Exam 8: Segmentation, Targeting, and Positioning

Nancy is a professional photographer and has been looking to buy a new digital camera that improves picture quality.After extensive research about a new camera that was released in the market two weeks ago,she decides to buy it because she is convinced that it will produce the picture quality she has been looking for.This shows that Nancy belongs to the group of:

Professor Edward has authored a wide range of textbooks on statistics.Professor Edward still prefers to use a typewriter while typing material for his new books as he is not comfortable using a computer.According to the diffusion of innovation model,to which of the following group of buyers does Professor Edward belong?

According to the diffusion of innovation theory,buyers belonging to the early majority group are considered crucial because:

A key characteristic of brainstorming sessions that are used to generate new ideas is that:

Who among the following can be regarded as a laggard according to the diffusion of innovation theory?

Personal music players that were initially released in the market were expensive and huge,and provided limited options.Anna and her husband did not buy them at that time and waited for more selection.When they finally bought the product,the sales had levelled off and the size and prices had reduced significantly.To which of the following groups of buyers do Anna and her husband belong?

Scott wants to buy a cell phone that operates with the Android operating system (OS),but he decides to wait until more cell phone companies release models with the Android OS.This way,a lot of user reviews would be available and the details about the drawbacks of the OS would also be available.From this scenario,we can say that Scott belongs to the group of buyers called:

The decline stage of the product life cycle is characterized by the adoption of the product by laggards.

A group of scientists at a biotechnology firm conducted extensive trials in a laboratory for over a decade before creating a formula that could be used to develop a drug to treat cancer.The firm invested a lot of money in these trials with the idea of generating revenue through sales.The method used by the company to develop the new product is best termed as:

When Glenn asked a few of his regular customers to test his prototype surfboard,he was engaging in alpha testing.

Willfred Inc.is struggling to improve its sales.The sales of Branson Inc.,a major competitor,are soaring because of the company's well-designed and innovative products.Willfred decides to study Branson's product designs in an attempt to understand how it is doing so well.Finally,Willfred creates an improved product that does not infringe on Branson's patents.This type of idea generation is known as:

The most challenging part of applying the product life cycle concept is that managers do not know exactly how long each stage of the cycle will last.

Explain with examples how a successful new product launched by a company can overcome the various factors that affect its diffusion rate in the context of the diffusion of innovation theory.

Why do many biotechnology firms license their new products to pharmaceutical companies?

During the growth stage of a product life cycle,firms attempt to:

Which of the following idea generation methods saves the high costs of in-house research and development for a firm?

What advantages do pioneers have in a market?

Scorpion Homes Inc.is a company that provides security-related products to its consumers.However,the burglar alarm system introduced by Scorpion Homes failed because consumers had to possess a certain level of technical skill to use the product effectively.Which of the following factors is affecting the adoption rate of these alarm systems?

A manufacturing firm has recently launched a new product and has no competitors in the market.Innovators have started buying the product.In the context of the product life cycle,the product is in the:

A product such as a refrigerator is likely to remain in the maturity period of its product life cycle until a superior product comes along to replace it.