Exam 8: Developing New Products

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. -What is the source for idea generation employed by the research team at BG-Mobile Corporation called?

Innovators are crucial to the success of a new product because they help the product gain market acceptance.

Explain the 4 stages of the product life cycle and provide one example for each stage.

In reality, the product life cycle curve of most products is bell-shaped.

Tina had been watching cable TV even though 50 percent of the country had moved to satellite TV.Though she was aware of the benefits of satellite television, she did not make the move to adopt the new technology until after her friend explained that Tina could receive good benefits at low costs.According to the diffusion of innovation model, to which of the following groups of buyers does Tina belong?

A cosmetics company had launched a product that earned good revenues for the company.A recent market analysis shows intense competition for market share from a large number of competitors.The company decides to spend more on marketing the product to help it to retain its market share.In the context of the product life cycle, the product is currently in the:

Garcia Stephens Co., a clothing company, is unable to improve sales after its designer failed to create designs that satisfied current trends in the market.Another clothing company called Rigby Inc., on the other hand, is having a successful season and its designs are the current rage in the market.The designers of Garcia Stephens careful studied the designs of Rigby, analyzed them, improved upon them, and then created a whole new range of designs for their own company.Which of the following sources of idea generation has been used by Garcia Stephens Co.?

Why are innovators considered crucial to the success of a new product or service?

A brief written description of a product or service; its technology, working principles, and forms; and what customer needs it satisfies most accurately defines the term:

A cosmetics company, which mainly produces soaps, shampoos, and other skin care solutions for adults, wants to introduce a line of baby products in the market.Since it has no prior experience with baby products, it decides to buy the rights to use a necessary technology from a small research firm.The source of idea generation used by the cosmetics company is:

Companies try to create a broader portfolio of products.Which one is NOT true about this strategy?

Firms with single products are better able to withstand external shocks, including changes in consumer preferences or intensive competitive activity.

Why are new-to-the-world products called "disruptive"?

Greg wants to upgrade his personal computer.He consults his friend Vernon because Vernon is highly knowledgeable in this field and always uses the latest technology.According to the diffusion of innovation model, to which of the following groups does Vernon belong?

What is diffusion of innovation?

The first physical tentative form of a new product that has the same properties as a new product but is produced through different manufacturing processes is called a(n):

Compatibility is important for rapid diffusion of new products because products that are consistent with consumers' past behaviour will be more readily accepted.

Which of the following processes is used to test the performance of a product prototype and is carried out in the research and development unit of a firm?

A key characteristic of brainstorming sessions that are used to generate new ideas is that:

Firms that invest in the latest technology, either to use in their new products or services or to make the firm more efficient, are considered: