MKTG Ch. 12
Place each of the following categories of consumers in the order in which they adopt a product, beginning with the innovators at the top.
- Innovators - Early adopters - Early majority - Late majority - Laggards
During the ___ stage of the product life cycle, the market for the product usually becomes saturated.
- maturity
Laggards make up roughly ____ of the market.
16%
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
_ refers to a group session in which participants work together to generate new ideas.
brainstorming
Companies use different techniques to understand the wants and needs of their customers. One such technique used is ___ testing, which is used to obtain consumers' reactions to new product ideas BEFORE a prototype is actually developed.
concept
If a concept test _____ customers expectations, it is doubtful it would succeed if it were to be produced and marketed.
fails to meet
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
Identify the steps taken by firms that have products in the decline stage of the product life cycle
- completely exit market - create a niche segment
Through the effective use of ____ testing, firms may be able to avoid the high costs of product development for product ideas that do not meet customers' expectations.
- concept
Based on the history of dozens of ____ products, research shows the product life cycle concept is a valid idea.
- consumer
___ 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
Early adopters, although not as fast as innovators, are quick to purchase a new product. Identify all of the following characteristics that are typically associated with early adopters:
- are less risk seeking than innovators - tend to be opinion leaders of a particular product categories
Why is it important for a company to determine how complex its products are?
- the manufacturer might need to provide displays where people can try the product - complex products are more difficult for customers to try before buying
Which of the following questions are likely to be asked of customers during concept testing?
- would the customer buy the product as a gift - does the proposed price seem like a good value - how often and in what quantities would the customer buy the product
_____________ 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
____ defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning
- product life cycle
When Subway introduced a new Southwestern Club sandwich in South Florida before launching it nationwide, it was engaging in:
- test marketing
A newly formed coffee company should not have much trouble finding coffee drinkers in America to purchase anew type of coffee maker. However, a company selling gear for the game of cricket might have a difficult time being successful in the United States. They would probably be more successful in India or Australia. The degree to which one's product is consistent with the needs and habits of target consumers is known as ___.
- compatibility
Product development or product design entails a process of balancing which types of considerations?
- engineering, - marketing, - manufacturing
In the ___ stage of the product life cycle, the product gains acceptance, experiences increased demand and sales, and encounters increasing competition.
- growth
Usually, during the ________ stage of the product life cycle, the typical consumers would be early adopters, and there would be increase in the number of competitors.
- growth
While pioneers capture an early and commanding market share, _____ often enter the market, capitalize on the pioneer brand's weaknesses, and subsequently gain advantage in the market.
- imitators
products go through a number of stages in the product life cycle. the stage where a product begins the product life cycle this is known as the ____ stage
- introduction
Not every product follows the same life cycle curve; many products stay in the ____ stage for a very long time, often for years, due to strategies like adding new features to establish products.
- maturity
Which of the following are major reasons for product failures in the market?
- neglecting to do appropriate product testing - targeting the wrong market segment - poor positioning of the product
Some analysts have attributed the success and quick diffusion of the Apple iPod in part to the white earbuds. At the time, earbuds were not seen as often, and most headphones were black, not white, As knowledge of the iPod spread, the white earbuds could be seen even if the iPod itself was out of sight. This is an example of which of the factors that affect speed of diffusion?
- observability
Which of the following are disadvantages of test marketing in comparison to premarket tests?
- test marketing costs more - test marketing takes longer to carry out
Match the relative level of sales with the stage of the product life cycle at which this level of sales is typically observed.
-Low - Introduction -Rising - Growth -Peak - Maturity -Dropping - Decline
What are some advantages experienced by pioneer firms over late entrants?
-More likely to develop brand loyalists. -Establish an early market share lead. -More readily recognizable to consumers.
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?
-offering the complete menu planned for the full launch -running the TV ads planned for the full launch
When firms measure the success of a new product, their assessment includes tow interrelated factors:
-satisfaction of technical requirements such as performance -extent of acceptance by consumers -satisfaction of firm's financial requirements
Put the stages of the product life cycle in order from first to last.
1) introduction 2) growth 3) maturity 4) decline
Without innovation, what options would be available to firms?
1. Continue to market current products to current customers2. Take current products to new markets
Sequential steps of a product launch.
1. Firm confirms its target market 2. Firm decides how the product will be positioned 3. Firm finalizes the remaining marketing mix variables for the new product
While late to the party, the late majority category of consumers is still significant making up roughly _ of the total consumer market.
34%
Using in-house _____Testing, the firm attempts to determine whether the product prototype will perform according to its design and whether it satisfies the need for which it was intended, by performing tests in the R&D department.
Alpha
Which of the following processes could be considered an acceptable method for generating ideas?
Conducting consumer research Brainstorming within the firm Researching competitors' products and services Communicating with a firm's R&D department
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
Using a new movie as an example, match each consumer category with the most probable action it would take with regard to viewing the movie.
Innovators -> Would sleep overnight outside the movie theater just to be one of the first to see it Early adopters -> Will go to the movie theater to see it a week after release and after consulting several reviews Early majority -> Will view the movie at a discount-price theater or rent the DVD the first week it is available. Late majority -> Will view the movie on a premium cable TV channel or put it low on their Netflix queue. Laggards -> Will watch the movie once it is on TV-or possibly never.
If a company invests all its time and effort into a new product and the product fails, ____________.
It will be extremely difficult for the firm to recover.
____ is an agreement through which one firm buys the rights to use the technology or ideas of another
Licensing
Concept testing can be as simple as a brief written description of the product that might also include:
customer needs it satisfies and visual images
Once a product stops generating sales or profits, or sales and profits are very low, the product is in the _____ stage of the product life cycle and eventually exits the market
decline
When a company adds new products this helps the company to ______ its risk.
diversify
_____________ ____________ are the category of consumers who begin to use a product or service immediately following the innovators.
early adopters
Lance enjoys owning new gadgets that make his life easier, but he is cautious. He doesn't want the hassle of working through all the initial problems with new technology, so he waits until those problems have been solved. Lance probably belongs to which of the adopter groups?
early majority
The _____ _____ represents the earlier half of the two largest categories of consumers on the diffusion innovation curve.
early majority
In the _______ stage of the product life cycle, sales increase but many competitors are unable to gain a significant market share and exit.
growth
Which of the following traits are associated with the innovators consumer group?
highly knowledgeable trend setters and risk takers
During the growth stage of the product life cycle, the market often becomes more segmented. Consumers' preferences can be addressed by adding variations of the product such as different colors, styles, or features, which can lead a successful firm to have _ sales.
increased
_ are buyers of a product or service who are the first ones to adopt it.
innovators
The ____ stage of the product life cycle is characterized by initial losses to the firm due to its igh start-up costs and low levels of sales revenue as the product begins to take off
introduction
During the ____________ firms may pursue several strategies to increase their customer base or defend their market share. One such strategy may be to develop new features or reposition them.
maturity
Firms measure the success of a new product by its sales _______, customer acceptance and its satisfaction of the firm's financial requirements
performance
During concept testing it is important to present a brief written description to _________ to obtain reactions to the ideas presented.
potential buyers/users
The ____ department can be considered an investment into a company's future, in which scientists work to solve problems and develop new ideas.
research and development
___ engineering refers to taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist.
reverse
Firms must continually introduce new products with improved features and find new uses for existing products in order to defend market _____ during intense competition.
share
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 Best Buy for the latest game
Premarket tests involve ____.
tests conducted before a product or service is brought to market to determine how many customers will try and then continue to use it.
the primary goal of a company that applies diffusion theory in introducing a new product is____
to speed acceptance of the product with each type of consumer group
what does a post-launch review help determine?
whether the launch was a success or failure whether additional resources are needed whether changes . to the marketing mix are needed
