Question 1

All of the following groups are included in the diffusion of innovation curve except

Accepted Answer

A)  innovators. 
B)  nonadopters. 
C)  late majority. 
D)  early majority. 
E)  early adopters. 
A)  innovators. 
B)  nonadopters. 
C)  late majority. 
D)  early majority. 
E)  early adopters.

Question 2

After a product has been launched, marketers must undertake a critical postlaunch review to determine whether the product and its launch were a success or failure and what additional resources or changes to the marketing mix are needed, if any. For a product that does move on, the firms can measure the success of the new product by interrelated factors that include all of the following except

Accepted Answer

A)  its satisfaction of technical requirements. 
B)  its satisfaction of performance. 
C)  customer acceptance. 
D)  its satisfaction of the firm's financial requirements. 
E)  its satisfaction of the firm's manufacturing requirements. 
A)  its satisfaction of technical requirements. 
B)  its satisfaction of performance. 
C)  customer acceptance. 
D)  its satisfaction of the firm's financial requirements. 
E)  its satisfaction of the firm's manufacturing requirements.

Question 3

Warby Parker, an online retailer for prescription eyewear, offers a free, try-on at home program for its customers. Customers browse frames on Warby Parker's website and select five pairs they would like to try on before buying-or not. Warby Parker handles all the shipping costs and provides all the return packaging. This relates to the________ of its products.

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 4

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in

Accepted Answer

A)  alpha testing. 
B)  product launch. 
C)  test marketing. 
D)  beta testing. 
E)  concept testing. 
A)  alpha testing. 
B)  product launch. 
C)  test marketing. 
D)  beta testing. 
E)  concept testing.

Question 5

Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in

Accepted Answer

A)  concept testing. 
B)  market testing. 
C)  premarket testing. 
D)  product development. 
E)  alpha testing. 
A)  concept testing. 
B)  market testing. 
C)  premarket testing. 
D)  product development. 
E)  alpha testing.

Question 6

Explain the concept of outsourcing product development, and give an example of when this would be a good idea.

Accepted Answer

Students' answers will vary, b

Question 7

When microwaves were new, they often cost over $300, were huge, and had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were 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 8

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

Accepted Answer

A)  generally not profitable. 
B)  not adopted by everyone at the same time. 
C)  not capable of creating new markets. 
D)  not subject to the law of first movers. 
E)  typically very short-lived. 
A)  generally not profitable. 
B)  not adopted by everyone at the same time. 
C)  not capable of creating new markets. 
D)  not subject to the law of first movers. 
E)  typically very short-lived.

Question 9

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

Accepted Answer

A)  provided equivalent relative advantage for both European and U.S. customers. 
B)  were not compatible with European market conditions. 
C)  did not provide benefits that were observable. 
D)  involved technology that was too complex. 
E)  could not be easily tried by consumers. 
A)  provided equivalent relative advantage for both European and U.S. customers. 
B)  were not compatible with European market conditions. 
C)  did not provide benefits that were observable. 
D)  involved technology that was too complex. 
E)  could not be easily tried by consumers.

Question 10

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.

Accepted Answer

A)  R&D 
B)  licensing technology 
C)  consumer research 
D)  geodemographic analysis 
E)  brainstorming 
A)  R&D 
B)  licensing technology 
C)  consumer research 
D)  geodemographic analysis 
E)  brainstorming

Question 11

What is the difference between an innovator and an early adopter?

Accepted Answer

An innovator is the first to try new pro

Question 12

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 13

YouEye is developing eye tracking technology that works with an individual's webcam. Instead of needing to spend thousands of dollars on eye tracking equipment and having customers come into labs, firms will be able to utilize everyday webcams to track not only what a person attends to on a computer screen but also his or her emotional reactions to these products. Firms such as YouEye are automating the

Accepted Answer

A)  premarket testing process. 
B)  alpha testing process. 
C)  beta testing process. 
D)  evaluation process. 
E)  concept testing process. 
A)  premarket testing process. 
B)  alpha testing process. 
C)  beta testing process. 
D)  evaluation process. 
E)  concept testing process.

Question 14

Which of the following statements best explains the product life cycle?

Accepted Answer

A)  the process by which the use of an innovation spreads throughout a market group over time and over various categories of adopters 
B)  the length of time a product exists in the marketplace before the market becomes saturated 
C)  the stages that products move through as they enter, get established in, and ultimately leave the marketplace 
D)  the time in which firms hire an outside firm to help generate ideas and develop new products and services 
E)  the process in which a product is analyzed and improved so that it does not infringe on the competitor's patents 
A)  the process by which the use of an innovation spreads throughout a market group over time and over various categories of adopters 
B)  the length of time a product exists in the marketplace before the market becomes saturated 
C)  the stages that products move through as they enter, get established in, and ultimately leave the marketplace 
D)  the time in which firms hire an outside firm to help generate ideas and develop new products and services 
E)  the process in which a product is analyzed and improved so that it does not infringe on the competitor's patents

Question 15

The growth phase of the product life cycle is always dynamic. All of the following occur during this phase except

Accepted Answer

A)  profits increase as sales increase. 
B)  profits increase as economies of scale are attained. 
C)  some new competitors may enter the market with similar products. 
D)  some competitors will exit in an "industry shakeout." 
E)  price competition with protracted price wars erodes profits. 
A)  profits increase as sales increase. 
B)  profits increase as economies of scale are attained. 
C)  some new competitors may enter the market with similar products. 
D)  some competitors will exit in an "industry shakeout." 
E)  price competition with protracted price wars erodes profits.

Question 16

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

Accepted Answer

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

Question 17

During the ________ stage of the product life cycle, sales are low and profits are small or negative.

Accepted Answer

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

Question 18

When consumers see their friends using an innovation, it often persuades them to try it too.

Accepted Answer

A) True 
 B)False

Question 19

In the product development process, what takes place between concept testing and market testing?

Accepted Answer

A)  securing financial backing 
B)  conducting marketing research 
C)  brainstorming 
D)  determining potential ROI 
E)  product design 
A)  securing financial backing 
B)  conducting marketing research 
C)  brainstorming 
D)  determining potential ROI 
E)  product design

Question 20

Why do marketers take the time and cost associated with test marketing?

Accepted Answer

Test marketing allows firms to

All of the following groups are included in the diffusion of innovation curve except

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in

Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in

Explain the concept of outsourcing product development, and give an example of when this would be a good idea.

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

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

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.

What is the difference between an innovator and an early adopter?

Which of the following statements best explains the product life cycle?

The growth phase of the product life cycle is always dynamic. All of the following occur during this phase except

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

During the ________ stage of the product life cycle, sales are low and profits are small or negative.

When consumers see their friends using an innovation, it often persuades them to try it too.

In the product development process, what takes place between concept testing and market testing?

Why do marketers take the time and cost associated with test marketing?

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 groups are included in the diffusion of innovation curve except

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in

Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in

Explain the concept of outsourcing product development, and give an example of when this would be a good idea.

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

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

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.

What is the difference between an innovator and an early adopter?

Which of the following statements best explains the product life cycle?

The growth phase of the product life cycle is always dynamic. All of the following occur during this phase except

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

During the ________ stage of the product life cycle, sales are low and profits are small or negative.

When consumers see their friends using an innovation, it often persuades them to try it too.

In the product development process, what takes place between concept testing and market testing?

Why do marketers take the time and cost associated with test marketing?

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