chapter 11 Flashcards
(205 cards)
1
Q
Which of the following factors drive the need for new product development?
A) Stable market conditions
B) Static consumer preferences
C) Inactive competitors
D) Advances in science
A
D. -Markets are constantly evolving
-Consumer preferences change
-Competitors are innovating
-Advances in science
2
Q
Which of the following factors contribute to the necessity for new product development?
A) Static market conditions
B) Unchanging consumer preferences
C) Stagnant technological advancements
D) Evolving consumer preferences
A
D. - Markets are constantly evolving
- Consumer preferences change
- Competitors are innovating
- Advances in science
3
Q
Which of the following are examples of new product categories?
A) Repositioned products
B) Lower priced products
C) Improvements over existing products
D) New to the world
E) Established product lines
A
D
4
Q
Which type of new product development involves creating products that have never been seen before?
A) Additions to existing product lines
B) Lower priced products
C) Improvements over existing products
D) New to the world
E) Repositioned products
A
D
5
Q
Which strategy involves expanding a company’s product offerings within an existing category?
A) Repositioned products
B) Lower priced products
C) New product lines
D) Improvements over existing products
E) New to the world
A
C
6
Q
Which approach to new product development involves changing the target market or positioning of an existing product?
A) Improvements over existing products
B) New product lines
C) Repositioned products
D) Additions to existing product lines
E) Lower priced products
A
C
7
Q
Which strategy focuses on introducing products with reduced pricing compared to existing offerings?
A) Repositioned products
B) Lower priced products
C) New to the world
D) Additions to existing product lines
E) Improvements over existing products
A
B
8
Q
What type of new product development aims to enhance the features or quality of existing products?
A) New product lines
B) New to the world
C) Additions to existing product lines
D) Improvements over existing products
E) Lower priced products
A
D
9
Q
New-to-the-world products, where the product category itself is new, are also called:
a. discontinuous innovations
b. moderate innovations
c. slow-diffusing products
d. venture products
e. creative offerings
A
A
10
Q
A product must be a discontinuous innovation to be considered a “new” product
A
T
11
Q
Central Bark is a dog day care center. When you check your dog into a Central Bark you know your pooch will be pampered. Since kennels have been boarding dogs for years, the dog day care is not really a new product.
A
F
12
Q
The development of a garlic-butter flavored crescent rolls by Pillsbury would not be considered a
new product since the company was already making crescent rolls. It would simply be called a
line extension.
A
F. Additions to existing product lines. Line extensions are considered to be a type of new product.
13
Q
Which of the following would be considered a new product?
a. new product lines
b. new-to-the-world product
c. addition to existing product lines
d. improvements or revisions to existing
products
e. all of these choice
A
E
14
Q
Sony has developed a wireless speaker that sits unobtrusively on a desktop. The tiny, yet strong
twin speakers use Bluetooth to stream music directly from your PC or MP3 player. This small
Sony wireless speaker, which is radically different from anything currently on the market, would
be classified as a(n):
a. discontinuous innovation
b. slow-diffusing product
c. episodic innovation
d. venture product
e. sporadic innovation
A
A
15
Q
Which term describes the launch of products that no other company has ever made?
A) Repositioned products
B) Incremental innovations
C) Continuous innovations
D) New to the world
A
D
16
Q
Which term best describes products that are launched as entirely new innovations?
A) Repositioned products
B) Continuous innovations
C) Discontinuous innovations
D) Incremental innovations
A
C
17
Q
When Procter & Gamble wanted to enter the hair care market, it purchased Wella, a leading
German company specializing in hair care products. What new product category does this
acquisition represent for P&G?
a. repositioning strategy
b. new product line
c. addition to an existing product line
d. discontinuous innovation
e. revision to existing products
A
B
18
Q
Victorinex has long manufactured Swiss Army knives and developed a line of upscale Swiss
Army watches. The Swiss Army brand gave the company credibility over other watch
manufacturers and allowed the company to continue targeting sports-minded males between the
ages of 18 and 35. Victorinex used which strategy to create new products?
a. new-to-the-world product
b. new product line
c. repositioned product
d. addition to a current product line
e. discontinuous innovation
A
B
19
Q
The pedometer is getting kicked up a notch with the new Fitbit device. The Fitbit is a $99
motion-detecting sensing device that can measure the user’s activity even when asleep. It
digitally records the distance a user walks or runs, right down to the number of steps, and calories
burned. The device wirelessly sends data to its Web site, fitbit.com, giving users minute-byminute details. Users can add consumption information at the Web site, allowing an accurate
picture of calorie consumption and expenditures. Unlike other devices, like the Nike + iPod
Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach
that records brainwaves while the user is sleeping and sells for $399, the Fitbit combines both
functions. The first-time Fitbit setup isn’t very easy for users, but once over that hurdle, it’s
relative easy to use.
Refer to Fitbit. The company marketing the Fitbit does not currently market a product like this.
Which of the following best represents the category of new product the Fitbit is for this company?
a. new-to-the-world product
b. new product line
c. additions to existing product lines
d. repositioned product
e. incremental product
A
B
20
Q
Which statement accurately describes “New-to-the-world products” or “Discontinuous Innovations”?
A) They are incremental improvements over existing products.
B) They often enter an already saturated market.
C) They are introduced in an original form, creating an entirely new market.
D) They primarily aim to replicate existing products with minor adjustments.
A
C
21
Q
Which statement accurately describes “New Product Lines”?
A) They are products that are entirely new to the market.
B) They aim to replicate existing products with minor adjustments.
C) They are introduced in an original form, creating a new market.
D) They are products the firm has not offered in the past but will introduce into an established market.
A
D
22
Q
Which of the following statements accurately describes “New Product Lines”?
A) These products are entirely new to the market.
B) They are only offered by the company introducing them.
C) They are new to the company but offered by other companies.
D) They decrease the “width” of the product mix.
A
C
23
Q
What characterizes “New Product Lines”?
A) They are introduced by multiple companies simultaneously.
B) They are only offered by the company introducing them.
C) They increase the diversity of products offered by the company.
D) They have been in the market for a long time.
