Exam 21: Developing and Managing Products

Which category of adopters adopt a new product because most of their friends have already adopted it?

The final stage in the new-product development process is:

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

You are a product manager for a manufacturer of trampolines.You have determined that the trampoline is in the maturity stage of the product life cycle.To keep your product from entering the decline stage,you should:

Razor scooters gained instant popularity because walkers and runners frequently saw people on the scooters zipping by them and having fun.This information suggests the adoption rate of the Razor scooter was most affected by which product characteristic?

The product characteristic affecting the rate of adoption characterized by the degree to which a product is perceived as superior to existing substitutes is:

The product life cycle concept encourages marketing managers to act reactively.

When the Segway Human Transporter was introduced in 2002,many people expected the product to be a phenomenal success.While the Segway is still on the market,it has never been the success so many expected.A recent Wall Street Journal article suggested that the Segway,while brilliant technologically,seemed impractical to most people since it could not be used to replace their current method of transportation.In other words,the Segway had problems with:

After the research team at Nabisco had generated more than two dozen new-product ideas for a substitute for partially hydrogenated oils that tastes the same but has zero trans fat,the company formed a committee to analyze whether the product ideas were consistent with the organization's new-product strategy.This is called:

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

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 idea for the Fitbit was generated from an employee retreat in which everyone was encouraged to think of unlimited product ideas for the fitness-minded consumer.Participants did not critique any of the ideas,as the goal at that point was just to generate ideas.What idea-generating technique does this illustrate?

Jeni's Splendid Ice Creams has decided to put its new Beet Cake with Black Walnut ice cream on the market.This product has entered the _____ stage of new-product development.

The degree to which a product can be used on a limited basis represents which product characteristic influencing the rate of adoption?

During the _____ stage of the new-product development process,production starts,inventories are built up,the product is shipped to distribution points,the sales force is trained,and advertising and promotion begin.

Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game.This firm is engaged in a new-product business analysis.

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 day cares" that are more like a resort or spa than an ordinary kennel for their canine companion. Day care 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 webcam, and some doggy day cares have a phone where owners can talk to their dogs when they feel their pets need to hear their voices. 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.For many dog owners,it may be hard to understand the difference between a traditional kennel and a dog day care,especially given the price differential.As a result,dog day cares may offer special low rates for first-time users in an effort to reduce which of the following issues concerning the rate of diffusion?

Rapala VMC Corporation Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer. It developed its first fishing lure--a cigar-shaped minnow--in 1962. The annual market for fishing lures in terms of retail sales is approximately $600 million. Rapala VMC garnered one-third of that amount in 2008. New lures must be introduced each year in order to stay competitive in this industry. Like other lure manufacturers, Rapala focuses on two questions in developing and making new lures: Does it work, and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides. At the annual fishing industry trade show in 2008, Rapala unveiled the "dream lure for the 21st century." -Refer to Rapala.Fishing lures are most likely in the _____ stage of their product life cycle.

Washing machines and refrigerators are in the _____ stage of the product life cycle.

Very few firms follow a formal new-product development process.

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