Exam 12: Developing New Products

Robin recently bought Voice over Internet Protocol (VoIP) phone service. A few of Robin's friends bought VoIP before she did, but many other friends were interested in Robin's opinions of the new phone service. Robin is a(n) ________ in this product category.

On the diffusion of innovation curve, the first group of buyers who want to be the first on the block to have the new product are known as early adopters.

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

Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Brian is trying to identify innovators in his market, knowing these customers will most likely

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.

When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in

The ________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them.

Because a market is saturated, firms may attempt to enter new geographical markets that may be less saturated. For example, pharmaceutical companies are realizing that they need to turn to ________ for continued growth in the coming years.

The product life cycle is theoretically ________ with regard to sales and profits.

Define and describe the product life cycle stage in which laggards begin to purchase products.

By adding new product lines beyond its core business of computer software, like the Surface Pro tablet and Xbox 360 game system, Microsoft primarily benefits by

Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and

One of the potential benefits to a firm of introducing new-to-the-world products or services is

When Glenn asked a few of his regular customers to test his prototype surfboard, he was engaging in alpha testing.

During the ________ stage of the product life cycle, there are few but an increasing number of competitors.

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

Even if products succeed, not all consumers adopt new-to-the-world products at the same time.

Innovators are a critical group of new product adopters because they

Whenever Andrew considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Andrew, Jeremy is a(n) ________ in the diffusion of innovation curve.

Robin carefully studies her options before buying new products. She enjoys new things, especially electronic games, and is very knowledgeable about them. Other people often ask her opinion. In the diffusion of innovation curve, which category does Robin fit in?