M 12
When the sequel to eventually shows up on their regular television networks, this group might watch it. A. laggards B. early majority C. late majority D. early adopters E. innovators
A. laggards
During the introduction stage of a product's life cycle, typical consumers are A. early adopters. B. innovators. C. pioneers. D. early majority.
B. innovators.
When John began helping his favorite uncle Burton with his finances, he discovered his uncle was still renting a rotary-dial telephone from the phone company. Uncle Burton had paid thousands of dollars in rental fees over the previous 40 years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones. A. innovator B. laggard C. late majority D. early majority E. early adopter
B. laggard
During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense. A. introduction B. leveling C. maturity D. growth E. decline
C. maturity
Which of the following is least likely to be a source of ideas for new products? A. R&D efforts B. licensing agreements C. consumer research D. geodemographic segmentation E. brainstorming
D. geodemographic segmentation
. In the product development process, what takes place between concept testing and market testing? A. securing financial backing B. conducting marketing research C. brainstorming D. determining potential ROI E. performing product development
E. . performing product development
Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services.
False
As personal computers became popular, the sale of typewriters decreased significantly and now typewriters are only used by a very small segment of consumers. Typewriters are in the maturity stage of the product life cycle.
False
Even if products succeed, not all consumers adopt new-to-the-world products at the same time.
True
Fashion trends tend to experience short product life cycles.
True
New product development adds value to a firm's products and services through innovation.
True
The failure rate for new products is high.
True
Because a market is saturated, firms may attempt to enter new geographical markets that may be less saturated. For example, pharmaceutical companies are realizing that they need to turn to ____________ for continued growth in the coming years. A. BRIC countries B. third-world countries C. communist countries D. Germany E. France
A. BRIC countries
Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in A. alpha testing. B. product launch. C. test marketing. D. beta testing. E. concept testing.
A. alpha testing.
If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of A. beta testing. B. market testing. C. premarket tests. D. test marketing. E. concept testing.
A. beta testing.
During the __________ stage of the product life cycle, there are few but an increasing number of competitors. A. growth B. introduction C. maturity D. decline E. innovation
A. growth
36. All of the following groups are included in the diffusion of innovation curve except A. innovators. B. non-adopters. C. late majority. D. early majority. E. early adopters.
B. non-adopters.
The product life cycle is theoretically __________ with regard to sales and profits. A. U shaped B. Y shaped C. bell shaped D. circular E. flat lined
C. bell shaped
Which of the following adopter categories refers to the last large group of buyers to enter a new product market? A. late majority B. early majority C. laggards D. early adopters E. innovators
E. innovators
Test marketing refers to customers who modify existing products according to their own ideas to suit their specific needs.
False
The diffusion of innovation curve follows the following sequence: innovators, early majority, early adopters, late majority, and laggards
False
New-to-the-world products that create new markets can add tremendous value to firms.
True
During the __________ stage of the product life cycle, sales are low and profits are small or negative. A. introduction B. leveling C. maturity D. growth E. decline
A. introduction
The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix. A. pretesting B. product launch C. posttesting D. product development E. evaluation of results
B. product launch
__________ is the process by which ideas are transformed into new products and services that will help firms grow. A. Beta testing B. Concept testing C. Innovation D. Reverse engineering E. Competition
C. Innovation
Cathy has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line. Olay is in the _________ stage of the product life cycle. A. introduction B. growth C. evaluation D. maturity E. decline
D. maturity
The maturity phase of the product life cycle is characterized by greatly reduced competition.
False
In many cases, pioneers lose their market lead and initial market share to imitators who A. capitalize on the pioneers' weaknesses. B. create similar products with reduced value to consumers. C. utilize alpha-beta testing. D. ignore patents and copyrights. E. target late maturity consumers.
