Exam 11: Developing and Managing Products

Maeva is eager to try new ideas and products. As a lawyer, Maeva has a high income and is very cosmopolitan. What would she be classified as?

What is the purpose of the screening and concept testing stage of the new-product development process?

Market researchers have determined nine categories of lifestyles for computer users. One of the categories is described as "Fast Forwards," who eagerly purchase brand new technology for home, office, and personal use. This group is most likely to adopt new technology when it is in which stage of its product life cycle?

Scenario 11-4 When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon.com for $5.95. -Refer to the scenario. In terms of the new-product development process, what were Richardson's friends who encouraged him to put his ideas in a book involved in?

List the four stages of the product life cycle. List four typical characteristics for each stage.

A new-product strategy can be best described by which of the following?

Scenario 11-4 When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon.com for $5.95. -Refer to the scenario. Since, with the use of Richardson's book, most people can win arcade games and carry home as many stuffed animals as their arms can hold, what would carnival operators hope for?

Many product failures such as Cucumber antiperspirant spray, Toaster Eggs, and Health-Sea sea-sausages did not succeed because they did not conform to which product characteristic?

When selecting a test market city, what should a researcher look for?

Scenario 11-3 In the early 1900s, a new product was developed-the phonograph record. It allowed people to listen to and appreciate recorded music in the privacy of their homes. At first, consumers were reluctant because the idea was so novel and difficult to comprehend. During the 1930s, the pioneers in the record industry were experiencing strong sales and profits. As a result, other firms began to enter the market and competition intensified. At this point, there were hundreds of record producers and manufacturers. During the 1940s and 1950s, sales continued to increase, but at a much slower rate. The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape. The record market began a slow decrease in sales. By the 1970s, another new technology, cassette tapes, replaced the eight-track tape. During the 1970s and 1980s, record production continued to decrease. In the late 1980s, sales dropped rapidly as yet another new technology arrived, the compact disc. Digital downloading of songs from online stores like iTunes has become the norm. Today, most stores no longer carry records, which have become a niche product. -Refer to the scenario. The time from the 1940s through the 1960s corresponds to which stage of the product life cycle for phonograph records?

Parris Laboratories has ordered production materials and equipment needed to make its new slow-release chlorine emulsion for swimming pools in its Rossville plant. Which stage of new product development is Parris Laboratories entering?

What should be the advertising strategy during the growth stage of the product life cycle?

Rhonda Ausman and her team at a publishing company came up with lots of new ideas around the new cover for a marketing textbook. After these ideas were generated, what is the next thing that Rhonda and her team must do?

The maker of Kandoo has added Kandoo Baby Wipes to its product line. Is this a new product?

What are three ways that test marketing can cause problems for a company? What are two alternatives that can be used instead of traditional test marketing?

A new medication to eliminate fungal growths on people's toenails may have a slow rate of adoption because it is not a highly visible item in homes. Also, this item is not often discussed among friends and coworkers. This is an example of how which characteristic can work to slow the adoption process?

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants. The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. A clean, flat surface is required for the virtual keyboard. There are five product characteristics that can be used to predict and explain the rate of acceptance and diffusion of a new product. Use these characteristics to predict the rate of acceptance and diffusion of the Canesta virtual keyboard.

What is the rate of sales decline during the decline stage of the product life cycle largely governed by?

A test market is one example of a laboratory test where consumers are encouraged to try a new product and provide feedback to the manufacturer.

The most important factor in successful new-product introductions is a good match between product characteristics and market needs.