Marketing Final
The test conducted by firms before a newly developed product or service is brought to the market to determine how many customers will try it and then continue to use it is known as:
a premarket test
Firms either position themselves for a niche market of loyal consumers or they exit the market during the __________ stage of the product life cycle.
Decline
A car manufacturing firm is experiencing a decline in sales for a model that it released during the 1990s. At this stage, the firm should focus all its marketing efforts toward:
Targeting a particular segment of brand loyaltists
The category of innovators differs from the category of early adopters in that early adopters:
tend to enjoy novelty and purchase a product after careful review
Which of the following holds true for brand-loyal customers?
A high level of brand loyalty insulates the firm from competition
Richardsons stocks cheese, exotic wine, and fancy chocolates. Recently, Richardsons also started selling orchids and perfume. How has Richardsons changed its product mix?
Added new product lines to increase product mix breadth
A celebrity sportsperson endorses a particular product. A customer equates the product with physical fitness and sports. This is an example of:
Brand association
Nike Swoosh is
Brand association
Fresh Food offers fresh, high-quality foods. It emphasizes that its foods are a healthy choice because they are free of pesticides. Customers are very familiar with the brand and what it stands for, and have an opinion about it. This is an example of:
Brand awareness
A company that specializes in making sports bikes decides to create its own brand of perfume. Customers did not take kindly to the perfume and let the company know about it. The company's attempt adversely affected consumer perceptions about the company's bikes. The company was forced to admit its mistake and stopped producing the perfume. This is an example of:
Brand dilution
Same brand name for new products being introduced to the same or new markets
Brand extension
Adidas and Polar Electro created Project Fusion, which integrates heart rate, speed, and distance monitoring equipment into sports apparel. This is an example of:
Cobranding
Makeover is a chain of cosmetic stores. God's Charity is a not-for-profit medical service organization. Makeover markets a product carrying the logo of the charity; the consumer is encouraged to associate the two brands, and a portion of the proceeds benefit the charity. This is an example of:
Cobranding
When Sports International partners with Booster to sell health drinks, this is an example of:
Cobranding
3 branding strategies
Cobranding, brand licensing, brand extension
Those products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase are called:
Convenience
Milk and eggs are inexpensive items that are frequently purchased. They are examples of:
Convenience goods
Main way packaging can be used as marketing tool
Convey positioning
Dressing UP markets jeans and T-shirts for men, women, and kids under the single brand name Blitz. The company also markets sportswear, but under the brand name Sporty. This is an example of:
Corporate and product line brand
Microsoft's Microsoft XP and Microsoft Office combine family and individual brands. They are examples of:
Corporate and product line brand
When executives at GreatBuy, an electronics consumer goods store, noted flat sales and declining profits, they decided to remove products that were not selling well. In this example, GreatBuy
Decreased product line depth
Shopping products
Fair amount of time comparing alternatives, try shoes on, chat with sales people i.e. shoes
Apple uses one brand name and the recognizable Apple logo. The corporation sells computers, phones, accessories, music players, and tablets under a single brand name and logo. This is an example of a(n):
Family brand
Name product by firms own corporate name
Family brand
Unbranded dairy products and meat is an example of
Generic brand
A soft-drink company, Cool Deal, has a number of local and regional soft-drink brands such as Peppy and Mild. They are examples of:
Individual brands
Palates is a food manufacturer. It has different brand names for products in different categories, including Babys (baby food), Vegan (vegetarian meals), and Slim Foods (diet meals and supplements). These are examples of:
Individual brands
Which of the following allow a company to compete within one category?
Individual brands
Fundemental difference between service and product
Intangible
Which of the following holds true for the term brand personality?
It refers to a set of human characteristics associated with a brand, which has symbolic or self-expressive meanings for consumers.
