Chapter 11
The process by which the adoption of an innovation spreads is referred to as:
Diffusion
_________________________ embrace products relatively early in the product life cycle, are likely to be community oriented, and often are opinion leaders themselves
Early Adopters
During the sales decline stage of the product life cycle, no firms earn a profit.
False
In the market growth stage of the product life cycle, firms usually earn smaller profits than they did in the market introduction stage because new competitors enter the market.
False
One benefit of test marketing is that the marketing activity is shielded from competitors.
False
The market maturity stage of the product life cycle has very low promotion expenditures, little price competition, and rising industry profits.
False
Cargill, Inc. Is finally earning a profit on the unique product it introduced 6 months ago. Cargill's advertising is both informative and persuasive. Much money is being spent on Place development. There is little price competition, although several competitors have come out with reasonable imitations. Total industry sales and profits are both rising. In which stage of product life cycle Is Cargill operating?
Growth
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?
Introductory
Which category of adopters adopts a new product because most of their friends have already adopted it?
Late Majority
Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?
Online Test Marketing
Regarding product life cycles, good marketing managers know that:
Product life cycles can be extended through product modifications
As discussed in class, Sony's decision to drop their line of PDA's at the time that they did was a poor strategic decision.
True
The decision to market a product is called commercialization. true
True