Exam 12: Developing New Products

The diffusion of innovation curve proposes that purchasers can be divided into five groups.The first group consists of buyers who want to be the first on the block to have the new product; they are known as early adopters.

Explain the concept of outsourcing product development,and give an example of when this would be a good idea.

During the _____________ stage of the product life cycle,sales are low and profits are small or negative.

___________________ are special incentives offering reduced prices for a limited time,offered to retailers to get them to try a new product.

Describe your actions (or someone you know)in a situation where you (or they)were an innovator in the diffusion of innovation curve.

Between concept testing and market testing,a firm should engage in which stage of the product development process?

When the iPad Mini came out,Sasha spent the night in front of the store so she could get one before any of her friends.According to the diffusion of innovation,Sasha is an innovator.

The pharmaceutical industry often justifies the high prices for new drugs by arguing that they research as many as one hundred new compounds before they come up with one ______________,an extremely successful product that pays for the costs associated with the other attempts to develop new products.

One of the key characteristics of brainstorming sessions is

A(n)__________________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products.

Whenever Donald considers upgrading his personal computer system,he consults with Jeremy,a knowledgeable friend who always has the newest technology.For Donald,Jeremy is a(n)___________ in the diffusion of innovation curve.

Animal testing restrictions can cause a number of problems for marketers as they develop new products.What are some marketing opportunities inherent in this situation?

Marketing is a dynamic practice.While you are watching your competitors,they are watching you.Assume that you have just redesigned a product that is in the mature phase of the product life cycle and have identified some new market segments.How do you think your competitors will respond?

As soon as she saw one,Hillary wanted a flat-screen television,but she was worried about making the wrong choice.She waited until there were many alternatives in the market with lower prices and improved quality.Hillary is part of the __________ diffusion of innovation group.

Robin recently bought Voice over Internet protocol (VOIP)phone service (phone service delivered over the Internet).A few of Robin's friends bought VOIP before she did,but many other friends were interested in Robin's opinions of the new phone service.Robin is a(n)________________ in this product category.

If the _____________ diffusion of innovation group is relatively small,the number of people who ultimately adopt the innovation likely will also be small.

When Dr.Putt invented his Eye-Over-the-Ball (EOB)golf putting device,he knew during the introductory stage

___________________ are customers who modify existing products according to their own ideas to suit their specific needs.

Think back to a time when you have said,"This is great idea.How come nobody thought of this before?" Assuming no one has thought of it before,what would be the first steps to take to develop a new product idea?

Which of the following is NOT one of the five groups in the diffusion of innovation curve?