Ch 11
2. Newtotheworld products, where the product category itself is new, are also called: a. discontinuous innovations b. moderate innovations c. slowdiffusing products d. venture products e. creative offerings
A
23. The same manufacturer produces Hanes, Playtex, and Bali clothing for women. This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for fullfigured women and to suggest newproduct ideas, such as jewelry, wide shoes, and belts. The manufacturer used a research technique called a: a. focus group b. brainstorming session c. buying center d. productreview committee e. venture team
A
29. The screening and concept testing stage of the newproduct development process is used to: a. eliminate undesirable ideas and predict consumer acceptance b. refine the promotion campaign to be used with the new product c. determine the potential profits to be gained from the new product d. determine how long the test market should be run e. generate newproduct ideas
A
3. Sony has developed a wireless speaker that sits unobtrusively on a desktop. The tiny yet strong twin speakers use Bluetooth to stream music directly from a PC or MP3 player. This small Sony wireless speaker, which is radically different from anything currently on the market, would be classified as a(n): a. discontinuous innovation b. slowdiffusing product c. episodic innovation d. venture product e. sporadic innovation
A
30. _____ evaluate newproduct ideas usually before any prototype has been created. a. Concept tests b. Simulated market tests c. Market tests d. User tests e. Venture analyses
A
36. A teamoriented approach to newproduct development is referred to as: a. simultaneous product development b. synergistic product development c. commercialized product development d. synchronized product development e. parallel product development
A
39. When selecting a test market city, a researcher should look for a city: a. where the demographics and purchasing habits mirror the overall market for the product. b. that has media spillover from other cities to increase media alternatives. c. that is as large as possible. d. that has limited distribution. e. where there is no competition.
A
44. During the _____ stage of the newproduct development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin. a. commercialization b. product testing c. market analysis d. product prototyping e. simulated marketing
A
46. The MOST important factor in successful newproduct introduction is: a. a good match between the product and market needs. b. strong company leadership. c. an obsession with quantity rather than quality d. projectbased team approach to newproduct development. e. history of carefully listening to customers.
A
48. A product that is perceived as new by a potential adopter, whether the product is "new to the world" or simply new to the individual, is called a(n): a. innovation b. diffusion c. discontinuous product d. laggard e. simulated new product
A
5. Marketers consider all of the following examples of new products EXCEPT: a. a 2010 model year automobile with the same style, parts, and color as the 2009 model. b. the addition of a management consultant service to a company that once specialized in investment management. c. a new design for Reach brand toothbrushes. d. a new flavor of Ben & Jerry's brand ice cream. e. the development of a lesspainful procedure for the treatment of varicose veins.
A
50. The process by which the adoption of an innovation spreads is referred to as: a. diffusion b. circulation c. transmission d. dissemination e. dispersion
A
54. _____ embrace products relatively early in the product life cycle, are likely to be community oriented, and often are opinion leaders themselves. a. Early adopters b. Innovators c. Early majority d. Late majority e. Laggards
A
66. Among the late majority group, adoption of a product primarily results from: a. wordofmouth communications. b. print advertising. c. advertising in nontraditional media. d. broadcast advertising. e. sales promotions.
A
70. Which product factor influencing the rate of adoption represents the degree of difficulty involved in understanding and using a new product? a. Complexity b. Compatibility c. Relative advantage d. Observability e. Trialability
A
73. Jeni's Splendid Ice Creams is famous for its unusual flavors, such as Wildberry Lavender, Goat Cheese with Red Cherries, and Sweet Corn and Black Raspberries . Which of the following product characteristics would most likely influence the market success of these flavors? a. Compatibility b. Comparability c. Complexity d. Tangibility e. Competitive advantage
A
74. When the Segway Human Transporter was introduced in 2002, many people expected the product to be a phenomenal success. While the Segway is still on the market, it has never been the success so many expected. A recent Wall Street Journal article suggested that the Segway, while brilliant technologically, seemed impractical to most people since it could not be used to replace their current method of transportation. In other words, the Segway had problems with: a. compatibility. b. relative advantage. c. observability. d. trialability. e. longevity.