A. capitalize on the pioneers' weaknesses.
. __________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents. A. Reverse innovation B. Reverse engineering C. Selective dissection D. Redistribution E. Creative destruction
B. Reverse engineering
When conducting exploratory concept testing for her firm's new Internet antipiracy software, which is the most important question that Dee should ask? A. How long will it take to bring the software to market? B. Will respondents purchase the software if it becomes available? C. Who will determine the price to be charged? D. Where should the product be sold? E. Which computer trade show will be used to introduce the product?
B. Will respondents purchase the software if it becomes available?
All of the following are stages in the product life cycle except A. introduction. B. growth. C. evaluation. D. maturity. E. decline.
C. evaluation.
During the __________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors. A. introduction B. leveling C. maturity D. growth E. decline
D. growth
Paul listens to music on his iPod and iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the __________ stage of the product life cycle. A. introduction B. growth C. evaluation D. maturity E. decline
E. decline
Pioneer or breakthrough products A. will likely result in late maturity buying. B. can change consumer preferences. C. incorporate reverse engineering outputs. D. require the use of concept testing services. E. must be geographically centered.
B. can change consumer preferences.
All of the following were considered a new-to-the-world product or service when introduced except A. Wi-Fi. B. the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs. C. Microsoft's Windows operating system. D. the MP3 player. E. flat-screen TVs
B. the Mercedes mini sport utility vehicle, a smaller version of its larger SUVs.
When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars A. provided equivalent relative advantage for both European and U.S. customers. B. were not compatible with European market conditions. C. did not provide benefits that were observable. D. involved technology that was too complex. E. could not be easily tried by consumers.
B. were not compatible with European market conditions.
The process by which the use of a new product or service spreads throughout a market group is referred to as A. new product introduction. B. lead user dispersion. C. diffusion of innovation. D. the product life cycle. E. product development diffusion.
C. diffusion of innovation.
One of the potential benefits to a firm of introducing new-to-the-world products or services is A. cost savings. B. late majority marketing. C. establishment of a completely new market. D. the ability to avoid paying pioneers for new product development. E. the ability to capitalize on existing consumer preferences.
C. establishment of a completely new market.
By adding new product lines beyond its core business of computer software, like the Surface Pro tablet and Xbox 360 game system, Microsoft primarily benefits by A. keeping up in a market where sales come mostly from new products. B. satisfying the changing needs of the technological research staff. C. avoiding market saturation from products that have just been introduced to the market. D. creating diversification and reducing risk. E. spreading out production costs.
D. creating diversification and reducing risk.
Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation. A. R&D B. licensing technology C. consumer research D. geodemographic analysis E. brainstorming
E. brainstorming
During the ___________ stage of the product life cycle, firms either position themselves for a niche segment of diehard consumers or they completely exit the market. A. introduction B. leveling C. maturity D. growth E. decline
E. decline
32. All of the following are reasons for the high failure rate of new products except A. failing to assess the market properly. B. neglecting to do appropriate product testing. C. targeting the wrong segment. D. overextending a firm's abilities. E. failing to introduce lower-priced alternatives.
E. failing to introduce lower-priced alternatives.
The fact that the Apple iPad is easy to try—demo units are available at Apple stores as well as other retail stores—is helping it diffuse more quickly.
True
The introduction stage of the product life cycle is characterized by negative or low profits.
True
To determine if a new product is commercially viable, a firm can conduct premarket testing
True
Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.
A. relative advantage.
All of the following are characteristics of products in the maturity stage of the product life cycle except A. laggards are a major focus of marketing efforts. B. price competition is intense. C. marketing costs increase as firms defend their market share. D. the market may become saturated because nearly all potential customers have adopted the product.
A. laggards are a major focus of marketing efforts.
Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Brian is trying to identify innovators in his market, knowing these customers will most likely A. spread positive word of mouth to other physicians. B. buy one for each office in their practices. C. reposition his products. D. create demand among the late majority. E. not need any service or support when using the product.
