MKTG 350 Chapter 12

Laggards make up roughly ______ of the market.

16%

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%

While late to the party, the late majority category of consumers is still significant, making up roughly ______ of the total consumer market.

34%

Which type of firm is most likely to engage in a licensing approach to R&D?

A firm with a low budget and a need to get a product to market quickly

What are some advantages experienced by pioneer firms over later entrants?

Establish an early market share lead More likely to command a greater market share over a longer period More readily recognizable to consumers

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

Laggards

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

Manufacturing Engineering Marketing

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

A firm that joins with other firms as well as government and educational institutions to research a costly new technology is participating in which of the following?

Research consortium

What can marketers learn from the diffusion of innovation theory?

The rate at which consumers are likely to adopt a new product or service Which markets are likely to be most receptive to new products or services

Relative ______ deals with perception among consumers that a product is better than its substitutes.

advantage

Products that generate enough revenue to cover the losses from other unsuccessful introductions are known as ______.

blockbusters

A newly formed coffee company should not have much trouble finding coffee drinkers in America to purchase a new type of coffee maker. However, a company selling gear for the game of cricket might have a difficult time being successful in the United States. They would probably be more successful in India or Australia. The degree to which one's product is consistent with the needs and habits of target consumers is known as ______.

compatibility

testing is a written description of a product and its technology and is presented to potential buyers or users to obtain their reactions.

concept

Although there are numerous stages in the product development process, every firm starts to develop new products through ______ and then finishes with an evaluation of ______.

idea generation; results

A company that develops a new merchandise tracking technology that automatically notifies suppliers when a new shipment is needed is using its new product to ______.

improve business relationships

The early. _________________ represents the earlier half of the two largest categories of consumers on the diffusion of innovation curve.

majority

Licensing is a trade-off in that it can save a firm from the high costs of in-house R&D, but instead the firm is counting on a solution (product) that already exists but has not been ______.

marketed

During the ______ stage of the product life cycle, the market for the product usually becomes saturated.

maturity

When Subway introduced a new Southwestern Club sandwich in South Florida before launching it nationwide, it was engaging in ______.

test marketing

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

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

early adopters

Apple created an entirely new brand that started with the iPod and evolved into different product categories (e.g., iPhone, iPad) before anyone else could catch on. Thus, Apple was the ______, which made the firm easily recognizable to consumers, helping it to gain an early market share lead.

first mover

When a product is first launched during the introduction stage, sales are usually ______ and there are ______ competitors.

very low; essentially no

While new products can become huge success stories, they have a high failure rate. In many cases imitators capitalize on the _______ of pioneers and subsequently gain advantage in the market.

weakness

The problem with using the product life cycle concept is that no one can predict the shape that the product's life cycle will take; therefore, it is impossible to know ______.

which stage the product is in