Chapter 12 SB

When Subway introduced a new Southwestern Club sandwich in South Florida before launching it nationwide, it was engaging in ______.

test marketing

________ generation refers to the first stage in the process by which firms develop a new product

idea

A company that develops a new merchandise tracking technology that automatically notifies suppliers when a new shipment is needed is using its new product to ______.

improve business relationships

what are the key characteristics of the growth stage of the product life cycle

sales rise competitors increase

Without innovation, what options would be available to firms?

take current products to new market continue to market current products to current customers

Laggards make up roughly ______ of the market.

16%

the early majority represents approximately _____ of the total consumer market and is crucial to the profitability of a product or service. without them, the product or service will typically fall

34%

while late to the party the late majority category of consumers is still significant, making up roughly _______ of the total consumer market

34%

early __________ are the category of consumers who begin to use a product or service immediately following innovators

adopters

New products and services that consumers accept quickly will have a high ______ rate early in their product life cycles, which will accelerate the diffusion process across the various stages.

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 ________ within the diffusion process.

advantage

Firms need to continue to innovate because customer needs ______.

are constantly changing

________ _________ _________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.

diffusion of innovation

One advantage of product innovation is that a firm can expand into different product categories. The point of the risk ______ strategy is that if some products in one category are competing poorly, others in another category could be doing very well.

diversification

the ________ _________ of users representing approximately 34 percent of the population on the diffusion of innovation curve is crucial because few new products and services can be profitable until this large group buys them.

early majority

along the diffusion of innovation curve, _______ make up the second group of consumers to adopt an innovation; they tend to be leaders in a social setting

early adopters

after a new product is launched, what is the next step of the product development process

evaluation of results

true or false new products must ne targeted toward end consumers

false

what is a key characteristic of the maturity stage

firms defending market share

in terms of their place on the diffusion of innovation curve, innovators are the ______ category of consumers

first

product development entails a variety of processes and considerations to determine which aspects of a product or service

form and features

which of the following factors influence how rapidly a product will move through the product life cycle

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

while the _____ is first to adopt the terms, the ______ adopts next

innovator; early adopter

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

innovators

Firms can highlight a product's relative advantage, which refers to which perception among consumers about the product?

it is better than its substitutes

what will happen to a firm if it continues to produce the same products in a saturated market

it will eventually decline

__________ are consumers who like to avoid changes and rely on traditional products until they are no longer available

laggards

during the decline stage of the product life cycle, _________ who have not yet tried the product or service will be entering the ma

laggards

when the _____ majority of consumers enters the market, the market has already reached its full market potential.

late

a good or service may pass through stages as it establishes itself in the marketplace. marketing managers refer to this as the product _______ cycle

life

product development or product design entails a process of balancing which types of considerations

marketing manufacturing engineering

during the ________ stage of the product life cycle, the market for the product usually becomes saturated

maturity

if a firm has positive results from market testing the next step will be the ______ ______

product launch

New product and service innovation is important because the longer a product or service exists in a given marketplace, the more likely that the market will become

saturated

When firms decide to develop new products, it is typically a long process that is broken into ______ stages.

six

what does a postlaunch review help determine

whether the launch was a success or failure whether additional resources are needed whether changes to the marketing mix are needed

which of the following is a way by which risk can be diversified

by creating a broader portfolio of products through innovation

A _______ is a written description of a product and its technology and is presented to potential buyers or users to obtain their reactions

concept

which of the following processes could be considered an acceptable method for generating ideas

conducting consumer research brainstorming within the firm researching competitors' products and services communicating with a firm's R&D department

which might a concept include along with a brief written description of the product

customer needs it satisfies visual images

What might a concept include along with a brief written description of the product?

customer needs it satisfies visual image

is the process by which ideas are transformed into new products and services that will help firm grown

innovation

what are key characteristics of the introduction stage

start up costs are high profits are low

which of the following is a market testing method that offers a strong predictor of product success based on actual purchasing behavior

test marketing

_______ defines the stage's products move through as they enter, get established in, and ultimately leave the marketplace

the product life cycle

what objectives do firms have in adding new products, services, and processes to their offerings

to keep customers from getting bored with existing products to satisfy the changing needs of consumers

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

usually, during the ______ stage of the product life cycle, the typical consumers are early adopters, and there are increases in the number of competitors

growth

Although there are numerous stages in the product development process, every firm starts to develop new products through ______ and then finishes with an evaluation of ______.

idea generation results

Adding new products is MOST likely to prompt consumers to purchase in which of the following industries?

video games

Some markets demand a higher frequency of new product releases than others. In which of the following markets do sales come from new products?

video games movies books

when a product is first launched during the introduction stage, sales are usually _______ and there are _____ competitors

very low essentially no

true or false if market testing returns with positive results, the firm is then ready to introduce the product to the entire market, which is called a product launch

true

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

which stage the procut is in