Exam 11: Developing and Managing Products

What degree of failure occurs when a company cannot recoup its development,marketing,and production costs?

The development of Coke Zero by Coca-Cola would not be considered a new product since the company was already making soft drinks.It would simply be called a line extension.

Among the late majority group,adoption of a product primarily results from:

Explain why some products fail and others succeed.

Name five sources of new-product ideas.Which two techniques are considered the most useful for generating creative thinking for new-product ideas?

In the _____ stage of new-product development,the technical feasibility of manufacturing the new product is examined as a prototype is produced.

Biopure Corp.is developing a human blood substitute called Hemopure.Unlike like donated human blood that needs to be refrigerated and expires after a short period of time,Hemopure is shelf-stable and can be stored for two years or more.Also,it does not need to be matched to a person's blood type like donated blood does.These factors make it well-suited for trauma cases where blood must be transfused at an accident site or on the battlefield.Which product characteristic influencing the rate of adoption does this represent?

All of the following are reasons products fail EXCEPT:

The accuracy of revenue projections for products are affected by:

All of the following statements about how adopters participate in the diffusion process are true EXCEPT:

Consumers described as laggards tend to rely on group norms when deciding to adopt an innovation.

Which of the following is the LEAST likely source for new-product ideas?

Draw the sales line and the profit line of the product life cycle in the following diagram,and label each line.Then indicate the names of the four stages of the product life cycle in the blanks provided.

Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century." -Refer to Rapala.After the trade show,the newest lure made by Rapala will enter which stage of the new-product development process?

Increasing globalization of markets and of competition provides a reason for multinational firms to consider new-product development from a worldwide perspective.

When Procter & Gamble wanted to enter the hair care market,it purchased Wella,a leading German company specializing in hair care products.What new product category does this acquisition represent for P&G?

In the adopter categories,the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are tradition-bound.They tend to have the lowest socioeconomic status,are suspicious of new products,and are alienated from a rapidly advancing society.They are called: