Chapter 12

Zoe recently bought Voice over Internet Protocol (VolP) phone service. A few of Zoe's friends bought VolP before she did, but many other friends were interested in Zoe's opinions of the new phone service. Zoe is a(n) in this product category. a. early adopter b. laggard c. late majority adopter d. early majority adopter e. innovator

a. early adopter

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for the product. a. test marketing b. beta testing c. pretesting d. alpha testing e. concept testing

b. beta testing

Which of the following is least likely to be a source of ideas for new products? a. licensing agreements b. geodemographic segmentation c. consumer research d. brainstorming e. R&D efforts

b. geodemographic segmentation

Rinaldo sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are _________, who can provide ideas for new and improved products. a. reverse engineers b. lead users c. laggards d. market testers e. concept testers

b. lead users

Serena is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Serena is trying to identify innovators in her market, knowing these customers will most likely a. buy one for each office in their practices. b. spread positive word-of-mouth to other physicians. c. reposition his products. d. not need any service or support when using the product. e. create demand among the late majority.

b. spread positive word-of-mouth to other physicians.

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

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

Freida is using a test model of her firm's new inline skates to see if they work according to the design specifications. She is involved in a. product launch. b. target marketing. c. alpha testing. d. test marketing. e. concept testing.

c. alpha testing.

How is consumer panel data collected during the test marketing phase of a new product introduction? a. Focus groups are held in key markets. b. Consumers voluntarily go to a website to record their preferences. c. Panelists complete a questionnaire about the product. d. Panelists scan their receipts on a home scanning device. e. Stores provide sales data to companies.

d. Panelists scan their receipts on a home scanning device.

The National Institutes of Health (NIH) sponsors medical foundations to conduct research to treat rare diseases. The research is then disseminated to the medical community, thus encouraging the development of drugs and therapies more quickly and at a lower cost than would be possible if the research were privately funded. This is an example of a. concept testers. b. reverse engineers. c. market testers. d. an R&D consortia. e. early adopters.

d. an R&D consortia.

During the ________ stage of the product life cycle, there are few but an increasing number of competitors. a. innovation b. introduction c. maturity d. growth e. decline

d. growth

Which of the following are reasons for the high failure rate of new products? a. targeting a narrow segment of innovators b. doing too much product testing c. failing to introduce lower-priced alternatives d. overextending a firm's abilities e. properly positioning the product

d. overextending a firm's abilities

When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Samsung's ActivWash was initially developed for the Indian population and is now one of the most popular washing machines in South Korea, it is engaged in a. competitive engineering. b. a consortia. c. pioneering. d. reverse innovation. e. beta testing.

d. reverse innovation

Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast range of diverse tourists and thus might offer insights into what various consumer groups will like. This is an example of a. premarket testing b. product launching. c. target marketing. d. test marketing. e. product marketing.

d. test marketing.

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in a. test marketing. b. product launch. c. concept testing. d. beta testing. e. alpha testing.

e. alpha testing

On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the XYZ firm confirms its target market (or markets) and decides how its product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. This process illustrates a. premarket demonstrations. b. alpha testing. c. beta testing. d. the company's evaluation of results. e. the product launch.

e. the product launch.