Fridge and washing machines are
Shopping products
Products or services, such as furniture, apparel, fragrances, appliances, and travel alternatives, for which consumers will spend a fair amount of time comparing alternatives are called:
Shopping products
Products or services toward which customers show such a strong preference that they will expend considerable effort to search for the best suppliers are called:
Specialty
Explain division of consumer products based on the ways their used and purchased
Specialty, shopping, convenience, unsought
Developed and marketed by retailer and only availible thee
Store brands
specialty products
Strong preference toward, lots of effort/time to look for best supplier, i.e. Road bike enthusiast
The police department uses sentences that denote its commitment to work on its cars. This adds _____ to its services
Tangibility
Cemetery Plot is a
Unsought product
Which of the following refers to the great frustration with packaging that makes it seemingly impossible to get at the actual product?
Wrap rage lol
A group of scientists in a pharmaceutical firm are conducting trials of the new formula they have developed to be used in a drug in the research and development unit of the firm. This method of testing a product prototype is
alpha testing
Which of the following processes is used to test the performance of a product prototype and is carried out in the research and development unit of a firm?
alpha testing
Alice asks a group of people to test the skateboards she has manufactured. She needs to determine whether or not they are functioning as intended and if they require any changes before they are released. The type of test being conducted by Alice is called:
beta testing
The method of testing which requires potential consumers to examine a product prototype in a real-use setting is known as:
beta testing
An advertising agency asks its staff to assemble in groups in the presence of a moderator and generate ideas for developing an advertisement for a new product for a client. The method of idea generation being used by the agency is:
brainstorming
Ariva, a product design company, has brought together a group of technology engineers to generate ideas for potential new products. These engineers will arrive at a final decision through a vote on the best ideas or combinations of ideas. Ariva is engaging in:
brainstorming
Any feature in a product that identifies one seller's good or service as distinct from those of other sellers is called a(n):
brand
Baked Treats introduced maple syrup cookies that became an instant hit with Canadians. The product characteristic that contributed to the success of these cookies was:
compatability
Protégé Inc. produces hockey accessories in Canada. As first movers, the company was able to fulfill the high demand for these accessories in Canada where hockey is a popular sport. Which of the following is a product characteristic that contributed to the high diffusion of products from Protégé Inc.?
compatability
A brief written description of a product or service; its technology, working principles, and forms; and what customer needs it satisfies is a:
concept
The diffusion of innovation theory is useful for firms because it helps them:
develop effective promotion, pricing, and other marketing strategies
The first step in the development of new products is to:
develop new ideas by either internal research or market survey
The category of buyers who tend to enjoy novelty and are regarded as the opinion leaders for particular product categories because they are responsible for spreading the word to next groups are called:
early adopters
The category of buyers who wait and purchase a product after careful review are called:
early adopters
Marketing a service is harder because
its intangible
Edward, a senior professor of statistics at the University of New Brunswick, has authored a wide range of textbooks about statistics. Edward still prefers to use a typewriter while typing material for his new books as he is not comfortable using a desktop computer. This shows that Edward belongs to the group of __________ in the diffusion of innovation process.
laggard
The owner of a fast-food restaurant in a city continues to accept only cash for transactions, although credit/debit cards are common practice in other business establishments. The owner has not adopted the technology because of her fears with regard to the security of these transactions. Hence, she can be considered a(n)
laggard
brands owned and managed by the manufacturer
national brands
Unsought (4)
new products, insurance, burial plots, encyclopedias
Pearly and Waves are two teeth whitening brands. Both use the same "magical" ingredient (peroxide) and produce the same result. Pearly charges more than Waves. Typically, customers would choose the cheaper product because the _________ is higher.
perceived vaue
Product mix breadth refers to the number of:
product lines, or variety, offered by the firm
When shopping for diamonds, buyers typically do a great deal of research on what they should be looking for in a diamond as well as viewing different diamonds (loose or in settings) to choose the one they want to buy. Diamonds are an example of a(n):
specialty product
Brand association
the mental links that consumers make between a brand and its key product attributes=
Brand loyalty is
A situation in which the customer will buy only a certain brand of a product
Sports International's failure in the health drinks market also affected its sales of sports goods. This is an example of:
Brand dilution
The complete set of all products offered by a firm are called the:
product mix
The method used by the engineering team at the firm to test the product prototype is known as:
Alpha testing
AG-Mobile Corporation wants to introduce a new product model. The head of the research team at the firm brings together all her team members. First, she talks with them about the new product's specific features and attributes as well as the firm's performance expectations for the new model, and then she asks the team members for their input. After the discussion, the final accepted idea is given to the engineering team, which develops a prototype of the product and distributes the prototype models to all the employees at corporate headquarters to determine whether the product is performing according to its design and is satisfying the need for which it was developed. After a detailed analysis, the company will decide whether to introduce the product into the market as is or to modify it further before the release. What is this?
