Exam 21: Developing and Managing Products

Increasing globalization of markets and competition provides a reason for multinational firms to consider new-product development from a worldwide perspective.

Which product characteristic affecting the rate of adoption of a new product represents the degree to which the benefits or other results of using the product can be communicated to target customers?

Discuss alternatives to traditional test marketing.

When selecting a test market city,a researcher should look for a city:

The development of Coke Zero by Coca Cola would not be considered a new product since the company was already making soft drinks.It would simply be called a line extension.

A company has learned that members of its target market are likely to collect more information and evaluate more brands than early adopters.They are cautious and thoughtful and do not try the product without asking someone else.The customers' dominant characteristic is deliberateness.In terms of the diffusion process,these customers are most likely:

Hemopure is a blood substitute developed by Biopure Corporation.It does not have to be refrigerated or blood typed like donated human blood that is currently being used in blood transfusions.It comes in bags just like donated blood,so it can be used with intravenous tubes and needles just like donated human blood.As a result,medical personnel will not have to make any adjustments if they adopt this product. Name and describe the five product characteristics influencing the rate of adoption of new products,and explain how each factor will influence the rate of adoption of a blood substitute like Hemopure.

Which of the following stages of the new-product development process is the first filter,which serves to eliminate new-product ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason?

A dominant characteristic of the late majority is:

A long-run drop in sales signals the beginning of which stage in the product life cycle?

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

Which of the following statements about the product life cycle (PLC)is true?

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

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.The "dream lure for the 21st century" will more than likely be an example of a(n):

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

_____ are eager to try new ideas and products.They typically have higher incomes,are better educated,and are more cosmopolitan than other categories of adopters.

Messages directed directly from marketers toward early adopters should normally use different appeals than messages directed toward the early majority,the late majority,or the laggards.

What is the final stage in the new-product development process? What tasks are set in motion during this stage?

Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?

Which product factor influencing the rate of adoption represents the degree of difficulty involved in understanding and using a new product?