Exam 11: Developing and Managing Products

At what stage of the new-product development process are most new-product ideas rejected?

The CEO of a cell-phone company, Teresa Bilodeau, and her colleagues sat around a conference table and came up with as many ways as they could to extend the battery life of their handsets. The practicality of the ideas was not taken in to account. What is this process known as?

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 scenario outlines the stages of development of the market for phonograph albums. What is the name for this group of stages?

Haim is passionate about new technology and embraces products relatively early in their life cycle. He is also community oriented, and his friends often check with him before making big purchases. What would Haim be classed as?

Market researchers have determined nine categories of lifestyles for computer users. One of the categories is described as "Mouse Potatoes," who like the Internet for entertainment and can't wait to buy the latest in "techno-entertainment." In terms of the diffusion process, how would "Mouse Potatoes" be classified?

What is the term for the spread of a new idea from its source of invention or creation to its ultimate users or adopters?

What is the length of the introductory stage of the product life cycle for a new product largely determined by?

In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are tradition-bound. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. What are they called?