Exam 9: Developing and Managing Products

Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game.This firm is engaged in a new-product business analysis.

A manufacturer of athletic equipment is finding it difficult to compete with cheaper imported merchandise.Which of the following is a potential source of new product ideas?

Which of the following is a characteristic that would slow the rate of adoption of new products?

Companies that are most likely to succeed in the development and introduction of new products typically do which of the following?

In the early 1900s,a new product was developed-the phonograph record,and it allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Today,most stores no longer carry records,which have become a niche product,and digital audiotapes are a new alternative. -Refer to Music Industry.The phonograph record industry is currently in what stage of the product life cycle?

Who adopt a product because most of their friends have already done so,and their adoption is usually the result of pressure to conform because they rely on group norms?

Scientists at University of Toronto are working to develop new technologies for customer interface interactions in retail stores.Right now they are not concerned with the potential cost-effectiveness of the technologies or the marketability of the technologies.What are these scientists involved in?

The maker of Peter Pan peanut butter has developed a honey-flavoured peanut butter spread to add to its peanut product line.Is this a new product?

While developing new products is far from an exact science,most firms do follow a formal new-product development process.

A European dairy,which is famous for its rich ice creams,has introduced basil-,tomato-,fennel-,and oregano-flavoured ice creams. -Refer to European Dairy.Which of the following product characteristics would most likely influence the market success of these new flavours?

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants.Canesta is the pioneering firm in the field and is troubled by economic concerns.Production and promotional costs are high,and profits are negative.Such poor business performance is typical of firms in the introductory stage of the product life cycle.

Zippysnacks has come up with a new potential product,chocolate-covered jalapeno peppers,and is now asking potential customers,"Would you buy this snack?" Zippysnacks is asking this question of potential customers in which of the following?

In the long run,products fail because of a poor match between which of the following?

Finland-based Rapala VMC Corp.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 2003.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 2003,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 what?

A personal care item such as a new flavour of dental floss may have a slow rate of adoption because it is not a highly visible item in homes.Also,this item is not often discussed among friends and coworkers.This is an example of how which characteristic can work to slow the adoption process?

Seven employees at Ferguson Fabricators are trying to come up with ideas for new-product development.The employees are all in a room together,shouting out potential ideas.The ideas are written down and evaluated as they are generated.This is an example of brainstorming.

Normally,what is the longest stage of the product life cycle?

What happens during the maturity stage of the product life cycle?

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

Those who embrace products relatively early in the product life cycle,are likely to be community oriented,and often are opinion leaders themselves are referred to as which of the following?