BA316U Quiz Ch. 11

At which stage of the product life cycle will you find a growing number of product adopters, rapid growth in industry sales, and increases in the number of competitors and the number of available product versions?

growth

The decision to delete a product is never taken lightly because, generally, manufacturers

have made substantial investments in product development and manufacturing

During the introduction stage of a product's life cycle, typical consumers are

innovators

The ________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them.

The early majority is the first large group to adopt the product. Without this group, profits are unlikely to materialize. Early majority

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.

The respondent's purchase intentions if the product were made available.eer

Brands can be owned by

any firm in the supply chain

The shape of the diffusion of innovation curve is described as

bell-shaped

When a restaurant chain, Stop 'n Eat Pizza, launches its own brand of homemade soda, this is an example of a

brand extension

The basic reason manufacturers spend time and money building their own brands is to

build brand equity

Sierra Hats Inc. previously sold just ten types of hats and cornered the market in hat sales for years. Eight months ago the company decided to add 20 new hats and since many of the hats are similar to the original ten hats, sales have been lost on the existing brands. In other words, sales of the new hats have ________ the existing brands.

cannibalized

Kelsey has been asked to report on how the company's high-rise jeans collection had spread through the marketplace. The management team wants to know which categories of adopters it originally applied to and which ones it applies to today. What process does Kelsey need to review?

diffusion of innovation

Which group is especially essential for bringing the other buying groups into the market?

early adopters

As soon as she saw one, Corinne wanted a curved-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. Corinne is part of the ________ diffusion of innovation group.

early majority

National brands are products developed by retailers for their exclusive distribution.

false

The diffusion of innovation theory focuses on

the rate at which consumers are likely to adopt a new product or service.

Which statement best explains the product life cycle?

the stages that products move through as they enter, get established in, and ultimately leave the marketplace

Warby Parker, an online retailer for prescription eyewear, offers a free, try-on at home program for its customers. Customers browse frames on Warby Parker's website and select five pairs they would like to try on. They can then choose to purchase or return the frames. Warby Parker handles all the shipping costs and provides all the return packaging. This relates to the ________ of its products.

triability

The fact that the Apple iPad is easy to try—demo units are available at Apple stores as well as other retail stores—has helped it diffuse more quickly.

true

When purchasing a mobile phone, the product you are buying is more than just the phone.

true

When the new iPhone came out, Mallory spent the night in front of the store so she could get one before any of her friends. According to the diffusion of innovation, Mallory is an innovator.

true

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

until a superior product comes along to replace it.

Marketing expenditures allocated carefully can result in greater brand recognition, awareness, perceived value, and consumer loyalty for the brand, which all enhance the brand's

equity

For a company like Pepsi, brand dilution occurs when it sells more product than the competition.

false

If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems), this would be an example of a line extension.

false

When Connor asked a few of his regular customers to test his prototype electric bike, he was engaging in alpha testing.

false (beta-testing)

When Mars manufactures M&M's, Snickers, and other confectionary products, or when Trek designs bicycles, each company's core question is: How do we produce this product in the least expensive manner?

false (what are customers looking for)

The more familiar customers are with a brand, the harder their decision-making process will be.

false: it will be easier

Kellogg's sells many different breakfast cereals, including Corn Flakes, Rice Krispies, Frosted Flakes, Raisin Bran, and Special K. This is an example of the breadth of the Kellogg's product mix.

fasle (this is depth)

Kyle and Stan live in the United States. Kyle recently asked for Stan's cell phone number, but Stan said he didn't own a cell phone. Stan would probably be considered a(n) ________ in the diffusion of innovation process.

laggard

For marketers, one of the benefits of achieving brand loyalty is

lower marketing costs associated with reaching loyal customers

Frequent buyer/user award programs can be used to

maintain contact with loyal customers

Even if they succeed, new-to-the-world products are

not adopted by everyone at the same time

For new product marketers, early adopters are important because they tend to be

opinion leaders

A ________ package is the one a consumer uses. A ________ package is used by retailers to display and sell the product.

primary; secondary

Zappos is a successful online shoe company. One of the difficulties in running a shoe company is the need to have significant ________, a large number of items in each product line.

product line depth

When Kraft's Philadelphia cream cheese changed its packaging from round to oval to ensure front-facing displays that can't spin and to fit more into the same shelf space, this was a subtle way in which the firm ________ its product.

repositioned

When Simon, an athletic trainer, invented a new heart monitor for runners, he could expect during the introductory stage that

sales would be low and profits nonexistent, but he would attract running equipment innovators

Zappos, an online shoe company, knows shoes are typically a(n) ________ good, with consumers often spending time comparing alternatives. It overcomes that aspect of consumers' search process by offering a free, no-questions-asked return policy.

shopping

________ is another term for private-label brands.

store brands

When Michelle rents a book from Amazon for her college class, she keeps the box it came in so she can return it in that same box at the end of the semester. This box is an example of

sustainable packaging

What is an example of primary packaging?

the dental floss dispenser