Unit 3 Exam Flashcards
(15 cards)
Product adoption is the process by which a consumer or business customer begins to buy and use a new good, service, or idea.
True
Idea generation is also known as the ideation phase of product development.
True
Consumers would perceive a ceiling fan as having greater trialability than a new kind of snack food.
False
From a marketing standpoint, an innovation is anything that customers perceive as new and different.
True
Commercialization comes in the middle of the new-product development process.
False
The largest adopter category is the early adopters.
False
The first step in the product adoption process is to create interest.
False
Heinz and Jack Daniels worked together to produce Jack Daniels grilling sauce. This is an example of cobranding.
True
Total quality management involves all employees, regardless of their function, in continuous quality improvement efforts.
True
The Food and Drug Administration (FDA) controls all package communications and labeling in the United States.
False
The size of the firm is the most important factor in determining whether a product category manager or market manager structure should be used.
False
Brand managers may push too hard with coupons or other price incentives to the point that customers will refuse to buy the product without these promotions.
True
A watch manufacturer added a watch to its product line that was higher priced than the models it already carried. The company used a two-way stretch strategy.
False
The Clorox Company marketed a new product called Clorox Oxygen Action multipurpose stain reliever. This is an example of a brand extension.
True
A company can stretch its product line either upward or downward, but not both directions.
False