A
78. Which product characteristic affecting the rate of adoption of a new product represents the degree to which the benefits or other results of using the product can be communicated to target customers? a. Observability b. Diffusion c. Adoption d. Trialability e. Complexity
A
88. A brand of iced tea called Gold Peak has high marketing costs as well as high production costs. Promotions for the product are aimed at gaining distribution and informing consumers that this premium product tastes like its home brewed. In which stage of the product life cycle is Gold Peak iced tea? a. Introductory b. Growth c. Maturity d. Decline e. Saturation
A
9. Apple recently introduced a newly designed iPod nano with MultiTouch capability, a builtin FM radio, and mixmaking Genius. Since it was not trying to reach a new target market, Apple was using which new product strategy? a. Improvement or revision of existing product b. Addition to existing product line c. Discontinuous innovation d. Repositioned product e. New product line
A
90. The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage. a. growth b. decline c. introductory d. maturity e. commercialization
A
93. Normally, the longest stage of the product life cycle is the _____ stage. a. maturity b. growth c. introductory d. decline e. development
A
99. Washing machines and refrigerators are in the _____ stage of the product life cycle. a. maturity b. growth c. introductory d. decline e. development
A
1. New products are important to a company for all the following reasons EXCEPT: a. increased revenues b. immediate profits c. sustained growth d. replacement of obsolete items e. increased profits
B
10. When Procter & Gamble wanted to enter the haircare market, it purchased Wella, a leading German company specializing in haircare products. What new product category does this acquisition represent for P&G? a. Repositioning strategy b. New product line c. Addition to existing product line d. Discontinuous innovation e. Revision of existing products
B
12. Dial Corporation has introduced Dial Basics, a premium soap product with an emphasis on value. Dial Basics would be an example of which strategy to create a new product? a. Newtotheworld product b. New product line c. Repositioned product d. Addition to a current product line e. Lowerpriced products
B
16. The first stage of the newproduct development process is: a. screening and concept testing b. establishing the newproduct strategy c. exploring opportunities d. developing a business analysis e. the building of a prototype
B
22. Mosaic Labs has developed a chemical compound that prevents mildew in even the most humid climates. The week after the compound was invented, a group of the firm's employees got together and listed ways the product might be used. This is an example of: a. quality control b. brainstorming c. concept testing d. venture group activities e. screening
B
31. After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created, the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers. The consumer group was asked to evaluate the ideas in terms of their marketability. This stage of newproduct development is called: a. prototype screening b. concept testing c. market testing d. idea manipulation e. idea diffusing
B
33. Which of the following questions is NOT likely to be asked during the business analysis stage? a. What is the likely demand for the product? b. Which celebrity spokesperson can we hire to promote the product? c. Would current customers benefit from the product? d. What is the risk of failure? e. What new facilities would be needed?
