BA 370- Marketing Chapter 12 SB

____ generation refers to the first stage in the process by which firms develop a new product.

Idea

Which of the following is an example of a research and development effort?

A test kitchen at a fast food restaurant

Which of the following is a way by which risk can be diversified?

By creating a broader portfolio of products through innovation

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 _____.

Diffusion of Innovation

Hightower Industries wants to be a pioneering firm in the robotics and artificial intelligence industry. Which strategy is the company most likely to pursue?

Invest heavily in research and development

____ are consumers who like to avoid changes and rely on traditional products until they are no longer available.

Laggards

In distinguishing between firm strategies for developing new products, a pioneer firm will be more likely to rely on its ______, whereas a follower firm will be more likely to ______ for ideas.

R&D department; scan the market

Adding new products is MOST likely to prompt consumers to purchase in which of the following industries?

Video games

Early _____ are the category of consumers who begin to use a product or service immediately following innovators

adopters

New products and services that consumers accept quickly will have a high ______ rate early in their product life cycles, which will accelerate the diffusion process across the various stages.

adoption

Fill in the blank question. The Apple iPod was readily accepted by consumers in part because it was an easy way to listen to music anywhere, with substantial improvements over portable CD players. This is an example of a relative____ within the diffusion process.

advantage

One advantage of product innovation is that a firm can expand into different product categories. The point of the risk ______ strategy is that if some products in one category are competing poorly, others in another category could be doing very well.

diversification

Along the diffusion of innovation curve, ______ make up the second group of consumers to adopt an innovation; they tend to be leaders in a social setting.

early adopters

While the ______ is first to adopt the item, the ______ adopts next.

innovator; early adopter

When the ___ majority of consumers enters the market, the market reaches its full market potential.

late

The early majority represents approximately ______ 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.

34%

True or False: New products must be targeted toward end consumers.

False

What is a key characteristic of the maturity stage?

Firms defending market share

Product development or product design entails a process of balancing which types of considerations?

Marketing Engineering Manufacturing