MKT 311 Chapter 12

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.

a. Laggards are a major focus of marketing efforts.

Which of the following adopter categories refers to the last large group of buyers to enter a new product market? a. Late majority b. Early majority c. Laggards d. Early adopters

a. Late majority

As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group a. innovator b. laggard c. late majority d. early majority

a. early majority

During the __________ stage of the product life cycle, sales are low and profits are small or negative. a. introduction b. growth c. maturity d. decline

a. introduction

Inkjet 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

a. relative advantage

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

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

b. laggard

Which of the following is NOT one of the four product life cycle stages? a. introduction b. location c. maturity d. growth

b. location

In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because a. they prefer products from established market leaders b. other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals. c. they are especially price conscious. d. they are easily influenced by reminder advertising.

b. other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals

The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service. a. innovator b. laggard c. late majority d. early majority

c. late majority

By the time BMW and Mercedes Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle. a. introduction b. leveling c. maturity d. growth

c. maturity

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

c. opinion leaders

Paul listens to music on his iPod and iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the __________ stage of the product life cycle. a. introduction b. growth c. maturity d. decline

d. decline

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. maturity c. decline d. growth

d. growth

Innovators are a critical group of new product adopters because they a. are the major source of innovation b. act as reverse engineering consultants c. help with test marketing d. help the product gain market acceptance

d. help the product gain market acceptance

The diffusion of innovation theory focuses on a. the geographic boundaries of innovation. b. the relationship between pioneer brands and imitators. c. the psychological traits of innovators. d. the rate at which consumers are likely to adopt a new product or service

d. the rate at which consumers are likely to adopt a new product or service

Samples are often used for new products when __________ will influence the diffusion of the product. a. relative advantage b. compatibility c. observability d. trialability

d. trialability