BUSML 3150 Chapter 12 Quiz

Which of the following is the correct sequence of new product adopters in the Diffusion of Innovation Curve? A. Innovators, Early adopters, Early majority, Late majority, Laggards B. Early adopters, Early majority, Innovators, Late majority, Laggards C. Innovators, Early majority, Early adopters, Innovators, Late majority, Laggards D. Early majority, Late majority, Early adopters, Innovators, Laggards E. Innovators, Late majority, Early adopters, Early majority, Laggards

A. Innovators, Early adopters, Early majority, Late majority, Laggards

Which of the following is NOT a characteristic of products in the maturity stage of the product life cycle? A. Laggards are a major focus of marketing efforts. B. Price competition is intense. C. Marketing costs increase as firms defend their market share. D. The market may become saturated because nearly all potential customers have adopted the product. E. To increase the customer base, firms consider entry into new markets and new market segments.

A. Laggards are a major focus of marketing efforts.

One of the key characteristics of brainstorming sessions is A. no idea is immediately accepted or rejected. B. everyone must come up with ideas. C. the first idea is almost always the best idea. D. only the marketing team is included in these sessions. E. the manager should always make the final decision.

A. no idea is immediately accepted or rejected.

Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.

A. relative advantage.

Inkjet personal computer printers were a big improvement over the dot matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.

A. relative advantage.

Which of the following is NOT one of the four product life cycle stages? A. Introduction B. Leveling C. Maturity D. Growth E. Decline

B. Leveling

___________________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents. A. Reverse innovation B. Reverse engineering C. Selective dissection D. Redistribution E. Creative destruction

B. Reverse engineering

Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered ________ with consumers' needs and priorities. A. relative positioning B. compatibility C. observability D. complexity E. trialability

B. compatibility

Bob and George live in the United States. Bob recently asked for George's cell phone number, but George said he didn't have one. George would probably be considered a(n) _________________ in the diffusion of innovation process. A. innovator B. laggard C. late majority D. early majority E. early adopter

B. laggard

When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous forty years. Uncle Burton is a(n) ______________ in the diffusion of innovation process for telephones. A. innovator B. laggard C. late majority D. early majority E. early adopter

B. laggard

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is A. market testing. B. product development. C. brainstorming. D. reverse engineering. E. launching the product.

B. product development.

The __________________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix. A. pretesting B. product launch C. post-testing D. product development E. evaluation of results

B. product launch

Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing, but the most important question is A. what retailers she should use to sell the swimwear. B. whether or not they would purchase the swimwear if it becomes available. C. what wholesale price should be charged. D. what promotional plan will work best. E. in which season she should introduce the product.

B. whether or not they would purchase the swimwear if it becomes available.

Which of the following is NOT a stage in the product life cycle? A. Introduction B. Growth C. Evaluation D. Maturity E. Decline

C. Evaluation

The product life cycle is theoretically ________ shaped with regard to sales and profits. A. Y B. lightning bolt C. bell D. circle E. flat line

C. bell

Companies that develop customized-business software often work closely with their customers when installing their products. This close contact often creates new product ideas through A. reverse engineering. B. licensing technology. C. customer input. D. R&D consortia. E. clinical trials.

C. customer input.

The process by which the use of a new product or service spreads throughout a market group is referred to as A. new product introduction. B. lead user dispersion. C. diffusion of innovation. D. the product life cycle. E. product development diffusion.

C. diffusion of innovation.

One of the potential benefits to a firm of introducing new-to-the-world products or services is: A. cost savings. B. late majority marketing. C. establishing a completely new market. D. the ability to avoid paying pioneers for new product development. E. capitalizing on existing consumer preferences.

C. establishing a completely new market.

Concept testing is important because it can A. help the firm to refine the promotional plans. B. lead to immediate roll out of the final product. C. help a firm avoid the costs of unnecessary product development. D. reduce the potential loss of sales during the decline stage. E. increase product development costs.

C. help a firm avoid the costs of unnecessary product development.

During the _____________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense. A. introduction B. leveling C. maturity D. growth E. decline

C. maturity

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.

C. observability.

For new product marketers, early adopters are important because they tend to be A. few in number. B. the first to adopt a new product. C. opinion leaders. D. fond of prototypes. E. alpha testing enthusiasts.

C. opinion leaders

The diffusion of innovation theory is useful to marketers in helping them A. adjust to the performance life cycle. B. avoid the cost of concept testing. C. predict which types of customers will buy their product immediately and later. D. predict how long it will take for a new product to gain market acceptance. E.forecast sales for a new product.

C. predict which types of customers will buy their product immediately and later.

Before the development of computer-assisted design software, many firms handcrafted ______, wooden or clay models that served as rough physical representations of the new product. A. premarket tests B. blockbusters C. prototypes D. storyboards E. designer models

C. prototypes

A(n) __________________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products. A. facilitating payment B. introductory price promotion C. slotting allowance D. stocking premium E. place holder

C. slotting allowance

A marketing professor in Ithaca, New York maintains a museum of failed consumer products. Most new products in this museum failed during the _______________ stage of new product development, when they are introduced to a limited geographical area. A. pretesting B. product launch C. test marketing D. product development E. concept testing

C. test marketing

When McDonald's comes up with a new drink or sandwich for its fast food stores, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in A. pretesting. B. product launch. C. test marketing. D. product development. E. concept testing.

C. test marketing.

The ________________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. A. innovator B. laggard C. late majority D. early majority E. early adopter

D. early majority

Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and A. not having to pay advertising expenses. B. using prototypes to dominate the market. C. not needing to do test marketing. D. establishing an early market share lead. E. motivating laggards to buy their products.

D. establishing an early market share lead.

During the _____________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors. A. introduction B. leveling C. maturity D. growth E. decline

D. growth

When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage A. sales would rise quickly, profits would jump, and even laggards would buy his product. B. sales would level off, profits would decline, and mature golfers would be attracted to his product. C. sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers. D. sales would be low and profits nonexistent, but he would attract golf equipment innovators. E. sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product.

D. sales would be low and profits nonexistent, but he would attract golf equipment innovators.

During the _____________ stage of the product life cycle, sales are low and profits are small or negative. A. introduction B. leveling C. maturity D. growth E. decline

E. decline

During the ________________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market. A. introduction B. leveling C. maturity D. growth E. decline

E. decline

In the United States, most consumer packaged goods found in grocery and discount stores are in the ________ stage of the product life cycle. A. growth B. pioneer C. introduction D. decline E. maturity

E. maturity

Early personal computers cost several thousand dollars, allowing competitors A. to focus on creating demand for their brand. B. to promote alternative brands in that product category. C. to spend less on introductory advertising. D. to focus on making improved versions. E. to introduce lower-priced alternatives.

E. to introduce lower-priced alternatives.

Samples are often used for new products when _________________ will influence the diffusion of the product. A. relative advantage B. compatibility C. observability D. complexity E. trialability

E. trialability

Zappos.com, an online shoe store, worked to overcome the problem of new product ______________ with its easy, no hassle return procedure. A. relative advantage B. compatibility C. observability D. complexity E. trialability

E. trialability