A
C. Increasing the width in the product mix
24
Q
Which term best describes products that are new to a company but are already available in the market?
A) Incremental innovations
B) New to the world
C) New product lines
D) Discontinuous innovations
A
C
25
What effect do "New Product Lines" have on the company's product mix?
A) They narrow the product mix's diversity.
B) They have no impact on the product mix.
C) They decrease the company's market presence.
D) They increase the "width" of the product mix.
D
26
Which of the following is a potential benefit of introducing "New Product Lines"?
A) Opportunity to focus solely on existing products
B) Reduced need for market research
C) Opportunity to diversify risks
D) Increased competition from existing products
C
27
When Glade brand air freshener began marketing a clean linen-scented air spray, this represents
which new product category?
a. repositioning strategy
b. new product line
c. addition to an existing product line
d. discontinuous innovation
e. revision to existing products
C
28
Heinz is expected to introduce more than 400 new products in the next two years. One of the
products is a spicier ketchup aimed at the baby boomer market. The spicier ketchup would be
considered what type of new product?
a. discontinuous innovation
b. new-to-market
c. new product line
d. lower-priced products
e. addition to existing product line
E
29
Oakley, a manufacturer of protective eyewear for various kinds of sports, has introduced
sunglasses that play music. The glasses weigh just a few ounces and can hold up to 120 songs.
These sunglasses would be an example of a(n):
a. repositioning strategy
b. new product line
c. addition to an existing product line
d. discontinuous innovation
e. revision to existing products
C. The new sunglasses supplement the firm’s established product line
30
Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer. It
developed its first fishing lure--a cigar-shaped minnow--in 1962. The annual market for fishing
lures in terms of retail sales is approximately $600 million. Rapala VMC garnered one-third of
that amount in 2008. New lures must be introduced each year in order to stay competitive in this
industry. Like other lure manufacturers, Rapala focuses on two questions in developing and
making new lures: Does it work, and does it look good? Developing a new lure takes two or three
years and involves extensive field testing by tournament professionals and fishing guides. At the
annual fishing industry trade show in 2008, Rapala unveiled the "dream lure for the 21st century."
101. Refer to Rapala. The "dream lure for the 21st century will more than likely be an example of a(n):
a. new product line
b. addition to existing product line
c. discontinuous innovation
d. improvement to existing product
e. repositioned product
B
31
Hewlett-Packard is the number one seller of personal computers worldwide. The company has
been increasingly more creative in their computer designs following the trend set by Apple Inc.
Hewlett-Packard has created a ultra thin laptop called the Voodoo Envy. The laptop is less than a
half inch thick and weights less than 3 1/2 pounds. It is priced at $2000. HP created the laptop to
compete against Apple's MacBook Air and a model created by the Lenovo Group Ltd. Both these
models were priced at around $3000. The MacBook Air does not have removable batteries or a
built-in socket for plugging into Ethernet networks. HP’s Voodoo envy does have removable
batteries and offers an Ethernet port that is part of its power adapter. The Voodoo can also be
booted up in less than five seconds made possible by software developed by HP.
114. Refer to Voodoo Envy. Even though HP offers other laptop computers, the Voodoo Envy is HP’s
first entry into the ultrathin computer market. It is not really an update of an existing laptop.
Instead, it was originally designed as an ultrathin laptop. As such it is an example of a _____.
a. new-to-the-world product
b. new product line
c. addition to existing product lines
d. repositioned product
e. improvement or revision of existing products
C
32
Which of the following statements accurately describes "Additions to existing product lines"?
A) They decrease the diversity of products offered by the company.
B) They do not appeal to any new customer segments.
C) They are entirely new innovations introduced by the company.
D) They increase the "depth" of the product mix.
D
33
Which term best describes products that are introduced as new variations to existing products?
A) Incremental innovations
B) New to the world
C) Additions to existing product lines
D) Discontinuous innovations
C
34
What is one potential benefit of introducing "Additions to existing product lines"?
A) Reducing the company's market presence
B) Narrowing the appeal to customer segments
C) Increasing the "depth" of the product mix
D) Limiting the company's product range
C
35
Demand for pet services is greatly increasing across the United States. In fact, Americans will
spend nearly $44 billion dollars on their pets this year. Many American dog owners are seeking
out “doggy daycares” that are more like a resort or spa than an ordinary kennel for their canine
companion. Daycare services for dogs now include toy rooms, outside play areas, doggie
massages, treadmills, swimming pools and cushy beds for nap time. Pet owners can watch their
pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog
when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,
depending on the amenities that the pet owner chooses.
NARREND
107. Refer to Going to the Dogs. The doggy daycare center is more like a dog resort than a dog kennel.
A dog daycare represents what type of new product?
a. competitive innovation
b. discontinuous innovation
c. new product lines
d. revision to an existing product
e. higher-priced product
D
36
Which of the following statements accurately describes "Improvements over existing" products?
A) They involve radical changes to the product's core functionality.
B) They intentionally make products become outdated over time.
C) They focus on maintaining the product's current state without any changes.
D) They entail minor or major changes to stay competitive.
D
37
Which term best describes the practice of intentionally making products become outdated over time?
A) Continuous improvements
B) Schedule obsolescence
C) Incremental innovations
D) Discontinuous innovations
B
38
_____ occurs when an existing product is targeted toward new market segments. It is another type
of new-product development because the product is new to that segment.
a. Brainstorming
b. Diffusing
c. Repositioning
d. Screening
e. Reciprocity
C. Repositioned products are existing products targeted at new markets or market segments, or repositioned to change the current market’s perception of the product
39
Which of the following best describes "Repositioned products"?
A) They are entirely new products introduced by the company.
B) They are existing products with no changes targeted at new markets.
C) They are existing products targeted at new markets or market segments.
D) They are products that are intentionally made obsolete over time.
C
40
Which term best describes products that are targeted at new markets or market segments, or repositioned to change the current market's perception?
A) Continuous improvements
B) Discontinuous innovations
C) Incremental innovations
D) Repositioned products
D
41
What is the primary goal of "Repositioned products"?
