CH12 learnsmart questions - New Product Development, adoption, diffusion, and the product life cycle

Which Diffusion of Innovation adopter group waits until the "bugs" are worked out of a particular product, in order to avoid risk? -early adopters -innovators -laggards -late majority -early majority

-early majority

What are some advantages experiences by pioneer firms over later entrants? (choose all that apply) -establish an early market share lead -more likely to develop brand loyalists -low failure rate once new product launches -more readily recognizable to consumers

-establish an early market share lead -more likely to develop brand loyalists -more readily recognizable to consumers

The diffusion of innovation curve illustrates the typical rate of adoption for a product or service among consumers. According to the curve shown, when would marketers expect to see highest frequency of purchases for a given product or service? -in the middle of the curve -at the beginning of the curve -toward the end of the curve

-in the middle of the curve

Product development or product design entails a process of balancing which types of considerations? (choose all that apply) -manufacturing -cultural -engineering -marketing

-manufacturing -engineering -marketing

______________ of innovation is the process by which the use of an innovation, whether a product or service, spreads throughout a market group over time and over various categories of adopters.

Diffusion

________________ refers to a firm buying the rights to use the technology or ideas from other research-intensive firms.

Licensing

_____________ or breakthrough products are brand new product that establish a completely new market or radically change both the rules of competition and consumer preferences in a market.

Pioneer

Innovators are the consumers who are the first to have a given product or service once it is released. Which of the following traits would innovators most likely have? (choose all that apply) -pride in keeping products as long as they can -trend starters -risk takers -risk averse -highly knowledgeable (about the product/service)

-trend starters -risk takers -highly knowledgeable (about the product/service)

In terms of their place on the diffusion of innovation curve, innovators are the __________ category of consumers. -first -third and fourth -second -majority

first

As a consumer, being an innovator in a given product category can mean engaging in a number of behaviors .Which behavior would best illustrate an innovator? -sleeping outside Starbucks for the first cup of coffee that morning -buying a used car on eBay -sleeping outside Best Buy for the latest game console

-sleeping outside Best Buy for the latest game console

During test marketing, the potential elements of the marketing mix that may be used include which of the following? (choose all that apply) -advertising -reverse engineering -coupons -redesign of product

-advertising -coupons

Innovators are as important to firms as they are to other consumers in that they __________ . (choose all that apply) -do not follow the trends of the market -are essentially the testers for a product or service -force other consumers to by the product or service -are often experts who provide the initial review

-are essentially the testers for a product or service -are often experts who provide the initial review

Which of the following processes could be considered an acceptable method for generating ideas? (choose all that apply) -brainstorming within the firm -conducting consumer research -arguing with other firms and institutions -communicating with a firm's R&D department -researching competitors' products and services

-brainstorming within the firm -conducting consumer research -communicating with a firm's R&D department -researching competitors' products and services

the diffusion curve varies. For some product categories, the time it takes to get from innovators to laggards to purchase a product is shorter. Which of the following would be expected to have the shortest time frame for full diffusion? -cars -high-efficiency windows for homes -solar heating system -children's toys

-children's toys

For many Americans, the daily ritual of having a coffee is almost automatic and assumed. The same can be said for the Chinese but with tea. For a firm that is marketing a product, this example serves as a reminder to consider the ____________ of your product and its intended target market. -compatibility -drinkability -values -needs

-compatibility

When a product such as a "nick-free" razor blade is launched, it may diffuse more slowly than a product like the Apple iPad, which is easily seen and whose benefits or uses are easily communicated to others. This comparison exemplifies a difference in _____________, one of the product characteristics that affect the speed of diffusion. -complexity -triability -relative advantage -observability

-observability

Burger King launched the "Whopper Bar," serving beer as well as burgers in a test market in Miami. Which of the following would have been elements of a good plan for this test market? (choose all that apply) -testing a scaled-back version of the full Whopper Bar, with only one type of beer -selling beer at 50% off the price to be charged for the full launch -offering the complete menu planned for the full launch -running the TV ads planned for the full launch

-offering the complete menu planned for the full launch -running the TV ads planned for the full launch

A(n) _____________ test is when a company shows potential customers the marketing mix variables and then are surveyed if they would buy or use the product again. -market -premarket -beta -concept

-premarket

___________________ deals with perception among consumer that a product is better than its substitutes. -relative dominance -perceptual concurrence -perceptual exclusivity -relative advantage

-relative advantage

Which of the following is a possible advantage for a firm that chooses to use brainstorming for its new products as opposed to other idea generation methods? -the firm can quickly decide whether to accept or reject an idea -the firm does not need a group to do it -the ideas that receive the most votes go to the next stage -brainstorming is one of the most expensive options available

-the ideas that receive the most votes go to the next stage

Put the stages of the product life cycle in order from first to last maturity introduction decline growth

1) introduction 2) growth 3) maturity 4) decline

Laggards make up roughly _____________ of the market. -20% -10% -16% -5%

16%

While late to the party, the late majority category of consumers is still significant, making up roughly ____________ of the total consumer market. -50% -16% -34% -13%

34%

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

Early adopters

The Apple iPod was readily accepted by consumers in part because it was an easy way to listen to music anywhere, with big advantages over portable CD players. This is an example of a relative ____________ within the diffusion process.

advantage

The speed with which products diffuse depends on a number of different product characteristics. Which of the following is NOT a product characteristic to consider? -observability -relative advantage -compatibility -affability -complexity

affability

During the product development process a firm uses __________ testing, in which potential consumers examine the product prototype in a "real use" setting to determine its functionality, performance, potential problems, and other issues specific to its use.

beta

Triability and _______________ refer to how complicated a product is and how easy or hard it is to try.

complexity

By the time the _____________ enter(s) the market, sales tend to be decreasing substantially and innovators may have moved on to the next innovation. These buyers often adopt the innovation only because their previous solution to the problem no longer exists. -innovators -laggards -early adopters -early majority

laggards

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

majority

A(n) ________________ is the first physical form or service description of a new product, still in rough form, that has the same properties as the product.

prototype