Question 1

When microwaves were new, they often cost over $300, were huge, and had numerous settings and options. Brenda and Bart waited, concerned about potential health hazards and wishing for more choices in the market. By the time they purchased a microwave, sales of microwaves had leveled off and prices had declined significantly. Brenda and Bart were part of the ___________ diffusion of innovation group.

Accepted Answer

A)  innovator 
B)  laggard 
C)  late majority 
D)  early majority 
E)  early adopter

Question 2

The majority of new products are failures.

Accepted Answer

A) True 
 B)False

Question 3

At the end of a brainstorming session, participants are often asked to

Accepted Answer

A)  identify the worst ideas. 
B)  defer to management for the final decision. 
C)  identify which ideas each person proposed. 
D)  vote on the best ideas. 
E)  propose one more new idea each.

Question 4

Why do many biotechnology firms license their new products?

Accepted Answer

The answer of Why do many biotechnology firms license their...

Question 5

The maturity phase of the product life cycle is characterized by greatly reduced competition.

Accepted Answer

A) True 
 B)False

Question 6

During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense.

Accepted Answer

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

Question 7

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.

Question 8

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

Question 9

The process by which the use of a new product or service spreads throughout a market group is referred to as

Accepted Answer

A)  new product introduction. 
B)  lead user dispersion. 
C)  diffusion of innovation. 
D)  the product life cycle. 
E)  product development diffusion.

Question 10

On the diffusion of innovation curve, the first group of buyers who want to be the first on the block to have the new product are known as early adopters.

Accepted Answer

A) True 
 B)False

Question 11

Many marketers think personal computers in the United States are in the maturity stage of the product life cycle. What does this mean for manufacturers of personal computers? What can they do about it?

Accepted Answer

The answer of Many marketers think personal computers in the...

Question 12

The diffusion of innovation theory is useful to marketers in helping them

Accepted Answer

A)  adjust to the performance life cycle. 
B)  avoid the cost of concept testing. 
C)  predict which types of customers will buy their product immediately and later. 
D)  predict how long it will take for a new product to gain market acceptance. 
E)  forecast sales for a new product.

Question 13

Early personal computers cost several thousand dollars, allowing competitors

Accepted Answer

A)  to focus on creating demand for their brand. 
B)  to promote alternative brands in that product category. 
C)  to spend less on introductory advertising. 
D)  to focus on making improved versions. 
E)  to introduce lower-priced alternatives.

Question 14

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

Accepted Answer

A)  securing financial backing 
B)  marketing research 
C)  brainstorming 
D)  determining potential ROI 
E)  product development

Question 15

How is consumer panel data collected during the test marketing phase of a new product introduction?

Accepted Answer

A)  Panelists complete a questionnaire about the product. 
B)  Panelists scan their receipts on a home scanning device. 
C)  Stores provide sales data to companies. 
D)  Consumers voluntarily go to a website to record their preferences. 
E)  Focus groups are held in key markets.

Question 16

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in

Accepted Answer

A)  premarket testing. 
B)  product launch. 
C)  test marketing. 
D)  product development. 
E)  concept testing.

Question 17

Respond to the statement, "Create or die," from a new-product innovation perspective.

Accepted Answer

The answer of Respond to the statement, "Create or die,"...

Question 18

Laura is about to launch a new product: herself! She is running for a local political office. First-time candidates quickly learn the importance of marketing. She has consulted with various experts, tested her campaign themes and messages with focus groups, and now is ready to do a full-scale product launch. Why is her product launch the most critical step? What will she need to do?

Accepted Answer

The answer of Laura is about to launch a new...

Question 19

Which of the following is NOT one of the four product life cycle stages?

Accepted Answer

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

Question 20

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

Accepted Answer

A)  Innovators. 
B)  Non-adopters. 
C)  Late majority. 
D)  Early majority. 
E)  Early adopters.

Exam 12: Developing New Products

The majority of new products are failures.

At the end of a brainstorming session, participants are often asked to

Why do many biotechnology firms license their new products?

The maturity phase of the product life cycle is characterized by greatly reduced competition.

During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense.

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

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.

The process by which the use of a new product or service spreads throughout a market group is referred to as

On the diffusion of innovation curve, the first group of buyers who want to be the first on the block to have the new product are known as early adopters.

Many marketers think personal computers in the United States are in the maturity stage of the product life cycle. What does this mean for manufacturers of personal computers? What can they do about it?

The diffusion of innovation theory is useful to marketers in helping them

Early personal computers cost several thousand dollars, allowing competitors

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

How is consumer panel data collected during the test marketing phase of a new product introduction?

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in

Respond to the statement, "Create or die," from a new-product innovation perspective.

Which of the following is NOT one of the four product life cycle stages?

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