Question 1

In new product development, what advantage do first movers have?

Accepted Answer

They are the first firm in a p

Question 2

Which group of consumers tries to avoid change and rely on a product until they can't find it in the market and are forced to go without or change to something else?

Accepted Answer

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

Question 3

Innovation refers to the response companies take when a competitor introduces a new product.

Accepted Answer

A) True 
 B)False

Question 4

Test marketing refers to customers who modify existing products according to their own ideas to suit their specific needs.

Accepted Answer

A) True 
 B)False

Question 5

Describe a product that is in the early adopter stage of the new product diffusion curve.

Accepted Answer

Answers will vary but should include a p

Question 6

The most challenging part of applying the product life cycle concept is that managers do not know exactly what shape each product's life cycle will take.

Accepted Answer

A) True 
 B)False

Question 7

The shape of the diffusion of innovation curve is described as

Accepted Answer

A) bell-shaped. 
B) positive. 
C) negative. 
D) a straight line. 
E) convex. 
A) bell-shaped. 
B) positive. 
C) negative. 
D) a straight line. 
E) convex.

Question 8

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is

Accepted Answer

A) e-books. 
B) dishwashers. 
C) the VCR. 
D) smartphones. 
E) vinyl records. 
A) e-books. 
B) dishwashers. 
C) the VCR. 
D) smartphones. 
E) vinyl records.

Question 9

On the diffusion of innovation curve, the late majority is the final group of buyers who like to avoid change and rely on traditional products until they are no longer available.

Accepted Answer

A) True 
 B)False

Question 10

In many cases, pioneers lose their market lead and initial market share to imitators who

Accepted Answer

A) capitalize on the pioneers' weaknesses. 
B) create similar products with reduced value to consumers. 
C) utilize alpha-beta testing. 
D) ignore patents and copyrights. 
E) target late maturity consumers. 
A) capitalize on the pioneers' weaknesses. 
B) create similar products with reduced value to consumers. 
C) utilize alpha-beta testing. 
D) ignore patents and copyrights. 
E) target late maturity consumers.

Question 11

A good friend of yours wonders why you always seem to have the latest technology, long before anyone else. He then says, "I always want to wait until the bugs have been worked out. It saves me money and aggravation." Use diffusion of innovation theory to explain how you differ as consumers, and what this means to marketers.

Accepted Answer

Student responses should be able to iden

Question 12

To generate ideas for new products, some firms will purchase the rights to use another firm's technology. This is known as

Accepted Answer

A) R&D. 
B) licensing. 
C) consumer research. 
D) outsourcing. 
E) brainstorming. 
A) R&D. 
B) licensing. 
C) consumer research. 
D) outsourcing. 
E) brainstorming.

Question 13

Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their

Accepted Answer

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

Question 14

Allyson is ready to launch her company's new product, a line of low-carb juice drinks, based on her instincts and knowledge from 30 years of marketing. Her staff is encouraging her to delay the launch until test marketing can be done. What are the advantages and disadvantages of each approach?

Accepted Answer

Allyson probably has considerable knowle

Question 15

In the United States, most consumer-packaged goods found in grocery and discount stores are already in the ________ stage of the product life cycle.

Accepted Answer

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

Question 16

The diffusion of innovation theory is useful to marketers in helping them

Accepted Answer

A) adjust to the performance life cycle. 
B) avoid the cost of concept testing. 
C) predict which types of customers will buy their product immediately and later. 
D) predict how long it will take for a new product to gain market acceptance. 
E) determine a target market. 
A) adjust to the performance life cycle. 
B) avoid the cost of concept testing. 
C) predict which types of customers will buy their product immediately and later. 
D) predict how long it will take for a new product to gain market acceptance. 
E) determine a target market.

Question 17

The CEO of David's firm just came back from a business seminar. He called David into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that

Accepted Answer

A) the product life cycle is not a useful concept. 
B) it is often impossible to identify with precision where a product is in the product life cycle. 
C) the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation. 
D) the idea has been discredited by recent research. 
E) the product life cycle works only for certain types of firms. 
A) the product life cycle is not a useful concept. 
B) it is often impossible to identify with precision where a product is in the product life cycle. 
C) the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation. 
D) the idea has been discredited by recent research. 
E) the product life cycle works only for certain types of firms.

