Exam 11: Developing and Managing Products

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?

The Sumatra Coffee Company has two new products.One is a simple hand-cranked coffee grinder.The other is a combination grinder and brewer that also can be used to dispense hot milk.Of these two,the hand-cranked grinder will probably be diffused more quickly because it is less complex.

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 day cares" that are more like a resort or spa than an ordinary kennel for their canine companion.Day care 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 webcam,and some doggy day cares have a phone where owners can talk to their dogs when they feel their pets need to hear their voices.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.Laura felt a little bad about leaving her dog,Toby,at home all day while she was at work.She remarked to a coworker one day about her concerns and was surprised when the coworker told her about the local "doggy daycare" business,which she had never heard of before.Because Laura did not know such a service existed,"doggy daycare" represented a(n)_____ to her.

_____ embrace products relatively early in the product life cycle,are likely to be community oriented,and often are opinion leaders themselves.

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

Top managers at a commercial real estate firm that specializes in site location and installation of cell phone 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 was reached?

By performing cover songs in Guitar Hero,Harmonix had changed one core idea in it product design.

The process by which the adoption of an innovation spreads is referred to as:

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 its home brewed.In which stage of the product life cycle is Gold Peak iced tea?

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 day cares" that are more like a resort or spa than an ordinary kennel for their canine companion.Day care 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 webcam,and some doggy day cares have a phone where owners can talk to their dogs when they feel their pets need to hear their voices.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.For many dog owners,it may be hard to understand the difference between a traditional kennel and a dog day care,especially given the price differential.As a result,dog day cares may offer special low rates for first-time users in an effort to reduce which of the following issues concerning the rate of diffusion?

A new-product strategy:

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.In terms of the new-product development process,Fitbit's availability in retail stores and online shows that it is in the _____ stage.

Hemopure is a blood substitute developed by Biopure Corporation.It does not have to be refrigerated or blood typed like donated human blood that is currently being used in blood transfusions.It comes in bags just like donated blood,so it can be used with intravenous tubes and needles just like donated human blood.As a result,medical personnel will not have to make any adjustments if they adopt this product. Name and describe the five product characteristics influencing the rate of adoption of new products,and explain how each factor will influence the rate of adoption of a blood substitute like Hemopure.

Sony has developed a wireless speaker that sits unobtrusively on a desktop.The tiny yet strong twin speakers use Bluetooth to stream music directly from a PC or MP3 player.This small Sony wireless speaker,which is radically different from anything currently on the market,would be classified as a(n):

Razor scooters gained instant popularity because walkers and runners frequently saw people on the scooters zipping by them and having fun.This information suggests the adoption rate of the Razor scooter was most affected by which product characteristic?

Name and describe the six categories of new products.

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

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

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

_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.