Marketing SB chapter 12
Early ________ are the category of consumers who begin to use a product or service immediately following innovators.
adopters or adoptors
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
In terms of their place on the diffusion of innovation curve, innovators are the ______ category of consumers.
first
_________ is the process by which ideas are transformed into new products and services that will help firms grow.
innovation
The ______ stage of the product life cycle is characterized by initial losses to the firm due to its high start-up costs and low levels of sales revenue as the product begins to take off.
introduction
A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the product _______ cycle.
life
When Burger King introduced the new Whopper Bar to a limited geographical area prior to a national launch, it was engaging in ______.
test marketing
Which of the following processes could be considered an acceptable method for generating ideas?
-Brainstorming within the firm -Researching competitors' products and services -Conducting consumer research -Communicating with a firm's R&D department
__________ are buyers of a product or service who are the first ones to adopt it.
Innovators
When a company adds new products this helps the company to ______ its risk.
diversify
A _______ is a written description of a product and its technology and is presented to potential buyers or users to obtain their reactions.
concept
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
True or false: New products must be targeted toward end consumers.
false
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
During the ______ stage of the product life cycle, the market for the product usually becomes saturated.
maturity
The ________ stage of the product life cycle is characterized by the adoption of the product by the late majority and good profitability
maturity
One advantage of product innovation is that a firm can expand into different product categories. The point of the ______ strategy is that if some products in one category are competing poorly, others in another category could be doing very well
risk diversification
When firms decide to develop new products, it is typically a long process that is broken into ______ stages.
six
Product development entails a variety of processes and considerations to determine which aspects of a product or service?
Form and features
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
Without innovation, what options would be available to firms?
-Continue to market current products to current customers -Take current products to new markets
Which of the following factors influence how rapidly a product will move through the product life cycle?
-How different the product is from other offerings in the market -How valuable the product is to the consumer
Product development or product design entails a process of balancing which types of considerations?
-Marketing -Manufacturing -Engineering
What objective(s) do firms have in adding new products, services, and processes to their offerings?
-To keep customers from getting bored with existing products -To satisfy the changing needs of consumers
Key characteristics of the introduction stage are that ______.
-start-up costs are high -profits are low
A concept can be as simple as a brief written description of the product that might also include ______.
-visual images -customer needs it satisfies
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%
__________ of innovation is the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters.
Diffusion, Diffusion of innovation, or Difusion
__________ generation refers to the first stage in the process by which firms develop a new product.
Idea or Concept
Firms can highlight a product's relative advantage, which refers to which perception among consumers about the product?
It is better than its substitutes
______ are consumers who like to avoid changes and rely on traditional products until they are no longer available.
Laggards
______ defines the stages products move through as they enter, get established in, and ultimately leave the marketplace.
The product life cycle
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
Firms need to continue to innovate because customer needs ______.
are constantly changing
When Subway introduced a new Southwestern Club sandwich in South Florida before launching it nationwide, it was engaging in ______.
test marketing
True or false: Managers can use the product life cycle model to help predict what pricing, product, promotional, and placement strategies they should employ at each of the four stages.
true