A) To keep products perpetually outdated
B) To maintain the current market's perception of the product
C) To introduce entirely new innovations
D) To target new markets or market segments, or change the current market's perception
D
42
Which of the following statements accurately describes "Repositioned products"?
A) They involve discontinuing products shortly after their release.
B) They are entirely new products introduced by the company.
C) They focus solely on maintaining the current market perception.
D) They involve changing how the brand's image is perceived by customers and adjusting product positioning.
D
43
What is the primary purpose of "Repositioned products"?
A) To keep products perpetually outdated
B) To maintain the current market's perception of the product
C) To introduce entirely new innovations
D) To adjust a product's positioning to stay relevant in the market and change the brand's image perception
D
44
Which term best describes products that undergo changes in their positioning to maintain relevance in the market?
A) Incremental innovations
B) Discontinuous innovations
C) Continuous improvements
D) Repositioned products
D
45
Which of the following statements accurately describes "Lower priced products"?
A) They typically offer additional features to justify the reduced price.
B) They are introduced to maintain high profit margins.
C) They may involve reducing costs to appeal to broader markets.
D) They primarily target niche markets with higher disposable income.
C
46
What is one potential reason for introducing "Lower priced products"?
A) To maintain high profit margins
B) To introduce additional features to justify the price
C) To appeal to broader markets by reducing costs
D) To exclusively target niche markets with higher disposable income
C
47
Which of the following accurately defines "Lower-priced products"?
A) Products that offer superior performance compared to competitors.
B) Products that are priced higher than competing brands.
C) Products that provide similar performance to competitors at a lower cost.
D) Products that are exclusively marketed to niche markets.
C
48
Lower-priced products often achieve cost reduction through:
a) Decreased quality
b) Increased marketing costs
c) Technological advantages
d) Reduced production scale
C
49
Economies of scale in production contribute to lower-priced products by:
a) Increasing production costs
b) Reducing production efficiency
c) Decreasing unit costs
d) Expanding marketing expenses
C
50
Lower marketing costs can contribute to lower-priced products by:
a) Enhancing brand image
b) Increasing promotional activities
c) Reducing overall expenses
d) Boosting advertising expenditure
C
51
Which factor may NOT contribute to the lower cost of lower-priced products?
a) Technological advantages
b) Economies of scale
c) Higher marketing costs
d) Production efficiency
C
52
Very few firms follow a formal new-product development process.
F
53
A firm's new-product strategy links the new-product development process with the objectives of
the marketing departments, the business unit, and the corporation.
T
54
What is the primary purpose of aligning the new product development strategy with company objectives?
a) To increase the cost of new product development
b) To ensure the failure of new products
c) To streamline the innovation process
d) To create a misalignment between strategy and objectives
C
55
According to the passage, what is highlighted as the most expensive exercise a company undertakes?
a) Marketing campaigns
b) Product distribution
c) New product development
d) Employee training programs
C
56
Why is a "process" essential for new product development according to the passage?
a) To make innovation easier
b) To reduce expenses
c) To ensure alignment with company objectives
d) To streamline and organize the complex task of innovation
D
57
What is emphasized regarding the introduction of new products?
a) It is a cost-effective endeavor
b) It is a simple process
c) It is a challenging and expensive undertaking
d) It guarantees success for the company
C
58
List the six steps of the new-product development process.
Idea generation
Screening
Business analysis
Development
Test marketing
Commercialization
59
What is the primary purpose of idea generation in the new product development process?
a) To limit creativity
b) To narrow down options quickly
c) To gather a diverse range of ideas
d) To finalize the product concept immediately
C
60
Which of the following is NOT mentioned as a source for gathering ideas during the idea generation phase?
a) Customers
b) Competitors
c) Government agencies
d) R&D efforts
C
61
How is the idea generation process typically conducted?
a) By strictly adhering to predetermined concepts
b) By limiting participation to upper management
c) By utilizing brainstorming and creative techniques
d) By discouraging diverse perspective
C
62
Most new-product ideas are rejected at the idea generation stage.
F. Most are rejected at the idea screening stage.
63
It is considered inefficient to use concept tests during the idea screening stage of the new-product
development process.
F. During the idea screening stage of the new-product development process, it is appropriate to use
concept tests.
64
Concepts tests are considered fairly good predictors of success for line extensions and for
products that do not require major changes in consumer behavior
T
65
Which of the following stages of the new-product development process is the first filter in the
new-product development process and serves to eliminate new-product ideas that are inconsistent
with the organization's new-product strategy or are obviously inappropriate for some other
reason?
a. applied diffusion
b. introductory diffusion
c. business analysis
d. test marketing
e. idea screening
E
66
At what stage of the new-product development process are most new-product ideas rejected?
a. test marketing
b. diffusion
c. business analysis
d. idea screening
e. idea generation
D
67
After the research team at Nabisco had generated more than two dozen new-product ideas for a
substitute for partially hydrogenated oils that tastes the same but has zero trans fat, the company
formed a committee to analyze whether the product ideas were consistent with the organization's
new-product strategy. This is called:
a. business analysis
b. diffusion
c. idea screening
d. test marketing
e. idea generation
C
68
Top managers at a commercial real estate firm that specializes in site location and installation of
cellphone towers considered providing the same service for windmill location and installation but
decided this was not within the company's corporate mission. Which stage of the new-product
development process did its new-product development process reach?
C
69
A European dairy, which is famous for its rich ice creams, has introduced basil, tomato, fennel,
and oregano flavored ice creams. In the process of developing these new flavors, the dairy
surveyed world-famous chefs to determine which nontraditional flavors had the greatest level of
marketability. This survey would have happened during which stage of the product development
process?
a. concept testing
b. brainstorming
c. basic research
d. idea screening
e. applied research
D
70
Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a
new amusement park video skill game. This firm is engaged in a new-product business analysis.
T
71
In the _____ stage of new-product development, preliminary demand, cost, sales, and profitability
estimates are made.
a. prototype screening
b. idea generation
c. concept testing
d. post-brainstorming
e. business analysis
E
72
Middleton has developed the Flybar 1200, an extreme pogo stick that propels users more than
five feet into the air. During the _____ stage of its new-product development process, a group was
assigned the task of estimating preliminary demand for the product, costs (including issues with
liability), sales, and future profitability.
a. business analysis
b. idea generation
c. concept testing
d. screening
e. test marketing
A
73
Before opening the It’s a Dog’s Life doggy resort the potential
company owners projected the costs involved in providing the services the target market (dog
owners) appears to desire. Unfortunately, a decision was made to not proceed with the doggy
resort as the owners felt the cost to provide the services was too high considering the rates the
target market would be willing to pay. The would be an example of _____.
a. idea screening
b. concept testing
c. business analysis
d. commercialization
e. test marketing
C
74
Basically, all that happens in the development stage of the new-product process is that the first
prototype of the product gets developed.
F. Not only is a prototype developed, where appropriate, but also preliminary decisions on every
aspect of the four Ps are developed at this stage.
75
The screening and concept testing stage of the new-product development process is used to:
a. eliminate undesirable ideas and predict
consumer acceptance
b. refine the promotion campaign to be used
with the new product
c. determine the potential profits to be gained
from the new product
d. determine how long the test market should be
run
e. generate new-product ideas
A. Concept tests involve describing the product idea to consumers, usually before any prototype has
been created, and asking for their evaluations.
76
_____ evaluate new-product ideas usually before any prototype has been created.
a. Concept tests
b. Simulated market tests
c. Market tests
d. User tests
e. Venture analyses
A
77
After Mattel evaluated many new products to add to its Barbie product line and before any
prototype was created, the toy manufacturer instructed a committee to select three of the ideas to
present to a group of consumers. The consumer group was asked to evaluate the three product
ideas in terms of their marketability. This stage of new-product development is called:
a. prototype screening
b. concept testing
c. market testing
d. idea manipulation
e. idea diffusing
B
78
In the _____ stage of new-product development, the technical feasibility of manufacturing the
new product is examined as a prototype is produced.
a. screening
b. development
c. market testing
d. concept testing
e. business analysis
B
79
The testing of new lures by tournament professionals and fishing guides would
take place in which stage of new-product development?
a. commercialization
b. idea generation
c. idea screening
d. concept testing
e. product development
E
80
During the development of a prototype product, which department initiates the development of marketing strategies?
a) Research and Development (R&D)
b) Engineering
c) Marketing
d) Sales
C
81
What is the primary purpose of creating prototypes during the development phase?
a) To finalize product designs
b) To test concept realism and feasibility
c) To implement marketing strategies
d) To determine production costs
B
82
Which teams typically collaborate during the development phase?
a) Marketing and production
b) Research and Development (R&D) and sales
c) R&D, engineering, marketing, and production
d) Engineering and distribution
C
83
What stages are typically involved in the development process?
a) Manufacturing, testing, marketing
b) Design, production, sales
c) Design, prototyping, testing
d) Sales, distribution, promotion
C
84
What is a common characteristic of the development process?
a) It occurs in isolation from other departments
b) It is a one-time event
c) It involves continuous repetition
d) It excludes R&D and engineering teams
C
85
During development, what is the purpose of repeating the process?
a) To increase production costs
b) To finalize product designs quickly
c) To refine and improve the product
d) To limit collaboration between team
C
86
What aspect of the development process involves creating a physical representation of the product?
a) Prototyping
b) Marketing
c) Sales forecasting
d) Production planning
A
87
One benefit of test marketing is that the marketing activity is shielded from competitors
F. Test marketing may result in a serious problem if a firm's competitors find out about the new
product before it has been fully introduced
88
A(n) _____ typically entails showing members of the product's target market advertising and
other promotional materials for several products, including the test product. These people are then
taken to a mock or real store where their purchases are recorded.
a. adoption-rate test
b. real test market
c. concept test
d. simulated (laboratory) market test
e. consumer juried test
D
89
____ is a limited introduction of a product and a marketing program to determine the reactions
of potential customers in a market situation.
a. Use testing
b. Test marketing
c. Concept testing
d. Laboratory testing
e. Discontinuous innovation
B
90
The maker of Purell hand sanitizer tested consumers' reactions to its Purell Sanitizing Wipes by
getting consumers to look through a newspaper with grocery store ads, make out a grocery list,
and then "shop" in a mock store filled with real products, including the new product. This is an
example of a(n):
a. adoption-rate test
b. simulated (laboratory) market test
c. concept test
d. use test
e. juried consumer test
B
91
What is the primary purpose of test marketing?
a) To conduct nationwide launches
b) To save the company from product failure
c) To expedite product launch
d) To eliminate the need for market assessment
B
92
How does test marketing potentially benefit a company?
a) By ensuring a rapid nationwide launch
b) By preventing disastrous product failures
c) By avoiding delays in product launch
d) By increasing production costs
B
93
What effect can test marketing have on product launch timelines?
a) It accelerates product launches
b) It has no impact on launch timelines
c) It delays product launches
d) It reduces the need for product testing
C
94
What is one of the key objectives of conducting test marketing?
a) To limit consumer feedback
b) To minimize market success assessment
c) To assess market success and gather feedback
d) To increase the risk of product failure
C
95
Which type of test market introduces products in select markets before a nationwide launch?
a) Standard test markets
b) Simulated test markets
c) Controlled test markets
d) Uncontrolled test markets
A
96
What characterizes simulated test markets?
a) They involve actual consumer testing
b) They randomly divide stores for testing
c) They create artificial market environments
d) They rely on nationwide launches
C
97
What is the primary objective of controlled test markets?
a) To introduce products in select markets
b) To create artificial market environments
c) To assess market success and gather feedback
d) To test variations of products or marketing mix elements
D
98
n controlled test markets, how are stores typically divided for testing purposes?
a) Based on geographical locations
b) Based on consumer preferences
c) Randomly
d) Based on previous sales performance
C
99
The final stage in the new-product development process is:
a. product testing
b. market testing
c. commercialization
d. product prototyping
e. simulated marketing
C
100
During the _____ stage of the new-product development process, production starts, inventories
are built up, the product is shipped to distribution points, the sales force is trained, and advertising
and promotion begin.
a. commercialization
b. product testing
c. market analysis
d. product prototyping
e. simulated marketing
A
101
In terms of the new-product development process, Fitbit's availability in retail
stores and online is the _____ stage.
a. idea screening
b. idea generation
c. business analysis
d. test marketing
e. commercialization
E
102
What defines the commercialization stage in the product development process?
a) Developing prototypes
b) Testing market reactions
c) Launching the product in the marketplace
d) Conducting market research
C
103
When does commercialization typically occur in the product development timeline?
a) At the beginning
b) During the design phase
c) At the final stage
d) Before prototype development
C
104
What characterizes the commercialization stage?
a) Concern for profitable production
b) Testing market reactions
c) Prototype development
d) Conducting market research
A
105
What is a key consideration during the commercialization stage?
a) Developing initial concepts
b) Finalizing product designs
c) Continuously assessing market reactions
d) Conducting prototype testing
C
106
What is the main focus of concern during the commercialization stage?
a) Initial concept development
b) Profitable production
c) Prototype testing
d) Market research
B
107
Adaptation is the process by which the adoption of an innovation spreads.
F. Diffusion
108
The process by which the adoption of 3-D high-definition televisions spreads is an example of:
a. test market
b. diffusion
c. product dissemination
d. innovative dispersal
e. marketing communication
B
109
All of the following statements about how adopters participate in the diffusion process are true
EXCEPT:
a. Early adopters may also be opinion leaders.
b. Laggards are the last consumers to adopt a
new product.
c. There are three categories of consumers who
will adopt an innovation.
d. The dominant characteristic of members of
the late majority is skepticism.
e. Innovators are the first to purchase a new
product.
C. There are five categories: innovator, early adopter, early majority, late majority, and laggard.
110
All of the following are categories of adopters in the diffusion process of innovations EXCEPT:
a. laggards
b. innovators
c. early majority
d. early adopters
e. doubters
E
111
How is innovation typically perceived by consumers?
a) As an old product
b) As a familiar product
c) As a new product
d) As a discounted product
C
112
_____ are eager to try new ideas and products. They typically have higher incomes, are better
educated, and are more cosmopolitan than other categories of adopters.
a. Early adopters
b. Innovators
c. Early majority
d. Late majority
e. Laggards
B. These are characteristics of innovators, who are almost obsessed with trying new ideas and
products.
113
Mitch purchased a 32-inch high-definition television right after they were introduced in the
marketplace and paid over $8,000 for it. He has a master’s degree in business and is wellinformed about electronic products. He is venturesome and is always looking for new products to
try. Mitch is best described as a(n):
a. early adopter
b. early majority
c. innovator
d. diffusers
e. lead consumer
C
114
Because buyers of fishing lures want to have the newest, most technologically
improved lure, most of Rapala's customers would more than likely fall into the _____ category of
adopters.
a. laggards
b. prompt diffusers
c. early adopters
d. innovators
e. early majority
D
115
When the dog daycare first launched, it most likely appealed to
which product adopter category?
a. early adopter
b. early majority
c. late majority
d. innovators
e. laggards
D
116
With very few competitors and high product prices, those purchasing
ultrathin computers now are probably the most venturesome consumers, also known as the _____.
a. innovators
b. late majority
c. late adopters
d. early adopters
e. early majority
A
117
How do innovators compare to other groups in terms of market size?
a) They represent the largest portion of the market
b) They represent a small portion of the market
c) They represent the majority of the market
d) They represent the entire market
B
118
What characterizes the behavior of innovators regarding new products?
a) They are hesitant to try new products
b) They consistently stick to new products
c) They try new products but may not stick to them
d) They avoid new products entirely
B
119
Approximately what percentage of adopters do innovators represent?
a) 25%
b) 50%
c) 75%
d) 2.5%
D
120
Which term describes individuals who are variety seekers and try new products but may not become loyal to them?
a) Innovators
b) Early adopters
c) Laggards
d) Adopters
A
121
_____ embrace products relatively early in the product life cycle, are likely to be community
oriented, and often are opinion leaders themselves.
a. Early adopters
b. Innovators
c. Early majority
d. Late majority
e. Laggards
A
122
Jim didn’t buy a netbook computer when they first came out, but he did purchase one a year after
they were introduced into the market. He is very active in his church and local arts council, and
many of his friends asked him which brand to buy when they were considering purchasing a
netbook. Jim is best described as a(n):
a. innovator
b. early adopter
c. early majority
d. leading consumer
e. proactive
B
123
How do early adopters typically respond to new ideas and products?
a) They resist new ideas and products
b) They are hesitant towards new ideas and products
c) They welcome new ideas and products
d) They ignore new ideas and products
C
124
What distinguishes early adopters in terms of their knowledge and attitude towards new products?
a) They are uninformed and disinterested
b) They are well-informed and passionate
c) They are skeptical and conservative
d) They are unaware of new products
B
125
What role do early adopters play in the success of new products?
a) They have no impact on the success of new products
b) They are essential for the success of new products
c) They delay the success of new products
d) They prevent the success of new products
B
126
Approximately what percentage of adopters do early adopters represent?
a) 25%
b) 50%
c) 75%
d) 13.5%
D
127
Among adopter groups, who are likely to influence others' opinions and behaviors regarding new products?
a) Early majority
b) Laggards
c) Late majority
d) Early adopters
D
128
A company has learned members of its target market are likely to collect more information and
evaluate more brands than early adopters. They are cautious and thoughtful and do not try the
product without asking someone else. The customers' dominant characteristic is deliberateness. In
terms of the diffusion process, these customers are most likely:
a. innovators
b. early minority
c. laggards
d. early majority
e. late majority
D. The early majority will collect more information and evaluate more brands than do early
adopters. They rely on friends, neighbors, and opinion leaders for information.