Question 18

Why is it important for marketers to understand the product life cycle?

Accepted Answer

Product strategies and tactics

Question 19

New-to-the-world products can establish completely new markets or radically change the rules of competition as well as consumer preferences in a market.

Accepted Answer

A) True 
 B)False

Question 20

Why do you think that many biotechnology firms license their new products?

Accepted Answer

These firms specialize in new

In new product development, what advantage do first movers have?

Which group of consumers tries to avoid change and rely on a product until they can't find it in the market and are forced to go without or change to something else?

Innovation refers to the response companies take when a competitor introduces a new product.

Test marketing refers to customers who modify existing products according to their own ideas to suit their specific needs.

Describe a product that is in the early adopter stage of the new product diffusion curve.

The most challenging part of applying the product life cycle concept is that managers do not know exactly what shape each product's life cycle will take.

The shape of the diffusion of innovation curve is described as

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is

On the diffusion of innovation curve, the late majority is the final group of buyers who like to avoid change and rely on traditional products until they are no longer available.

In many cases, pioneers lose their market lead and initial market share to imitators who

To generate ideas for new products, some firms will purchase the rights to use another firm's technology. This is known as

Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their

Allyson is ready to launch her company's new product, a line of low-carb juice drinks, based on her instincts and knowledge from 30 years of marketing. Her staff is encouraging her to delay the launch until test marketing can be done. What are the advantages and disadvantages of each approach?

In the United States, most consumer-packaged goods found in grocery and discount stores are already in the ________ stage of the product life cycle.

The diffusion of innovation theory is useful to marketers in helping them

Why is it important for marketers to understand the product life cycle?

New-to-the-world products can establish completely new markets or radically change the rules of competition as well as consumer preferences in a market.

Why do you think that many biotechnology firms license their new products?

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Digital Marketing: Online, Social, and Mobile

Conscious Marketing, Corporate Social Responsibility, and Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Services: the Intangible Product

Pricing Concepts for Capturing Value

Supply Chain and Channel Management

Retailing and Omnichannel Marketing

Integrated Marketing Communications

Advertising, Public Relations, and Sales Promotions

Personal Selling and Sales Management

Filters

Exam 12: Developing New Products

In new product development, what advantage do first movers have?

Which group of consumers tries to avoid change and rely on a product until they can't find it in the market and are forced to go without or change to something else?

Innovation refers to the response companies take when a competitor introduces a new product.

Test marketing refers to customers who modify existing products according to their own ideas to suit their specific needs.

Describe a product that is in the early adopter stage of the new product diffusion curve.

The most challenging part of applying the product life cycle concept is that managers do not know exactly what shape each product's life cycle will take.

The shape of the diffusion of innovation curve is described as

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is

On the diffusion of innovation curve, the late majority is the final group of buyers who like to avoid change and rely on traditional products until they are no longer available.

In many cases, pioneers lose their market lead and initial market share to imitators who

To generate ideas for new products, some firms will purchase the rights to use another firm's technology. This is known as

Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their

Allyson is ready to launch her company's new product, a line of low-carb juice drinks, based on her instincts and knowledge from 30 years of marketing. Her staff is encouraging her to delay the launch until test marketing can be done. What are the advantages and disadvantages of each approach?

In the United States, most consumer-packaged goods found in grocery and discount stores are already in the ________ stage of the product life cycle.

The diffusion of innovation theory is useful to marketers in helping them

Why is it important for marketers to understand the product life cycle?

New-to-the-world products can establish completely new markets or radically change the rules of competition as well as consumer preferences in a market.

Why do you think that many biotechnology firms license their new products?

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Digital Marketing: Online, Social, and Mobile

Conscious Marketing, Corporate Social Responsibility, and Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Services: the Intangible Product

Pricing Concepts for Capturing Value

Supply Chain and Channel Management

Retailing and Omnichannel Marketing

Integrated Marketing Communications

Advertising, Public Relations, and Sales Promotions

Personal Selling and Sales Management

Filters