A. spread positive word of mouth to other physicians.
Firms can measure the success of a new product by all of the following factors except A. satisfaction of its technical requirements. B. fewer competitors in the market. C. satisfactory sales and profits. D. customer acceptance. E. satisfactory performance.
B. fewer competitors in the market.
Which of the following is true of profits in the maturity stage of the product life cycle? A. They are negative. B. They are low. C. They peak or are declining. D. They are rapidly rising. E. They are slowing rising.
C. They peak or are declining.
When microwaves were new, they often cost over $300, were huge, and had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were part of the ___________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter
C. late majority
Innovators are a critical group of new product adopters because they A. are the major source of innovation. B. act as reverse engineering consultants. C. help with test marketing. D. help the product gain market acceptance. E. extend the product life cycle
D. help the product gain market acceptance.
As a promotion technique, samples are often used for new products when __________ will influence the diffusion of the product. A. relative advantage B. compatibility C. observability D. complexity E. trialability
E. trialability
On the diffusion of innovation curve, the first group of buyers who want to be the first on the block to have the new product are known as early adopters
False
One of the key characteristics of brainstorming sessions is A. no idea is immediately accepted or rejected. B. everyone must come up with ideas. C. the first idea is almost always the best idea. D. only the marketing team is included in these sessions. E. the manager should always make the final decision.
A. no idea is immediately accepted or rejected
Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered __________ with consumers' needs and priorities. A. relative positioning B. compatibility C. observability D. complexity E. trialability
B. Compatibility
115. How is consumer panel data collected during the test marketing phase of a new product introduction? A. Panelists complete a questionnaire about the product. B. Panelists scan their receipts on a home scanning device. C. Stores provide sales data to companies. D. Consumers voluntarily go to a website to record their preferences. E. Focus groups are held in key markets.
B. Panelists scan their receipts on a home scanning device.
Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask? A. What retailers should be used to sell the swimwear? B. Will retailers purchase the swimwear if it becomes available? C. What wholesale price should be charged? D. What promotional plan will work best? E. In which season should we introduce the product?
B. Will retailers purchase the swimwear if it becomes available?
One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for _______ the product. A. pretesting B. beta testing C. test marketing D. alpha testing E. concept testing
B. beta testing
.By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the __________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter
C. late majority
Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are __________, who can provide ideas for new and improved products. A. laggards B. market testers C. lead users D. reverse engineers E. concept testers
C. lead users
By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle. A. introduction B. leveling C. maturity D. growth E. decline
C. maturity
The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. A. innovator B. laggard C. late majority D. early majority E. early adopter
D. Early Majority
As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group. A. innovator B. laggard C. late majority D. early majority E. early adopter
D. early majority
. Robin recently bought Voice over Internet Protocol (VoIP) phone service. A few of Robin's friends bought VoIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) __________ in this product category. A. innovator B. laggard C. late majority adopter D. early majority adopter E. early adopter
E. Early Adopter
Whenever Andrew considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Andrew, Jeremy is a(n) __________ in the diffusion of innovation curve. A. innovator B. laggard C. late majority adopter D. early majority adopter E. early adopters
a. Innovator
All of the following are benefits of new product development to a firm A. reducing the costs of production. B. satisfying the changing needs of current and new customers. C. avoiding market saturation from products that have been on the market for a long time. D. creating diversification and reducing risk. E. keeping up in a market with short product life cycles where sales come mostly from new products.
A. reducing the costs of production.
The CEO of David's firm just came back from a business seminar. He called David into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that A. the product life cycle is not a useful concept. B. it is often impossible to identify with precision where a product is in the product life cycle. C. the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation. D. the idea has been discredited by recent research. E. the product life cycle works only for certain types of firms.
B. it is often impossible to identify with precision where a product is in the product life cycle.
39. In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because A. they prefer products from established market leaders. B. other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals. C. they are especially price conscious. D. they are easily influenced by reminder advertising. E. they encourage competitors to enter the market.
B. other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals.
When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage A. sales would rise quickly, profits would jump, and even laggards would buy his product. B. sales would level off, profits would decline, and mature golfers would be attracted to his product. C. sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers. D. sales would be low and profits nonexistent, but he would attract golf equipment innovators. E. sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product.
D. sales would be low and profits nonexistent, but he would attract golf equipment innovators.
The diffusion of innovation theory focuses on A. the geographic boundaries of innovation. B. the relationship between pioneer brands and imitators. C. the psychological traits of innovators. D. the rate at which consumers are likely to adopt a new product or service. E. the way a product moves through the product life cycle.
D. the rate at which consumers are likely to adopt a new product or service.
Bob and George live in the United States. Bob recently asked for George's cell phone number, but George said he didn't own a cell phone. George would probably be considered a(n) __________ in the diffusion of innovation process. A. innovator B. laggard C. late majority adopter D. early majority adopter E. early adopter
B. laggard
Hollywood studios typically release movies targeted toward general audiences (G- or PG-rated movies) during the summer when children are out of school. The timing of the release pertains to the product's A. premarket test. B. launch. C. evaluation. D. research and development. E. test marketing.
B. launch.
Barbara is using a test model of her firm's new inline skates to see if they work according to the design specifications. Barbara is involved in A. test marketing. B. product launch. C. alpha testing. D. target marketing. E. concept testing.
C. alpha testing.
As it pertains to the diffusion of innovation, if the __________ group is relatively small, the number of people who ultimately adopt the innovation likely will also be small. A. innovator B. laggard C. late majority D. early majority E. early adopter
E. Early Adopter
Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of A. keeping up in a market where sales come mostly from new products. B. satisfying the changing needs of current and new customers. C. avoiding market saturation from products that have been on the market for a long time. D. creating diversification and reducing risk. E. reduction in cost of ingredients.
B. satisfying the changing needs of current and new customers.
All of the following are included in the four product life cycle stages except A. introduction. B. stagnation. C. maturity. D. growth. E. decline.
B. stagnation.
7. Companies that develop customized business software often work closely with their users when installing their products. This close contact often creates new product ideas through A. reverse engineering. B. licensing technology. C. customer input. D. R&D consortia. E. clinical trials
C. customer input.
Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and A. not having to pay advertising expenses. B. using prototypes to dominate the market. C. not needing to do test marketing. D. establishing an early market share lead. E. motivating laggards to buy their products.
D. establishing an early market share lead.
. A product in the __________ stage of the product life cycle has a high number of competitors and competitive products. A. introduction B. growth C. decline D. development E. maturity
E. maturity
113. In the United States, most consumer packaged goods found in grocery and discount stores are already in the __________ stage of the product life cycle. A. growth B. pioneer C. introduction D. decline E. maturity
E. maturity
On the diffusion of innovation curve, the late majority is the final group of buyers who like to avoid change and rely on traditional products until they are no longer available
False
One of the key characteristics of brainstorming sessions is that bad ideas should be immediately rejected so the group can focus its attention on good ideas
False
When Glenn asked a few of his regular customers to test his prototype surfboard, he was engaging in alpha testing.
False
The National Institutes of Health (NIH) sponsors medical foundations to conduct research to treat rare diseases. The research is then disseminated to the medical community, thus encouraging the development of drugs and therapies more quickly and at a lower cost than would be possible if the research were privately funded. This is an example of A. early adopters. B. market testers. C. an R&D consortia. D. reverse engineers. E. concept testers.
C. an R&D consortia.
65. At the end of a brainstorming session, participants are often asked to A. identify the worst ideas. B. defer to management for the final decision. C. identify which ideas each person proposed. D. vote on the best ideas. E. propose one more new idea each.
D. vote on the best ideas.
33. Even if they succeed, new-to-the-world products are A. generally not profitable. B. not adopted by everyone at the same time. C. not capable of creating new markets. D. not subject to the law of first movers. E. typically very short-lived.
B. not adopted by everyone at the same time.
If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is A. market testing. B. product development. C. brainstorming. D. reverse engineering. E. launching of the product.
B. product development.
Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is A. e-books. B. refrigerators. C. the VCR. D. smartphones. E. None of these; no product can stay in the maturity phase and survive for very long
B. refrigerators.
When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in A. a consortia. B. reverse innovation. C. competitive engineering. D. pioneering. E. beta testing.
B. reverse innovation.
Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast range of diverse tourists and thus might offer insights into what various consumer groups will like. This is an example of A. target marketing. B. test marketing. C. product marketing. D. product launching. E. premarket testing.
B. test marketing.
For new product marketers, early adopters are important because they tend to be A. few in number. B. the first to adopt a new product. C. opinion leaders. D. fond of prototypes. E. alpha testing enthusiasts.
C. opinion leaders.
Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve? A. innovators, early adopters, early majority, late majority, laggards B. early adopters, early majority, innovators, late majority, laggards C. innovators, early majority, early adopters, late majority, laggards D. early majority, late majority, early adopters, innovators, laggards E. innovators, late majority, early adopters, early majority, laggards
A. innovators, early adopters, early majority, late majority, laggards
Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in A. premarket testing. B. product launch. C. test marketing. D. product development. E. concept testing.
A. premarket testing.
Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their A. relative advantage. B. compatibility. C. observability. D. associated services. E. trialability.
A. relative advantage.
You Eye is developing eye tracking technology that works with an individual's webcam. Instead of needing to spend thousands of dollars on eye tracking equipment and having customers come into labs, firms will be able to utilize everyday webcams to track not only what a person attends to on a computer screen but also his or her emotional reactions to these products. Firms such as YouEye are automating the A. premarket testing process. B. alpha testing process. C. beta testing process. D. evaluation process. E. concept testing process.
C. beta testing process.
Eric is a sales rep for an established building materials manufacturer. Business is good, but he is concerned that the company has spent little on new product development and has not created a new product in over five years. Without new products, Eric can market his current products only to his current customers or A. diversify. B. intensify his prototyping. C. expand his early adopter market segment. D. market the same products to similar customers. E. focus on concept testing.
D. market the same products to similar customers.
After a product has been launched, marketers must undertake a critical postlaunch review to determine whether the product and its launch were a success or failure and what additional resources or changes to the marketing mix are needed, if any. For a product that does move on, the firms can measure the success of the new product by interrelated factors that include all of the following except A. its satisfaction of technical requirements. B. its satisfaction of performance. C. customer acceptance. D. its satisfaction of the firm's financial requirements. E. its satisfaction of the firm's manufacturing requirements.
E. its satisfaction of the firm's manufacturing requirements.
The growth phase of the product life cycle is always dynamic. All of the following occur during this phase except A. profits increase as sales increase. B. profits increase as economies of scale are attained. C. some new competitors may enter the market with similar products. D. some competitors will exit in an "industry shakeout." E. price competition with protracted price wars erodes profits
E. price competition with protracted price wars erodes profits
. Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products. A. relative advantage B. compatibility C. observability D. complexity E. trialability
E. trialability
The most challenging part of applying the product life cycle concept is that managers do not know exactly what shape each product's life cycle will take.
True
When consumers see their friends using an innovation, it often persuades them to try it too.
True
Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from A. relative advantage. B. compatibility. C. observability. D. complexity. E. trialability.
C. observability.
The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) __________ in the MP3 player market. A. blockbuster B. early adopter C. pioneer D. market tester E. concept tester
C. pioneer
The diffusion of innovation theory is useful to marketers in helping them A. adjust to the performance life cycle. B. avoid the cost of concept testing. C. predict which types of customers will buy their product immediately and later. D. predict how long it will take for a new product to gain market acceptance. E. determine a target market.
