Question 1

What is relative advantage? Give an example of how relative advantage can influence the speed of diffusion.

Accepted Answer

Relative advantage is a product characte

Question 2

Which of the following processes is used to test the performance of a product prototype and is carried out in the research and development unit of a firm?

Accepted Answer

A)  Alpha testing 
B)  Beta testing 
C)  Premarket testing 
D)  Test marketing 
E)  Concept testing 
A)  Alpha testing 
B)  Beta testing 
C)  Premarket testing 
D)  Test marketing 
E)  Concept testing

Question 3

Taking apart a competitor's product,analyzing it,and creating an improved product that does not infringe on the competitor's patents,if any exist,most accurately defines the term:

Accepted Answer

A)  prototyping. 
B)  reverse engineering. 
C)  concept testing. 
D)  brainstorming. 
E)  alpha testing. 
A)  prototyping. 
B)  reverse engineering. 
C)  concept testing. 
D)  brainstorming. 
E)  alpha testing.

Question 4

The category of buyers that waits and purchases a product after careful review is called:

Accepted Answer

A)  innovators. 
B)  laggards. 
C)  early adopters. 
D)  late majority. 
E)  lead users. 
A)  innovators. 
B)  laggards. 
C)  early adopters. 
D)  late majority. 
E)  lead users.

Question 5

The growth stage of the product life cycle is characterized by intense competition for market share among firms.

Accepted Answer

A) True 
 B)False

Question 6

Vintage Corp,a leather company,manufactures high-quality handbags for women.All its bags carry a prominent logo of the company and consumers associate this logo with excellent quality.Despite their high price,Vintage handbags are extremely popular.Which of the following factors is influencing the quick diffusion of these handbags?

Accepted Answer

A)  Complexity 
B)  Relative advantage 
C)  Trialability 
D)  Compatibility 
E)  Observability 
A)  Complexity 
B)  Relative advantage 
C)  Trialability 
D)  Compatibility 
E)  Observability

Question 7

The method of determining the potential success of a new product by introducing the product to a limited geographical area prior to a national launch is called:

Accepted Answer

A)  alpha testing. 
B)  beta testing. 
C)  concept testing. 
D)  test marketing. 
E)  premarketing. 
A)  alpha testing. 
B)  beta testing. 
C)  concept testing. 
D)  test marketing. 
E)  premarketing.

Question 8

Baked Treats,a confectionary company,introduced maple syrup cookies that became an instant hit in the country of Argonia because Argonians are accustomed to eating cookies.The same product received a lukewarm response in other countries,where traditional snacks have been very different in nature.Which of the following factors contributed to the success of these cookies in Argonia?

Accepted Answer

A)  Compatibility 
B)  Trialability 
C)  Complexity 
D)  Visibility 
E)  Observability 
A)  Compatibility 
B)  Trialability 
C)  Complexity 
D)  Visibility 
E)  Observability

Question 9

Dean McShane is the chief technology officer of a company that offers online education.Dean is interested in buying a new 3D technology product but decides to wait until two versions of the product are released to be sure of its maturity.According to the diffusion of innovation model,to which of the following groups of buyers does Dean belong?

Accepted Answer

A)  Early majority 
B)  Late majority 
C)  Laggards 
D)  Innovators 
E)  Early adopters 
A)  Early majority 
B)  Late majority 
C)  Laggards 
D)  Innovators 
E)  Early adopters

Question 10

VelTech Corp.,an electronics company,manufactures LCD TVs that are in high demand compared to its competitors' products.Competitors find it difficult to provide the same reliability and after-sales service that this company provides,which lead to high consumer acceptability.Which of the following factors is contributing to the high adoptability of these LCD TVs?

Accepted Answer

A)  High compatibility 
B)  Complexity 
C)  Trialability 
D)  Relative advantage 
E)  Observability 
A)  High compatibility 
B)  Complexity 
C)  Trialability 
D)  Relative advantage 
E)  Observability

Question 11

Which of the following statements is true regarding the introduction stage of the product life cycle?

Accepted Answer

A)  It is marked by a rapid growth in industry sales and also an increase in the number of competitors. 
B)  At this stage,firms attempt to reach new customers by studying their preferences and producing different product variations. 
C)  It usually starts with a single firm,and innovators form the main category of buyers. 
D)  It is characterized by intense competition for market share by firms,which leads to an increase in marketing costs. 
E)  It is marked by a growing number of product adopters and also an increase in the number of product versions available. 
A)  It is marked by a rapid growth in industry sales and also an increase in the number of competitors. 
B)  At this stage,firms attempt to reach new customers by studying their preferences and producing different product variations. 
C)  It usually starts with a single firm,and innovators form the main category of buyers. 
D)  It is characterized by intense competition for market share by firms,which leads to an increase in marketing costs. 
E)  It is marked by a growing number of product adopters and also an increase in the number of product versions available.

Question 12

Innovators are crucial to the success of any new product or service because:

Accepted Answer

A)  they prefer products from established market leaders. 
B)  they are easily influenced by advertising. 
C)  they help the product or service gain market acceptance. 
D)  they are considered opinion leaders and influence other majority groups. 
E)  they form a major group of consumers in the market of a new product or service. 
A)  they prefer products from established market leaders. 
B)  they are easily influenced by advertising. 
C)  they help the product or service gain market acceptance. 
D)  they are considered opinion leaders and influence other majority groups. 
E)  they form a major group of consumers in the market of a new product or service.

Question 13

How does market testing help in the promotion of products?

Accepted Answer

The test results help a firm determine a

Question 14

Early adopters differ from innovators in that early adopters:

Accepted Answer

A)  help a product gain market acceptance by spreading positive word-of-mouth. 
B)  enjoy taking risks and are not price sensitive. 
C)  want to be the first on the block to have a new product or service. 
D)  decide whether a product is worth the cost only after careful review. 
E)  are regarded as highly knowledgeable as they keep themselves well informed about different product categories. 
A)  help a product gain market acceptance by spreading positive word-of-mouth. 
B)  enjoy taking risks and are not price sensitive. 
C)  want to be the first on the block to have a new product or service. 
D)  decide whether a product is worth the cost only after careful review. 
E)  are regarded as highly knowledgeable as they keep themselves well informed about different product categories.

Question 15

A graph representing the product life cycle  
-The stage in a product life cycle in which innovators are the main consumers is called the:

Accepted Answer

A)  innovation stage. 
B)  maturity stage. 
C)  growth stage. 
D)  introduction stage. 
E)  decline stage. 
A)  innovation stage. 
B)  maturity stage. 
C)  growth stage. 
D)  introduction stage. 
E)  decline stage.

Question 16

An automobile firm is positioning its product to serve only a specific group of brand loyalists.This shows that the particular product is in the:

Accepted Answer

A)  maturation stage of its life cycle. 
B)  growth stage of its life cycle. 
C)  decline stage of its life cycle. 
D)  introduction stage of its life cycle. 
E)  levelling stage of its life cycle. 
A)  maturation stage of its life cycle. 
B)  growth stage of its life cycle. 
C)  decline stage of its life cycle. 
D)  introduction stage of its life cycle. 
E)  levelling stage of its life cycle.

Question 17

A graph representing the consumer adoption cycle  
-George is curious about a new tablet that will be released in the market in the next few days.Although he owns a similar product from a rival company,he is interested in the additional features that the new product offers and decides to buy it.To which of the following categories of buyers does George belong?

Accepted Answer

A)  Early Adopters 
B)  Early majority buyers 
C)  Late majority buyers 
D)  Innovators 
E)  Laggards 
A)  Early Adopters 
B)  Early majority buyers 
C)  Late majority buyers 
D)  Innovators 
E)  Laggards

Question 18

Which of the following would a firm that wants to be the pioneer in creating new products most likely use to generate ideas for products?

