Exam 11: Developing and Managing Products

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.The doggy daycare center is more like a dog resort than a dog kennel.A dog daycare represents what type of new product?

New-product ideas that survive the initial screening process move to the business analysis stage.List five of the many questions that are commonly asked during this stage.

After successful business analysis of a new product,the development stage begins.Describe the development process and explain the difference between laboratory testing and use testing.

Which of the following statements about the product life cycle (PLC)is true?

Voodoo Envy Hewlett-Packard is the number one seller of personal computers worldwide. The company has been increasingly more creative in their computer designs following the trend set by Apple Inc.Hewlett-Packard has created a ultra thin laptop called the Voodoo Envy. The laptop is less than a half inch thick and weights less than 3 1/2 pounds. It is priced at $2000. HP created the laptop to compete against Apple's MacBook Air and a model created by the Lenovo Group Ltd. Both these models were priced at around $3000.  The MacBook Air does not have removable batteries or a built-in socket for plugging into Ethernet networks.  HP's Voodoo envy does have removable batteries and offers an Ethernet port that is part of its power adapter.  The Voodoo can also be booted up in less than five seconds made possible by software developed by HP. -Refer to Voodoo Envy.Even though HP offers other laptop computers,the Voodoo Envy is HP's first entry into the ultrathin computer market.It is not really an update of an existing laptop.Instead,it was originally designed as an ultrathin laptop.As such it is an example of a _____.

A long-run drop in sales signals the beginning of which stage in the product life cycle?

Central Bark is a dog day care center.When you check your dog into a Central Bark you know your pooch will be pampered.Since kennels have been boarding dogs for years,the dog day care is not really a new product.

Top managers at a commercial real estate firm that specializes in site location and installation of cellphone towers considered providing the same service for windmill location and installation but decided this was not within the company's corporate mission.Which stage of the new-product development process did its new-product development process reach?

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

A(n)_____ is a consumer who was happy enough with his or her trial experience with a product to use it again.

Liz tends to adopt new products sooner than a lot of other people,but she weighs the pros and cons before buying.She does considerable product research,but her friends don't really look to her for information.She really deliberates before she makes a purchase.Liz is best described as a(n):

The growth stage is the first stage of the product life cycle.

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 testing of new lures by tournament professionals and fishing guides would take place in which stage of new-product development?

When the Segway Human Transporter was introduced in 2002,many people expected the product to be a phenomenal success.While the Segway is still on the market it has never been the success so many expected.A recent Wall Street Journal article suggested that the Segway,while brilliant technologically,seemed impractical to most people as it could not be used to replace their current method of transportation.In other words,the Segway had problems with _____.

The two techniques that are considered most useful for generating new-product ideas are customer-generation and competitive imitation.

Because Laurence did not know companies actually sold pet insurance so that owners could pay for operations on their pets in the event of a sickness or accident,he paid almost $4,000 to have his dog's broken hip replaced.Once he discovered such a product existed,he perceived the insurance to be a(n):

In which stage of the product life cycle do marginal competitors start dropping out of the market?

One benefit of test marketing is that the marketing activity is shielded from competitors.

When Glade brand air freshener began marketing a clean linen-scented air spray,this represents which new product category?

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: