales of the product

C. Firm is unable to meet delivery promises

D. All of the above

Answer: D.All of the above
81. Who is named as Father of Value Analysis?
A. Lawrence D. Miles

B. George Terborgh

C. Michael Jucius

D. Edwin B. Flippo

Answer: A.Lawrence D. Miles
82. Important reason(s) for arising unnecessary costs are
A. Poor design of product

B. Too tight specifications

C. Lack of standardization

D. All of the above

Answer: D.All of the above
83. The costs those which neither contributes to function nor the appearance of the product is called
A. Extra cost

B. Unnecessary cost

C. Esteem cost

D. Exchange cost

Answer: B.Unnecessary cost
84. Customer –centered companies are skilled in _______
A. Market engineering

B. Product engineering

C. Both (a) and (b)

D. None of the above

Answer: C.Both (a) and (b)
85. “The only value you will ever create is the value that comes from customers, the ones you have now and the once you will have in the future”, is said by ______.
A. Philip Kotler

B. Abraham Koshy

C. Don Pappers and Martha Rogers

D. None of the above

Answer: C.Don Pappers and Martha Rogers
86. In the modern customer-Organization chart the entity on the top are ______.
A. Customers

B. Top Management

C. Frontline people

D. None of the above

Answer: A.Customers
87. __________ is the gap between the prospective customer’s assessment of all the advantages and all the costs of an offering and the perceived options.
A. Customers-perceived value

B. Total customer benefit

C. Total customer cost

D. None of the above

Answer: A.Customers-perceived value
88. Total customer costs is made up of _______
A. Monetary cost and time cost

B. Energy cost and psychological cost

C. Both A and B.

D. None of the above

Answer: C.Both A and B.
89. Managers conduct a _________to know the company’s weakness and strength a relative to those ofvarious peers.
A. Product value analysis

B. Service value analysis

C. Customer value analysis

D. None of the above

Answer: C.Customer value analysis
90. A customer adds up all the functional, psychological and economic benefits from _____sources.
A. Products, services, personnel and image

B. Products and services

C. Products and personnel

D. Only personnel

Answer: A.Products, services, personnel and image
91. ____________ is the apparent monetary value of the bundle of functional, psychological and economic advantages consumers expect from a given market offering because of the products, services, personnel and image involved.
A. Customer-perceived value

B. Total customer cost

C. Total customer benefit

D. None of the above

Answer: C.Total customer benefit
92. ____________ is the perceived package of costs customers anticipate to incur in assessing, obtaining, utilizing and disposing of the given market offering, including time, monetary, energy and psychological costs.
A. Customer-perceived value

B. Total customer cost

C. Total customer benefit

D. None of the above

Answer: B.Total customer cost
93. The seller must evaluate__________ related with each peer company’s offer in order to know how their offer rates in the buyer’s mind.
A. Total customer benefit

B. Total customer cost

C. Both A & B

D. None of the above

Answer: C.Both A & B
94. _______is a person’s feelings of disappointment or pleasure that result from evaluating a product’s perceived performance to their expectations.
A. Customer loyalty

B. Customer satisfaction

C. Customer value

D. none of the above

Answer: B.Customer satisfaction
95. The link between the customer loyalty and customer satisfaction is _____
A. Proportional

B. Non-proportional

C. Unaffected

D. None of the above

Answer: B.Non-proportional

96. What is the Use value of Pencil
A. It contains Ink

B. For smooth flow

C. To Mark

D. None of the above

Answer: B.For smooth flow
97. Which statement is correct?
A. Value is inversely proportional to Cost

B. Value is directly proportional to cost

C. Value is inversely proportional to Function

D. None of the above

Answer: A.Value is inversely proportional to Cost
98. Value engineering is also called ________.
A. Value analysis

B. Value Management

C. Value Methodology

D. All of the above

Answer: D.All of the above
99. What is the sell function of bed sheet ?
A. For good appearance

B. To avoid dust

C. To cover mattress

D. None of the above

Answer: A.For good appearance
100. The Economic value consists following
A. Economic value

B. Cost value

C. Esteem

D. All of the above

Answer: B.Cost value

101. Which phase is not available in SAVE plan methodology?
A. Information

B. Creative

C. Execution

D. Recommendation

Answer: D.Recommendation
102. Value Engineering can be applied in the following area _________.
A. Construction

B. Process

C. Manufacturing

D. All of the above

Answer: D.All of the above
103. What is the sell function of curtain ?
A. To cover window

B. For aesthetic

C. Prevent dust

D. All of the above

Answer: B.For aesthetic
104. Problem solving consists of
A. Identifying problem

B. Thorough study of problem

C. Creating alternatives

D. All of the above

Answer: D.All of the above
105. Which Job plan phase is mostly preferred by Value engineering?
A. Identification

B. Creative

C. Evaluation

D. Development

Answer: A.Identification
106. Maximum team size of Value analysis or Value Engineering?
A. 16

B. 30

C. 15

D. 6

Answer: D.6
107. Problem solving consists of _________.
A. Identifying problem

B. Thorough study of problem

C. Creating alternatives

D. All of the above

Answer: D.All of the above
108. What is the basic function of refrigeration system?
A. Protect food

B. Produce low temperature

C. Cool content

D. Freeze water

Answer: B.Produce low temperature
109. The cost value includes ________.
A. Material cost

B. Labor cost

C. Material cost, labor cost and overhead cost

D. None

Answer: C.Material cost, labor cost and overhead cost
110. The value is ___________.
A. Same for every one

B. Different for different people

C. Different of different geographies

D. None

Answer: A.Same for every one
111. The lowest overall cost of the product also known as _______.
A. Cost value

B. Worth

C. Esteem value

D. Use value

Answer: A.Cost value
112. The value can be increased by ___________.
A. Increasing performance

B. Decreasing cost

C. Both a & b

D. None

Answer: C.Both a & b
113. Who will nominate Value Engineering TEAM?
A. Management

B. Design

C. Marketing

D. None of the above

Answer: A.Management
114. Who will participate in VE TEAM?
A. Full time team

B. Full time manager

C. Individual

D. None of the above

Answer: C.Individual
115. What is key factor of value engineering?
A. Identify unnecessary cost

B. Identify necessary cost

C. Both a & B

D. None of the above

Answer: A.Identify unnecessary cost
116. Out of the seven types of values as per Aristotle, VA/VE concentrates on
A. Political value

B. Economic Value

C. Spiritual value

D. Religious value

Answer: B.Economic Value
117. Market value at any point of time is the _______.
A. Cost value

B. Esteem value

C. Worth

D. Use value

Answer: B.Esteem value
118. A detailed version of a new idea stated in meaningful customer terms is called a ________.
A. product movement

B. product image

C. product idea

D. product concept

E. none

Answer: D.product concept
119. A manufacturer with a product in the decline stage of the product life cycle might decide to ________ if it has reason to hope that competitors will leave the industry.
A. delay planning

B. harvest the product

C. maintain the product without change

D. search for replacements

E. drop the product

Answer: C.maintain the product without change
120. An attractive idea must be developed into a ________.
A. product idea

B. product image

C. test market

D. product concept

E. product strategy

Answer: D.product concept
121. During which stage of new-product development is management most likely to estimate minimum and maximum sales to assess the range of risk in launching a new product?
A. business analysis

B. product development

C. marketing strategy development

D. test marketing

E. concept testing

Answer: A.business analysis
122. Executives, manufacturing employees, and salespeople are all examples of ________.
A. core members of innovation management systems

B. new-product committee members

C. external sources for new-product ideas

D. internal sources for new-product ideas

E. research and development team members

Answer: C.external sources for new-product ideas
123. GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage, called ________ , to arrive at a realistic number to adopt.
A. idea screening

B. idea generation

C. concept development

D. idea dissemination

E. product concept

Answer: A.idea screening
124. In the ________ stage of new-product development, products often undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them.
A. idea generation

B. concept development and testing

C. product development

D. marketing mix

E. business analysis

Answer: C.product development
125. In the ________ stage, the firm faces a trade-off between high market share and high current profit.
A. commercialization

B. introduction

C. growth

D. decline

E. maturity

Answer: C.growth

126. In the concept testing stage of new-product development, a product concept in ________ form is presented to groups of target consumers.
A. final

B. prototype

C. market-tested

D. physical or symbolic

E. commercial

Answer: D.physical or symbolic
127. Mattel’s Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy, is in the ________ stage of the PLC.
A. introduction

B. decline

C. maturity

D. growth

E. adoption

Answer: C.maturity
128. Most products in the marketplace are in the ________ stage of the product life cycle.
A. growth

B. introduction

C. decline

D. maturity

E. development

Answer: D.maturity
129. Sales decline in the decline stage of the PLC because of technological advances, increased competition, and ________.
A. marketing mix modifications

B. shifts in consumer tastes and preferences

C. shifts in the economy

D. new market pioneers

E. shifts in unemployment

Answer: B.shifts in consumer tastes and preferences
130. Schmidt Steel Corporation lacks the confidence, capital, and capacity to launch its new steel product into full national or international distribution. Even though test market results look promising, what will be management’s next step?
A. develop a prototype

B. retest the product in additional markets

C. develop a planned market rollout over time

D. seek the help of a nationally known consultant

E. secure a loan to provide confidence, capital, and capacity

Answer: C.develop a planned market rollout over time
131. The advantages of standardizing an international product include all of the following except ________.
A. the adaptation of products to different markets

B. lower product design costs

C. decreased manufacturing costs

D. lower marketing costs

E. the development of a consistent image

Answer: A.the adaptation of products to different markets
132. The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.
A. whether to launch the new product

B. which market to compete in

C. how to develop a market strategy

D. how long to compete in the market

E. how to compete in the market

Answer: A.whether to launch the new product
133. The PLC concept can be applied by marketers as a useful framework for describing how ________.
A. to develop marketing strategies

B. concept testing is conducted

C. to forecast product performance

D. products and markets work

E. product ideas are developed

Answer: D.products and markets work
134. The search for new-product ideas should be ________ rather than haphazard.
A. intermittent

B. seldom

C. segmented

D. systematic

E. strategically planned

Answer: D.systematic
135. The second part of the marketing strategy statement outlines the product’s planned price, distribution, and ________ for the first year.
A. marketing budget

B. advertising

C. target market

D. positioning

E. promotion

Answer: A.marketing budget
136. The team-based new-product development approach is faster because departments work closely together through _______.
A. a step-by-step process

B. departmentalization

C. team efforts

D. cross-functional teams

E. the help of a consultant

Answer: D.cross-functional teams
137. Under what circumstances might it be wise for a company to do little or no test marketing?
A. When the product has no substitutes and is new in its category.

B. When a new product requires a major investment.

C. When the costs of developing and introducing the product are low.

D. When management is not sure of the product.

E. When management is not sure of the marketing program.

Answer: C.When the costs of developing and introducing the product are low.
138. What are the two ways that a company can obtain new products?
A. line extension and brand management

B. service development and product extension

C. new-product development and acquisition

D. internal development and merger

E. market mix modification and research and development

Answer: C.new-product development and acquisition
139. Which of the following cannot be described by the PLC concept?
A. brand

B. styles

C. product image

D. product form

E. product class

Answer: C.product image
140. Which of the following costs is most likely associated with the commercialization stage of newproduct development?
A. identifying target markets

B. developing a prototype of the product

C. building or renting a manufacturing facility

D. paying groups of target consumers for product feedback

E. determining the product’s planned price, distribution, and marketing budget

Answer: C.building or renting a manufacturing facility
141. Which of the following is not a potential cause of the failure of a new product?
A. ineffective advertising

B. an underestimated market size

C. an incorrectly positioned product

D. a poorly designed product

E. higher than anticipated costs of product development

Answer: B.an underestimated market size
142. Which of the following is a disadvantage of a team-based approach to new-product development?
A. Organizational confusion and tension can be a part of the process.

B. The development effort is not as effective because of team members’ lack of expertise.

C. The process does not work with the shorter life cycles of many of today’s products.

D. It takes longer to get the right products to market.

E. Levels of risk can be more easily controlled.

Answer: C.The process does not work with the shorter life cycles of many of today’s products.
143. Which of the following is necessary for successful new-product development?
A. a market pioneer mindset and a holistic approach

B. an innovation management system and sequential product development

C. a team-based, innovation-management approach

D. a customer-centered, team-based, systematic approach

E. a holistic and sequential product development approach

Answer: D.a customer-centered, team-based, systematic approach
144. Which of the following is perhaps the most important external source of new-product ideas?
A. engineers

B. distributors and suppliers

C. competitors

D. customers

E. trade magazines, shows, and seminars

Answer: D.customers
145. Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers?
A. introduction

B. phase-in

C. decline

D. maturity

E. growth

Answer: D.maturity
146. Your firm wants to use external sources for new product ideas. After consulting with a friend you learn that all of the following are common external sources except ________.
A. the firm’s executives

B. customers

C. trade shows and magazines

D. competitors

E. suppliers

Answer: A.the firm’s executives

Product Design and Value Engineering objective questions with answers pdf download online exam test