Chapter 12 Assignment for Module 8

Early adopters, although not as fast as innovators, are quick to purchase a new product or service. Which of the following characteristics are typically associated with early adopters? (Choose every correct answer.) Multiple select question. Have less disposable income than innovators Are youngest in age of all the consumer category groups Tend to be opinion leaders of particular product categories Are less risk seeking than innovators

-Are less risk seeking than innovators -Tend to be opinion leaders of particular product categories

Which of the following traits are associated with the innovators consumer group? (Choose every correct answer.) Multiple select question. Risk takers Risk averse Pride in keeping products as long as they can Highly knowledgeable (about the product/service)

-Highly knowledgeable (about the product/service) -Risk takers

Innovators on the diffusion of innovation curve usually stay well informed about the product category. Which of the following are the most likely ways an innovator might keep up to date about new developments in 3D televisions? (Choose every correct answer.) Multiple select question. Participate in a discussion forum about new TV technology Talk to friends and family who have purchased the 3D TV Attend the annual Consumer Electronics Show to see the newest models Examine the older televisions of various friends

-Participate in a discussion forum about 3d tv technology -Attend the annual consumer electronics show to see the newest models

Put the stages in the product life cycle in order from first to last, with the first stage at top. Options: -Decline -Growth -Introduction -Maturity

1. Introduction 2. Growth 3. Maturity 4. Decline

Place each of the following categories of consumers in the order in which they adopt a product, according to the diffusion of innovation curve, beginning with the innovators at the top. Options: -Innovators -Early majority -Early adopters -Laggards -Late majority

1.Innovators 2.Early adopters 3.Early majority 4.Late majority 5.Laggards

While early adopters are crucial to the success of a new product, they still only make up a relatively small percentage of the total consumers in a given product market. This percentage is approximately how big? Multiple choice question. 13.5% 2.5% 16% 34%

13.5%

Laggards make up roughly Blank______ of the market. Multiple choice question. 5% 10% 20% 16%

16%

What percentage of new products is estimated to succeed? Multiple choice question. 3 percent 12 percent 50 percent 25 percent

3 percent

While late to the party, the late majority category of consumers is still significant, making up roughly Blank______ of the total consumer market. Multiple choice question. 13% 50% 34% 16%

34%

Some products, such as appliances, stay in the maturity stage for a long time and are unlikely to decline unless what occurs? Multiple choice question. A superior solution replaces them. Competitors lower their prices. Manufacturers add new features. Marketers change their tactics.

A superior solution replaces them.

True pioneer products are products that have never been seen before and literally create new markets. Which of the following products would be considered a pioneer product at the time it was introduced? (Choose every correct answer.) Multiple select question. Microsoft's Bing Search Engine in 2009 Pampers disposable diapers in the early 1960s Coca-Cola's New Coke in 1984 Amana's microwave oven in 1967

Amana's microwave oven in 1967 Pampers disposable diapers in the early 1960s

Which of the following health products is the LEAST complex? Multiple choice question. A prescription medication requiring a doctor's approval An herbal remedy only available in a few holistic health stores An over-the-counter pain reliever such as Tylenol or Advil An experimental drug currently undergoing clinical trials

An over-the-counter pain reliever such as Tylenol or Advil

While pioneers capture an early and commanding market share, imitators often enter the market and gain which advantages? (Choose every correct answer.) Multiple select question. Capitalizing on the pioneer brand's weaknesses Offering the first product in the market Focusing marketing efforts on demand for their brand Offering better products at lower prices

Capitalizing on the pioneer brand's weaknesses Focusing marketing efforts on demand for their brand Offering better products at lower prices

When products reach the growth stage of the product life cycle, firms typically attempt to reach new customers by adjusting which product aspects? (Choose every correct answer.) Multiple select question. Colors Names Styles Features

Colors Styles Features

What are the steps taken by firms that have products in the decline stage of the product life cycle? (Choose every correct answer.) Multiple select question. Completely exit market Add more inventory Target a niche segment Create surveys to find the problem

Completely exit market Target a niche segment

Without innovation, what options would be available to firms? (Choose every correct answer.) Multiple select question. Continue to market current products to current customers Take current products to new markets Develop new products for new markets Develop new products for current markets

Continue to market current products to current customers Take current products to new markets

Which product has the most observability? Multiple choice question. Cordless screwdriver A home-brewed cup of coffee Home alarm system Laundry detergent

Cordless screwdriver

What are the four stages that a product passes through as it enters, gets established in, and ultimately leaves the marketplace? Multiple select question. Decline Growth Introduction Laggard Maturity

Decline Growth Introduction Maturity

Which of the following can a firm accomplish with knowledge gained from the diffusion of innovation theory? Multiple choice question. Developing effective marketing strategies to increase product acceptance across all consumer groups Extending the product life cycle for its most profitable product lines Anticipating future changes in consumer tastes and trends Identifying the competitor that is most likely to produce a product that will disrupt the market

Developing effective marketing strategies to increase product acceptance across all consumer groups

BLANK of innovation is the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters. (Enter one word in each blank.)

