MKT 3000 CH12 Quiz

According to your text, some estimates indicate that only about _____ percent of new products actually succeed. 3 10 25 45 52

3. Although innovation strategies may not always work in the short run—some estimates indicate that only about 3 percent of new products actually succeed—various overriding and long-term reasons compel firms to continue introducing new products and services.

The introduction of the Apple iPod is an example of _____ because its introduction to the market radically changed consumer preferences and the entire competitive landscape. a fad a pioneer an early adopter an imitator a laggard

A pioneer. The Apple iPod is a pioneer product since it not only changed the way people listen to music, but it also created an entirely new industry devoted to accessories such as cases, ear buds, docking stations, and speakers.

A product that is perceived to be better than most substitutes is said to have _____, which should speed up the diffusion process. a relative advantage compatibility observability complexity trialability

A relative advantage. If a product or service is perceived to be better than substitutes, it has a relative advantage, therefore the diffusion will be relatively quick.

Tyler is highly knowledgeable about new developments in bicycling technology, since he reads everything he can find about the subject. Typically being the first to try out new bicycle models, he would be classified _____ in terms of the diffusion of innovation curve. as a laggard as an innovator as an early adopter in the late majority in the early majority

As an innovator. Innovators want to be the first on the block to have the new product or service. Typically, innovators keep themselves very well informed about the product category by subscribing to trade and specialty magazines, talking to other "experts," engaging in product specific blogs and forums, and attending product-related forums, seminars, and special events.

When a product is offered in a foreign market but cultural differences slow down the diffusion process, it would most likely be attributed to low levels of innovation. compatibility. observability. complexity. trialability.

Compatibility. When international cultural differences either speed up or slow down the diffusion process, it would involve issues relating to compatibility.

In the new product development process, when companies provide brief written descriptions of the product and what customer needs it would satisfy, sometimes including visual images of what the product would look like, it involves idea generation. concept testing. product development. market testing. product launch.

Concept testing. Concept testing refers to the process in which a concept statement is presented to potential buyers or users to obtain their reactions. Because concept testing occurs very early in the new product introduction process, even before a real product has been made, it helps the firm avoid the costs of unnecessary product development.

Firms with products in the _____ stage of the product life cycle either position themselves for a niche segment of die-hard consumers or those with special needs, or they completely exit the market. product development introduction growth maturity decline

Decline. Firms with products in the decline stage of the product life cycle either position themselves for a niche segment of diehard consumers or those with special needs, or they completely exit the market. The few laggards that have not yet tried the product or service enter the market at this stage.

_____ refers to the process by which the use of a product, service, or process spreads throughout a market group over time and across various categories. Innovation Fashion cycles Market segmentation The product life cycle Diffusion of innovation

Diffusion of innovation. The diffusion of innovation concept helps marketers understand the rate at which consumers are likely to adopt a new product or service.

In the new product development process, companies have a variety of ways for _____, including outsourcing, brainstorming, licensing, and customer research. idea generation concept testing product development market testing product launch

Idea generation. To generate ideas for new products, a firm can use its own internal research and development efforts, collaborate with other firms and institutions, license technology from research-intensive firms, brainstorm, research competitors' products and services, and/or conduct consumer research.

_______ are crucial to the success of any new product or service because they help the product gain market acceptance by spreading positive word of mouth about the new product. Laggards Innovators Early adopters The late majority The early majority

Innovators. Innovators are those buyers who want to be the first on the block to have the new product or service. They help the product gain market acceptance as they spread positive word of mouth about the product.

The most common type of consumers in the introduction stage of the product life cycle are the laggards. innovators. early adopters. late majority. early majority.

Innovators. The introduction stage for a new, innovative product or service usually starts with a single firm, and innovators are the ones to try the new offering.

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 respond to fashion cycles. change customer preferences. improve business relationships. hedge against market saturation. manage risk through diversification.

Manage risk through diversification. Firms like 3M often innovate to create a broader portfolio of products, to diversify their risk, and enhance firm value to better withstand external shocks, including changes in consumer preferences or intensive competitive activity.

In the United States, most consumer packaged goods found in grocery and discount stores are already in the _____ stage, which is characterized by the adoption of the product by the late majority and intense competition for market share among firms. introduction growth maturity first decline

Maturity. The maturity stage of the product life cycle is characterized by the adoption of the product by the late majority and intense competition for market share among firms. In the United States, most consumer packaged goods found in grocery and discount stores are already in the maturity stage.

The _____ stage of the new product development process requires tremendous financial resources and extensive coordination of the marketing mix to roll out the product. market testing concept testing product launch idea generation product development

Product launch. Product launch is the most critical step in the new product introduction requiring tremendous financial resources and extensive coordination of all aspects of the marketing to introduce the product to the entire market.

_____ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist. Outsourcing Brainstorming Reverse engineering Market testing Licensing

Reverse engineering. Reverse engineering involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist.

To examine the potential success of its one-third-pound Angus hamburger, McDonald's started offering and promoting the product in three southern cities. This move is an example of test marketing. beta testing. prototype marketing. alpha testing. trade promotion.

Test marketing. A method of determining the success potential of a new product, test marketing introduces the offering to a limited geographical area (usually a few cities) prior to a national launch.

The last large group of buyers to enter a new product market are _____, and when they do, the product has achieved its full market potential and sales will have leveled off or even be in decline. laggards innovators early adopters the late majority the early majority

The late majority. At 34 percent of the market, the late majority is the last group of buyers to enter a new product market. When they do, the product has achieved its full market potential.

Which of the following is not a reason listed in your text that compels firms to continue introducing new products and services? To adapt to changing customer needs To combat market saturation To diversify risk To respond to fashion cycles To drive the competition out of business

To drive the competition out of business. Companies are compelled to create new products for several reasons: to adapt to changing customer needs, to combat market saturation, to diversify risk, to respond to fashion cycles, or to improve business relationships.

_____ relates to how easily consumers can test and use the product. Trialability Availability Observability Compatibility Relative advantage

Trialability. Products that are relatively less complex are also relatively easy to try. These products will generally diffuse more quickly and lead to greater/faster adoption than those that are not so easy to try.

The _______ defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace. product life cycle diffusion of innovation product development cycle market adoption process production positioning curve

product life cycle The product life cycle defines the stages (introduction, growth, maturity, and decline) that products move through as they enter, get established in, and ultimately leave the marketplace.