Exam 12: Developing and Managing Products

Which of the following terms refers to a series of stages consumers go through in learning about a new product, trying it, and deciding whether to purchase it again?

In one of the more creative developments in global trade, Pepsi struck a deal with the Russian government in 1972 to trade their cola syrup for Stolichnaya vodka. Pepsi would send the syrup to Russia for local soft drink bottlers, while Pepsi would receive vodka to distribute in the United States. At the height of the Cold War, residents in then communist Russia could enjoy the same Pepsi as American consumers. Pepsi was able to grow sales through:

Describe the stages involved in the consumer adoption process.

The assortment of product lines and individual product offerings that a company sells is known as its product cluster.

Samuel is an average American - in regard to virtually every demographic characteristic. Samuel is 45 years old, married with one child, and a first-level manager at Caterpillar in Peoria, Illinois. Samuel is thoughtful and pragmatic in his purchasing decisions, but doesn't want to be left behind. Samuel should be considered a(n):

Lorelei needs a new computer for college. She has never had a computer with a touch screen before, but has watched her roommate, Geneva, use her Lenovo Yoga 920 with a touch screen and digital pen. Geneva let Lorelei use her computer for the weekend when she went home. Lorelei is in the ______ stage of the new-product adoption process.

A new-product concept has to show that it has financial feasibility. How large is the market? Could the new product gain a reasonable marketing share? Can it be profitable at expected sales levels? These are just some of the questions that need to be addressed in the _________ stage of the new-product development.

Companies test market their new-product offerings to measure consumer reactions under normal competitive conditions.

A product diversification strategy focuses on developing entirely new products for new markets.

Organic Hair Care Inc. markets a brand of shampoo and a brand of conditioner. The firm is now adding several new sizes of each brand. This means OHC is changing its product mix _____.

Wilma is an older consumer that is very hesitant to buy new products. In fact, Wilma still has a landline phone and listens to music on a cassette deck. When asked a cell phone, Wilma responded, "Those new-fangled things are just not for me!" Wilma would fall into the ______ category of the diffusion process.

_____ involves measuring quality by comparing performance against an external industry leaders or competitor firm.

Define service quality. Describe its five variables.

While we discuss four stages of the product life cycle, the fact is most products never actually reach the decline stage.

If potential buyers can observe an innovation's superiority in a tangible form, the adoption rate increases.

In which stage of the product life cycle is encouraging trial purchases the primary marketing challenge?

​You launched the first ad campaign for your new nutrition bar just a few weeks ago, and are pleased to see hundreds of requests for more information about its ingredients on the company's Facebook page and Twitter account. The nutrition bar is most likely in which stage of the consumer adoption process?

360 degree cameras provide a complete view of any situation. However, the cost of these cameras is still quite expensive, and they are growing their share of the market very slowly. With low-sales volume, manufacturers are still not making a profit on the cameras, but they are optimistic sales will increase in the coming year and eventually start to show profits. 360 degree cameras are in the __________ stage of the product life cycle.

When Microsoft introduced the latest edition of Age of Empires III, it provided a free download of one of the game scenarios. Addition of this link is most likely to influence which of the following characteristics of the product innovation?

Organizations may have only a few products or many products in a product line. Consider Campbell Soup Company, which offers over 50 condensed soups. In the soup line, Campbell Soup Company has a: