Question 1

A company well-known for its easy-to-cook breakfast cereals was facing stiff competition from the many players in the market.The company changed its campaign to focus on dietary needs rather than just convenience,thus targeting a segment of consumers looking for healthy diet.This is an example of a ______.

Accepted Answer

A)  new line-extension product 
B)  discontinuous innovation 
C)  repositioned product 
D)  new and improved product

Question 2

When considering the diffusion of innovation,which group is least motivated by advertising or personal selling?

Accepted Answer

A)  Laggards 
B)  Innovators 
C)  The late majority 
D)  The early majority

Question 3

Which of the following describes laggards?

Accepted Answer

A)  They have the shortest adoption time and the lowest socioeconomic status. 
B)  They have the longest adoption time and the highest socioeconomic status. 
C)  They have the longest adoption time and the lowest socioeconomic status. 
D)  They have the shortest adoption time and the highest socioeconomic status.

Question 4

A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products is called ______.

Accepted Answer

A)  product development 
B)  niche marketing 
C)  idea screening 
D)  commercialization

Question 5

Identify a similarity between laggards and innovators.

Accepted Answer

A)  Neither relies on group norms. 
B)  Neither is rooted in tradition. 
C)  Both are eager to try new products. 
D)  Both exhibit short adoption time.

Question 6

For which type of products are concept tests thought to be less effective in predicting the success of a product?

Accepted Answer

A)  Products that are line extensions (same product category and brand) 
B)  Products that are not easily classified into existing product categories 
C)  Products that create new consumption patterns 
D)  Products that do not require major changes in consumer behavior

Question 7

Which of the following statements describes a customer innovation center?

Accepted Answer

A)  It is an approach to repositioning a company's products using sales figures. 
B)  It promotes advertising among status-conscious customers. 
C)  It is a forum for meeting with customers and directly involving them in the innovation process. 
D)  It is used in the business analysis stage of the new-product development process.

Question 8

Marketing costs are high in the introductory stage of the product life cycle because

Accepted Answer

A)  product design changes become stylistic rather than functional. 
B)  high dealer margins are often needed to obtain adequate distribution. 
C)  manufacturers scramble to sign up dealers and distributors. 
D)  emphasis is given to communicating the differences among brands in the market.

Question 9

Advertising and other promotional materials for a variety of products,including the test product,are shown to members of the product's target market.These people are then taken to shop at a mock or real store,where their purchases are recorded.This is part of the process involved in ______.

Accepted Answer

A)  simulated (laboratory)market testing 
B)  scanner-based research 
C)  simultaneous product development 
D)  customer relationship management

Question 10

Which is true of the influencers found among early adopters?

Accepted Answer

A)  They come from higher-income groups and are mostly in their 30s. 
B)  They use media differently than other users who are considered followers. 
C)  They are distinguished not by demographics but by behavior. 
D)  They are not focused on earning the respect of others.

Question 11

A firm that starts with a global strategy is better able to develop products that are marketable worldwide.

Accepted Answer

A) True 
 B)False

Question 12

In which way does the concept of product life cycle (PLC)help marketing managers?

Accepted Answer

A)  It tells managers the length of a product's life cycle. 
B)  It helps marketers forecast future events and suggest appropriate strategies. 
C)  It dictates the marketing strategy to be used for a product. 
D)  It informs marketers about the duration of a product in the various stages of its life cycle.

Question 13

Steve,a retiree,wants to use his savings to open a day care facility for dogs.After deciding on the services that he would provide to his customers,he calculates costs versus the demand and the profit he could make depending on the volume of sales.After extensive deliberation,Steve decides to take a bank loan because the needed initial investment is too high for opening the facility.Steve is currently in the _____ stage of the new-product development process.

Accepted Answer

A)  commercialization 
B)  business analysis 
C)  idea generation 
D)  test marketing

Question 14

Jason bought his first color television set after flat screen televisions were already widely diffused.He is most likely to be one among the ______.

Accepted Answer

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

Question 15

What do programs like Google X do to promote innovative thinking among its employees?

Accepted Answer

A)  They eliminate the fear of coming up with bad ideas by rewarding failure. 
B)  They eliminate the possibility of investment in bad ideas by rewarding only successes. 
C)  They promote the fear of coming up with bad ideas by punishing failure. 
D)  They promote investment in bad ideas to explore the possibilities learned from them.

Question 16

Which of the following is an advantage of simultaneous product development?

Accepted Answer

A)  It shortens the development process and reduces costs. 
B)  It eliminates the need for conducting laboratory tests on product prototypes. 
C)  It ensures that product development occurs in highly structured stages. 
D)  It eliminates the need for test marketing a new product.

Question 17

Innovators are the first 2.5% of all those who adopt a new product.Early adopters are the next 13.5% to adopt the product.

Accepted Answer

A) True 
 B)False

Question 18

In the context of diffusion of innovation,the dominant value of laggards is _____.

Accepted Answer

A)  skepticism 
B)  deliberateness 
C)  adventure 
D)  tradition

Question 19

Comparably speaking,which of the following would have the highest observability in terms of its rate of acceptance and diffusion?

Accepted Answer

A)  A new line of trousers 
B)  A musical instrument 
C)  A medicinal tea 
D)  A social media app

Question 20

To rate concept (or product)alternatives,concept tests are often used at the ______ stage.

Accepted Answer

A)  developmental 
B)  business analysis 
C)  marketing 
D)  screening

Exam 11: Developing and Managing Products