Exam 8: Developing New Products

Music Xpress Corp., a company that manufactures music systems, introduced its new range of jukeboxes in a few malls.These jukeboxes were an instant success because of touchscreen operated menus that provided easy access to songs.To which of the following factors can the success of these jukeboxes be primarily attributed?

How does market testing help in the promotion of products?

An advertising agency needs to develop an advertisement for a new product for a client.Salima, a manager of the agency, asks her staff to assemble in groups in the presence of a moderator and generate ideas for the advertisement.The source of idea generation used by Salima is:

Nancy is a professional photographer and has been looking to buy a new digital camera that improves picture quality.After extensive research about a new camera that was released in the market two weeks ago, she decides to buy it because she is convinced that it will produce the picture quality she has been looking for.This shows that Nancy belongs to the group of:

Personal music players that were initially released in the market were expensive and huge, and provided limited options.Anna and her husband did not buy them at that time and waited for more selection.When they finally bought the product, the sales had levelled off and the size and prices had reduced significantly.To which of the following groups of buyers do Anna and her husband belong?

The first step in the development of new products is to:

The group of buyers that enters a new product market when a product has achieved its full market potential are referred to as:

Based on the graph, which of the following stages in a product's life cycle is characterized by increasing competitors and a rapid rise in industrial sales?

A new product might be failed for all the following reasons EXCEPT:

Which of the following statements is true regarding the maturity stage of the product life cycle?

The stage in a product life cycle in which innovators are the main consumers is called the:

Explain four strategies for extending the product life cycle.Provide at least one example for each strategy.

Natalie is a stockbroker who is comfortable using her old phone, which does a little more than making calls and sending and receiving text messages.Though her work requires her to be updated about the stock market throughout the day, she decides to wait for the smartphone market to mature and for the prices to decrease.She decides to invest in a smartphone only after being convinced that the price is just right for her budget.From this scenario, we can say that Natalie belongs to the group of buyers called:

Mirka Beauty Products, a beauty company, was testing the quality of its newly developed cream by offering it only in the city of Brightland prior to its national launch. Unfortunately, two of its competitors released similar products before Mirka Beauty could release its product in the market. Realizing that a lapse had occurred, Mirka Beauty released its product in the market emphasizing an additional moisturizing feature which would address customers' needs during the winter season that was just around the corner. Mirka Beauty had prior information about these customer needs because of a series of tests it had conducted before releasing the product which helped it launch the product with the additional feature. -The method of testing employed by Mirka Beauty Products to test its product in the above scenario is best categorized as:

BG-Mobile Corporation wants to introduce a new product model. The head of the research team at the firm brings together all her team members. She informs them about the new product's specific features and attributes as well as the firm's performance expectations for the new model, and then she asks the team members for their input. After the discussion, the final accepted idea is given to its team of engineers who develop a prototype of the product and distributes the prototype models to the managers at corporate headquarters of BG-Mobile. The managers use the prototype to determine if the product performs well and satisfies the need for which it was developed. After a detailed analysis, the company will decide whether to introduce the product in the market as it is or to modify it further before the release. -The method used by the team of engineers at BG-Mobile Corporation to test the product prototype is known as:

Dean McShane is the chief technology officer of a company that offers online education.Dean is interested in buying a new 3D technology product but decides to wait until two versions of the product are released to be sure of its maturity.According to the diffusion of innovation model, to which of the following groups of buyers does Dean belong?

VelTech Corp., an electronics company, manufactures LCD TVs that are in high demand compared to its competitors' products.Competitors find it difficult to provide the same reliability and after-sales service that this company provides, which lead to high consumer acceptability.Which of the following factors is contributing to the high adoptability of these LCD TVs?

A group of scientists at a biotechnology firm conducted extensive trials in a laboratory for over a decade before creating a formula that could be used to develop a drug to treat cancer.The firm invested a lot of money in these trials with the idea of generating revenue through sales.The method used by the company to develop the new product is best termed as:

How do firms market a product in the growth stage of the product life cycle? Provide one example.

When the product design team of a firm takes ideas with potential, develops them into visual images, and presents them to potential buyers to get their reactions, they are engaging in: