New Product Development

Question 1

Product

Answer 1

The specific combination of goods, services, and ideas that a firm offers to its target market

Question 2

Innovation

Answer 2

The creation of a new or significantly improved product offering

Question 3

Five specific drivers of innovation are..

Answer 3

Consumer expectations, competition, globalization, technology, and changing society

Question 4

New-to-the-market Products

Answer 4

Products that have never been seen before and create a new market

Question 5

New Category Entries

Answer 5

Products that are new to a company but are not new to the marketplace

Question 6

Product Line

Answer 6

A group of related products marketed by the same firm

Question 7

Product Line Extensions

Answer 7

Products that extend and supplement a company’s established product line

Question 8

Revamped Product

Answer 8

A product that has new packaging, different features, and updated designs and functions

Question 9

Diffusion

Answer 9

How new products are likely to be adopted, the rate at which they will be adopted, and the process through which their products will spread into markets

Question 10

Adoption

Answer 10

When a consumer purchases and uses a product

Question 11

Five stages of the consumer adoption are…

Answer 11

Awareness, Interest, Evaluation, Trial, and Adoption

Question 12

Innovators

Answer 12

Consumers that adopt a product almost immediately after the product is launched

Question 13

Early Adopters

Answer 13

Consumers that purchase and use a product soon after it has been introduced

Question 14

Early Majority

Answer 14

Consumers that are careful in their purchase research, gathering more information and and spending more time thinking about the purchasing decision than the earlier adopters

Question 15

Late Majority

Answer 15

Consumers that tend to be cautious about new things and ideas

Question 16

Laggards

Answer 16

Consumers that tend to not like change; they may remain loyal to a product until it is no longer available for sale

Question 17

New product characteristics are…

Answer 17

Competitive Advantage, Compatibility, Observability Complexity, Trialability

Question 18

New Product Development (NPD) process

Answer 18

The process of conceiving, testing, and launching a new product in the marketplace

Question 19

Seven stages of NPD Processes are…

Answer 19

New Product Strategy Development, Idea Generation, Idea Screening, Business Analysis, Product Development, Test Marketing, Product Launch

Question 20

Planned Obsolescence

Answer 20

A marketing criticism in which companies frequently come out with new models of a product that make existing models obsolete. It can also involve limiting the product lifespan rather than the product availability.

Question 21

Product Life Cycle (PLC)

Answer 21

A series of stages that happen during a product’s life

Question 22

Introduction Stage

Answer 22

The stage of the product life cycle when a product is new and sales are low, while expenses are high

Question 23

Growth Stage

Answer 23

The stage of the product life cycle characterized by increases in sales, profits, and competition

Question 24

Maturity Stage

Answer 24

The stage of the PLC during which late majority and repeat buyers make up an increasing percentage of the customer base. The main objectives of the maturity stage are earning profits and maintaining the firm’s market share for as long as possible.

Question 25

Decline Stage

Answer 25

The stage of the PLC that is preceded by declining sales and profits. Depending on the product, the decline in sales may occur over a long period of time. During the decline stage, competitors drop out of the market as the product becomes unprofitable