Diffusion

Joanna is interested in new electronics products, but she prefers to wait a few weeks to buy them until technology bloggers post their initial opinions. Joanna probably belongs to which of the adopter groups? Multiple choice question. Late majority Early adopters Innovators Laggards Early majority

Early adopters

Lance enjoys owning new gadgets that make his life easier, but he is cautious. He doesn't want the hassle of working through all the initial problems with new technology, so he waits until those problems have been solved. Lance probably belongs to which of the adopter groups in the first half of adopters? Multiple choice question. Early majority Late majority Laggards Innovators Early adopters

Early majority

Which diffusion of innovation adopter group waits until the "bugs" are worked out of a particular product, in order to avoid risk, but still purchases within the first half of all adopters? Multiple choice question. Late majority Innovators Laggards Early majority Early adopters

Early majority

What is a key characteristic of the maturity stage? Multiple choice question. Adoption of the product by early majority High prices Few competitors Firms defending market share

Firms defending market share

What happens during an industry shakeout in the growth stage of the product life cycle? Multiple choice question. A number of new competitors enter the market. Firms that have not established a strong hold in the market decide to exit. Sales decline, and firms compete heavily on price. Consumer tastes shift, and firms adjust their product features.

Firms that have not established a strong hold in the market decide to exit.

During which stage of the product life cycle does the product gain acceptance, experience increased demand and sales, and encounter increasing competition in the product category? Multiple choice question. Maturity Decline Introduction Growth

Growth

Identify one of the disadvantages of being the first mover. Multiple choice question. Not being able to diversify like other firms Having to establish the market all alone Having to innovate and develop new features for the product quickly Not being able to charge high prices like its competitors

Having to establish the market all alone

Which of the following factors influence how rapidly a product will move through the product life cycle? (Choose every correct answer.) Multiple select question. The size of the producing firm's R&D budget How valuable the product is to the consumer The average age of the target market How different the product is from other offerings in the market

How valuable the product is to the consumer How different the product is from other offerings in the market

According to the diffusion of innovation curve, when would marketers expect to see the highest frequency of purchases for a given product or service? Multiple choice question. Toward the end of the curve At the beginning of the curve In the middle of the curve

In the middle of the curve

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

Innovation

BLANK are those buyers who want to be the first on the block to have a new product or service.

Innovators

Which consumers enjoy taking risks and like to be the first to purchase a new product or service? Multiple choice question. Laggards Early adopters Innovators Early majority

Innovators

A newly formed coffee company should not have much trouble finding coffee drinkers in America to purchase a new type of coffee maker. However, a company selling gear for the game of cricket might have a difficult time being successful in the United States. They would probably be more successful in India or Australia. The degree to which one's product is consistent with the needs and habits of target consumers is known as Blank______. Multiple choice question. trialablity relative advantage complexity compatibility

compatibility

For many Americans, the daily ritual of having a coffee is almost automatic and assumed. The same can be said for the Chinese but with tea. For a firm that is marketing a product, this example serves as a reminder to consider the Blank______ of your product and its intended target market. Multiple choice question. needs reproducibility compatibility values

compatibility

Firms must continually introduce new products with improved features and find new uses for existing products to defend market share from Blank______. Multiple choice question. innovation competition decline stagnation

competition

Trialability and BLANK refer to how complicated a product is and how easy or hard it is to try.

complexity

During intense competition, a firm needs Blank______ to defend its market share from competition. Multiple choice question. market maturation constant innovation product stability pricing inflexibility

constant innovation

Once a product stops generating sales or profits, or sales and profits are very low, the product is in the BLANK stage of the product life cycle and eventually exits the market.

decline

When a product goes into the BLANK stage of the product life cycle, the product eventually exits the market.

decline

When a product is in the BLANK stage of the product life cycle, its firm will often choose between targeting a niche segment or exiting the market.

