Exam 11: Developing and Managing Products

Because Laurence did not know companies actually sold pet insurance so that owners could pay for operations on their pets in the event of a sickness or accident,he paid almost $4,000 to have his dog's broken hip replaced.Once he discovered such a product existed,he perceived the insurance to be a(n):

It is considered inefficient to use concept tests during the idea screening stage of the new-product development process.

The length of the introductory stage of the product life cycle for a new product is largely determined by:

The first stage of the new-product development process is:

Fitbit The pedometer is getting kicked up a notch with the new Fitbit device. The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep. It digitally records the distance a user walks or runs, right down to the number of steps, and calories burned. The device wirelessly sends data to its Web site, fitbit.com, giving users minute-by-minute details. Users can add consumption information at the Web site, allowing an accurate picture of calorie consumption and expenditures. Unlike other devices, like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399, the Fitbit combines both functions. The first-time Fitbit setup isn't very easy for users, but once over that hurdle, it's relative easy to use. -Refer to Fitbit. The fact that Fitbit can monitor motion while awake and asleep makes it different from competing products that might increase its rate of adoption. Which product characteristic affecting the rate of adoption does this illustrate?

List the seven steps of the new-product development process.

Seven employees from a company 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 degree of failure occurs when a company cannot recoup its development,marketing,and production costs?

Fitbit The pedometer is getting kicked up a notch with the new Fitbit device. The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep. It digitally records the distance a user walks or runs, right down to the number of steps, and calories burned. The device wirelessly sends data to its Web site, fitbit.com, giving users minute-by-minute details. Users can add consumption information at the Web site, allowing an accurate picture of calorie consumption and expenditures. Unlike other devices, like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399, the Fitbit combines both functions. The first-time Fitbit setup isn't very easy for users, but once over that hurdle, it's relative easy to use. -Refer to Fitbit. The process by which the adoption of this innovative product spreads is called the:

In the _____ stage of new-product development,the technical feasibility of manufacturing the new product is examined as a prototype is produced.

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.They are called:

The Internet offers a fast,cost-effective way to conduct test marketing.

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

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

New-product ideas that survive the initial screening process move to the business analysis stage.List five of the many questions that are commonly asked during this stage.

The stages of the product life cycle,in order,are:

Which of the following products is most likely to be in the decline stage of its 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.

Companies that are most likely to succeed in the development and introduction of new products typically are characterized by all of the following EXCEPT:

Going to the Dogs Demand for pet services is greatly increasing across the United States. In fact, Americans will spend nearly $44 billion dollars on their pets this year. Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion. Daycare services for dogs now include toy rooms, outside play areas, doggie massages, treadmills, swimming pools and cushy beds for nap time. Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet, depending on the amenities that the pet owner chooses. -Refer to Going to the Dogs.When the dog daycare first launched,it most likely appealed to which product adopter category?