MKTG Chapter 12, Marketing 340 chapter 12

Which of the following terms 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

_____ 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 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

manage risk through diversification

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 Apple iPod is an example of a(n) _____ because its introduction to the market radically changed consumer preferences and the entire competitive landscape.

pioneer

Which of the following 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

_____ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist.

reverse engineering

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 one-third-pound Angus hamburger, McDonald's started offering and promoting the product in three southern cities. This move is an example of

test marketing

To examine the potential success of its one-third-pound Angus hamburger, McDonald's started offering and promoting the product in three southern cities. 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

The last group of buyers to enter a new product market are _____, and when they do, the product has achieved its full market potential.

the late majority

Which of the following is not a reason listed in your text that compels firms to continue introducing new products and services?

to drive the competition out of business

All of the following are reasons that compel firms to continue introducing new products and services except

to drive the competition out of business.

According to your text, some estimates indicate that only about _____ percent of new products actually succeed.

3

_____ 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

_______ 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

_____ 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

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

Trialability

The introduction of the Apple iPod is an example of _____ because its introduction to the market radically changed consumer preferences and the entire competitive landscape.

a pioneer

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

a prototype

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

A fee paid to retailers to simply get new products into stores or to gain more or better shelf space for a manufacturer's products is referred to as

a slotting allowance

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.

When a firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended, it partakes in

alpha testing.

Tyler is highly knowledgeable about new developments in bicycling technology, since he reads everything he can find about the subject. Typically being the first to try out new bicycle models, he would be classified _____ in terms of the diffusion of innovation curve.

as an innovator

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

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, when companies provide brief written descriptions of the product and what customer needs it would satisfy, sometimes including visual images of what the product would look like it involves

concept testing

In the new product development process, when companies provide brief written descriptions of the product and what customer needs it would satisfy, sometimes including visual images of what the product would look like it involves

concept testing.

Firms with products in the _____ stage of the product life cycle either position themselves for a niche segment of diehard consumers or those with special needs, or they completely exit the market.

decline

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

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

early adopters

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

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

During the ___________ stage, firms attempt to reach new consumers by studying their preferences and producing different product variations—varied colors, styles, or features—which enable them to segment the market more precisely.

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

In the new product development process, companies have a variety of ways for _____ including outsourcing, brainstorming, licensing, and customer research.

idea generation

The most common type of consumers in the introduction stage of the product life cycle are the

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

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

manage risk through diversification.

In the United States, most consumer packaged goods found in grocery and discount stores are already in the _____ stage, which is characterized by the adoption of the product by the late majority and intense competition for market share among firms.

maturity

The _____ stage of the new product development process requires tremendous financial resources and extensive coordination of the marketing mix to roll out the product.

product launch

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

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

trialability