Exam 11: Developing New Products

Lisa was extremely disappointed when,in her first marketing job,she was assigned to work on a product in the mature phase of the product life cycle.Her work in school had focused on new products,which seemed much more exciting.Once she started working with the product team,she became more enthusiastic as she discovered that:

The diffusion of innovation curve proposes that purchasers can be divided into five groups.The first group consists of buyers who want to be the first on the block to have the new product; they are known as early adopters.

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.

Many marketers think personal computers in the United States are in the maturity stage of the product life cycle.What does this mean for manufacturers of personal computers? What can they do about it?

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:

A ________________ is a medical study that tests the safety and effectiveness of a drug or treatment in people.

Marketing is a dynamic practice.While you are watching your competitors,they are watching you.Assume that you have just redesigned a product that is in the mature phase of the product life cycle and have identified some new market segments.How do you think your competitors will respond?

A major limitation in the use of internal R&D departments for new idea generation is that:

What type of event exposes retailers to large numbers of new products in a concentrated location?

The ______ is a specific price at which manufacturers encourage retailers to sell a product.

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

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

New product development adds value to a firm's products and services through innovation.

Between concept testing and market testing,a firm should engage in which stage of the product development process?

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

Innovators are a critical group of new product adopters because they:

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

During the ________________ stage of the product life cycle,firms either position themselves for a niche market of loyal consumers or they exit the market.

The pharmaceutical industry often justifies the high prices for new drugs by arguing that they research as many as one hundred new compounds before they come up with one ______________,an extremely successful product that pays for the costs associated with the other attempts to develop new products.