Exam 11: Developing and Managing Products

Which of the following statements about product adoption categories is true?

Seven employees at Ferguson Fabricators are trying to come up with ideas for new-product development. The employees are all in a room together, shouting out potential ideas. The ideas are written down and evaluated as they are generated. This is an example of brainstorming.

What occurs during the maturity stage of the product life cycle?

Market researchers have determined nine categories of lifestyles for computer users. One of the categories is described as "Hand-Shakers," who are typically low-level managers who do not possess any computer skills but rather allow their assistants to provide all necessary technological knowledge. In terms of the diffusion process, how would "Hand-Shakers" most likely be classified for office technology?

Many years ago, Athens, Greece, was viewed as a necessary part of any tour of Europe. Then the city developed an image of a smoggy city choked with traffic. The Greek government realized package tour operators were unimpressed by the proposal to paint the facades of the buildings in Athens. During which stage of its attempt to reposition Athens as a culture-filled destination for conventions would this have occurred?

Increasing competition, aggressive brand advertising, and healthy profits are all characteristics found in the introductory stage of the product life cycle.

There are five categories of adopters that participate in the diffusion process. Name and briefly describe each of these five categories in the correct order from earliest adopter to last adopter.

Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently introduced Oakley's Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs. Which of the following product characteristics would likely exert the greatest influence on the market success of these new glasses?

The product life cycle is so named because it is similar to the premise underlying the concept of any life cycle. The unit of interest is born, it grows for some time, and it reaches some level of maturity and stability before dying.

Scenario 11-1 In 2006, Coca-Cola North American debuted Gold Peak iced tea. According to Ray Crockett, spokesperson for Coke, "In looking at the ready-to-drink tea market, we found that the one place that nobody seemed to be playing was in the category of classic iced teas like mother used to make. Gold Peak is a quality product that brings back that classic taste." -Refer to the scenario. Ray Crockett, spokesperson for Coke, said, "We're going to do a lot of sampling with this product because we believe that if people try it, they're going to love it and stick with it." In other words, what will its adoption rate rely on?

Scenario 11-2 After years of development and testing, Jabra Corporation unveiled the Jabra 1000 earbud phone. The entire device fits in your ear. It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well. It picks up your voice by amplifying sound vibrations in your bones. Therefore, there's no microphone boom to jut out in front of your face. Because the bone vibrations must be amplified, a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds. This anti-noise chip generates a mirror image of outside noises, and the colliding sound waves erase each other. The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak. This tech-talk isn't cheap: the earbud phone lists for $329. -Refer to the scenario. The Jabra 1000 is technically advanced and somewhat difficult for people to understand. Thus, what might affect the rate of diffusion?

What is the most important factor in a successful new-product introduction? What are three reasons that products fail? Identify five characteristics of firms that typically experience success in new-product introductions.

After products and marketing programs have been developed for new products, they are usually tested in the marketplace. What is test marketing? How might a company benefit from the use of test marketing? How can test marketing cause problems for a company?

Profits typically reach their peak during the growth stage of the product life cycle.

For a firm that adheres to the marketing concept, the logical place to start generating new-product ideas is with the customers of the firm.

Which of the following products has the lowest level of trialability?

The same manufacturer produces Hanes, Playtex, and Bali clothing for women. This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new-product ideas, such as jewellery, wide shoes, and belts. Which research technique did the manufacturer use?

A European dairy, which is famous for its rich ice creams, has introduced basil-, tomato-, fennel-, and oregano-flavoured ice creams. Which of the following product characteristics would most likely influence the market success of these new flavours?

In which stage of new-product development would the technical feasibility of manufacturing the new product as a prototype be examined?

Which stage in the product life cycle is signalled by a long-run drop in sales?