mktg-new product development
Which stage of the new product development process involves completing all the final preparations for making the fully tested product available to the market?
Product launch
Isaac created the Sycadoolee, a toy that makes a cool clicking sound when it is squeezed and released. People bought the product as quickly as he could produce it for about six months, and then sales dropped to nearly nothing. Because it was very popular for only a short period, this is an example of a(n) ______ product.
fad
Companies select test market locations based on ______
how well they mirror the overall target market in terms of demographics, income levels, lifestyles, and other factors
Over time, the things consumers want or need change, meaning that marketers must create new or significantly improved products, a process referred to as ______. Marketers are driven to engage in this process as a result of technology, societal changes, competition, and ______, which occurs as products are sold in a worldwide marketplace.
innovation; globalization
Jasper's company makes running shoes that retail for a minimum of $150 per pair. Which of the following solutions would best allow Jasper to increase the trialability of his shoes while still remaining profitable?
Allowing customers to return worn shoes within 30 days
during which stage of product development does a company estimate costs, identify pricing, and evaluate demand for the product in order to determine profitability
Business analysis
What are the five categories of adopters for a new product?
Early adopters Late majority Laggards Innovators Early majority
Which of these are types of new products? More than one answer may be correct.
New-to-the-market products Revamped products New category entries
Marketers are more likely to successfully launch and sustain new products if they understand ______, which is how new products are likely to be adopted, the rate of their adoption, and how they will spread into markets.
diffusion
Micah buys every new electronic music player on the market on the day it is released, regardless of the cost. Her uncle Steffan has not bought any new electronics since 1979 and listens to music on an old radio or a record player. Micah is a(n) ______, whereas Steffan is a(n) ______.
innovator; laggard
When a product is revamped, it ______.
is often labeled as being new and improved
In the order in which they adopt a product, with the earliest adopters first and the latest adopters last, adopters are classified as innovators, early adopters, early majority, late majority, and
laggards
Power Patch Products has launched a ginseng-and-caffeine-based invisible energy patch that can be worn on the skin without being noticed. It is easier to use, cheaper, and more effective than other energy products. It works well with the active lifestyle of most energy product customers, and free one-week sample packs are available. This product has all of the factors that increase product adoption rate except ______.
observability
Product line extensions are products that ______ a company's established product line
supplement
Which of these product categories tends to have the shortest life cycle?
technology
the sixth stage of the new product development process is ______. During this stage of the process, the firm ______.
test marketing; introduces the product to a geographically limited market
In the trial stage of the consumer adoption process, _____
the consumer tests the product to see if it meets requirements
From the following list, select all of the stages in the new product development process that occur after the product development stage
Test marketing Product launch
Early majority adopters are likely to ______.
adopt a product once several competitors have entered the market, so they will have some choice as to which product to buy
During the ______ stage of the product life cycle, sales begin to rise, as do profits, as companies begin to take advantage of economies of scale in purchasing, manufacturing, and distribution.
growth
In the new product development stage, a company is most likely to ______.
outline the general characteristics of the types of products the firm will develop
The first stage of the new product development (NPD) process is new product ______. During this stage, the company accomplishes several tasks, including the production of ______.
strategy development; basic guidelines for the NPD process
Which statement most accurately defines all new products?
A new product is one that is new to a company in any way.
Select all of the statements that are true about firms' use of consumer data in innovation.
Firms use CRM systems to help identify consumer groups who might be interested in collaborating on new product development. Firms monitor feedback from noncustomers to determine why they have not adopted the firm's products.
Select all of the statements that are true about the idea screening stage of the new product development process.
Most new product ideas are rejected during this stage. During this stage, the firm must decide if ideas fit its new product strategy.
The four types of new products include which of the following? More than one answer may be correct.
New category entries New-to-the-market Product line extensions
What happens in the evaluation stage of the consumer adoption process?
The customer thinks about the product's value and whether to try it out.
Which example best demonstrates the awareness stage of the consumer adoption process?
You just saw a commercial for an invisible home security camera, and you never knew such a product existed
The firm evaluates ideas to determine whether they fit into the new product strategy during the ______ stage.
idea screening
A new product can sometimes take the form of a ______ that has new packaging, different features, and updated designs and functions.
revamped product
An ink pen company making a stronger, longer-lasting ink for its pens is an example of a ______, and an ink pen company deciding to begin selling felt tip versions of its roller ink pens is an example of a ______.
revamped product; product line extension
Geri invented a complex residential solar panel that is very efficient but that does not work with most existing home wiring systems or electrical grids. What type of product did she invent?
High-learning
What stage in the new product development process takes place immediately after new product strategy development?
Idea generation
What type of product is defined as having benefits customers can easily see?
Low-learning
Select all of the following steps that firms can take to reduce the risks of new product development.
Make a commitment to the new product development process. Listen to the customer carefully
Just like humans, products go through various stages. This series of stages is called the ______.
product life cycle
Typically, by the time ______ are ready to purchase a new product, more competitors will have entered the market, giving this group more options of products to buy.
early majority adopters
What is the first step of the consumer adoption process?
awareness
During the product development stage of the new product development process, firms often ask consumers for their reactions to a ______, which consists of rough visual models or verbal descriptions of the product. Firms may also show consumers a ______, which is a mock-up of the product generally made from the same materials that will be used to make the final product
concept test; prototype
During the product development stage, marketers seek to elicit consumer reactions about a new product. Firms will frequently use ______, which feature rough visual models and verbal descriptions of the product.
concept tests
As cassette tapes became increasingly popular in the 1980s, larger 8-track tapes were no longer being advertised and were available in fewer stores. Which stage of the product life cycle were 8-track tapes in when this happened?_.
decline
The ______ stage of the PLC is preceded by decreasing sales and profits.
decline
Developing new or updated products in order to maintain or advance a product's market position and meet changing consumer demands is known as ______.
innovation
The creation of a new or significantly improved product offering is known as ______.
innovation
Which of the following are the five main drivers of product innovation?
Globalization Technology A changing society Consumer expectations Competition
During the ______ stage of the product life cycle, the firm has to promote the differences between its brand and the competition and may attempt to refine aspects of the product by improving quality or adding new features.
growth
Late majority adopters constitute approximately what percentage of the adopters of a new product?
34%
Tarek's company makes dentistry tools. Recently, the company's revenue has fallen, so Tarek wants to begin producing a new tool to boost sales. He has gathered a team of employees, and together they have come up with a list of ideas that they then evaluated for fit. What is the next stage the team will take?
Business analysis
From the following list, select all the choices that explain how firms use data to reduce the risks of new product launches.
By collecting test market data on a new product and evaluating it against benchmark data By using data to clearly identify who the product is for
From the following list, select the five characteristics that impact product adoption rate.
Competitive advantage Trialability Complexity Compatibility Observability
Which of these scenarios represents the greatest amount of risk associated with product development?
Due to a design flaw, a customer crashes one of Wally's Wave Runners and is seriously injured.
Which of these statements about test marketing is true?
During test marketing, a product is introduced to a market that is geographically limited.
What are products that supplement a group of related products marketed by the same firm
Product line extensions
What types of information do marketers typically use to estimate the length of a product's life cycle? More than one answer may be correct.
Product type The history of similar products
From the following list, select all of the statements that are advantages of product line extensions.
The company and brand may be easily recognized. Customers may already feel loyalty to the product line. Manufacturing may be easier and more efficient because the firm already produces similar goods.
Select the two traits of all new products.
They are functionally different from existing products on the market. They are not marketed in their current form by the company.
From the following list, select all of the true statements about new category entries.
They are less risky than new-to-the-market products because they don't represent something that has never been sold before. They help companies compete better in an already-established market or enter a new market.
One way to reduce the risk associated with new product launches is to avoid ______.
being surprised by changes in the market
in order to tell where a product is in the product life cycle, firms _____
compare sales figures to prior sales and overall industry sales
The adoption rate of a product is influenced by ______ , which is the ease or difficulty with which people can use and understand a product.
complexity
The goal of a business analysis is to ______.
determine if a new product will be profitable enough to support its development
The process by which a product is adopted and spreads across various types of adopters is called
diffusion
Several product characteristics impact a product's ______, or the process of the adoption and spread of a product. For example, a product that ______ will generally be adopted more quickly than one that does not.
diffusion; matches customers' values
The process of ______ involves coming up with a set of product concepts from which to identify potentially viable new products.
idea generation
The second stage of the new product development process is ______. Companies often use internal sources for this process, but sometimes they procure what they need from a third-party supplier, a procedure known as ______.
idea generation; outsourcing
People who are driven to buy new products as soon as they are available, regardless of whether they are expensive or unproven, are known as ______.
innovators
The first stage of the product life cycle (PLC) is ______.
introduction
in the _____ stage of the product life cycle, late majority and repeat buyers make up an increasing percentage of the customer base.
maturity
Although they make up the smallest percentage of new products, ______ products provide innovative benefits that often render existing products obsolete.
new-to-the-market
Product adopters known as laggards are likely to ______.
pay little attention to promotional activities
The ethical issues created when companies come out with new models of a product that make existing models outdated is known as ______.
planned obsolescence
When a firm frequently comes out with new models of a product and its existing models become outmoded, the firm is engaging in ______.
planned obsolescence
If a drug company has a cure for a disease but does not make the cure available until the company's patent expires on the existing treatment for that disease, this is an example of the ethical issue of ______.
withholding innovation
Early adopters constitute approximately what percentage of the adopters of a new product?
13.5%
Early majority adopters constitute approximately what percentage of the adopters of a new product?
34.0%
a company can advertise a product as new and improved for only ______ months after it hits store shelves.
6
What type of adopters often rely on others for information, buying a good or service because their friends have already done so?
Late majority
When new product ideas come from a company's employees, it is known as _____ idea generation.
internal
yasmin works for a company that manufactures small kitchen appliances, and her team is in charge of developing new products. Right now, they are focused on coming up with new concepts for potential products. This is referred to as ______. Multiple choice question.
internal idea generation
An app is being used almost exclusively by innovators, and it is the only app on the market that offers certain features. What stage of the product life cycle does this represent?
intro
The four stages that a product eventually goes through are known collectively as the product ______.
life cycle
Charlie's design company works with some of its engineers to assemble a new office chair made from the same materials that will be used to make the final product. By creating a model made from the same materials, Charlie and his team can test it to ensure it is comfortable and sturdy. This test model is known as a ______.
prototype
The most common new product development ethical issue involves ______.
the Federal Trade Commission's definition of "new"
Laggards constitute approximately what percentage of the adopters of a new product?
16.0%
Innovators constitute approximately what percentage of the adopters of a new product?
2.5%
People in which group of adopters are usually highly respected by their peers and tend to be opinion leaders who are willing to talk to other people about their experiences with their purchases?
Early adopters
Who purchases and uses a product soon after it has been introduced but not as quickly as innovators do?
Early adopters
people in which group of adopters are usually highly respected by their peers and tend to be opinion leaders who are willing to talk to other people about their experiences with their purchases?
Early adopters
Select all of the following activities that a firm is likely to engage in during a product launch.
Purchasing the materials needed to package the good Preparing internal systems to take service orders
Which of these situations carries the highest level of risk?
The product is defective or dangerous.
What is the final stage of the new product development process?
The product launch
from the following list, select all of the true statements about new-to-the-market products.
They have tremendous upside potential for firms because getting to the market before competitors often means increased sales. They disrupt the market because they provide innovative benefits that often render existing products obsolete. They have never been seen before, and they create a new market.
Why do companies use product line extensions?
To combat low seasonal sales of existing products
From the following list, select the five ways that firms can reduce risk with new product launches.
Understand and anticipate market trends and changes. Listen carefully to the customer. Be willing to fail occasionally. Commit to the new product development process. Ask the right questions.
The ______ majority are careful in their purchasing approach; they will gather more information and spend more time thinking about a product than others before they buy so that by the time they do, more options will be available to them due to increased competition.
early
the firm evaluates ideas to determine whether they fit into the new product strategy during the ______ stage.
idea screening
Which example best demonstrates the adoption stage of the consumer adoption process?
in the adoption stage, the consumer buys and uses the product.
One characteristic of new category entry products is that they ______.
open up new sets of customers to firms
