Question 1

The diffusion of innovation curve proposes that purchasers can be divided into five groups.The first group consists of buyers who want to be the first on the block to have the new product; they are known as early adopters.

Accepted Answer

A) True 
 B)False

Question 2

Explain the concept of outsourcing product development,and give an example of when this would be a good idea.

Accepted Answer

The answer of Explain the concept of outsourcing product development,and...

Question 3

During the _____________ stage of the product life cycle,sales are low and profits are small or negative.

Accepted Answer

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

Question 4

___________________ are special incentives offering reduced prices for a limited time,offered to retailers to get them to try a new product.

Accepted Answer

A)  Loss leaders 
B)  Push prices 
C)  Market skimming incentives 
D)  Introductory price promotions 
E)  Distribution rebates

Question 5

Describe your actions (or someone you know)in a situation where you (or they)were an innovator in the diffusion of innovation curve.

Accepted Answer

The answer of Describe your actions (or someone you know)in...

Question 6

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 7

When the iPad Mini came out,Sasha spent the night in front of the store so she could get one before any of her friends.According to the diffusion of innovation,Sasha is an innovator.

Accepted Answer

A) True 
 B)False

Question 8

The pharmaceutical industry often justifies the high prices for new drugs by arguing that they research as many as one hundred new compounds before they come up with one ______________,an extremely successful product that pays for the costs associated with the other attempts to develop new products.

Accepted Answer

A)  standout 
B)  blockbuster 
C)  first mover 
D)  pioneer 
E)  premium product

Question 9

One of the key characteristics of brainstorming sessions is

Accepted Answer

A)  no idea is immediately accepted or rejected. 
B)  everyone must come up with ideas. 
C)  the first idea is almost always the best idea. 
D)  only the marketing team is included in these sessions. 
E)  the manager should always make the final decision.

Question 10

A(n)__________________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products.

Accepted Answer

A)  facilitating payment 
B)  introductory price promotion 
C)  slotting allowance 
D)  stocking premium 
E)  place holder

Question 11

Whenever Donald considers upgrading his personal computer system,he consults with Jeremy,a knowledgeable friend who always has the newest technology.For Donald,Jeremy is a(n)___________ in the diffusion of innovation curve.

Accepted Answer

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

Question 12

Animal testing restrictions can cause a number of problems for marketers as they develop new products.What are some marketing opportunities inherent in this situation?

Accepted Answer

The answer of Animal testing restrictions can cause a number...

Question 13

Marketing is a dynamic practice.While you are watching your competitors,they are watching you.Assume that you have just redesigned a product that is in the mature phase of the product life cycle and have identified some new market segments.How do you think your competitors will respond?

Accepted Answer

The answer of Marketing is a dynamic practice.While you are...

Question 14

As soon as she saw one,Hillary wanted a flat-screen television,but she was worried about making the wrong choice.She waited until there were many alternatives in the market with lower prices and improved quality.Hillary is part of the __________ diffusion of innovation group.

Accepted Answer

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

Question 15

Robin recently bought Voice over Internet protocol (VOIP)phone service (phone service delivered over the Internet).A few of Robin's friends bought VOIP before she did,but many other friends were interested in Robin's opinions of the new phone service.Robin is a(n)________________ in this product category.

Accepted Answer

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

Question 16

If the _____________ diffusion of innovation group is relatively small,the number of people who ultimately adopt the innovation likely will also be small.

Accepted Answer

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

Question 17

When Dr.Putt invented his Eye-Over-the-Ball (EOB)golf putting device,he knew during the introductory stage

Accepted Answer

A)  sales would rise quickly,profits would jump,and even laggards would buy his product. 
B)  sales would level off,profits would decline,and mature golfers would be attracted to his product. 
C)  sales would slow down,profits would peak,and early adopters of golf equipment would be his major customers. 
D)  sales would be low and profits nonexistent,but he would attract golf equipment innovators. 
E)  sales would be low,profits would be high,and all potential golfers would jump at the opportunity to buy his product.

Question 18

___________________ are customers who modify existing products according to their own ideas to suit their specific needs.

Accepted Answer

A)  Early adopters 
B)  Market testers 
C)  Lead users 
D)  Reverse engineers 
E)  Concept testers

Question 19

Think back to a time when you have said,"This is great idea.How come nobody thought of this before?" Assuming no one has thought of it before,what would be the first steps to take to develop a new product idea?

Accepted Answer

The answer of Think back to a time when you...

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 diffusion of innovation curve proposes that purchasers can be divided into five groups.The first group consists of buyers who want to be the first on the block to have the new product; they are known as early adopters.

Explain the concept of outsourcing product development,and give an example of when this would be a good idea.

During the _____________ stage of the product life cycle,sales are low and profits are small or negative.

___________________ are special incentives offering reduced prices for a limited time,offered to retailers to get them to try a new product.

Describe your actions (or someone you know)in a situation where you (or they)were an innovator in the diffusion of innovation curve.

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

When the iPad Mini came out,Sasha spent the night in front of the store so she could get one before any of her friends.According to the diffusion of innovation,Sasha is an innovator.

The pharmaceutical industry often justifies the high prices for new drugs by arguing that they research as many as one hundred new compounds before they come up with one ______________,an extremely successful product that pays for the costs associated with the other attempts to develop new products.

One of the key characteristics of brainstorming sessions is

A(n) __________________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products.

Whenever Donald considers upgrading his personal computer system,he consults with Jeremy,a knowledgeable friend who always has the newest technology.For Donald,Jeremy is a(n) ___________ in the diffusion of innovation curve.

Animal testing restrictions can cause a number of problems for marketers as they develop new products.What are some marketing opportunities inherent in this situation?

Marketing is a dynamic practice.While you are watching your competitors,they are watching you.Assume that you have just redesigned a product that is in the mature phase of the product life cycle and have identified some new market segments.How do you think your competitors will respond?

As soon as she saw one,Hillary wanted a flat-screen television,but she was worried about making the wrong choice.She waited until there were many alternatives in the market with lower prices and improved quality.Hillary is part of the __________ diffusion of innovation group.

If the _____________ diffusion of innovation group is relatively small,the number of people who ultimately adopt the innovation likely will also be small.

When Dr.Putt invented his Eye-Over-the-Ball (EOB) golf putting device,he knew during the introductory stage

___________________ are customers who modify existing products according to their own ideas to suit their specific needs.

Think back to a time when you have said,"This is great idea.How come nobody thought of this before?" Assuming no one has thought of it before,what would be the first steps to take to develop a new product idea?

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