Question 1

What is relative advantage? Give an example of how relative advantage can influence the speed of diffusion.

Accepted Answer

Relative advantage is a product characte

Question 2

A product such as a refrigerator will likely remain in the mature stage of the product life cycle until a superior product comes along to replace it.

Accepted Answer

A) True 
 B)False

Question 3

The category of buyers who wait and purchase a product after careful review are called:

Accepted Answer

A) innovators. 
B) laggards. 
C) early adopters. 
D) late majority. 
E) lead users. 
A) innovators. 
B) laggards. 
C) early adopters. 
D) late majority. 
E) lead users.

Question 4

Explain the concept testing stage in the development of a new product.

Accepted Answer

Ideas with potential are developed furth

Question 5

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.

Accepted Answer

A) maturation 
B) growth 
C) decline 
D) introduction 
E) levelling 
A) maturation 
B) growth 
C) decline 
D) introduction 
E) levelling

Question 6

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 known as:

Accepted Answer

A) beta testing. 
B) test marketing. 
C) premarket tests. 
D) concept testing. 
E) alpha testing. 
A) beta testing. 
B) test marketing. 
C) premarket tests. 
D) concept testing. 
E) alpha testing.

Question 7

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.

Accepted Answer

A) innovator 
B) laggard 
C) late majority 
D) early majority 
E) early adopter 
A) innovator 
B) laggard 
C) late majority 
D) early majority 
E) early adopter

Question 8

Firms can create and deliver value more effectively by adding new products to their offerings.

Accepted Answer

A) True 
 B)False

Question 9

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:

Accepted Answer

A) trialability. 
B) complexity. 
C) observability. 
D) relative advantage. 
E) compatibility. 
A) trialability. 
B) complexity. 
C) observability. 
D) relative advantage. 
E) compatibility.

Question 10

The process by which ideas are transformed into new products and services that help firms grow is known as:

Accepted Answer

A) prototyping. 
B) innovation. 
C) diffusion. 
D) adoption. 
E) brainstorming. 
A) prototyping. 
B) innovation. 
C) diffusion. 
D) adoption. 
E) brainstorming.

Question 11

What is a product?

Accepted Answer

A product is anything that is of value t

Question 12

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:

Accepted Answer

A) licensing. 
B) customer research. 
C) internal research. 
D) reverse engineering. 
E) brainstorming. 
A) licensing. 
B) customer research. 
C) internal research. 
D) reverse engineering. 
E) brainstorming.

Question 13

Which of the following would a firm that wants to be pioneer in new product development most likely use to generate ideas for products?

Accepted Answer

A) licensing 
B) customer input 
C) reverse engineering 
D) internal research and development 
E) market research 
A) licensing 
B) customer input 
C) reverse engineering 
D) internal research and development 
E) market research

Question 14

Who among the following can be regarded as a laggard according to the diffusion of innovation theory?

Accepted Answer

A) Natalie, who buys products after carefully reviewing the benefits of these products 
B) Albert, who is tech savvy and owns most of the new gadgets released into the market 
C) Emily, who still listens to songs on cassette tapes despite the advent of CDs and MP3s 
D) Harris, who buys products after a few months of their release to obtain discounts on the products because of competition in the market 
E) Taylor, who buys products because the majority of his friends already own them 
A) Natalie, who buys products after carefully reviewing the benefits of these products 
B) Albert, who is tech savvy and owns most of the new gadgets released into the market 
C) Emily, who still listens to songs on cassette tapes despite the advent of CDs and MP3s 
D) Harris, who buys products after a few months of their release to obtain discounts on the products because of competition in the market 
E) Taylor, who buys products because the majority of his friends already own them

Question 15

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?

Accepted Answer

A) compatibilty 
B) complexity 
C) trialability 
D) observability 
E) relative advantage 
A) compatibilty 
B) complexity 
C) trialability 
D) observability 
E) relative advantage

Question 16

According to the diffusion of innovation theory, buyers belonging to the early majority group are considered crucial because:

Accepted Answer

A) they act as opinion leaders and spread the word to the next groups entering the market. 
B) they are regarded as highly knowledgeable and are not price sensitive. 
C) very few products or services can be profitable until this group buys them. 
D) they avoid change and rely on traditional products until they are available. 
E) they keep themselves very well informed about the product category. 
A) they act as opinion leaders and spread the word to the next groups entering the market. 
B) they are regarded as highly knowledgeable and are not price sensitive. 
C) very few products or services can be profitable until this group buys them. 
D) they avoid change and rely on traditional products until they are available. 
E) they keep themselves very well informed about the product category.

Question 17

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:

Accepted Answer

A) complexity. 
B) trialability. 
C) compatibility. 
D) relative advantage. 
E) observability. 
A) complexity. 
B) trialability. 
C) compatibility. 
D) relative advantage. 
E) observability.

Question 18

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.

Accepted Answer

A) growth 
B) maturity 
C) introduction 
D) decline 
E) levelling 
A) growth 
B) maturity 
C) introduction 
D) decline 
E) levelling

Question 19

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:

Accepted Answer

A) complexity. 
B) compatibility. 
C) observability. 
D) relative advantage. 
E) trialability. 
A) complexity. 
B) compatibility. 
C) observability. 
D) relative advantage. 
E) trialability.

Question 20

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:

Accepted Answer

A) internal research and development. 
B) brainstorming. 
C) prototyping. 
D) licensing. 
E) reverse engineering. 
A) internal research and development. 
B) brainstorming. 
C) prototyping. 
D) licensing. 
E) reverse engineering.

What is relative advantage? Give an example of how relative advantage can influence the speed of diffusion.

A product such as a refrigerator will likely remain in the mature stage of the product life cycle until a superior product comes along to replace it.

The category of buyers who wait and purchase a product after careful review are called:

Explain the concept testing stage in the development of a new product.

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.

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 known as:

Firms can create and deliver value more effectively by adding new products to their offerings.

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:

The process by which ideas are transformed into new products and services that help firms grow is known as:

What is a product?

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:

Which of the following would a firm that wants to be pioneer in new product development most likely use to generate ideas for products?

Who among the following can be regarded as a laggard according to the diffusion of innovation theory?

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?

According to the diffusion of innovation theory, buyers belonging to the early majority group are considered crucial because:

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.

Developing a Marketing Strategies and a Marketing Plan

Analyzing the Marketing Environment

Understanding the Marketplace Consumer Behaviour

Business-To-Business Marketing

Targeting the Marketplace Segmentation, Targeting, and Positioning

Marketing Research

Value Creation Developing New Products

Services the Intangible Product

Transacting Value Pricing Concepts and Strategies : Establishing Value

Value Delivery : Designing the Distribution Channel and Supply Chain Marketing Channels

Retailing and Multichanneled Marketing

Value Communication Integrated Marketing Communications

Advertising, Sales Promotions, and Personal Selling

Social and Mobile Marketing

Marketing in the Global Environment Global Marketing

Ethics and Socially Responsible Marketing

Filters

Exam 8: Product, Branding, and Packaging Decisions

What is relative advantage? Give an example of how relative advantage can influence the speed of diffusion.

A product such as a refrigerator will likely remain in the mature stage of the product life cycle until a superior product comes along to replace it.

The category of buyers who wait and purchase a product after careful review are called:

Explain the concept testing stage in the development of a new product.

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.

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 known as:

Firms can create and deliver value more effectively by adding new products to their offerings.

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:

The process by which ideas are transformed into new products and services that help firms grow is known as:

What is a product?

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:

Which of the following would a firm that wants to be pioneer in new product development most likely use to generate ideas for products?

Who among the following can be regarded as a laggard according to the diffusion of innovation theory?

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?

According to the diffusion of innovation theory, buyers belonging to the early majority group are considered crucial because:

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.

Developing a Marketing Strategies and a Marketing Plan

Analyzing the Marketing Environment

Understanding the Marketplace Consumer Behaviour

Business-To-Business Marketing

Targeting the Marketplace Segmentation, Targeting, and Positioning

Marketing Research

Value Creation Developing New Products

Services the Intangible Product

Transacting Value Pricing Concepts and Strategies : Establishing Value

Value Delivery : Designing the Distribution Channel and Supply Chain Marketing Channels

Retailing and Multichanneled Marketing

Value Communication Integrated Marketing Communications

Advertising, Sales Promotions, and Personal Selling

Social and Mobile Marketing

Marketing in the Global Environment Global Marketing

Ethics and Socially Responsible Marketing

Filters