129
8. Liz tends to adopt new products sooner than a lot of other people, but she weighs the pros and
cons before buying. She does considerable product research, but her friends don’t really look to
her for information. She really deliberates before she makes a purchase. Liz is best described as
a(n):
a. innovator
b. early adopter
c. early majority
d. late majority
e. laggard
C
130
What distinguishes the early majority in terms of group size?
a) They represent a small portion of the market
b) They represent the majority of the market
c) They represent the entire market
d) They are the first group to adopt a product
B
131
How do early majority consumers typically approach the adoption of new products?
a) They ignore new products entirely
b) They enthusiastically embrace new products
c) They weigh the pros and cons before adopting new products
d) They resist new products
C
132
Approximately what percentage of adopters do early majority consumers represent?
a) 25%
b) 50%
c) 75%
d) 34%
D
133
The _____ adopt a product because most of their friends have already done so, and their adoption
is usually the result of pressure to conform because they rely on group norms.
a. laggards
b. early adopters
c. early majority
d. innovators
e. late majority
E
134
Which category of adopters adopt a new product because most of their friends have already
adopted it?
a. innovators
b. early majority
c. early adopters
d. laggards
e. late majority
E
135
Leon is not very quick to purchase innovative products when they come out, but after a while he
breaks down and buys if after most of his friends have bought it. He gets most of his information
from them when he decides to buy something. He is very skeptical of marketing, so he trusts his
friends more than anything. Leon is best described as a(n):
a. innovator
b. early adopter
c. early majority
d. late majority
e. laggard
D
136
Among the late majority group, adoption of a product primarily results from:
a. word-of-mouth communications
b. print advertising
c. advertising in nontraditional media
d. broadcast advertising
e. sales promotions
A
137
Consumers described as laggards tend to rely on group norms when deciding to adopt an
innovation.
F. Laggards do not rely on group norms, and their independence is rooted in their ties to tradition.
138
In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not
rely on the norms of the group but are independent because they are tradition-bound. They tend to
have the lowest socioeconomic status, are suspicious of new products, and are alienated from a
rapidly advancing society. They are called:
a. generics
b. late majority
c. decliners
d. laggards
e. late diffusers
D
139
Which is the last adopter category to adopt an innovation?
a. late majority
b. laggards
c. late diffusers
d. reluctant adopters
e. traditionalists
B
140
Procter & Gamble is introducing a new fabric softener dispenser that consumers stick to the
inside of the dryer drum and plans to send consumers free samples in the mail. This strategy will
likely increase the rate of adoption of the new product.
T. Trialability
141
All of the following are product characteristics influencing the rate of adoption EXCEPT:
a. complexity
b. compatibility
c. relative advantage
d. observability
e. distribution
E. Five Characteristics:
Relative Advantage
Compatibility
Simplicity (vs. Complexity)
Communicability (or Observability)
Trialability
142
Which product factor influencing the rate of adoption represents the degree of difficulty involved
in understanding and using a new product?
a. complexity
b. compatibility
c. relative advantage
d. observability
e. trialability
A
143
The product characteristic affecting the rate of adoption characterized by the degree to which a
product is perceived as superior to existing substitutes is:
a. compatibility
b. complexity
c. relative advantage
d. product differentiation
e. competitive advantage
C
144
Biopure Corp. is developing a human blood substitute called Hemopure. Unlike like donated
human blood that needs to be refrigerated and expires after a short period of time, Hemopure is
shelf-stable and can be stored for two years or more. It does not need to be matched to a person’s
blood type like donated blood does. These factors make it well-suited for trauma cases where
blood must be transfused at an accident site or on the battlefield. Which product characteristic
influencing the rate of adoption does this represent?
a. complexity
b. compatibility
c. relative advantage
d. observability
e. trialability
C
145
The fact that Fitbit can monitor motion while awake and asleep makes it different
from competing products that might increase its rate of adoption. Which product characteristic
affecting the rate of adoption does this illustrate?
a. complexity
b. compatibility
c. relative advantage
d. observability
e. trialability
C
146
The degree to which the newest lures are perceived as superior to earlier models
refers to their _____, a characteristic used to predict the rate of adoption.
a. trialability
b. observability
c. relative advantage
d. differentiation capability
e. complexity
C
147
Which product characteristic affecting the rate of adoption represents the degree to which the new
product is consistent with existing values and product knowledge, past experiences, and current
needs?
a. complexity
b. compatibility
c. relative advantage
d. observability
e. trialability
B
148
A European dairy, which is famous for its rich ice creams, has introduced basil, tomato, fennel,
and oregano flavored ice creams. Which of the following product characteristics would most
likely influence the market success of these new flavors?
a. compatibility
b. comparability
c. complexity
d. tangibility
e. competitive advantage
A. "Compatibility" refers to how well the new product aligns with the needs, preferences, and habits of the target market. In this case, the European dairy is introducing unconventional flavors like basil, tomato, fennel, and oregano. The success of these flavors would largely depend on whether consumers find them compatible with their taste preferences and culinary expectations. If the market perceives these flavors as interesting and appealing, they are more likely to be successful. Therefore, compatibility is the product characteristic that would have the most significant influence on the market success of these new flavors.
149
When the Segway Human Transporter was introduced in 2002, many people expected the product
to be a phenomenal success. While the Segway is still on the market it has never been the success
so many expected. A recent Wall Street Journal article suggested that the Segway, while brilliant
technologically, seemed impractical to most people as it could not be used to replace their current
method of transportation. In other words, the Segway had problems with _____.
a. compatibility
b. relative advantage
c. observability
d. trialability
e. longevity
A. Since the Segway could not replace consumer’s current transportation it was incompatible with
consumers’ transportation needs.
150
Many product failures such as Cucumber antiperspirant spray, Toaster Eggs, and Health-Sea seasausages most likely did not succeed because they did not conform to the product characteristic
of:
a. complexity
b. trialability
c. total advantage
d. observability
e. compatibility
E
151
One challenge to adoption of the dog daycare is the fact that dog
owners are used to paying a somewhat minimal fee for boarding their dog in a kennel, while a
daycare center may demand many times as much for the same time span. This suggests the _____
of the new product may affect the rate of diffusion.
a. compatibility
b. complexity
c. relative advantage
d. observability
e. trialability
A.
152
Two advantages the Voodoo Envy has over the MacBook Air are
removable batteries and an Ethernet port. In other words, since the Voodoo Envy has these
features that are consistent with full size laptops, in terms of the adoption process, it has the
advantage of _____.
a. compatibility
b. complexity
c. maturity
d. observability
e. trialability
A
153
What does compatibility refer to in the context of a new product?
a) The product's price compared to competitors
b) The product's design and aesthetics
c) The degree to which the new product aligns with existing values and knowledge
d) The product's popularity among early adopters
C
154
According to the definition provided, what factors does compatibility consider?
a) Price and quality
b) Design and innovation
c) Existing values, product knowledge, past experiences, and current needs
d) Brand reputation and market presence
C
155
Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently introduced
Oakley's Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs.
Which of the following product characteristics would likely exert the greatest influence on the
market success of these new glasses?
a. compatibility
b. comparability
c. complexity
d. tangibility
e. competitive advantage
C
156
Which product characteristic affecting the rate of adoption of a new product represents the degree
to which the benefits or other results of using the product can be communicated to target
customers?
a. observability
b. diffusion
c. adoption
d. trialability
e. complexity
A
157
Razor scooters gained instant popularity because walkers and runners frequently saw people on
the scooters zipping by them and having fun. This information suggests the adoption rate of the
Razor scooter was most affected by which product characteristic?
a. complexity
b. trialability
c. relative advantage
d. observability
e. compatibility
D
158
A new medication to eliminate fungal growths on people’s toenails may have a slow rate of
adoption because it is not a highly visible item in homes. Also, this item is not often discussed
among friends and coworkers. This is an example of how the characteristic of _____ can work to
slow the adoption process.
a. relative advantage
b. observability
c. trialability
d. complexity
e. compatibility
B
159
For many dog owners it may be hard to understand the difference
between a traditional kennel and a dog daycare, especially given the price differential. As a result,
dog daycares may offer special low rates for first-time users in an effort to reduce which of the
following issues concerning the rate of diffusion:
a. compatibility
b. complexity
c. observability
d. innovativeness
e. relative advantage
C. By lowering the price for first-time users, the dog daycare will make it easier for dog owners to
try the facility and experience its benefits.
160
What does communicability, or observability, refer to in the context of a product?
a) The product's physical appearance
b) The ease of use of the product
c) How easily the benefits of the product can be conveyed to potential users
d) The popularity of the product among early adopters
C
161
The degree to which a product can be used on a limited basis represents which product
characteristic influencing the rate of adoption?
a. complexity
b. trialability
c. observability
d. relative advantage
e. sampling
B
162
Which of the following products has the lowest level of trialability?
a. an Internet chat room
b. low-fat ice cream
c. surgically implanted hearing aids
d. organic pet food
e. a new air freshener
C
163
When Coca-Cola North American debuted Gold Peak iced tea, a spokesperson for the company
said, "In looking at the ready-to-drink tea market, we found that the one place that nobody
seemed to be playing was in the category of classic iced teas like mother used to make. Gold Peak
is a quality product that brings back that classic taste. We're going to do a lot of sampling with
this product because we believe that if people try it, they're going to love it and stick with it.” In
other words, its adoption rate will rely on its:
a. compatibility
b. comparability
c. complexity
d. trialability
e. competitive advantage
D
164
What does the term "Product Life Cycle" (PLC) refer to?
a) The duration of time a product remains in the marketplace
b) The various stages that products typically pass through during their time in the marketplace
c) The sales volume of a product over its lifetime
d) The marketing strategies employed for a specific product
B
165
How are the stages of the Product Life Cycle (PLC) typically correlated?
a) With changes in consumer preferences
b) With fluctuations in market demand
c) With relative sales volume
d) With variations in production costs
C
166
What is an important characteristic of the Product Life Cycle (PLC) according to the provided description?
a) It follows a fixed pattern for all products
b) It correlates directly with product innovation
c) It may not follow a typical pattern
d) It accelerates product obsolescence
C
167
The product life cycle is a biological metaphor that traces the stages of a product’s acceptance,
from its introduction (birth) to its decline (death).
T
168
The growth stage is the first stage of the product life cycle.
F. The introduction
169
Increasing competition, aggressive brand advertising, and healthy profits are all characteristics
found in the introductory stage of the product life cycle.
F. the growth stage
170
Profits typically reach their peak during the growth stage of the product life cycle
T
171
During the maturity stage of the product life cycle, marginal competitors start dropping out of the
market.
T
172
. Many products may experience short-term fluctuations in sales, but a long-term drop in sales
probably signifies that a product is in the decline stage of the product life cycle.
T
173
The product life cycle concept encourages marketing managers to act reactively
F. The product life cycle concept encourages marketing managers to plan so they can take the
initiative instead of reacting to past events.
174
The stages of the product life cycle, in order, are:
a. introduction, maturity, decline
b. introduction, growth, maturity, decline
c. growth, maturity, plateau, decline
d. innovation, early adoption, late adoption,
laggard
e. category acceptance, category growth, brand
acceptance, brand growth
B
175
A brand of iced tea, called Gold Peak, has high marketing costs as well as high production costs.
Promotions for the product are aimed at gaining distribution and informing consumers that this
premium product tastes like it’s home-brewed. In which stage of the product life cycle is Gold
Peak iced tea?
a. introductory
b. growth
c. maturity
d. decline
e. saturation
A
176
The length of the introductory stage of the product life cycle for a new product is largely
determined by:
a. the size of the product
b. the product's marketing mix
c. the efficiency of the test marketing
d. product characteristics, such as advantages
over substitute products
e. the size of the market
D
177
The phase of the product life cycle in which healthy profits usually begin to appear is the _____
stage.
a. growth
b. decline
c. introductory
d. maturity
e. commercialization
A
178
During the growth stage of the product life cycle:
a. there is little emphasis on the distribution
strategy
b. demand for the product is limited to highincome consumers
c. prices increase due to economies of scale
d. there is decreased direct competition
e. profits peak
E
179
What characterizes the Introduction stage of the Product Life Cycle (PLC) in terms of investment?
a) Low investment by companies
b) Moderate investment by companies
c) High investment by companies
d) No investment by companies
C
180
What typically happens to profits during the Introduction stage of the Product Life Cycle (PLC)?
