Question 1

A new medication to eliminate fungal growths on people's toenails 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 the characteristic of _____ can work to slow the adoption process.

Accepted Answer

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

Question 2

_____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas.

Accepted Answer

A)  New-product brain dumping 
B)  Screening 
C)  A focus-group interview 
D)  Brainstorming 
E)  Diffusion

Question 3

Procter & Gamble is introducing a new fabric softener dispenser that consumers stick to the inside of the dryer drum and plans to send consumers free samples in the mail.This strategy will likely increase the rate of adoption of the new product.

Accepted Answer

A) True 
 B)False

Question 4

When Glade brand air freshener began marketing a clean linen-scented air spray,this represents which new product category?

Accepted Answer

A)  repositioning strategy 
B)  new product line 
C)  addition to an existing product line 
D)  discontinuous innovation 
E)  revision to existing products

Question 5

A biological metaphor that traces the stages of a product's acceptance,from its introduction (birth)to its decline (death)is called the:

Accepted Answer

A)  product diffusion process 
B)  product phase 
C)  product adoption stages 
D)  product evolution cycle 
E)  product life cycle

Question 6

_____ occurs when an existing product is targeted toward new market segments.It is another type of new-product development because the product is new to that segment.

Accepted Answer

A)  Brainstorming 
B)  Diffusing 
C)  Repositioning 
D)  Screening 
E)  Reciprocity

Question 7

Heinz is expected to introduce more than 400 new products in the next two years.One of the products is a spicier ketchup aimed at the baby boomer market.The spicier ketchup would be considered what type of new product?

Accepted Answer

A)  discontinuous innovation 
B)  new-to-market 
C)  new product line 
D)  lower-priced products 
E)  addition to existing product line

Question 8

Which product characteristic affecting the rate of adoption of a new product represents the degree to which the benefits or other results of using the product can be communicated to target customers?

Accepted Answer

A)  observability 
B)  diffusion 
C)  adoption 
D)  trialability 
E)  complexity

Question 9

The _____ 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.

Accepted Answer

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

Question 10

The product life cycle is a biological metaphor that traces the stages of a product's acceptance,from its introduction (birth)to its decline (death).

Accepted Answer

A) True 
 B)False

Question 11

Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?

Accepted Answer

A)  product sampling 
B)  simulated product adoption 
C)  online test marketing 
D)  simulated diffusion 
E)  market concentration

Question 12

The final stage in the new-product development process is:

Accepted Answer

A)  product testing 
B)  market testing 
C)  commercialization 
D)  product prototyping 
E)  simulated marketing

Question 13

The development of a garlic-butter flavored crescent rolls by Pillsbury would not be considered a new product since the company was already making crescent rolls.It would simply be called a line extension.

Accepted Answer

A) True 
 B)False

Question 14

The advertising strategy during the growth stage of the product life cycle should be to:

Accepted Answer

A)  aim at the needs of innovators 
B)  make the mass market aware of brand benefits 
C)  use advertising as a vehicle for introducing the product category benefits 
D)  emphasize the product's low price to help reduce inventories 
E)  make the market aware of product category brands

Question 15

Going to the Dogs
Demand for pet services is greatly increasing across the United States. In fact, Americans will spend nearly $44 billion dollars on their pets this year. Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion. Daycare services for dogs now include toy rooms, outside play areas, doggie massages, treadmills, swimming pools and cushy beds for nap time. Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet, depending on the amenities that the pet owner chooses.
-Refer to Going to the Dogs.Before opening the It's a Dog's Life doggy resort the potential company owners projected the costs involved in providing the services the target market (dog owners)appears to desire.Unfortunately,a decision was made to not proceed with the doggy resort as the owners felt the cost to provide the services was too high considering the rates the target market would be willing to pay.The would be an example of _____.

Accepted Answer

A)  idea screening 
B)  concept testing 
C)  business analysis 
D)  commercialization 
E)  test marketing

Question 16

A product that is perceived as new by a potential adopter,whether the product is "new to the world" or simply new to the individual,is a(n):

Accepted Answer

A)  innovation 
B)  diffusion 
C)  discontinuous product 
D)  laggard 
E)  simulated new product

Question 17

A test market is one example of a laboratory test where consumers are encouraged to try a new product and provide feedback to the manufacturer.

Accepted Answer

A) True 
 B)False

Question 18

Being first on the market with a new product has a number of advantages,including all the following EXCEPT:

Accepted Answer

A)  increased sales through longer sales life 
B)  immediate profit 
C)  more resale opportunities 
D)  increased product loyalty 
E)  greater market responsiveness

Question 19

Voodoo Envy
Hewlett-Packard is the number one seller of personal computers worldwide.  The company has been increasingly more creative in their computer designs following the trend set by Apple Inc. Hewlett-Packard has created a ultra thin laptop called the Voodoo Envy.  The laptop is less than a half inch thick and weights less than 3 1/2 pounds.  It is priced at $2000.  HP created the laptop to compete against Apple's MacBook Air and a model created by the Lenovo Group Ltd.  Both these models were priced at around $3000.   The MacBook Air does not have removable batteries or a built-in socket for plugging into Ethernet networks.   HP's Voodoo envy does have removable batteries and offers an Ethernet port that is part of its power adapter.   The Voodoo can also be booted up in less than five seconds made possible by software developed by HP.
-Refer to Voodoo Envy.Apple seems to have a success with its MacBook Air.However,not all of Apple's new product efforts have been successful.For example,the Newton Messagepad failed in the marketplace.While a revolutionary product that created the PDA industry,many consumers perceived the product as too big.For success,it is essential to have a good match between product _____ and consumer _____.

Accepted Answer

A)  attributes, demographics 
B)  trialability, comprehension 
C)  value, income 
D)  observability, freedom 
E)  features, desires

Question 20

What is the final stage in the new-product development process? What tasks are set in motion during this stage?

Accepted Answer

The answer of What is the final stage in the...

Exam 11: Developing and Managing Products

_____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas.

Procter & Gamble is introducing a new fabric softener dispenser that consumers stick to the inside of the dryer drum and plans to send consumers free samples in the mail.This strategy will likely increase the rate of adoption of the new product.

When Glade brand air freshener began marketing a clean linen-scented air spray,this represents which new product category?

A biological metaphor that traces the stages of a product's acceptance,from its introduction (birth) to its decline (death) is called the:

_____ occurs when an existing product is targeted toward new market segments.It is another type of new-product development because the product is new to that segment.

Heinz is expected to introduce more than 400 new products in the next two years.One of the products is a spicier ketchup aimed at the baby boomer market.The spicier ketchup would be considered what type of new product?

Which product characteristic affecting the rate of adoption of a new product represents the degree to which the benefits or other results of using the product can be communicated to target customers?

The _____ 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.

The product life cycle is a biological metaphor that traces the stages of a product's acceptance,from its introduction (birth)to its decline (death).

Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?

The final stage in the new-product development process is:

The development of a garlic-butter flavored crescent rolls by Pillsbury would not be considered a new product since the company was already making crescent rolls.It would simply be called a line extension.

The advertising strategy during the growth stage of the product life cycle should be to:

A product that is perceived as new by a potential adopter,whether the product is "new to the world" or simply new to the individual,is a(n) :

A test market is one example of a laboratory test where consumers are encouraged to try a new product and provide feedback to the manufacturer.

Being first on the market with a new product has a number of advantages,including all the following EXCEPT:

What is the final stage in the new-product development process? What tasks are set in motion during this stage?