MKT 3013 Sample Quiz Ch 12

Disney recently released new versions of its classic movies, Aladdinand The Lion King. This is an example of new product innovation based on

a fashion cycle

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

When Ben & Jerry's Ice Cream tests all its proposed new flavors on its own employees at its corporate headquarters in Vermont, it is partaking in

alpha testing

Kendrick is highly knowledgeable about new developments in computer technology, since he reads everything he can find about the subject. Typically, being the first to try out new computer parts and models, he would be classified ________ in terms of the diffusion of innovation curve.

as an innovator

When a firm uses potential consumers who examine the product prototype in a real-use setting to determine its functionality, performance, and potential problems, it partakes in

beta testing

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

compatibility

In the new product development process, this stage is when the company provides brief written descriptions of the product and what customer needs it would satisfy, sometimes including visual images of what the product would look like.

concept testing

The 5.5 million vinyl long-playing (LP) records sold in the United States per year pales in comparison with the 1.26 billion digital downloads. The grooves in vinyl records create sound waves that are similar to those of a live performance, however, which means they provide a more authentic sound, which in turn means nightclub DJs, discerning music listeners, and collectors will always prefer them. Firms that sell LPs position themselves for a niche segment of diehard consumers. They are in the ________ stage.

decline

________ 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.

diffusion of innovation

If the _______ buying group is relatively small, the number of people who ultimately adopt the innovation likely will also be small.

early adopter

Although they enjoy novelty and are considered to be opinion leaders, ________ are not the first to purchase new product innovations.

early adopters

As ________, one of the advantages that pioneers have is they create a new market or product category, establishing a commanding initial market share lead.

first movers

At which stage in the product life cycle do sales experience their most rapid increase?

growth

In the new product development process, companies have a variety of ways for ________, including collaborating with other firms, brainstorming, licensing, and customer research.

idea generation

Which term refers to the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow?

innovation

_______ 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.

innovators

In some cases, ________ may never adopt a certain product or service since they rely on traditional products until they are no longer available.

laggards

When _________ enter a new product market, the product has achieved its full market potential, sales tend to level off, or may be in decline.

late majority adopters

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 to

manage risk through diversification

During the ________ stage, firms face intense competition for market share, causing them to market their product aggressively.

maturity

People who get Botox treatments consider it to be a private matter; therefore, they do not discuss it with others. This lowers the level of ________, slowing down the diffusion process.

observability

The introduction of the BlackBerry is an example of a(n) ________ because its introduction to the market radically changed consumer preferences and the entire competitive landscape.

pioneer

________ entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features.

product design

The ________ stage of the new product development process can involve the development of a prototype for alpha or beta testing.

product development

The first physical form or service description of a new product, still in rough form, having the same properties as a new product, but produced through different manufacturing processes, is called

prototype

When a company takes apart a product, analyzes it, and creates an improved product that does not infringe on the competitor's patents, if any exist, it is

reverse engineering

To examine the potential success of its nacho fries, Taco Bell started offering and promoting the product in cities such as Orlando, Florida, and Columbus, Ohio. This move is an example of

test marketing

________ represent(s) a substantial portion of the population, and few new products and services can be profitable until this large group buys them.

the early majority

When Amazon created the Echo, smart speakers that respond to voice commands and connect via Bluetooth, the most likely reason was to

to adapt to changing customer needs

________ relates to how easily consumers can test and use the product.

trialability