Question 1

All of the following are benefits of new product development to a firm except

Accepted Answer

A)  reducing the costs of production. 
B)  satisfying the changing needs of current and new customers. 
C)  avoiding market saturation from products that have been on the market for a long time. 
D)  creating diversification and reducing risk. 
E)  keeping up in a market with short product life cycles where sales come mostly from new products. 
A)  reducing the costs of production. 
B)  satisfying the changing needs of current and new customers. 
C)  avoiding market saturation from products that have been on the market for a long time. 
D)  creating diversification and reducing risk. 
E)  keeping up in a market with short product life cycles where sales come mostly from new products. A

Question 2

________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.

Accepted Answer

A)  Reverse innovation 
B)  Reverse engineering 
C)  Selective dissection 
D)  Redistribution 
E)  Creative destruction 
A)  Reverse innovation 
B)  Reverse engineering 
C)  Selective dissection 
D)  Redistribution 
E)  Creative destruction B

Question 3

During this stage of the product life cycle, profits rise rapidly, along with sales, and most adopters are characterized as early or early majority adopters.

Accepted Answer

A)  innovation 
B)  introduction 
C)  maturity 
D)  early maturity 
E)  growth 
A)  innovation 
B)  introduction 
C)  maturity 
D)  early maturity 
E)  growth E

Question 4

Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered ________ with consumers' needs and priorities.

Accepted Answer

A)  relative positioning 
B)  compatibility 
C)  observability 
D)  complexity 
E)  trialability 
A)  relative positioning 
B)  compatibility 
C)  observability 
D)  complexity 
E)  trialability

Question 5

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of

Accepted Answer

A)  keeping up in a market where sales come mostly from new products. 
B)  satisfying the changing needs of former customers. 
C)  avoiding market penetration from products that have been on the market for a long time. 
D)  creating diversification and reducing risk. 
E)  taking advantage of a long product cycle. 
A)  keeping up in a market where sales come mostly from new products. 
B)  satisfying the changing needs of former customers. 
C)  avoiding market penetration from products that have been on the market for a long time. 
D)  creating diversification and reducing risk. 
E)  taking advantage of a long product cycle.

Question 6

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their

Accepted Answer

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

Question 7

Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Which of the following adopter categories refers to the last large group of buyers to enter a new product market?

Accepted Answer

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

Question 10

By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the ________ adopters.

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 11

When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage

Accepted Answer

A)  sales would rise quickly, profits would jump, and even laggards would buy his product. 
B)  sales would level off, profits would decline, and mature golfers would be attracted to his product. 
C)  sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers. 
D)  sales would be low and profits nonexistent, but he would attract golf equipment innovators. 
E)  sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product. 
A)  sales would rise quickly, profits would jump, and even laggards would buy his product. 
B)  sales would level off, profits would decline, and mature golfers would be attracted to his product. 
C)  sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers. 
D)  sales would be low and profits nonexistent, but he would attract golf equipment innovators. 
E)  sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product.

Question 12

At the end of a brainstorming session, participants are often asked to

Accepted Answer

A)  identify the worst ideas. 
B)  defer to management for the final decision. 
C)  identify which ideas each person proposed. 
D)  vote on the best ideas. 
E)  propose one more new idea each. 
A)  identify the worst ideas. 
B)  defer to management for the final decision. 
C)  identify which ideas each person proposed. 
D)  vote on the best ideas. 
E)  propose one more new idea each.

Question 13

The introduction stage of the product life cycle is characterized by negative or low profits.

Accepted Answer

A) True 
 B)False

Question 14

The failure rate for new products is high.

Accepted Answer

A) True 
 B)False

Question 15

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of

Accepted Answer

A)  keeping up in a market where sales come mostly from new products. 
B)  satisfying the changing needs of current and new customers. 
C)  avoiding market saturation from products that have been on the market for a long time. 
D)  creating diversification and reducing risk. 
E)  reduction in cost of ingredients. 
A)  keeping up in a market where sales come mostly from new products. 
B)  satisfying the changing needs of current and new customers. 
C)  avoiding market saturation from products that have been on the market for a long time. 
D)  creating diversification and reducing risk. 
E)  reduction in cost of ingredients.