Accepted Answer

A)  Licensing 
B)  Customer input 
C)  Reverse engineering 
D)  Internal research and development 
E)  Market research and development 
A)  Licensing 
B)  Customer input 
C)  Reverse engineering 
D)  Internal research and development 
E)  Market research and development

Question 19

TransInfo Inc.,an information technology firm,is trying to develop new software that will facilitate the transfer of documents in a secure and fast manner.The team of engineers at TransInfo has a detailed discussion and come up with several ideas,out of which they accept only the best possible option.This type of idea generation is called:

Accepted Answer

A)  licensing 
B)  customer research 
C)  brainstorming 
D)  market research 
E)  internal research 
A)  licensing 
B)  customer research 
C)  brainstorming 
D)  market research 
E)  internal research

Question 20

Alttaire automobiles developed new hybrid cars that were highly fuel efficient and less polluting compared to all its competitors' cars in the current market.The cars developed by Alttaire automobiles achieved instant success in the market because of their unique features.Which of the following factors primarily influenced the high adoption rate of the cars developed by Alttaire automobiles?

Accepted Answer

A)  Complexity 
B)  High compatibility 
C)  Observability 
D)  Relative advantage 
E)  Trialability 
A)  Complexity 
B)  High compatibility 
C)  Observability 
D)  Relative advantage 
E)  Trialability

What is relative advantage? Give an example of how relative advantage can influence the speed of diffusion.

Which of the following processes is used to test the performance of a product prototype and is carried out in the research and development unit of a firm?

Taking apart a competitor's product,analyzing it,and creating an improved product that does not infringe on the competitor's patents,if any exist,most accurately defines the term:

The category of buyers that waits and purchases a product after careful review is called:

The growth stage of the product life cycle is characterized by intense competition for market share among firms.

The method of determining the potential success of a new product by introducing the product to a limited geographical area prior to a national launch is called:

Which of the following statements is true regarding the introduction stage of the product life cycle?

Innovators are crucial to the success of any new product or service because:

How does market testing help in the promotion of products?

Early adopters differ from innovators in that early adopters:

A graph representing the product life cycle -The stage in a product life cycle in which innovators are the main consumers is called the:

An automobile firm is positioning its product to serve only a specific group of brand loyalists.This shows that the particular product is in the:

Which of the following would a firm that wants to be the pioneer in creating new products most likely use to generate ideas for products?

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Marketing Ethics

Analyzing the Market Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Marketing Research

Product, Branding, and Packaging Decisions

Developing New Products

Services: The Intangible Product

Pricing Concepts for Establishing Value

Strategic Pricing Methods

Supply Chain and Channel Management

Retailing and Multichannel Marketing

Integrated Marketing Communications

Advertising, Public Relations, and Sales Promotions

Filters

Exam 8: Segmentation, Targeting, and Positioning

What is relative advantage? Give an example of how relative advantage can influence the speed of diffusion.

Which of the following processes is used to test the performance of a product prototype and is carried out in the research and development unit of a firm?

Taking apart a competitor's product,analyzing it,and creating an improved product that does not infringe on the competitor's patents,if any exist,most accurately defines the term:

The category of buyers that waits and purchases a product after careful review is called:

The growth stage of the product life cycle is characterized by intense competition for market share among firms.

The method of determining the potential success of a new product by introducing the product to a limited geographical area prior to a national launch is called:

Which of the following statements is true regarding the introduction stage of the product life cycle?

Innovators are crucial to the success of any new product or service because:

How does market testing help in the promotion of products?

Early adopters differ from innovators in that early adopters:

A graph representing the product life cycle -The stage in a product life cycle in which innovators are the main consumers is called the:

An automobile firm is positioning its product to serve only a specific group of brand loyalists.This shows that the particular product is in the:

Which of the following would a firm that wants to be the pioneer in creating new products most likely use to generate ideas for products?

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Marketing Ethics

Analyzing the Market Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Marketing Research

Product, Branding, and Packaging Decisions

Developing New Products

Services: The Intangible Product

Pricing Concepts for Establishing Value

Strategic Pricing Methods

Supply Chain and Channel Management

Retailing and Multichannel Marketing

Integrated Marketing Communications

Advertising, Public Relations, and Sales Promotions

Filters