Ch. 12

Which of the following factors influence how rapidly a product will move through the product life cycle? (Choose every correct answer.)

How valuable the product is to the consumer How different the product is from other offerings in the market

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

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

adopters

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

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

If a firm has positive results from market testing, the next step will be the

product launch

Which of the following is a market testing method that offers a strong predictor of product success based on actual purchasing behavior?

test marketing

Which of the following statements about firms' expectations regarding the success of internal research and development efforts is true?

Firms expect that a few highly successful products will cover the costs of the entire R&D effort.

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

Product development or product design entails a process of balancing which types of considerations? (Choose every correct answer.)

Marketing Manufacturing Engineering

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

blockbusters

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

false (bc may include suppliers, etc)

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

New product and service innovation is important because the longer a product or service exists in a given marketplace, the more likely that the market will become ______.

satured