Question 1

The growth stage of the product life cycle is characterized by intense competition for market share among firms.

Accepted Answer

A) True 
 B)False

Question 2

Firms can create and deliver value more effectively by adding new products to their offerings to keep customers from getting bored with the current product or service offering.

Accepted Answer

A) True 
 B)False

Question 3

When Glenn asked a few of his regular customers to test his prototype surfboard, he was engaging in alpha testing.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is NOT true about the product life cycle?

Accepted Answer

A) At the maturity stage, companies experience a high number of competitors and competitive products 
B) There is a low competition at the decline stage. 
C) Innovators and early adopters are typical consumers for the growth stage 
D) Company's sale is low at the introduction stage. 
E) The sales is at the peak at the maturity stage.

Question 5

Mirka Beauty Products, a beauty company, was testing the quality of its newly developed cream by offering it only in the city of Brightland prior to its national launch. Unfortunately, two of its competitors released similar products before Mirka Beauty could release its product in the market. Realizing that a lapse had occurred, Mirka Beauty released its product in the market emphasizing an additional moisturizing feature which would address customers' needs during the winter season that was just around the corner. Mirka Beauty had prior information about these customer needs because of a series of tests it had conducted before releasing the product which helped it launch the product with the additional feature.
-Which of the following statements is correct about the test marketing carried out by Mirka Beauty Products?

Accepted Answer

A) It avoids promotions such as the use of coupons. 
B) It uses all the elements of the marketing mix. 
C) It costs less and takes much less time than premarket tests. 
D) The product appears in all the retail outlets of a country with reduced pricing. 
E) A firm cannot estimate demand for the entire market based on a test marketing.

Question 6

Which of the following steps involved in new product introduction is regarded as the most crucial because it requires huge financial resources and extensive co-ordination of all aspects of the marketing mix?

Accepted Answer

A) Idea generation 
B) Concept testing 
C) Product launch 
D) Product development 
E) Evaluation of results

Question 7

Why do many biotechnology firms license their new products to pharmaceutical companies?

Accepted Answer

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

Question 8

The term "diffusion of innovation" refers to the:

Accepted Answer

A) process of vertical integration between a manufacturer and its suppliers. 
B) process by which a statement that describes a product or a service is presented to potential buyers or users to obtain their reactions. 
C) process by which the use of a new product or a service spreads throughout a market group over time and over various categories of adopters. 
D) process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product. 
E) process of taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.

Question 9

What advantages do pioneers have in a market?

Accepted Answer

The answer of What advantages do pioneers have in a...

Question 10

Select a company and discuss the six steps of the product development process that it should go through for a new product development.Make sure to support your answer by specific examples.

Accepted Answer

The answer of Select a company and discuss the six...

Question 11

The process by which an idea that describes a product or a service is presented to potential buyers to obtain their reactions can be best termed as:

Accepted Answer

A) test marketing. 
B) product development. 
C) concept testing. 
D) diffusion of innovation. 
E) reverse engineering.

Question 12

ASUS runs a marketing research by asking participant to visit a mock website, and choose a laptop among several available models; one of which is ASUS new laptop.Participants are asked certain questions after their decision.This is an example of

Accepted Answer

A) Test marketing 
B) Product lunch 
C) Premarket test 
D) Market testing 
E) Beta testing

Question 13

Professor Edward has authored a wide range of textbooks on statistics.Professor Edward still prefers to use a typewriter while typing material for his new books as he is not comfortable using a computer.According to the diffusion of innovation model, to which of the following group of buyers does Professor Edward belong?

Accepted Answer

A) Innovators 
B) Laggards 
C) Late majority 
D) Early majority 
E) Fad users

Question 14

Eric is enthusiastic about online video games.He has extensive knowledge of technical aspects of developing games and usually purchases licensed versions of most games as soon as they are launched.According to the diffusion of innovation model, to which of the following groups of buyers does Eric belong?

Accepted Answer

A) Early adopters 
B) Early majority 
C) Lead users 
D) Innovators 
E) Late majority

Question 15

The group of buyers that acts as opinion leaders and is responsible for bringing the early majority, late majority, and laggard groups into a market is the:

Accepted Answer

A) innovators. 
B) lead users. 
C) pioneers. 
D) laggards. 
E) early adopters.

Question 16

George is curious about a new tablet that will be released in the market in the next few days.Although he owns a similar product from a rival company, he is interested in the additional features that the new product offers and decides to buy it.To which of the following categories of buyers does George belong?

Accepted Answer

A) Early Adopters 
B) Early majority buyers 
C) Late majority buyers 
D) Innovators 
E) Laggards

Question 17

Rudo, the owner of an ice cream parlour, is planning to introduce new flavours into the product line.He decides to take feedback and suggestions from buyers as part of the process to develop innovative and interesting new ice cream flavours.What is Rudo's source of idea generation?

Accepted Answer

A) Internal research 
B) Reverse engineering 
C) Brainstorming 
D) Customer input 
E) Licensing

Question 18

The diffusion of innovation theory is useful for firms because it primarily helps them:

Accepted Answer

A) survive in a market where sales come from mostly new products. 
B) develop effective promotion, pricing, and other marketing strategies. 
C) reduce risk by diversifying into a broad portfolio of products. 
D) satisfy the needs of only current customers. 
E) actively pursue and focus on laggards.

Question 19

Willfred Inc.is struggling to improve its sales.The sales of Branson Inc., a major competitor, are soaring because of the company's well-designed and innovative products.Willfred decides to study Branson's product designs in an attempt to understand how it is doing so well.Finally, Willfred creates an improved product that does not infringe on Branson's patents.This type of idea generation is known as:

Accepted Answer

A) brainstorming. 
B) prototyping. 
C) reverse engineering. 
D) customer research. 
E) concept testing.

Question 20

The process by which ideas are transformed into new products and services that help firms grow is known as:

Accepted Answer

A) prototyping. 
B) innovation. 
C) diffusion. 
D) adoption. 
E) brainstorming.

Exam 8: Developing New Products

The growth stage of the product life cycle is characterized by intense competition for market share among firms.

Firms can create and deliver value more effectively by adding new products to their offerings to keep customers from getting bored with the current product or service offering.

When Glenn asked a few of his regular customers to test his prototype surfboard, he was engaging in alpha testing.

Which of the following is NOT true about the product life cycle?

Which of the following steps involved in new product introduction is regarded as the most crucial because it requires huge financial resources and extensive co-ordination of all aspects of the marketing mix?

Why do many biotechnology firms license their new products to pharmaceutical companies?

The term "diffusion of innovation" refers to the:

What advantages do pioneers have in a market?

Select a company and discuss the six steps of the product development process that it should go through for a new product development.Make sure to support your answer by specific examples.

The process by which an idea that describes a product or a service is presented to potential buyers to obtain their reactions can be best termed as:

ASUS runs a marketing research by asking participant to visit a mock website, and choose a laptop among several available models; one of which is ASUS new laptop.Participants are asked certain questions after their decision.This is an example of

The group of buyers that acts as opinion leaders and is responsible for bringing the early majority, late majority, and laggard groups into a market is the:

Rudo, the owner of an ice cream parlour, is planning to introduce new flavours into the product line.He decides to take feedback and suggestions from buyers as part of the process to develop innovative and interesting new ice cream flavours.What is Rudo's source of idea generation?

The diffusion of innovation theory is useful for firms because it primarily helps them:

The process by which ideas are transformed into new products and services that help firms grow is known as: