Marketing Chapter 12

Without innovation, what options would be available to firms? (Choose every correct answer.)

1. Continue to market current products to current customers 2. Take current products to new markets

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

form and features

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.

A firm's blank and blank department consists of scientists who work to solve complex problems and develop new ideas. (Do not abbreviate answer)

research and development

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

idea

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 Blank______.

saturated

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

By creating a broader portfolio of products through innovation

Hightower Industries wants to be a pioneering firm in the robotics and artificial intelligence industry. Which strategy is the company most likely to pursue?

Invest heavily in research and development

Some markets demand a higher frequency of new product releases than others. In which of the following markets do sales come from new products? (Choose every correct answer.)

Video games Movies Books

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

early adopters

During the Blank______ stage of the product life cycle, the market for the product usually becomes saturated.

maturity

What objectives do firms have in adding new products, services, and processes to their offerings? (Choose every correct answer.) Multiple select question. To attract talented employees to the firm

1. To satisfy the changing needs of consumers 2. To keep customers from getting bored with existing products

Laggards make up roughly Blank______ of the market.

16%

The early majority represents approximately Blank______ of the total consumer market and is crucial to the profitability of a product or service. Without them, the product or service will typically fail.

34%

In the context of how firms develop new products, what is the next step if a firm has positive results from market testing?

Product launch

blank of innovation 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. (Enter one word in each blank.)

diffusion

The process by which the use of an innovation, whether it be a product or service, is spread throughout a market group over time and over various categories of adopters, is known as Blank______.

diffusion of innovation

During the decline stage of the product life cycle, Blank______ who have not yet tried the product or service will be entering the market for the first time.

laggards

The Blank______ department can be considered an investment into a company's future, in which scientists work to solve problems and develop new ideas.

research and development

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

video games

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

In distinguishing between firm strategies for developing new products, a pioneer firm will be more likely to rely on its Blank______, whereas a follower firm will be more likely to Blank______ for ideas.

R&D department; scan the market

True or False: New products must be targeted toward end consumers.

False

Firms need to continue to innovate because customer needs Blank______.

are constantly changing

While the Blank______ is first to adopt the item, the Blank______ adopts next.

innovator; early adopter

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

innovators

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 Blank______.

which stage the product is in

What is a key characteristic of the maturity stage?

Firms defending market share

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

It is better than its substitutes.

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

diversification

The blank blank 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. (Enter one word in each blank.)

early majority

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

first

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

idea generation; results

Blank is the process by which ideas are transformed into new products and services that will help firms grow.

inovation