Exam 11: Developing and Managing Products

For a firm that adheres to the product concept,the logical place to start generating new-product ideas is with the customers of the firm.

The same manufacturer produces Hanes,Playtex,and Bali clothing for women.This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new-product ideas,such as jewelry,wide shoes,and belts.The manufacturer used a research technique called a:

The length of the introductory stage of the product life cycle for a new product is largely determined by:

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.Because buyers of fishing lures want to have the newest,most technologically improved lure,most of Rapala's customers would more than likely fall into the _____ category of adopters.

Firms that routinely experience success in new-product introduction tend to have:

Fitbit The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use. -Refer to Fitbit.The idea for the Fitbit was generated from an employee retreat in which everyone was encouraged to think of unlimited product ideas for the fitness-minded consumer.Participants did not critique any of the ideas as the goal at that point was just to generate ideas.What idea-generating technique does this illustrate?

All of the following are reasons products fail EXCEPT:

A biological metaphor that traces the stages of a product's acceptance,from its introduction (birth)to its decline (death)is called the:

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?

Middleton has developed the Flybar 1200,an extreme pogo stick that propels users more than five feet into the air.During the _____ stage of its new-product development process,a group was assigned the task of estimating preliminary demand for the product,costs (including issues with liability),sales,and future profitability.

Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?

Typically,at the beginning of the maturity stage of the product life cycle,sales:

Heinz is expected to introduce more than 400 new products in the next two years.One of the products is a spicier ketchup aimed at the baby boomer market.The spicier ketchup would be considered what type of new product?

Which product characteristic affecting the rate of adoption of a new product represents the degree to which the benefits or other results of using the product can be communicated to target customers?

A(n)_____ typically entails showing members of the product's target market advertising and other promotional materials for several products,including the test product.These people are then taken to a mock or real store where their purchases are recorded.

During the growth stage of the product life cycle:

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.Before opening the It's a Dog's Life doggy resort the potential company owners projected the costs involved in providing the services the target market (dog owners)appears to desire.Unfortunately,a decision was made to not proceed with the doggy resort as the owners felt the cost to provide the services was too high considering the rates the target market would be willing to pay.The would be an example of _____.

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.Suppose before opening the It's a Dog's Life doggy resort the owners gathered together a group of ten dog owners to discuss what they would want to see in the ideal dog daycare center.The would be an example of _____.

Leon is not very quick to purchase innovative products when they come out,but after a while he breaks down and buys if after most of his friends have bought it.He gets most of his information from them when he decides to buy something.He is very skeptical of marketing,so he trusts his friends more than anything.Leon is best described as a(n):

Which of the following would be considered a new product?