B
35. In the _____ stage of newproduct development, the technical feasibility of manufacturing the new product is examined as a prototype is produced. a. screening b. development c. market testing d. concept testing e. business analysis
B
38. _____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. a. Use testing b. Test marketing c. Concept testing d. Laboratory testing e. Discontinuous innovation
B
41. The maker of Purell hand sanitizer tested consumers' reactions to its Purell Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads, make out a grocery list, and then "shop" in a mock store filled with real products, including the new product. This is an example of a(n): a. adoptionrate test b. simulated (laboratory) market test c. concept test d. use test e. juried consumer test
B
51. The process by which the adoption of 3D HD televisions spreads is an example of: a. test marketing b. diffusion c. product dissemination d. innovative dispersal e. marketing communication
B
52. _____ are eager to try new ideas and products. They typically have higher incomes, are better educated, and are more cosmopolitan than other categories of adopters. a. Early adopters b. Innovators c. Early majority d. Late majority e. Laggards
B
55. Joaquin didn't buy a netbook computer when they first came out, but he did purchase one a year after they were introduced to the market. He is very active in his church and local arts council, and many of his friends asked him which brand to buy when they were considering purchasing a netbook. Joaquin is best described as a(n): a. innovator b. early adopter c. early majority d. leading consumer e. proactive
B
58. A dominant characteristic of the late majority is: a. deliberateness b. skepticism c. respect of others d. cheerfulness e. optimism
B
68. Which is the last adopter category to adopt an innovation? a. Late majority b. Laggards c. Late diffusers d. Reluctant adopters e. Traditionalists
B
72. Which product characteristic affecting the rate of adoption represents the degree to which the new product is consistent with existing values and product knowledge, past experiences, and current needs? a. Complexity b. Compatibility c. Relative advantage d. Observability e. Trialability
B
80. A new medication to eliminate fungal growths on people's toenails may have a slow rate of adoption because it is not a highly visible item in homes. Also, this item is not often discussed among friends and coworkers. This is an example of how the characteristic of _____ can work to slow the adoption process. a. relative advantage b. observability c. trialability d. complexity e. compatibility
B
81. The degree to which a product can be used on a limited basis represents which product characteristic influencing the rate of adoption? a. Complexity b. Trialability c. Observability d. Relative advantage e. Sampling
B
85. The stages of the product life cycle, in order, are: a. introduction, maturity, decline b. introduction, growth, maturity, decline c. growth, maturity, plateau, decline d. innovation, early adoption, late adoption, laggard e. category acceptance, category growth, brand acceptance, brand growth
B
11. Oakley, a manufacturer of protective eyewear for various kinds of sports, has introduced sunglasses that play music. The glasses weigh just a few ounces and can hold up to 120 songs. These sunglasses would be an example of a(n): a. repositioning strategy b. new product line c. addition to existing product line d. discontinuous innovation e. revision of existing products
C
13. _____ occurs when an existing product is targeted toward new market segments. It is another type of newproduct development because the product is new to that segment. a. Brainstorming b. Diffusing c. Repositioning d. Screening e. Reciprocity
C
26. After the research team at Nabisco had generated more than two dozen newproduct ideas for a substitute for partially hydrogenated oils that tastes the same but has zero trans fat, the company formed a committee to analyze whether the product ideas were consistent with the organization's newproduct strategy. This is called: a. business analysis b. diffusion c. idea screening d. test marketing e. idea generation
C
27. Top managers at a commercial real estate firm that specializes in site location and installation of cell phone towers considered providing the same service for windmill location and installation but decided this was not within the company's corporate mission. Which stage of the newproduct development process was reached? a. Development b. Idea generation c. Idea screening d. Business analysis e. Customer testing
C
42. Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets? a. Product sampling b. Simulated product adoption c. Online test marketing d. Simulated diffusion e. Market concentration
C
43. The final stage in the newproduct development process is: a. product testing b. market testing c. commercialization d. product prototyping e. simulated marketing
C
47. The main goal of the global product development process is to: a. come up with a single standard product or product line suitable for all global markets b. expand the number of different newproduct offerings so that individual country needs are more likely to be met c. develop every product for potential worldwide distribution and adaptation to other countries d. come up with newproduct ideas in the United States and use global markets as test markets e. repeat the steps in the process with marketing teams in each and every foreign country targeted
C
53. Kathy purchased an Amazon Kendle ebook reader as soon as they came onto the market. She paid $399 for the product, which she bought the first day it was released. Kathy works in Information Technology and is always looking for new electronic products to buy. She would best be described as a(n): a. early adopter b. early majority c. innovator d. diffusers e. lead consumer
C
56. One hot August day, Tom saw a can of AriZona Beverage Company's Arnold Palmer HalfandHalf iced tea and lemonade drink at the local convenience store. He decided to try the product and found that he really liked it. Now, Tom regularly purchases this product to quench his thirst on hot days. Tom is an example of a(n): a. optin buyer. b. innovator . c. adopter. d. luddite. e. laggard.
