Chapter 12 Questions (1)

When conducting concept testing for her firm's new Internet antipiracy software, which is the most important question that Wanda should ask?

Will respondents purchase the software if it becomes available?

Which of the following are reasons for the high failure rate of new products?

overextending a firm's abilities

Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the ________ of its products

trialability

________ products that create new markets can add tremendous value to firms

New-to-the-world

Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and

establishing an early market share lead

One of the potential benefits to a firm of introducing new-to-the-world products or services is

establishment of a completely new market

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the ________ stage of the product life cycle

growth

During the introduction stage of a product's life cycle, typical consumers are

innovators

When Michaela began helping her favorite uncle Barton with his finances, she discovered her uncle was still renting a rotary-dial telephone from the phone company. Uncle Barton had paid thousands of dollars in rental fees over the previous 30 years. Uncle Barton is a(n) ________ in the diffusion of innovation process for telephones

laggard

When the sequel to a movie eventually shows up on their regular television networks, ________ might watch it

laggards

By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the ________ diffusion of innovation group

late majority

During the ________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense?

maturity

In the United States, most consumer packaged goods found in grocery and discount stores are already in the ________ stage of the product life cycle

maturity

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is

product development

Serena is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Serena is trying to identify innovators in her market, knowing these customers will most likely?

spread positive word-of-mouth to other physicians

Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast range of diverse tourists and thus might offer insights into what various consumer groups will like. This is an example of

test marketing

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in

test marketing

On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the XYZ firm confirms its target market (or markets) and decides how its product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. This process illustrates

the product launch

The diffusion of innovation theory focuses on

the rate at which consumers are likely to adopt a new product or service

A company has a new concept for a lightweight bicycle that can be easily folded and taken with you inside a building or on public transportation. The company is currently engaged in concept testing. The most important question during this phase of product development pertains to

the respondent's purchase intentions if the product were made available