Marketing Ch 12 Quiz Questions

For new product marketers, early adopters are important because they tend to be few in number. the first to adopt a new product. opinion leaders. fond of prototypes. alpha testing enthusiasts.

opinion leaders.

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is market testing. product development. brainstorming. reverse engineering. launching the product.

product development.

Before the development of computer-assisted design software, many firms handcrafted ______, wooden or clay models that served as rough physical representations of the new product. premarket tests blockbusters prototypes storyboards designer models

prototypes

Which of the following is NOT a stage in the product life cycle? Introduction Growth Evaluation Maturity Decline

Evaluation

Which of the following is NOT one of the four product life cycle stages? Introduction Leveling Maturity Growth Decline

Leveling

Which of the following is NOT one of the five groups in the diffusion of innovation curve? Innovators. Non-adopters. Late majority. Early majority. Early adopters.

Non-adopters.

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. relative positioning compatibility observability complexity trialability

compatibility

During the ________________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market. introduction leveling maturity growth decline

decline

The process by which the use of a new product or service spreads throughout a market group is referred to as new product introduction. lead user dispersion. diffusion of innovation. the product life cycle. product development diffusion.

diffusion of innovation.

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 many alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group. innovator laggard late majority early majority early adopter

early majority

One of the potential benefits to a firm of introducing new-to-the-world products or services is: cost savings. late majority marketing. establishing a completely new market. the ability to avoid paying pioneers for new product development. capitalizing on existing consumer preferences.

establishing a completely new market.

Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and not having to pay advertising expenses. using prototypes to dominate the market. not needing to do test marketing. establishing an early market share lead. motivating laggards to buy their products.

establishing an early market share lead.

Which of the following is NOT one of the benefits to a firm of new product development? Reduced costs of production. Satisfying the changing needs of current and new customers. Avoiding market saturation from products that have been on the market for a long time. Creating diversification and reducing risk. Keeping up in a market where sales come mostly from new products.

Reduced costs of production.

___________________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents. Reverse innovation Reverse engineering Selective dissection Redistribution Creative destruction

Reverse engineering

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the _____________ stage of the product life cycle. introduction leveling maturity growth decline

growth

`During the _____________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors. introduction leveling maturity growth decline

growth

Concept testing is important because it can help the firm to refine the promotional plans. lead to immediate roll out of the final product. help a firm avoid the costs of unnecessary product development. reduce the potential loss of sales during the decline stage. increase product development costs.

help a firm avoid the costs of unnecessary product development.

During the _____________ stage of the product life cycle, sales are low and profits are small or negative. introduction leveling maturity growth decline

introduction

During the _____________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense. introduction leveling maturity growth decline

maturity

When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage sales would rise quickly, profits would jump, and even laggards would buy his product. sales would level off, profits would decline, and mature golfers would be attracted to his product. sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers. sales would be low and profits nonexistent, but he would attract golf equipment innovators. sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product.

sales would be low and profits nonexistent, but he would attract golf equipment innovators.

A(n) __________________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products. facilitating payment introductory price promotion slotting allowance stocking premium place holder

slotting allowance

A marketing professor in Ithaca, New York maintains a museum of failed consumer products. Most new products in this museum failed during the _______________ stage of new product development, when they are introduced to a limited geographical area. pretesting product launch test marketing product development concept testing

test marketing

When McDonald's comes up with a new drink or sandwich for its fast food stores, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in pretesting. product launch. test marketing. product development. concept testing

test marketing.

Early personal computers cost several thousand dollars, allowing competitors to focus on creating demand for their brand. to promote alternative brands in that product category. to spend less on introductory advertising. to focus on making improved versions. to introduce lower-priced alternatives.

to introduce lower-priced alternatives.

When a manufacturer launches a new product, it may offer _________ to wholesalers and retailers, including introductory price promotions, special events, and personal selling. trade promotions trade shows trade-in allowances trade discounts trade budgets

trade promotions

Samples are often used for new products when _________________ will influence the diffusion of the product. relative advantage compatibility observability complexity trialability

trialability

Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing, but the most important question is what retailers she should use to sell the swimwear. whether or not they would purchase the swimwear if it becomes available. what wholesale price should be charged. what promotional plan will work best. in which season she should introduce the product.

whether or not they would purchase the swimwear if it becomes available.

In the United States, most consumer packaged goods found in grocery and discount stores are in the ________ stage of the product life cycle. growth pioneer introduction decline maturity

maturity

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from relative advantage. compatibility. observability. complexity. trialability.

observability.

Some products may stay comfortably in the maturity phase of the product life cycle often until a new product emerges to replace them. An example of such a mature product is e-books. refrigerators. the VCR. smart phones. None of these. No product can stay in the maturity phase and survive for very long.

refrigerators.

Inkjet personal computer printers were a big improvement over the dot matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their relative advantage. compatibility. observability. complexity. trialability.

relative advantage.

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

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