Brainstomring
Cool Deal, a soft-drink company extended its brand name to include soaps. Cool Deal did not succeed in selling its soaps and, as a result, sales of its core brand also declined. It took Cool Deal considerable effort to regain customers who had turned to other soft drinks. This is an example of:
Brand dilution
Which of the following occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold?
Brand dilution
A coffee shop has differentiated itself from its competitors by allowing customers to sit in the restaurant for endless hours without ordering coffee every 20 minutes. Additionally, it has done a great job in attracting celebrities to endorse the brand, which has added valuable points in the eyes of target consumers. This is an example of:
Brand equity
The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service is called:
Brand equity
High Flier, a clothing company, started manufacturing sunglasses. It marketed its sunglasses under the same brand name as its clothing. This is an example of:
Brand extension
High Flier, a clothing line, acquired a music company and entered the music retail industry. Since High Flier was known in the market for its high quality, it hoped that perception would carry over to its new product as well. This is an example of:
Brand extension
Sports International is an organization that manufactures sports goods. It sells hockey sticks (both field hockey and ice hockey), footballs, baseball bats, cricket bats, and tennis racquets. To expand its market it also plans to sell sports apparel under the same brand name. Sports International has partnered with Booster, which sells health drinks. Booster drinks now carry the Sports International logo, and some Sports International products also show the Booster logo. It has also made an agreement with a number of small manufacturers that will manufacture sports apparel under the Sports International brand. Sales being impressive, Sports International decides to discontinue its partnership with Booster and enter into the health drinks segment on its own. The presence of big players and ineffective marketing strategies lead to the failure Sports International's foray into the health drinks market. The failure also affects the brand image of the company and there is a dip in the sales of sports goods marketed by Sports International. Plans to expand into the sports apparel business : example of
Brand extension
A company selling jogging strollers under the Tracks brand name now wants to move into the child bicycle trailer category. It enters into an agreement with a child bicycle trailer manufacturer. The manufacturer will produce child bicycle trailers integrated with the Tracks brand and sell them in the mid-tier market. In return for the rights to use the Tracks brand, the manufacturer will pay Tracks a percentage of the sales. This is an example of:
Brand license
Which of the following is a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee?
Brand licensing
A farm markets meat products. It has acquired the right to use the brand name of Homestead Hotels. This is an example of:
Brand licnesing
One particular cigarette brand is considered a "masculine" brand, while another is considered "feminine." This is an example of:
Brand personality
The strategy of naming a product by using a combination of a corporate name and an individual brand name to distinguish a firm's products is called a:
Corporate and product line brand
An automobile firm is positioning its product to serve only a specific group of brand loyalists. This shows that the particular product is in the __________ stage of its life cycle.
Decline
How do firms market a product in the growth stage of the product life cycle?
During the growth stage, firms attempt to reach new consumers by studying their preferences and producing different product variations—varied colours, styles, or features—which enables them to segment the market more precisely. The goal of this segmentation is to ride the rising sales trend and firmly establish the firm's brand, so as not to be outdone by competitors.
Jeremy is interested in buying a phone that has a music player and provides access to the Internet. After doing a detailed analysis of all the phones in the market that offer these features, he decides to buy a recently released model. Jeremy's buying behaviour is similar to the buying behaviour of:
Early adopters
Nancy is a professional photographer and has been looking to buy a new digital camera that improves picture quality. After extensive research about a new camera that was released into the market two weeks ago, she decides to buy it because she is convinced that it will produce the picture quality she has been looking for. This shows that Nancy belongs to the group of:
Early adopters
The group of buyers who act as opinion leaders and are responsible for bringing the early and late majority groups into the market are known as:
Early adopters
Dean Jones is the chief technology officer of a company that offers online education. Jones is interested in buying a new 3-D technology product but decides to wait until two versions of the product are released to be sure of its maturity. Jones belongs to the category of __________ according to the diffusion of innovation theory.
Early majority buyers
Who among the following can be regarded as a laggard according to the diffusion of innovation theory?
Emily, who still listens to songs on cassette tapes despite the advent of CDs and MP3s
A new product launched by a company is showing a rise in sales and a rapid rise in profits, and is being purchased by a group of early adopters and early majority buyers. The product is in the __________ stage of its life cycle.
Growth
When the firm launched its product, it was no longer a new product, as it had to compete with two competitors in the market and hence the firm released the product with a variation. Because of this, the product would be in the __________ stage of the product life cycle.
Growth
The process by which ideas are transformed into new products and services that help firms grow is known as:
Innovation
After the new product is released into the market, the category of buyers who will play a crucial role in the initial marketing of this product are:
Innovators
George is curious about the new tablet that will be released in the market in the next few days. Although he owns a similar product from a rival company, he is interested in the additional features that the new product offers and decides to buy it. Hence, George belongs to the category of:
Innovators
Greg always consults Vernon before upgrading his personal computer as Vernon is knowledgeable and always has the latest technology. Vernon belongs to the group of __________ according to the diffusion of innovation theory.
Innovators
A manufacturing firm has recently launched a new product and has no competitors in the market. Innovators have started buying the product. The product is in the __________ stage of the product life cycle.
Introduction
In which of the following stages of the product life cycle are sales low and profits small or negative?
Introduction
The stage in a product life cycle in which innovators are the main consumers is called the __________ stage.
Introduction
Which of the following is true regarding the maturity stage of the product life cycle? (3)
It is characterized by increased marketing costs, low profits, and market saturation.
Brand awareness definition
It refers to the measurement of the number of customers in a market who are familiar with a brand and what it stands for.
What is perceived value?
It refers to the relationship between a product or service's benefits and its cost.
Which of the following is true regarding the introduction stage of the product life cycle?
It usually starts with a single firm, and innovators form the main category of buyers.
Until recently, Tina has been watching cable TV, even though 50 percent of the country has moved to satellite TV. Though she was aware of the benefits of satellite television, Tina did not make the move to adopt the new technology until after her friend explained that Tina could receive good benefits at low costs. Tina belongs to the category of __________ buyers according to the diffusion of innovation theory.
Late majority
Firms with well known brands spend
Less on marketing costs because the brand markets itself
3 reasons why brand loyal customers are important
Less price sensitive Lower marketing costs to reach Insulates firm from competition
The later phases of the maturity stage of a product are characterized by:
Market saturation
A cosmetics company had launched a product in the market that earned good revenues for the company. A recent market analysis shows intense competition for market share from a large number of competitors. The company decides to spend more on marketing the product to help it to retain its market share. The product is currently in the __________ stage of its life cycle.
Maturity
If a firm is facing intense competition on the prices of its product and in turn it is leading to a decrease in the firm's profit margins, then the product is said to be in the __________ stage of its life cycle.
Maturity
Which of the following stages of the product life cycle is characterized by a peak in sales and a high number of competitors and competitive products but a gradual decline in profits?
Maturity
Kevin is the marketing manager at a mobile company. While conducting an analysis of a recent sales report of one of the successful products of his company, Kevin realizes that the product is in the maturity stage and he must alter marketing strategies immediately to sustain its market share. Explain three strategies that Kevin can employ.
New uses for product Increase number of users Find new users
Convenience product
Not willing to spend any effort, purchased with little thought like bread or toothpaste
Tempmart is a chain of discount stores. It owns and manages brands such as Street Wear and Big Fellas. These are examples of
Private label brands
An assortment of items that the customer sees as reasonable substitutes for one another are called:
Product categories
A company markets paper, food, household cleaning supplies, medicine, cosmetics, and oralcare products. Under oral-care products, the company markets a brand of toothpaste available in three sizes and two formulations (paste and gel). Paper, food, household cleaning supplies, medicine, cosmetics, and oral-care products constitute the
Product mix breadth
The firm marketed its product by educating consumers about the benefits of the additional feature it provided in its product. The marketing mix variable that benefited from the results of the tests is:
Promotin
What is relative advantage? Give an example of how relative advantage can influence the speed of diffusion.
Relative advantage is a product characteristic that makes consumers perceive that product as better than its substitutes. If a product has a relative advantage over its substitutes, then the speed of diffusion will be relatively quick. Example: Student answers will vary. For example, hybrid cars have the relative advantage of being fuel-efficient and less polluting compared to other cars. Hence, their diffusion will be relatively quick.
Inseperable means
Services are produced and consumed at the same time
Carrie Brown Cosmetics was testing the quality of its newly developed cream by offering it only in the City of Vancouver prior to its national launch. Unfortunately, two of its competitors released similar products before Carrie Brown could release its product into the market. Realizing that a lapse had occurred, Carrie Brown released its product into the market emphasizing its additional moisturizing feature which would address customer needs with regard to the fast-approaching winter season. Carrie Brown had prior information about these customer needs because of a series of tests it had conducted before releasing the product which helped it launch its product with the additional feature. Method of testing?
Test marketing
What is diffusion of innovation?
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 i
How does market testing help in the promotion of products?
The test results help the firm determine an appropriate integrated marketing communications strategy. For products that are somewhat complex or conceptually new, marketers may need to provide for more consumer education about the product's benefits than they would for simpler and more familiar products. For technical products, technical support staff must be trained to answer any customer questions that may arise immediately after the launch.
Which of the following is an advantage for product pioneers in new product development?
They become readily recognizable to consumers
Firms try to target innovators while introducing new products into the markets because innovators:
are regarded by other consumers as highly and firms will ask for their suggestions
Joss bought a refrigerator. The refrigerator came with a warranty, free delivery, and free aftersales service. The warranty, free delivery, and after-sales service constitute the:
augmented product
The nonphysical attributes of the product, including product warranties, financing, product support, and after-sale service are called the:
augmented product
Infotech Inc., a technology firm, is trying to develop new software that will facilitate the transfer of documents in a secure and fast manner. The engineering team at the firm is having a detailed discussion on the best possible options. This type of idea generation is called:
brainstorming
The Apple logo, which is an apple with a bite taken out of it, identifies Apple's goods as distinct from those of other sellers. The Apple logo is an example of a(n):
brand
A company manufacturing jukeboxes introduced its new jukeboxes in a few malls in Toronto. They were an instant success because of touchscreen operated menus that provided easy access to songs. The success of the jukeboxes can be attributed to low:
complexity
Safe Homes is a company that provides security-related products to its consumers. However, the burglar alarm system introduced by the company failed because consumers had to possess a certain level of technical skill to use the product effectively. The factor affecting the adoption rate of these alarm systems is:
complexity
The process by which an idea that describes a product or a service is presented to potential buyers to obtain their reactions is called:
concept testing
When the product design team of a firm takes ideas with potential, develops them into visual images, and presents them to potential buyers to get their reactions, they are engaging in:
concept testing
Products and services used by people for their personal use are called:
consumer products
A new car entered the market with great success. Positioned as a sports car with supercar performance, it has shattered the lap times of the fastest cars in the world. Customers primarily looking for speed and excitement are the target market. Speed and excitement constitute the:
core customer value
he basic problem-solving benefits that consumers are seeking are called the
core customer value
The manager of an ice cream parlour is planning to introduce new flavours into his product line. He decides to take feedback and suggestions from consumers as part of the process to develop innovative and interesting new ice cream flavours. He is using __________ for idea generation.
customer input
Annie is a designer at a popular clothing brand. She observes people on the streets who modify the clothing according to their needs and styles. Annie uses this input while designing new collections. The method of idea generation used by Annie in developing new products is called:
customer input approach
Although Scott wants to buy a mobile that operates with the Android OS, he decides to wait until more mobile companies release models with the Android OS. This way a lot of user reviews will become available and the drawbacks of this OS will become popular knowledge. Scott's buying behaviour shows that Scott belongs to the __________ group of buyers.
early majority
Brenda wanted to buy an LCD TV when it was released, but waited for more options and better quality. She bought it at a later stage when companies reduced the prices because of competition in the market. Brenda belongs to the __________ group.
early majority
A product line refers to:
groups of associated items, such as those that consumers use together.
Eric is enthusiastic about online video games. He has extensive knowledge about the technical aspects of developing games and usually purchases licensed versions of most of the games as soon as they are launched. Eric belongs to the __________ group of buyers.
innovator
Buyers who enjoy taking risks, are regarded as knowledgeable, and are not price sensitive are called:
innovators
Firms that invest in the latest technology, either to use in their new products or services or to make the firm more efficient, are considered
innovators
The buyers who want to be the first to have a new product or service are called:
innovators
A group of scientists at a biotechnology firm conducted extensive trials in a laboratory for over a year before developing a formula that could be used to develop a drug to treat cancer. The firm invested a lot of money in these trials with the idea of generating revenue through sales. The method being used by the company to develop the new product is most likely:
internal research and development
Ronen, a chef at a hotel, has developed an idea for a new dish. The owner of the hotel is impressed with the new recipe and asks all the chefs at the hotel to practise making the new dish for three months until they can reproduce the recipe with the exact taste the owner is looking for. The chefs also test the dish on other hotel staff before introducing it to customers. The method of idea generation being used by the owner is:
internal research and development
The category of buyers who tend to avoid change and rely on traditional products until they are no longer available are called:
laggards
Natalie is a stockbroker who is comfortable using her old phone, which does nothing more than make calls and send and receive text messages. Though her work requires her to be updated about the stock market throughout the day, she decides to wait for the smartphone market to mature and for the prices to decrease. She decides to invest in a smartphone only after being convinced that the price is just right for her budget. Natalie belongs to the __________ group of buyers.
late majority
Personal music players that were initially released into the market were expensive, huge, and provided limited options. Anna and her husband did not buy at that time and waited for more selection. When they finally bought the product, the sales had levelled off and the size and prices had reduced significantly. Anna and her husband belong to the __________ group of buyers.
late majority
The group of buyers who enter a new product market when the product has achieved its full market potential are referred to as the:
late majority
Innovative product users who modify existing products according to their own ideas to suit their specific needs are called:
lead users
A cosmetics company, which mainly produces soaps, shampoos, and other skin solutions for adults, wants to introduce a line of baby products into the market. Since it has no prior experience with baby products, it decides to buy the rights to use the necessary technology from a small research firm. The method of idea generation used by the cosmetics company is:
licensing
An automobile firm wants to introduce cars into new international markets to increase its customer base. Since it does not know about customer needs in these markets, it associates itself with a local firm that has developed a prototype based on the customer needs of that market. The method of idea generation used by the automobile firm is:
licensing
Which of the following idea generation methods saves the high costs of in-house research and development for a firm?
licensing
A key characteristic of brainstorming sessions used to generate new ideas is that:
no idea can be immediately accepted or rejected.
A biscuit company manufactures unique fish-shaped biscuits that are popular with kids. Kids love the distinct shape and novel taste. The characteristic of the biscuit contributing to its popularity is:
observability
A leather company manufactures high-quality handbags for women. All bags carry a prominent logo of the company and consumers associate this logo with excellent quality. Despite their high price, these handbags are extremely popular. The factor affecting the quick diffusion of these handbags is:
observability
Beaumont is a retailer that owns and manages a brand called Queen's Choice. The Queen's Choice brand includes grocery products, financial services, and even mobile phone services. Beaumont's Queen's Choice is an example
private-label brand
The term diffusion of innovation refers to the:
process by which a product or a service spreads throughout a market group over time and over various categories of adopters
The process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product is called
product design
Which of the following steps involved in new product introduction is regarded as the most crucial because it requires huge financial resources and extensive coordination of all aspects of the marketing mix?
product launch
A company markets paper, food, household cleaning supplies, medicine, cosmetics, and oralcare products. Under the oral-care product section, the company markets a brand of toothpaste available in three sizes and two formulations (paste and gel). The toothpaste is an example of
product line depth
A company markets a fairly wide variety of products that includes paper, food, household cleaning supplies, medicine, cosmetics, and oral-care products. The products constitute the company's:
product mix
Product line depth refers to
products within a group of associated items offered by a firm.
The first physical tentative form of a new product that has the same properties as a new product but is produced through different manufacturing processes is called a(n):
prototype
During the growth stage of a product life cycle, firms attempt to:
reach new consumers by studying their preferences and producing different product variations.
A fast-food outlet introduced new burgers made with cheese that had low fat content and a unique taste. This ingredient brought down the price of the burgers and the burgers were an instant success in the market. Which of the following was responsible for the quick diffusion of the burgers?
relative advantage
Alttaire automobiles developed new hybrid cars that were highly fuel-efficient and less polluting compared to all the competitors' cars in the current market. These cars achieved instant success in the market because of their unique features. The factor that is influencing the high adoption rate of these cars is:
relative advantage
An electronics company manufactures LCD TVs that are in high demand when compared to competitor products. Competitors find it difficult to provide the same reliability and after-sales service that this company provides, which leads to high consumer acceptability. The factor that is contributing the high adoptability of this product is:
relative advantage
Molly Ann, a clothing company, is unable to improve sales after its designer failed to create designs that satisfied current trends in the market. Rigby, on the other hand, is having a successful season and its designs are the current rage in the market. After a careful study of Rigby's designs, Molly Ann analyzed them, improved upon them, and created a whole new range of designs. The method of idea generation being used by Molly Ann is:
reverse engineering
The method of idea generation that involves the analysis of a competitor's product is known as:
reverse engineering
Thomson Furniture Company is struggling to improve its sales. The sales of Branson, a major competitor, are soaring because of the company's well-designed and innovative products. Thomson decides to study Branson's designs in an attempt to understand how it is doing so well. Finally, Thomson creates an improved product that does not infringe on Branson's patents. This type of idea generation is known as
reverse engineering
The method of determining the potential success of a new product by introducing the product to a limited geographical area prior to a national launch is called:
test marketing
Technosoft Ltd. provides a pay-per-use option to its business customers that allows them to understand the product's capabilities before they order licensed versions on a large scale. This option has made Technosoft extremely popular with firms that plan to invest on IT infrastructure but have limited funds. The factor that is contributing to the success of Technosoft is:
triability
According to the diffusion of innovation theory, buyers belonging to the early majority group are considered crucial because:
very few products or services can be profitable until this group buys them.
Which of the following stages in the product life cycle is characterized by an increase in sales, rapid increase in profits, and a few but increasing number of competitors?
The growth stage
3 reasons why firms innovate?
• Changing customer needs: When they add new products to their offerings, firms can create and deliver value more effectively by satisfying the changing needs of their current and new customers or simply by keeping customers from getting bored with the current product or service offering. • Market saturation: The longer a product exists in the marketplace, the more likely it is that the market will become saturated. Without new products or services, the value of the firm will ultimately decline. • Managing risk through diversity: Through innovation, firms often create a broader portfolio of products, which helps them diversify their risk and enhance firm value better than a single product can. If some products in a portfolio are doing poorly, others may be doing well. Firms with multiple products are better able to withstand external shocks, including changes in consumer preferences or intensive competitive activity
How can a succesful new product launched by a company overcome factors that effect diffusion of innovation!
• Relative advantage: Amazon offered products at cheaper rates than its brick and mortar competitors, and it was more accessible since books could be ordered at any time of the day. • Compatibility: Amazon grew with the Internet age; therefore, it was compatible with the changing ways consumers were making purchases. • Trialability/complexity: Amazon made it relatively easy to make online purchases and overcame consumers' security fears!
