Chapter 12

Turning to outside firms to help you through a process is known as A. outsourcing B. licensing C. brainstorming D. customer inputs

A. outsourcing

________________________ is the first physical form or service description of a new product, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes—sometimes even crafted individually. A. prototype B. alpha testing C. beta testing

A. prototype

Tiffany always asks Samantha about beauty supply products. She considers her a well-informed friend who always knows the latest trends. For Tiffany, Samantha is a(n) ___________ in the diffusion of innovation curve. A. innovators B. late majority C. early majority D. early adopters E. laggards

A. innovators

Which stage of the product life cycle usually starts with a single firm, and innovators are the ones to try the new offering? A. introduction B. growth C. maturity D. decline

A. introduction

_________________ is testing where the firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended. A. prototype B. alpha testing C. beta testing D. pre-market tests

B. alpha testing

Which stage of the product life cycle is marked by an increasing number of product adopters, rapid growth in industry sales, and increases in both the number of competitors and the number of available product versions? A. introduction B. growth C. maturity D. decline

B. growth

The development of viable new product ideas is known as: A. concept testing B. idea generation C. product development D. market testing

B. idea generation

When firms purchase the rights to technology or ideas from other research-intensive firms, this is known as: A. outsourcing B. licensing C. brainstorming D. customer inputs

B. licensing

To defray large new product development costs, firms/governments may join forces with educational institutions. This is an example of: A. internal research and development B. research and development consortia C. outsourcing

B. research and development consortia

The first year they were offered, John wanted a tablet computer, but he did not know which one to choose. He waited until there were more choices, lower prices, and improved quality. John is part of the ___________ diffusion of innovation group. A. innovators B. late majority C. early majority D. early adopters E. laggards

C. Early Majority

__________________________ uses potential consumers, who examine the product prototype in a "real use" setting to determine its functionality, performance, potential problems, and other issues specific to its use. A. prototype B. alpha testing C. beta testing D. pre-market tests

C. beta testing

When concepts are presented to potential buyers or users to gauge their reactions, this is known as: A. outsourcing B. reverse engineering C. concept testing D. licensing

C. concept testing

Which of these is NOT a factor affecting product diffusion? A. relative advantage B. observability C. early adopters D. compatability E. complexity

C. early adopters

Which state of the product life cycle is characterized by the adoption of the product by the late majority and intense competition for market share among firms? A. introduction B. growth C. maturity D. decline

C. maturity

Full-scale commercialization of the product is known as A. concept testing B. idea generation C. product launch D. market testing

C. product launch

A(n) _______________ allows consumers to interact physically with the product. A. beta tester B. alpha tester C. prototype

C. prototype

___________________________ are conducted by firms before they actually bring a product or service to market to determine how many customers will try and then continue to use the product or service according to a small group of potential consumers A. prototype B. alpha testing C. beta testing D. pre-market tests

D. pre-market tests

Denise and Janet attend a large university in Texas. Denise asked for Janet's e-mail address, but Janet said she didn't have one. Janet would probably be considered a(n) ___________ in the diffusion of innovation process. A. innovators B. late majority C. early majority D. early adopters E. laggards

E. laggards

True/false: Pre-market tests introduce the offering to a limited geographical area prior to a national launch.

False

What is the process by which ideas are transformed into new products and services that will help firms grow?

Innovation

What defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning?

The product life-cycle

True/False: A new product can be anything from a slight redesign to new-to-the-world offerings.

True

True/false: As much as 85% of new business to business products come from customers

True

What are are product pioneers that are the first to create a market or product category, making them readily recognizable to consumers and thus establishing a commanding and early market share lead?

first movers

What are new product introductions, especially new-to-the-world products that create new markets?

pioneers

What process involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitors' patents, if any exist?

reverse engineering

What is is the process by which the use of an innovation spreads throughout a market group, over time and over various categories of adopters

the diffusion of innovation

True/false: Products with patents or other proprietary protections cannot be copied.

true