BA 370 Chapter 11

Place these three steps marketers follow to develop or change a product into the correct order, with the first step at the top and the last step at the bottom.

1. using core customer value to determine what customers are seeking 2. making an actual physical product 3. adding associated services

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. Multiple choice question. 2.5% 12.5% 50% 34%

34%

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.) Multiple select question. Books Over-the-counter medicines Gardening equipment Video games Movies

Books Video games Movies

Which of the following is a way by which risk can be diversified? Multiple choice question. By taking up new ventures that predict high returns By manufacturing only those products in which a firm has a competitive advantage By avoiding projects that are risky By creating a broader portfolio of products through innovation

By creating a broader portfolio of products through innovation

Without innovation, what options would be available to firms? (Choose every correct answer.) Multiple select question. Continue to market current products to current customers Develop new products for new markets Take current products to new markets Develop new products for current markets

Continue to market current products to current customers Take current products to new markets

New products must be targeted toward end consumers. True false question.TrueFalse

False

What will happen to a firm if it continues to produce the same products in a saturated market? Multiple choice question. Its revenues will stay the same. It will experience rapid growth. Its revenues will grow slowly. It will eventually decline.

It will eventually decline.

Which traits are true of ALL products? (Choose every correct answer.) Multiple select question. Delivered directly to the consumer Something that a customer values Bought through an online distributor Offered through a marketing exchange

Something that a customer values Offered through a marketing exchange

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 To satisfy the changing needs of consumers To keep customers from getting bored with existing products To lower production costs

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

Adding new products is MOST likely to prompt consumers to purchase in which of the following industries? Multiple choice question. Video games Writing utensils Oil and gas Household appliances

Video games

Firms need to continue to innovate because customer needs Blank______. Multiple choice question. are insignificant compared to the need to always use the newest technologies can be disregarded once a product is established in the market tend to stay constant over time are constantly changing

are constantly changing

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______. Multiple choice question. the product life cycle distribution of product inventory viral marketing diffusion of innovation

diffusion of innovation

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. Multiple choice question. seeking transfer diversification assimilation

diversification

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: Multiple choice question. improve business relationships. identify new target markets. eliminate competition. increase market share.

improve business relationships.

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

innovation

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

innovators

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______. Multiple choice question. saturated vacant profitable integrated

saturated

Early ? are the category of consumers who begin to use a product or service immediately following innovators. (Remember to type only one word in the blank.)

adopters