Question 1

Why is the failure rate for new products so high?

Accepted Answer

One of the main reasons is the failure to assess the market properly by neglecting to do appropriate product testing,targeting the wrong segment,and/or poor positioning.Firms may also overextend their abilities or competencies by venturing into products or services that are inconsistent with their brand image and/or value proposition.

Question 2

Many car manufacturers have developed prototypes of alternative energy vehicles like hydrogen-fueled cars.When developing their marketing strategies,how can these firms use the diffusion of innovation curve in the early stages of product development?

Accepted Answer

They need to identify and promote their cars to innovators.They can use what they learned from the early electrical cars,especially the fact that many celebrities bought them,creating significant publicity.Innovators will also include consumers who are heavily involved in following the latest technology,subscribe to auto magazines,attend car shows,and participate in auto technology blogs.

Question 3

Companies that develop customized business software often work closely with their users when installing their products.This close contact often creates new product ideas through

Accepted Answer

A)  reverse engineering. 
B)  licensing technology. 
C)  customer input. 
D)  R&D consortia. 
E)  clinical trials. 
A)  reverse engineering. 
B)  licensing technology. 
C)  customer input. 
D)  R&D consortia. 
E)  clinical trials. C

Question 4

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 maturity phase of the product life cycle and have identified some new market segments.How do you think your competitors will respond?

Accepted Answer

Students should take the discu

Question 5

By adding new product lines beyond its core business of computer software,like the Surface Pro tablet and Xbox 360 game system,Microsoft primarily benefits by

Accepted Answer

A)  keeping up in a market where sales come mostly from new products. 
B)  satisfying the changing needs of the technological research staff. 
C)  avoiding market saturation from products that have just been introduced to the market. 
D)  creating diversification and reducing risk. 
E)  spreading out production costs. 
A)  keeping up in a market where sales come mostly from new products. 
B)  satisfying the changing needs of the technological research staff. 
C)  avoiding market saturation from products that have just been introduced to the market. 
D)  creating diversification and reducing risk. 
E)  spreading out production costs.

Question 6

Microsoft's Windows operating system continues to dominate the market,even though it has been around for over 20 years.Windows will likely remain in the maturity stage of the product life cycle

Accepted Answer

A)  indefinitely. 
B)  until it rules the world. 
C)  until a superior product comes along to replace it. 
D)  unless Microsoft repositions Windows as an introductory stage product. 
E)  as long as the company doesn't change it. 
A)  indefinitely. 
B)  until it rules the world. 
C)  until a superior product comes along to replace it. 
D)  unless Microsoft repositions Windows as an introductory stage product. 
E)  as long as the company doesn't change it.

Question 7

Carmen is ready to launch her company's new product,a line of chocolate for diabetics,based on her instincts and knowledge from 30 years of marketing.Her staff is encouraging her to delay the launch until test marketing can be done.What are the advantages and disadvantages of each approach?

Accepted Answer

Carmen probably has considerable knowled

Question 8

Which of the following adopter categories refers to the last large group of buyers to enter a new product market?

Accepted Answer

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

Question 9

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products,because they know that their customers crave the "latest and greatest" games.They use this information to create new products that primarily provide the benefit of

Accepted Answer

A)  keeping up in a market where sales come mostly from new products. 
B)  satisfying the changing needs of former customers. 
C)  avoiding market penetration from products that have been on the market for a long time. 
D)  creating diversification and reducing risk. 
E)  taking advantage of a long product cycle. 
A)  keeping up in a market where sales come mostly from new products. 
B)  satisfying the changing needs of former customers. 
C)  avoiding market penetration from products that have been on the market for a long time. 
D)  creating diversification and reducing risk. 
E)  taking advantage of a long product cycle.

Question 10

Paul listens to music on his iPod and iPhone,but he still buys vinyl records at his local music store on occasion,although they are getting harder to find.Vinyl records are in the __________ stage of the product life cycle.

Accepted Answer

A)  introduction 
B)  growth 
C)  evaluation 
D)  maturity 
E)  decline 
A)  introduction 
B)  growth 
C)  evaluation 
D)  maturity 
E)  decline

Question 11

During the __________ stage of the product life cycle,there are few but an increasing number of competitors.

Accepted Answer

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

Question 12

As personal computers became popular,the sale of typewriters decreased significantly and now typewriters are only used by a very small segment of consumers.Typewriters are in the maturity stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 13

Test marketing refers to customers who modify existing products according to their own ideas to suit their specific needs.

Accepted Answer

A) True 
 B)False

Question 14

General Electric is developing a new magnetic resonance imaging (MRI)device to be marketed to family practice physicians.These new machines will be much smaller and less expensive than the existing MRI machines now in most hospitals.What factors will probably affect the diffusion of these new machines?

Accepted Answer

First,the relative advantage is signific

Question 15

In the diffusion of innovation process,innovators enjoy taking risks and are regarded as highly knowledgeable.Marketers want to identify innovators because

Accepted Answer

A)  they prefer products from established market leaders. 
B)  other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals. 
C)  they are especially price conscious. 
D)  they are easily influenced by reminder advertising. 
E)  they encourage competitors to enter the market. 
A)  they prefer products from established market leaders. 
B)  other consumers defer to their judgment, creating the opportunity for word-of-mouth referrals. 
C)  they are especially price conscious. 
D)  they are easily influenced by reminder advertising. 
E)  they encourage competitors to enter the market.

Question 16

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

Accepted Answer

A)  sales would rise quickly, profits would jump, and even laggards would buy his product. 
B)  sales would level off, profits would decline, and mature golfers would be attracted to his product. 
C)  sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers. 
D)  sales would be low and profits nonexistent, but he would attract golf equipment innovators. 
E)  sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product. 
A)  sales would rise quickly, profits would jump, and even laggards would buy his product. 
B)  sales would level off, profits would decline, and mature golfers would be attracted to his product. 
C)  sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers. 
D)  sales would be low and profits nonexistent, but he would attract golf equipment innovators. 
E)  sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product.

Question 17

Robin carefully studies her options before buying new products.She enjoys new things,especially electronic games,and is very knowledgeable about them.Other people often ask her opinion.In the diffusion of innovation curve,which category does Robin fit in?

Accepted Answer

Robin is a

Question 18

The CEO of David's firm just came back from a business seminar.He called David into his office and stated,"I just found out about the product life cycle curve in a strategy seminar.This is a great tool.I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that

Accepted Answer

A)  the product life cycle is not a useful concept. 
B)  it is often impossible to identify with precision where a product is in the product life cycle. 
C)  the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation. 
D)  the idea has been discredited by recent research. 
E)  the product life cycle works only for certain types of firms. 
A)  the product life cycle is not a useful concept. 
B)  it is often impossible to identify with precision where a product is in the product life cycle. 
C)  the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation. 
D)  the idea has been discredited by recent research. 
E)  the product life cycle works only for certain types of firms.

Question 19

Which of the following is least likely to be a source of ideas for new products?

Accepted Answer

A)  R&D efforts 
B)  licensing agreements 
C)  consumer research 
D)  geodemographic segmentation 
E)  brainstorming 
A)  R&D efforts 
B)  licensing agreements 
C)  consumer research 
D)  geodemographic segmentation 
E)  brainstorming

Question 20

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from

Accepted Answer

A)  relative advantage. 
B)  compatibility. 
C)  observability. 
D)  complexity. 
E)  trialability. 
A)  relative advantage. 
B)  compatibility. 
C)  observability. 
D)  complexity. 
E)  trialability.

Why is the failure rate for new products so high?

Many car manufacturers have developed prototypes of alternative energy vehicles like hydrogen-fueled cars.When developing their marketing strategies,how can these firms use the diffusion of innovation curve in the early stages of product development?

Companies that develop customized business software often work closely with their users when installing their products.This close contact often creates new product ideas through

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 maturity phase of the product life cycle and have identified some new market segments.How do you think your competitors will respond?

By adding new product lines beyond its core business of computer software,like the Surface Pro tablet and Xbox 360 game system,Microsoft primarily benefits by

Microsoft's Windows operating system continues to dominate the market,even though it has been around for over 20 years.Windows will likely remain in the maturity stage of the product life cycle

Carmen is ready to launch her company's new product,a line of chocolate for diabetics,based on her instincts and knowledge from 30 years of marketing.Her staff is encouraging her to delay the launch until test marketing can be done.What are the advantages and disadvantages of each approach?

Which of the following adopter categories refers to the last large group of buyers to enter a new product market?

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products,because they know that their customers crave the "latest and greatest" games.They use this information to create new products that primarily provide the benefit of

Paul listens to music on his iPod and iPhone,but he still buys vinyl records at his local music store on occasion,although they are getting harder to find.Vinyl records are in the __________ stage of the product life cycle.

During the __________ stage of the product life cycle,there are few but an increasing number of competitors.

As personal computers became popular,the sale of typewriters decreased significantly and now typewriters are only used by a very small segment of consumers.Typewriters are in the maturity stage of the product life cycle.

Test marketing refers to customers who modify existing products according to their own ideas to suit their specific needs.

In the diffusion of innovation process,innovators enjoy taking risks and are regarded as highly knowledgeable.Marketers want to identify innovators because

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

Robin carefully studies her options before buying new products.She enjoys new things,especially electronic games,and is very knowledgeable about them.Other people often ask her opinion.In the diffusion of innovation curve,which category does Robin fit in?

Which of the following is least likely to be a source of ideas for new products?

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Conscious Marketing,corporate Social Responsibility,and Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation,targeting,and Positioning

Marketing Research

Product,branding,and Packaging Decisions

Services: the Intangible Product

Pricing Concepts for Establishing Value

Supply Chain and Channel Management

Supply Chain and Channel Management

Retailing and Omnichannel Marketing

Integrated Marketing Communications

Advertising,public Relations,and Sales Promotions

Personal Selling and Sales Management

Filters

Exam 12: Developing New Products

Why is the failure rate for new products so high?

Many car manufacturers have developed prototypes of alternative energy vehicles like hydrogen-fueled cars.When developing their marketing strategies,how can these firms use the diffusion of innovation curve in the early stages of product development?

Companies that develop customized business software often work closely with their users when installing their products.This close contact often creates new product ideas through

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 maturity phase of the product life cycle and have identified some new market segments.How do you think your competitors will respond?

By adding new product lines beyond its core business of computer software,like the Surface Pro tablet and Xbox 360 game system,Microsoft primarily benefits by

Microsoft's Windows operating system continues to dominate the market,even though it has been around for over 20 years.Windows will likely remain in the maturity stage of the product life cycle

Carmen is ready to launch her company's new product,a line of chocolate for diabetics,based on her instincts and knowledge from 30 years of marketing.Her staff is encouraging her to delay the launch until test marketing can be done.What are the advantages and disadvantages of each approach?

Which of the following adopter categories refers to the last large group of buyers to enter a new product market?

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products,because they know that their customers crave the "latest and greatest" games.They use this information to create new products that primarily provide the benefit of

Paul listens to music on his iPod and iPhone,but he still buys vinyl records at his local music store on occasion,although they are getting harder to find.Vinyl records are in the __________ stage of the product life cycle.

During the __________ stage of the product life cycle,there are few but an increasing number of competitors.

As personal computers became popular,the sale of typewriters decreased significantly and now typewriters are only used by a very small segment of consumers.Typewriters are in the maturity stage of the product life cycle.

Test marketing refers to customers who modify existing products according to their own ideas to suit their specific needs.

In the diffusion of innovation process,innovators enjoy taking risks and are regarded as highly knowledgeable.Marketers want to identify innovators because

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

Robin carefully studies her options before buying new products.She enjoys new things,especially electronic games,and is very knowledgeable about them.Other people often ask her opinion.In the diffusion of innovation curve,which category does Robin fit in?

Which of the following is least likely to be a source of ideas for new products?

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Conscious Marketing,corporate Social Responsibility,and Ethics

Analyzing the Marketing Environment

Consumer Behavior

Business-To-Business Marketing

Global Marketing

Segmentation,targeting,and Positioning

Marketing Research

Product,branding,and Packaging Decisions

Services: the Intangible Product

Pricing Concepts for Establishing Value

Supply Chain and Channel Management

Supply Chain and Channel Management

Retailing and Omnichannel Marketing

Integrated Marketing Communications

Advertising,public Relations,and Sales Promotions

Personal Selling and Sales Management

Filters