a) Profits increase rapidly
b) Profits remain negative
c) Profits stabilize
d) Profits peak
B
181
What are the sales growth trends during the Introduction stage of the Product Life Cycle (PLC)?
a) Sales grow rapidly
b) Sales decline steadily
c) Sales grow slowly
d) Sales remain constant
C
182
What are the primary marketing goals during the Introduction stage of the Product Life Cycle (PLC)?
a) Building brand loyalty
b) Maximizing market share
c) Creating awareness and explaining product benefits
d) Focusing on cost reduction
C
183
What marketing strategies are emphasized during the Introduction stage of the Product Life Cycle (PLC)?
a) Passive marketing
b) Minimal promotion
c) Intensive selling to channel members and aggressive promotion to consumers
d) Limited communication with consumers
C
184
What happens to sales and profits during the Growth stage of the Product Life Cycle (PLC)?
a) Sales decrease and profits remain stable
b) Sales and profits both experience strong growth
c) Sales increase while profits decrease
d) Sales and profits both decline
B
185
What happens to competition during the Growth stage of the Product Life Cycle (PLC)?
a) Competition decreases
b) Competition remains stable
c) Intense competition arises as other competitors enter the market
d) Competition becomes non-existent
C
186
What strategy may companies adopt to dominate the market during the Growth stage of the Product Life Cycle (PLC)?
a) Cost reduction
b) Minimal investment
c) Heavy investment to dominate the market
d) Limited expansion
C
187
B.F. Goodrich has been manufacturing and marketing automotive tires for over one hundred
years. It spends much of its marketing budget on short-term promotions aimed at stealing market
share from Goodyear, Dunlap, and other tire manufacturers. From this information, you should
know tires are in the _____ stage of their product life cycle.
a. maturity
b. growth
c. saturation
d. decline
e. development
A. During the maturity stage, heavy consumer promotion by the manufacturer is required to maintain
market share.
188
What advantage do companies benefit from during the Growth stage of the Product Life Cycle (PLC)?
a) Economies of scope
b) Economies of scale
c) Diseconomies of scale
d) Economies of competition
B
189
Typically, at the beginning of the maturity stage of the product life cycle, sales:
a. become flat and do not change
b. increase at an increasing rate
c. decrease at a decreasing rate
d. decrease at an increasing rate
e. increase at a decreasing rate
E
190
Normally, the longest stage of the product life cycle is the _____ stage.
a. maturity
b. growth
c. introductory
d. decline
e. development
A
191
In which stage of the product life cycle do marginal competitors start dropping out of the market?
a. introduction
b. growth
c. maturity
d. decline
e. shake-out
C
192
What typically happens to sales during the Maturity stage of the Product Life Cycle (PLC)?
a) Sales increase rapidly
b) Sales stabilize or grow slowly
c) Sales decline steadily
d) Sales fluctuate unpredictably
B
193
What effect does increased competition have on prices during the Maturity stage of the Product Life Cycle (PLC)?
a) Prices increase
b) Prices remain stable
c) Prices drop due to increased competition
d) Prices fluctuate unpredictably
C
194
How would you describe the competition during the Maturity stage of the Product Life Cycle (PLC)?
a) Competition diminishes
b) Competition remains intense
c) Competition becomes non-existent
d) Competition becomes sporadic
B
195
What happens to the market structure during the Maturity stage of the Product Life Cycle (PLC)?
a) The market structure becomes unstable
b) The market structure stabilizes with well-established competitors
c) The market structure becomes highly volatile
d) The market structure remains unchanged
B
196
What is the primary focus of companies during the Maturity stage of the Product Life Cycle (PLC)?
a) Expanding market reach
b) Recovering investments
c) Introducing new products
d) Minimizing competition
A
197
A long-run drop in sales signals the beginning of which stage in the product life cycle?
a. laggard stage
b. saturation stage
c. deterioration stage
d. decline stage
e. decay stage
D
198
Which of the following products is most likely to be in the decline stage of its product life cycle?
a. cookie mixes
b. wireless mobile phones
c. programmable CD-ROMs
d. funeral caskets
e. prerecorded audiocassette tapes
E
199
200
. The rate of sales decline during the decline stage of the product life cycle is largely governed by:
a. the amount of money spent on advertising
b. the number of competitors in the market
c. the intensity of the competition's marketing
efforts
d. the amount of shelf space allotted to the
product
e. how rapidly consumer tastes change or
substitute products are adopted
E
201
You are a product manager for a manufacturer of trampolines. You have determined that the
trampoline is in the maturity stage of the product life cycle. To keep your product from entering
the decline stage, you should:
a. use promotion to increase primary demand for
trampolines
b. abandon peripheral target markets for
trampolines
c. raise the price of your trampolines because
customers are not price sensitive in this stage
d. eliminate all unnecessary marketing expense
e. promote trampolines heavily to dealers and
customers
E
202
Which of the following statements about the product life cycle (PLC) is true?
a. The PLC concept encourages marketing
managers to think reactively.
b. Marketers do not yet understand the
relationship between the adopter categories
and the stages of the PLC.
c. There are as many new buyers in the maturity
stage of the PLC as in the growth stage.
d. The PLC is especially useful as a predicting
tool.
e. Just as there are five adopter categories, there
are five PLC stages.
D
203
Central Bark Doggie Day Care currently has 31 locations, with a new
Gainesville, FL location coming soon. With the opening of competition in the form of Camp Bow
Wow and others, it appears that the dog daycare product is moving into the _____ stage of the
product life cycle.
a. commercialization
b. introductory
c. growth
d. maturity
e. decline
C
204
The price of the Voodoo Envy is expected to be approximately $2,000.
According to Forrester Research, anything above $1,500 in this market would be considered
“ultra expensive.” In order to motivate consumers to spend $2,000 for the Voodoo Envy, HP will
probably need to spend considerable money on advertising to educate consumers to the
advantages of ultrathin laptops. This is a characteristic of which stage of the product life cycle?
a. equity
b. growth
c. maturity
d. introductory
e. decline
D
205