C
57. Which of the following adopters is MOST likely to become an opinion leader? a. Luddite b. Early majority c. Early adopter d. Proactive adopter e. Innovator
C
59. All of the following statements about how adopters participate in the diffusion process are true EXCEPT: a. early adopters may also be opinion leaders b. laggards are the last consumers to adopt a new product c. there are three categories of consumers who will adopt an innovation d. the dominant characteristic of members of the late majority is skepticism e. innovators are the first to purchase a new product
C
6. When P&G began marketing Tide Free & Gentle, which is dye and perfumefree, this represented which new product category? a. Repositioning strategy b. New product line c. Addition to existing product line d. Discontinuous innovation e. Revision of existing products
C
62. Liz tends to adopt new products sooner than a lot of other people, but she weighs the pros and cons before buying. She does considerable product research, but her friends don't really look to her for information. She really deliberates before she makes a purchase. Liz is best described as a(n): a. innovator b. early adopter c. early majority d. late majority e. laggard
C
71. Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently introduced Oakley's Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs. Which of the following product characteristics would likely exert the greatest influence on the market success of these new glasses? a. Compatibility b. Comparability c. Complexity d. Tangibility e. Competitive advantage
C
76. The product characteristic affecting the rate of adoption characterized by the degree to which a product is perceived as superior to existing substitutes is: a. compatibility b. complexity c. relative advantage d. product differentiation e. competitive advantage
C
77. Biopure Corp. is developing a human blood substitute called Hemopure. Unlike donated human blood that needs to be refrigerated and expires after a short period of time, Hemopure is shelf stable and can be stored for two years or more. Also, it does not need to be matched to a person's blood type. These factors make it wellsuited for trauma cases where blood must be transfused at an accident site or on the battlefield. Which product characteristic influencing the rate of adoption does this represent? a. Complexity b. Compatibility c. Relative advantage d. Observability e. Trialability
C
82. Which of the following products has the lowest level of trialability? a. An Internet chat room b. Lowfat ice cream c. Surgically implanted hearing aids d. Organic pet food e. A new air freshener
C
94. In which stage of the product life cycle do marginal competitors start dropping out of the market? a. Introduction b. Growth c. Maturity d. Decline e. Shakeout
C
100. Which of the following statements about the product life cycle (PLC) is true? a. The PLC concept encourages marketing managers to think reactively. b. Marketers do not yet understand the relationship between the adopter categories and the stages of the PLC. c. There are as many new buyers in the maturity stage of the PLC as in the growth stage. d. The PLC is especially useful as a predicting tool. e. Just as there are five adopter categories, there are five PLC stages.
D
15. A(n) _____ links the newproduct development process with the objectives of the marketing department, the business unit, and the corporation. a. productreview committee b. concept test c. episodic innovation d. newproduct strategy e. product strategy bridge
D
18. Which of the following is the LEAST likely source for newproduct ideas? a. A company's distributors b. Its customers c. Its employees d. Its financial lenders e. Its competitors
D
20. The process of converting applications for new technologies into marketable products is called: a. basic research b. product modification c. marketing development d. product development e. correlation analysis
D
21. _____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas. a. Newproduct brain dumping b. Screening c. A focus group interview d. Brainstorming e. Diffusion
D
25. At what stage of the newproduct development process are most newproduct ideas rejected? a. Test marketing b. Diffusion c. Business analysis d. Idea screening e. Idea generation
D
28. A European dairy that is famous for its rich ice creams has introduced basil, tomato, fennel, and oreganoflavored ice creams. In the process of developing these new flavors, the dairy surveyed worldfamous chefs to determine which nontraditional flavors had the greatest level of marketability. This survey would have happened during which stage of the product development process? a. Concept testing b. Brainstorming c. Basic research d. Idea screening e. Applied research
D
34. The accuracy of revenue projections for products are affected by: a. the newness of the product. b. the size of the market. c. the nature of the competition. d. all of the above. e. none of the above.
D
40. A(n) _____ typically entails showing members of the product's target market advertising and other promotional materials for several products, including the test product. These people are then taken to a mock or real store, where their purchases are recorded. a. adoptionrate test b. real test market c. concept test d. simulated (laboratory) market test e. consumer juried test
D
45. Jeni's Splendid Ice Creams has decided to put its new Beet Cake with Black Walnut ice cream on the market. This product has entered the _____ stage of newproduct development. a. business analysis b. development c. test marketing d. commercialization e. research and development
D
61. A company has learned that members of its target market are likely to collect more information and evaluate more brands than early adopters. They are cautious and thoughtful and do not try the product without asking someone else. The customers' dominant characteristic is deliberateness. In terms of the diffusion process, these customers are most likely: a. innovators b. early minority c. laggards d. early majority e. late majority
D
65. Leon is not very quick to purchase innovative products when they come out, but after a while he breaks down and buys if after most of his friends have bought it. He gets most of his information from them when he decides to buy something. He is very skeptical of marketing, so he trusts his friends more than anything. Leon is best described as a(n): a. innovator b. early adopter c. early majority d. late majority e. laggard
D
67. In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are bound to tradition. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called: a. generics. b. late majority. c. decliners. d. laggards. e. luddites.
D
79. Razor scooters gained instant popularity because walkers and runners frequently saw people on the scooters zipping by them and having fun. This information suggests the adoption rate of the Razor scooter was most affected by which product characteristic? a. Complexity b. Trialability c. Relative advantage d. Observability e. Compatibility
D
83. When CocaCola North American debuted Gold Peak iced tea, a spokesperson for the company said, "In looking at the readytodrink tea market, we found that the one place that nobody seemed to be playing was in the category of classic iced teas like mother used to make. Gold Peak is a quality product that brings back that classic taste. We're going to do a lot of sampling with this product because we believe that if people try it, they're going to love it and stick with it." In other words, its adoption rate will rely on its: a. compatibility b. comparability c. complexity d. trialability e. competitive advantage
D
86. All the brands that satisfy a particular type of need such as shaving products, laundry detergent, soft drinks, and furniture make up a(n): a. product life cycle stage. b. primary group. c. adopter category. d. product category. e. reference group.
D
89. The length of the introductory stage of the product life cycle for a new product is largely determined by: a. the size of the product b. the product's marketing mix c. the efficiency of the test marketing d. product characteristics, such as advantages over substitute products e. the size of the market
D
95. A longrun drop in sales signals the beginning of which stage in the product life cycle? a. Laggard b. Saturation c. Deterioration d. Decline e. Decay
D
14. Companies that are most likely to succeed in the development and introduction of new products typically are characterized by all of the following EXCEPT: a. establishing an environment conducive to achieving newproduct objectives. b. making the longterm commitment needed to support innovation and newproduct development. c. capitalizing on experience to achieve and maintain competitive advantage. d. using a companyspecific approach, driven by corporate objectives and strategies, with a welldefined newproduct strategy at its core. e. introducing ten new products every year.
E
17. A newproduct strategy: a. links the newproduct development process with the objectives of the marketing department, the business unit, and the corporation b. is part of an organization's overall marketing strategy c. specifies the roles new products play in the organization's overall plans d. describes the characteristics of products the organization wants to offer and the markets it wants to serve e. is accurately described by all of these
E
19. A manufacturer of office furnishings is finding it difficult to compete with cheaper imported merchandise. Which of the following is a potential source of newproduct ideas that would allow it to compete more effectively? a. Current retailers who carry the manufacturer's equipment b. Its foreign competitors c. The company's employees d. Customers who have requested its catalogs e. All of these
E
24. Which of the following stages of the newproduct development process is the first filter, which serves to eliminate newproduct ideas that are inconsistent with the organization's new- product strategy or are obviously inappropriate for some other reason? a. Applied diffusion b. Introductory diffusion c. Business analysis d. Test marketing e. Idea screening
E
32. In the _____ stage of newproduct development, preliminary demand, cost, sales, and profitability estimates are made. a. prototype screening b. idea generation c. concept testing d. postbrainstorming e. business analysis
E
37. Which of the following statements about simultaneous product development is FALSE? a. Simultaneous product development refers to the practice of developing multiple new products at the same time. b. With simultaneous product development, all relevant functional areas and outside suppliers participate in all stages of the development process. c. All departments within the company work together at the same time, but to maintain a high level of secrecy, no one outside the company is involved in simultaneous product development. d. Simultaneous product development actually increases the length of time it takes to get a product to market and the time the product will stay in the growth stage of its product life cycle. e. The Internet has not yet proven to be a useful tool for implementing simultaneous product development.
E
4. Which of the following would be considered a new product? a. A new product line b. A newtotheworld product c. An addition to an existing product line d. An improvement or revision of an existing product e. All of these choices
E
49. Roger has lots of nice photos of his family on his digital camera and wishes he could display them on his desk at work without having to print them out. A coworker told him that he could purchase a digital photo frame to download and display his digital photos. Because Roger did not know such a product existed, digital photo frames represented a(n) _____ to him. a. heterogeneous shopping product b. diffusion c. market laggard d. product diversification e. innovation
E
60. All of the following are categories of adopters in the diffusion process of innovations EXCEPT: a. laggards b. innovators c. early majority d. early adopters e. doubters
E
63. The _____ adopt a product because most of their friends have already done so, and their adoption is usually the result of pressure to conform because they rely on group norms. a. laggards b. early adopters c. early majority d. innovators e. late majority
E
64. Which category of adopters adopt a new product because most of their friends have already adopted it? a. Innovators b. Early majority c. Early adopters d. Laggards e. Late majority
E
69. All of the following are product characteristics influencing the rate of adoption EXCEPT: a. complexity. b. compatibility. c. relative advantage. d. observability. e. distribution.
E
7. Heinz is expected to introduce more than 400 new products in the next two years. One of the products is a spicier ketchup aimed at the baby boomer market. The spicier ketchup would be considered what type of new product? a. Discontinuous innovation b. New to market c. New product line d. Lower priced e. Addition to existing product line
E
75. Many product failures such as Cucumber antiperspirant spray, Toaster Eggs, and HealthSea seasausages most likely did not succeed because they did not conform to the product characteristic of: a. complexity. b. trialability. c. total advantage. d. observability. e. compatibility.
E
8. For years, Diet Dr. Pepper has been considered a diet drink. After declining sales, the company is attempting to present Diet Dr. Pepper as an alternative to having a dessert. This is an example of a _____ strategy. a. discontinuous innovation b. niche c. newproductline d. retargeting e. repositioning
E
84. A biological metaphor that traces the stages of a product's acceptance, from its introduction (birth) to its decline (death) is called the: a. product diffusion process b. product phase c. product adoption stages d. product evolution cycle e. product life cycle
E
87. Microwave ovens, staplers, frozen yogurt, and purses are examples of: a. PLC line items. b. lineextendable categories. c. brand classes. d. brand groupings. e. product categories.
E
91. During the growth stage of the product life cycle: a. there is little emphasis on the distribution strategy b. demand for the product is limited to highincome consumers c. prices increase due to economies of scale d. there is decreased direct competition e. profits peak
E
92. At the beginning of the maturity stage of the product life cycle, sales typically: a. become flat and do not change b. increase at an increasing rate c. decrease at a decreasing rate d. decrease at an increasing rate e. increase at a decreasing rate
E
96. Which of the following products is most likely to be in the decline stage of its product life cycle? a. Cookie mixes b. Wireless mobile phones c. Programmable CDROMs d. Funeral caskets e. Prerecorded audiocassette tapes
E
97. The rate of sales decline during the decline stage of the product life cycle is largely governed by: a. the amount of money spent on advertising. b. the number of competitors in the market. c. the intensity of the competition's marketing efforts. d. the amount of shelf space allotted to the product. e. how rapidly consumer tastes change or substitute products are adopted.
E
98. You are a product manager for a manufacturer of trampolines. You have determined that the trampoline is in the maturity stage of the product life cycle. To keep your product from entering the decline stage, you should: a. use promotion to increase primary demand for trampolines b. abandon peripheral target markets for trampolines c. raise the price of your trampolines because customers are not price sensitive in this stage d. eliminate all unnecessary marketing expense e. promote trampolines heavily to dealers and customers
E
