Marketing 370 Chapter 12

Laggards make up _______ of the market

16%

When Ben & Jerry's Ice Cream tests all of its new flavors on its own employees at its corporate headquarters in Vermont, it is engaging in what kind of testing?

Alpha testing

If you are a customer of a company and are asked to use a product prototype, you would be engaging in what type of testing?

Beta Testing

Through the effective use of _____ testing, firms may be able to avoid the high costs of product development for product ideas that do not meet customers' expectations

Concept

Sara Lee's use of a focus group to help develop the package is an example of:

Idea Generation

_________ refers tot he first stage in the process by which firms develop a new product.

Idea Generation

______ are crucial to the success of a new product because they help the product gain market acceptance by spreading positive word of mouth about the new product. .

Innovators

A(n) __________ price promotion is a short-term price discount to encourage new product trial

Introductory

Sending a product out to test families is an example of:

Market Testing

In the _______ stage of the PLC, a firm may want to start looking for new market segments in order to find new opportunities

Maturity

A ___________ test is when a company shows potential customers the marketing mix variables and then are surveyed if they would buy/use the product again

Premarket

A "sensory panel" is an example of:

Premarket Testing

What is an advantage of using brainstorming over other Idea Generation methods?

Through brainstorming those ideas or combination of ideas which receive the most votes are carried forward to the next stage

A ________ is a temporary concentration of manufacturers, giving retailers and opportunity to see what is available in the marketplace

Trade Show

Companies use different techniques to understand the wants and needs of their customers. One such technique used is ___________, which is used to obtain consumers' reactions to new product ideas BEFORE a prototype is actually developed

concept testing

In managing its product portfolio, 3M demands that a specific percentage of its yearly sales come from new products introduced within the previous few years to better withstand external shocks and _________. a. respond to fashion cycles. b. change customer preferences. c. improve business relationships. d. hedge against market saturation. e. manage risk through diversification.

e. Manage risk through diversification