Exam 11: Developing and Managing Products

Jim didn't buy a netbook computer when they first came out,but he did purchase one a year after they were introduced into the market.He is very active in his church and local arts council,and many of his friends asked him which brand to buy when they were considering purchasing a netbook.Jim is best described as a(n):

In the _____ stage of new-product development,preliminary demand,cost,sales,and profitability estimates are made.

Which is the last adopter category to adopt an innovation?

Victorinex has long manufactured Swiss Army knives and developed a line of upscale Swiss Army watches.The Swiss Army brand gave the company credibility over other watch manufacturers and allowed the company to continue targeting sports-minded males between the ages of 18 and 35.Victorinex used which strategy to create new products?

After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created,the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers.The consumer group was asked to evaluate the three product ideas in terms of their marketability.This stage of new-product development is called:

The product life cycle concept encourages marketing managers to act reactively.

Which of the following statements about simultaneous product development is true?

Going to the Dogs Demand for pet services is greatly increasing across the United States. In fact,Americans will spend nearly $44 billion dollars on their pets this year.Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion.Daycare services for dogs now include toy rooms,outside play areas,doggie massages,treadmills,swimming pools and cushy beds for nap time.Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,depending on the amenities that the pet owner chooses. -Refer to Going to the Dogs.When the dog daycare first launched,it most likely appealed to which product adopter category?

Oakley,the manufacturer of protective eyewear for sports enthusiasts,has recently introduced Oakley's Thump,UV sunglasses that allow the wearer to store and listen to 120 different songs.Which of the following product characteristics would likely exert the greatest influence on the market success of these new glasses?

A brand of iced tea,called Gold Peak,has high marketing costs as well as high production costs.Promotions for the product are aimed at gaining distribution and informing consumers that this premium product tastes like it's home-brewed.In which stage of the product life cycle is Gold Peak iced tea?

What can the marketers of consumer products expect to find when they study and apply the product life cycle theory to their products?

Which product characteristic affecting the rate of adoption represents the degree to which the new product is consistent with existing values and product knowledge,past experiences,and current needs?

A new-product strategy:

Which product factor influencing the rate of adoption represents the degree of difficulty involved in understanding and using a new product?

Rapala VMC Corporation 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.The "dream lure for the 21ˢᵗ century will more than likely be an example of a(n):

A product must be a discontinuous innovation to be considered a "new" product.

Adaptation is the process by which the adoption of an innovation spreads.

The product characteristic affecting the rate of adoption characterized by the degree to which a product is perceived as superior to existing substitutes is:

What is the final stage in the new-product development process? What tasks are set in motion during this stage?

List the seven steps of the new-product development process.