chapter 12
_____ refers to the process by which the use of a product, service, or process spreads throughout a market group over time and across various categories.
Diffusion of innovation
_____ refers to the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow.
Innovation
_______ are crucial to the success of any new product or service because they help the product gain market acceptance by spreading positive word of mouth about the new product.
Innovators
_____ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist.
Reverse engineering
Which of the following is not a reason listed in your text that compels firms to continue introducing new products and services?
To drive the competition out of business
The introduction of the Apple iPod is an example of _____ because its introduction to the market radically changed consumer preferences and the entire competitive landscape.
a pioneer
The first physical form or service description of a new product, still in rough form, having the same properties as a new product, but produced through different manufacturing processes, is called
a prototype.
A product that is perceived to be better than most substitutes is said to have _____, which should speed up the diffusion process.
a relative advantage
Firms with products in the _____ stage of the product life cycle either position themselves for a niche segment of die-hard consumers or those with special needs, or they completely exit the market.
decline
If the _______ buying group is relatively small, the number of people who ultimately adopt the innovation likely will also be small.
early adopters
As _____, one of the advantages that pioneers have is they create a new market or product category, establishing a commanding initial market share lead.
first movers
In the new product development process, companies have a variety of ways for _____, including outsourcing, brainstorming, licensing, and customer research.
idea generation
The most common type of consumers in the introduction stage of the product life cycle are the
innovators.
In some cases, _____ may never adopt a certain product or service since they rely on traditional products until they are no longer available.
laggards
In the United States, most consumer packaged goods found in grocery and discount stores are already in the _____ stage, which is characterized by the adoption of the product by the late majority and intense competition for market share among firms.
maturity
People who get Botox treatments consider it to be a private matter; therefore, they do not discuss it with others. This lowers the level of _____, slowing down the diffusion process.
observability
The _____ stage of the new product development process can involve the development of a prototype for alpha or beta testing.
product development
The _____ stage of the new product development process requires tremendous financial resources and extensive coordination of the marketing mix to roll out the product.
product launch
To examine the potential success of its one-third-pound Angus hamburger, McDonald's started offering and promoting the product in three southern cities. This move is an example of
test marketing.
The last large group of buyers to enter a new product market are _____, and when they do, the product has achieved its full market potential and sales will have leveled off or even be in decline.
the late majority