Question 1

Which of the following terms can be best defined as buyers who want to be the first to have a new product or service?

Accepted Answer

A)  Lead users 
B)  Laggards 
C)  Early adopters 
D)  First movers 
E)  Innovators

Question 2

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 3

Ronen,a chef working for a prestigious restaurant,has come up with an idea for a new dish.The owner of the restaurant,Jean,is impressed with the new recipe and asks all the other chefs of the restaurant to practise making the new dish for three months until they can reproduce the recipe with the exact taste the owner is looking for.The chefs also test the dish on other restaurant staff before introducing it to customers.The source of idea generation used by Jean is:

Accepted Answer

A)  brainstorming. 
B)  internal research and development. 
C)  customer research. 
D)  licensing. 
E)  reverse engineering and development.

Question 4

List three reasons firms innovate.

Accepted Answer

The answer of List three reasons firms innovate....

Question 5

Jeremy is interested in buying a phone that has a music player and provides access to the Internet.After doing a detailed analysis of all the phones in the market that offer these features,he decides to buy a recently released model.Which of the following groups of buyers best represents Jeremy's buying behaviour?

Accepted Answer

A)  Innovators 
B)  Early adopters 
C)  Laggards 
D)  Early majority 
E)  Late majority

Question 6

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 7

Alice asks a group of people to test the skateboards she has manufactured.She needs to determine whether they are functioning as intended and if they require any changes before they are released.What is the type of test being conducted by Alice called?

Accepted Answer

A)  Concept testing 
B)  Test marketing 
C)  Hypothesis testing 
D)  Beta testing 
E)  Alpha testing

Question 8

Mirka Beauty Products marketed its product by educating consumers about the benefits of the additional feature it provided in its product.The marketing mix variable that benefited from the results of the tests is:

Accepted Answer

A)  quantity. 
B)  promotion. 
C)  place. 
D)  price. 
E)  size.

Question 9

The later phases of the maturity stage of a product is characterized by:

Accepted Answer

A)  increased sales. 
B)  market saturation. 
C)  an increase in profits. 
D)  less market segmentation. 
E)  increasing numbers of early adopters.

Question 10

Which of the following is a stage of the product life cycle in which sales are low and profits small or negative?

Accepted Answer

A)  Introduction 
B)  Levelling 
C)  Maturity 
D)  Growth 
E)  Decline

Question 11

Natalie is a stockbroker who is comfortable using her old phone,which does a little more than making calls and sending and receiving text messages.Though her work requires her to be updated about the stock market throughout the day,she decides to wait for the smartphone market to mature and for the prices to decrease.She decides to invest in a smartphone only after being convinced that the price is just right for her budget.From this scenario,we can say that Natalie belongs to the group of buyers called:

Accepted Answer

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

Question 12

After the new product of BG-Mobile Corporation is released in the market,the category of buyers who will play a crucial role in the initial marketing of this product are the:

Accepted Answer

A)  early adopters. 
B)  innovators. 
C)  early majority. 
D)  late majority. 
E)  lead users.

Question 13

LuxSpeed Inc.is a car manufacturing firm.It is experiencing a decline in the sales of a model released in the 1990s.At this stage,LuxSpeed Inc.should focus all its marketing efforts toward:

Accepted Answer

A)  producing new variations of the model. 
B)  increasing the number of users and the frequency of use for the model. 
C)  developing new uses for the model. 
D)  altering the appearance of the model. 
E)  targeting a particular segment of brand loyalists interested in the model.

Question 14

A cosmetics company had launched a product that earned good revenues for the company.A recent market analysis shows intense competition for market share from a large number of competitors.The company decides to spend more on marketing the product to help it to retain its market share.In the context of the product life cycle,the product is currently in the:

Accepted Answer

A)  maturity stage. 
B)  growth stage. 
C)  initiation stage. 
D)  introduction stage. 
E)  decline stage.

Question 15

Disruptive products require a higher level of learning from consumers.

Accepted Answer

A) True 
 B)False

Question 16

Fiery Inc.is a manufacturer of hockey accessories that are lightweight as well as aerodynamic.As a first mover,Fiery was able to fulfill the high demand for these accessories in Arahonia where hockey is a popular sport.The high diffusion of Fiery products in Arahonia was successful because of their:

Accepted Answer

A)  complexity. 
B)  trialability. 
C)  compatibility. 
D)  visibility. 
E)  observability.

Question 17

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 18

Compatibility is important for rapid diffusion of new products because products that are consistent with consumers' past behaviour will be more readily accepted.

Accepted Answer

A) True 
 B)False

Question 19

The form of market testing conducted by firms before a newly developed product or service is brought to the market to determine how many customers will try it and then continue to use it is known as:

Accepted Answer

A)  premarket testing. 
B)  alpha testing. 
C)  beta testing. 
D)  concept testing. 
E)  hypothesis testing.

Question 20

A cosmetics company,which mainly produces soaps,shampoos,and other skin care solutions for adults,wants to introduce a line of baby products in the market.Since it has no prior experience with baby products,it decides to buy the rights to use a necessary technology from a small research firm.The source of idea generation used by the cosmetics company is:

Accepted Answer

A)  internal research and development. 
B)  brainstorming. 
C)  prototyping. 
D)  licensing. 
E)  reverse engineering and development.

Exam 8: Segmentation, Targeting, and Positioning

Which of the following terms can be best defined as buyers who want to be the first to have a new product or service?

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

List three reasons firms innovate.

Alice asks a group of people to test the skateboards she has manufactured.She needs to determine whether they are functioning as intended and if they require any changes before they are released.What is the type of test being conducted by Alice called?

Mirka Beauty Products marketed its product by educating consumers about the benefits of the additional feature it provided in its product.The marketing mix variable that benefited from the results of the tests is:

The later phases of the maturity stage of a product is characterized by:

Which of the following is a stage of the product life cycle in which sales are low and profits small or negative?

After the new product of BG-Mobile Corporation is released in the market,the category of buyers who will play a crucial role in the initial marketing of this product are the:

LuxSpeed Inc.is a car manufacturing firm.It is experiencing a decline in the sales of a model released in the 1990s.At this stage,LuxSpeed Inc.should focus all its marketing efforts toward:

Disruptive products require a higher level of learning from consumers.

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.

Compatibility is important for rapid diffusion of new products because products that are consistent with consumers' past behaviour will be more readily accepted.

The form of market testing conducted by firms before a newly developed product or service is brought to the market to determine how many customers will try it and then continue to use it is known as: