Exam 12: Developing New Products

Isabelle has just taken over a line of organic cookies for her company. She looks at the company records and sees sales have peaked, profit margins are declining, and there are many new competitors in that category. Which stage of the product life cycle are the cookies in?

Maria was one of the first people in the virtual waiting room for tickets to see the Broadway production of Hamilton. She had taken the morning off of work to be sure she would get tickets. Maria is an example of a(n)

As a promotion technique, samples are often used for new products when ________ will influence the diffusion of the product.

Even if they succeed, new-to-the-world products are

On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the ABC firm confirms its target market (or markets)and decides how its product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. This process illustrates

Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in ________, a form of new idea generation.

The National Institutes of Health (NIH)sponsors medical foundations to conduct research to treat rare diseases. The research is then disseminated to the medical community, thus encouraging the development of drugs and therapies more quickly and at a lower cost than would be possible if the research were privately funded. This is an example of

Innovators are a critical group of new product adopters because they

Many interior design businesses volunteer to provide their services for house-walk fundraisers because they know their design efforts will benefit from

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for ________ the product.

The failure rate for new products is high.

A product in the ________ stage faces intense competition on price.

When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy\use the product again. This is known as

The diffusion of innovation theory focuses on

As personal computers became popular, the sale of typewriters decreased significantly and now typewriters are only used by a very small segment of consumers. Typewriters are in the maturity stage of the product life cycle.

The Amazon Echo is an example of ________ because when it was introduced, nothing like it existed on the market.

When Toyota introduced hybrid cars, there were waiting lists to buy them. Then Honda and a few other manufacturers entered the market, shifting the product life cycle for hybrid cars into the ________ stage of the product life cycle.

When the new iPhone came out, Mallory spent the night in front of the store so she could get one before any of her friends. According to the diffusion of innovation, Mallory is an innovator.

What happens when a product has been in the marketplace for a long time? How can this be avoided?