Question 16

Hollywood studios typically release movies targeted toward general audiences (G- or PG-rated movies) during the summer when children are out of school. The timing of the release pertains to the product's

Accepted Answer

A)  premarket test. 
B)  launch. 
C)  evaluation. 
D)  research and development. 
E)  test marketing. 
A)  premarket test. 
B)  launch. 
C)  evaluation. 
D)  research and development. 
E)  test marketing.

Question 17

As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the ________ diffusion of innovation group.

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 18

One of the key characteristics of brainstorming sessions is that bad ideas should be immediately rejected so the group can focus its attention on good ideas.

Accepted Answer

A) True 
 B)False

Question 19

In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because

Accepted Answer

A)  they prefer products from established market leaders. 
B)  other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals. 
C)  they are especially price conscious. 
D)  they are easily influenced by reminder advertising. 
E)  they encourage competitors to enter the market. 
A)  they prefer products from established market leaders. 
B)  other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals. 
C)  they are especially price conscious. 
D)  they are easily influenced by reminder advertising. 
E)  they encourage competitors to enter the market.

Question 20

Which of the following is true of profits in the maturity stage of the product life cycle?

Accepted Answer

A)  They are negative. 
B)  They are low. 
C)  They peak or are declining. 
D)  They are rapidly rising. 
E)  They are slowing rising. 
A)  They are negative. 
B)  They are low. 
C)  They peak or are declining. 
D)  They are rapidly rising. 
E)  They are slowing rising.

All of the following are benefits of new product development to a firm except

________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.

During this stage of the product life cycle, profits rise rapidly, along with sales, and most adopters are characterized as early or early majority adopters.

Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered ________ with consumers' needs and priorities.

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their

Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services.

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

Which of the following adopter categories refers to the last large group of buyers to enter a new product market?

By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the ________ adopters.

When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage

At the end of a brainstorming session, participants are often asked to

The introduction stage of the product life cycle is characterized by negative or low profits.

The failure rate for new products is high.

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of

Hollywood studios typically release movies targeted toward general audiences (G- or PG-rated movies) during the summer when children are out of school. The timing of the release pertains to the product's

As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the ________ diffusion of innovation group.

One of the key characteristics of brainstorming sessions is that bad ideas should be immediately rejected so the group can focus its attention on good ideas.

In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because

Which of the following is true of profits in the maturity stage of the product life cycle?

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Social and Mobile Marketing

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 Establishing 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

All of the following are benefits of new product development to a firm except

________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.

During this stage of the product life cycle, profits rise rapidly, along with sales, and most adopters are characterized as early or early majority adopters.

Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered ________ with consumers' needs and priorities.

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products, because they know that their customers crave the "latest and greatest" games. They use this information to create new products that primarily provide the benefit of

Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their

Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services.

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

Which of the following adopter categories refers to the last large group of buyers to enter a new product market?

By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the ________ adopters.

When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage

At the end of a brainstorming session, participants are often asked to

The introduction stage of the product life cycle is characterized by negative or low profits.

The failure rate for new products is high.

Many restaurants offer daily specials, appetizers, entrees, and desserts not listed on their standard menu. These daily specials primarily provide the new product benefit of

Hollywood studios typically release movies targeted toward general audiences (G- or PG-rated movies) during the summer when children are out of school. The timing of the release pertains to the product's

As soon as she saw one, Hillary wanted a flat-screen television, but she was worried about making the wrong choice. She waited until there were alternatives in the market with lower prices and improved quality. Hillary is part of the ________ diffusion of innovation group.

One of the key characteristics of brainstorming sessions is that bad ideas should be immediately rejected so the group can focus its attention on good ideas.

In the diffusion of innovation process, innovators enjoy taking risks and are regarded as highly knowledgeable. Marketers want to identify innovators because

Which of the following is true of profits in the maturity stage of the product life cycle?

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Social and Mobile Marketing

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 Establishing 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