C. predict which types of customers will buy their product immediately and later.
A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum failed during the __________ stage of new product development, when they are introduced to a limited geographic area. A. pretesting B. product launch C. test marketing D. product development E. concept testing
C. test marketing
Which of the following reflects the maturity stage of the product life cycle? A. Sales: low; Profits: negative or low; Typical consumers: innovators; Competitors: one or few B. Sales: rising; Profits: rapidly rising; Typical consumers: early adopters and early majority; Competitors: few but increasing C. Sales: declining; Profits: declining; Typical consumers: laggards; Competitors: low number of competitors and products D. Sales: peak; Profits: peak to declining; Typical Consumers: late majority; Competitors: high number of competitors and competitive products E. Sales: peak; Profits: increase; Typical Consumers: laggards; Competitors: low number of competitors
D. Sales: peak; Profits: peak to declining; Typical Consumers: late majority; Competitors: high number of competitors and competitive products
When the iPad Mini came out, Sasha spent the night in front of the store so she could get one before any of her friends. According to the diffusion of innovation, Sasha is an innovator.
True
. Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of A. keeping up in a market where sales come mostly from new products. B. satisfying the changing needs of former customers. C. avoiding market penetration from products that have been on the market for a long time. D. creating diversification and reducing risk. E. taking advantage of a long product cycle.
A. keeping up in a market where sales come mostly from new products.
When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in A. pretesting. B. product launch. C. test marketing. D. product development. E. concept testing
C. test marketing.
Beverly is assessing the results of a new product launch of a series of e-books for her bookstore. When evaluating the results, Beverly will likely consider all of the following except A. why it took her so long to consider the new product line. B. if the e-books are generating the expected level of profit. C. if the e-books are generating the expected level of sales. D. if her customers are interested in the new books. E. if the e-books function as expected.
A. why it took her so long to consider the new product line.
The Apple iPod 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. The Apple iPod is considered a A. pioneer product. B. introductory product. C. mature product. D. diffused product. E. early adopted product.
A. pioneer product.
In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as A. premarket testing. B. market testing. C. alpha testing. D. concept testing. E. prelaunch testing.
A. premarket testing.
Microsoft's Windows operating system continues to dominate the market, even though it has been around for over 20 years. Windows will likely remain in the maturity stage of the product life cycle A. indefinitely. B. until it rules the world. C. until a superior product comes along to replace it. D. unless Microsoft repositions Windows as an introductory stage product. E. as long as the company doesn't change it.
C. until a superior product comes along to replace it.
When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle. A. introduction B. leveling C. maturity D. growth E. decline
D. growth
On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the XYZ firm confirms its target market (or markets) and decides how its product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. This process illustrates A. the product launch. B. the company's evaluation of results. C. premarket demonstrations. D. alpha testing. E. beta testing.
A. the product launch.
When a product is successful in the introductory stage of the product life cycle, A. it moves directly into the maturity stage. B. it is most likely to begin to launch spinoffs. C. competition becomes less important. D. it may start to see profits toward the end of this stage. E. marketing costs increase significantly.
D. it may start to see profits toward the end of this stage.
Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in A. concept testing. B. market testing. C. premarket testing. D. product development. E. alpha testing.
E. alpha testing.
All of the following would be part of the launch of a new product except A. determining the marketing budget for the first year of the product. B. finalizing the marketing mix variables. C. determining the price for the product. D. making decisions regarding positioning the product. E. starting to make preliminary decisions about the target market.
E. starting to make preliminary decisions about the target market.
A company has a new concept for a lightweight electric scooter that can be easily folded and taken with you inside a building or on public transportation. The company is currently engaged in concept testing. The most important question during this phase of product development pertains to A. the cost of research and development. B. the price of the final product. C. the cost to manufacture the product. D. marketing and advertising costs. E. the respondent's purchase intentions if the product were made available.
E. the respondent's purchase intentions if the product were made available.