decline

The process by which the use of an innovation, whether it be a product or service, is spread throughout a market group over time and over various categories of adopters, is known as Blank______. Multiple choice question. distribution of product inventory the product life cycle viral marketing diffusion of innovation

diffusion of innovation

The theory that helps marketers understand the product or service adoption rates of consumers is called Blank______. Multiple choice question. product pickup propensity (PPP) consumer life cycle diffusion of innovation distribution of consumer adoption

diffusion of innovation

The percentage of new products that actually succeed is Blank______. Multiple choice question. extremely low high extremely high moderate low

extremely low

In terms of their place on the diffusion of innovation curve, innovators are the Blank______ category of consumers. Multiple choice question. first third second majority

first

Apple created an entirely new brand that started with the iPod and evolved into different product categories (e.g., iPhone, iPad) before anyone else could catch on. Thus, Apple was the Blank______, which made the firm easily recognizable to consumers, helping it to gain an early market share lead. Multiple choice question. imitator late entrant first mover bold brand

first mover

During the Blank______ stage of the product life cycle, firms attempt to reach new consumers by studying their preferences and producing many different product variations. Multiple choice question. growth maturity introductory decline

growth

In the BLANK stage of the product life cycle, the product gains acceptance, demand and sales increase, and there are more competitors.

growth

Usually, during the BLANK stage of the product life cycle, the typical consumers are early adopters, and there are increases in the number of competitors.

growth

During the BLANK stage of the product life cycle, the product category first launches and innovators start buying products.

introduction

Products go through a number of stages in the product life cycle. The stage where a product begins the product life cycle is known as the BLANK stage.

introduction

Those consumers who enter the market for the first time during the decline stage are known as Blank______. Multiple choice question. late majority laggards innovators late adopters

laggards

When the BLANK majority of consumers enters the market, the market reaches its full market potential.

late

Purchasing a coffee from a coffee shop, for example, is a Blank______ purchase decision than purchasing a cell phone from a large retail store. Multiple choice question. less innovative less complex more complex more innovative

less complex

A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the product BLANK cycle.

life

Whenever a product has a Blank______ level of complexity, it will consequently be Blank______ to try. Multiple choice question. low; easy high; easy high; impossible low; hard

low; easy

During the BLANK stage of the product life cycle, industry sales reach the peak, so firms try to rejuvenate their products by adding new features or repositioning them.

maturity

During the Blank______ stage firms may pursue several strategies to increase their customer base or defend their market share. One such strategy may be to develop new features or reposition them. Multiple choice question. growth maturity introduction decline

maturity

In the BLANK stage of the product life cycle, a firm may want to start looking for new market segments in order to find new opportunities.

maturity

Not every product follows the same life cycle curve; many products stay in the BLANK stage for a very long time, often for years, due to strategies like adding new features to established products.

maturity

The stage of the product life cycle is characterized by the adoption of the product by the late majority and good profitability. (Remember to type only one word in the blank.)

maturity

As industry sales increase, profits in the growth stage will Blank______ because of the economies of scale associated with manufacturing and marketing costs. Multiple choice question. plunge rapidly stabilize rise decrease slowly

rise

Emerging new trends or changes in consumer tastes can fragment Blank______ markets, which would open new market opportunities. Multiple choice question. declining relevant new saturated

saturated

By the time the late majority enters the market, sales tend to Blank______. Multiple choice question. grow slowly stabilize or decline slightly increase dramatically disappear completely

stabilize or decline slightly

Sales of digital cameras have leveled off, and some producers have started to notice a decline in their profits. Consumers who purchase their first digital camera at this point are called Blank______. Multiple choice question. the early majority early adopters the late majority laggards

the late majority

When a product is first launched during the introduction stage, sales are usually Blank______ and there are Blank______ competitors. Multiple choice question. unprofitable; several profitable; no high; numerous very low; essentially no

very low; essentially no

While new products can become huge success stories, they have a high failure rate. In many cases imitators capitalize on the Blank______ of pioneers and subsequently gain advantage in the market. Multiple choice question. ambition weaknesses importance strengths

weaknesses

The problem with using the product life cycle concept is that no one can predict the shape that the product's life cycle will take; therefore, it is impossible to know Blank______. Multiple choice question. which stage the product is in if the cost of the product is accurate if more prototypes would be beneficial which group of consumers like the product

which stage the product is in

Using the diffusion of innovation theory, what can a firm predict? Multiple choice question. What kinds of products will be most successful in the market When sales will level off and start to decline Which brands will be their main competitors in the marketplace Which consumers will buy a new product immediately and which will buy it later

Which consumers will buy a new product immediately and which will buy it later

What can marketers learn from the diffusion of innovation theory? (Choose every correct answer.) Multiple select question. The rate at which consumers are likely to adopt a new product or service The amount of time before a competitor releases a similar product Which markets are likely to be most receptive to new products or services The length of the product life cycle in a given industry

Which markets are likely to be most receptive to new products or services The rate at which consumers are likely to adopt a new product or service

The diffusion of innovation curve refers to the rate in which consumers Blank______ a given product or service. Multiple choice question. discuss sample adopt repurchase

adopt

New products and services that consumers accept quickly will have a high Blank______ rate early in their product life cycles, which will accelerate the diffusion process across the various stages. Multiple choice question. cycle adoption diffusion success

adoption

The Apple iPod was readily accepted by consumers in part because it was an easy way to listen to music anywhere, with substantial improvements over portable CD players. This is an example of a relative BLANK within the diffusion process.

advantage

What are key characteristics of the introduction stage? (Choose every correct answer.) Multiple select question. Sales are high Price competition is fierce Profits are low Start-up costs are high Buyers are abundant

Profits are low Start-up costs are high

What are the key characteristics of the growth stage of the product life cycle? (Choose every correct answer.) Multiple select question. Typical consumers are innovators Sales rise Sales stabilize Competitors increase

Sales rise Competitors increase

Innovators generally keep themselves knowledgeable about the product category through which activities? (Choose every correct answer.) Multiple select question. Disregarding the trends of the market Subscribing to trade magazines Attending product-related seminars Frequenting product-specific blogs

Subscribing to trade magazines Attending product-related seminars Frequenting product-specific blogs

Using the purchase of a smartphone as an example, drag each of the described actions to the consumer category consisting of members who would most likely take the action: Innovators <-> ? Early adopters <-> ? Early majority <-> ? Late majority <-> ? Laggards <-> ? ? Options: -Will buy it after most of their friends have one -Will wait a week or two and read several reviews before buying -Will not buy one until something newer has come along -Will wait till they are sure it works well and that they will be able to use it -Would line up outside the store to be the first to buy it

Innovators <-> Would line up outside the store to be the first to buy it Early adopters <-> Will wait a week or two and read several reviews before buying Early majority <-> Will wait till they are sure it works well and that they will be able to use it Late majority <-> Will buy it after most of their friends have one Laggards <-> Will not buy one until something newer has come along

Drag each type of consumer to the stage of the product life cycle in which that consumer is typically purchasing the product. Introduction <-> ? Growth <-> ? Maturity <-> ? Decline <-> ? ? options: -Laggards -Innovators -Early adopters and early majority -Late majority

Introduction <-> Innovators Growth <-> Early adopters and early majority Maturity <-> Late Majority Decline <-> Laggards

Firms can highlight a product's relative advantage, which refers to which perception among consumers about the product? Multiple choice question. It is better than its substitutes. It is new and innovative. It is the most popular item on the market. It is less expensive than competitors.

It is better than its substitutes.

BLANK are consumers who like to avoid changes and rely on traditional products until they are no longer available. Multiple choice question. Traditionalists Crawlers Laggards Lollygaggers

Laggards

Drag each stage of the product life cycle to the relative level of sales typically observed during that stage. Low <-> ? Rising <-> ? Peak <-> ? Dropping <-> ? ? options: -Decline -Introduction -Growth -maturity

Low <-> Introduction Rising <-> Growth Peak <-> Maturity Dropping <-> Decline

What are some advantages experienced by pioneer firms over later entrants? (Choose every correct answer.) Multiple select question. More readily recognizable to consumers Low failure rate once new product launches Establish an early market share lead Lower costs since the market is smaller More likely to command a greater market share over a longer period

More likely to command a greater market share over a longer period More readily recognizable to consumers Establish an early market share lead

Some analysts have attributed the success and quick diffusion of the Apple iPod in part to the white earbuds. At the time, earbuds were not seen as often, and most headphones were black, not white. As knowledge of the iPod spread, the white earbuds could be seen even if the iPod itself was out of sight. This is an example of which of the factors that affect speed of diffusion? Multiple choice question. Relative advantage Compatibility Trialability Observability Complexity

Observability

BLANK or breakthrough products are brand new products that establish a completely new market or radically change both the rules of competition and consumer preferences in a market.

Pioneer

Crucial to the success of new products are early adopters, who are responsible for influencing what? Multiple choice question. Product features and innovations The greatest amount of sales revenue Early reviews of the product The other three categories of consumers

The other three categories of consumers

BLANK defines the stages products move through as they enter, get established in, and ultimately leave the marketplace. Multiple choice question. Alpha and beta testing Diffusion of innovation The product development process The product life cycle

The product life cycle

True or False: Managers can use the product life cycle model to help predict what pricing, product, promotional, and placement strategies they should employ at each of the four stages. True false question.TrueFalse

True

True or False: Targeting the wrong segment and poor positioning are contributing factors to the high rate of failure for new products. True false question.TrueFalse

True