BUS 346 – Ch 12 – Flashcards
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Innovators are a critical group of new product adopters because they Select one: a. act as reverse engineering consultants. b. extend the product life cycle. c. help the product gain market acceptance. d. are the major source of innovation. e. help with test marketing.
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c. help the product gain market acceptance.
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A major limitation in the use of internal R&D departments for new idea generation is that Select one: a. the costs tend to be quite high. b. few scientists have ideas. c. few scientists have practical ideas. d. they tend to create too many blockbusters. e. they tend to be dissolved once sufficient ideas have been generated.
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a. the costs tend to be quite high.
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Now that the consumer demand is building for Miranda's new organic shampoo, she and her team face a new set of decisions. Which of the following is NOT one of the decision items on the agenda for the team discussion of place in the marketing mix for a new product launch? Select one: a. How much should be shipped initially to the stores? b. Are the packaging colors working well with the target markets? c. Where should the merchandise be stored: at distribution centers or shipped directly to the stores? d. Should the manufacturer be involved in reordering decisions? e. Which retailers are chosen to sell the product?
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b. Are the packaging colors working well with the target markets?
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Which of the following is NOT one of the five groups in the diffusion of innovation curve? Select one: a. Non-adopters. b. Late majority. c. Early majority. d. Innovators. e. Early adopters.
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a. Non-adopters.
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By the time BMW got into the mini-SUV market, sales had leveled off and were even starting to decline. BMW had to target its marketing efforts toward the __________ diffusion of innovation group. Select one: a. laggard b. early adopter c. innovator d. late majority e. early majority
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d. late majority
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Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see whether they are using his tools for other tasks or have modified the tools for some other purpose. These customers are __________, who can provide ideas for new and improved products. Select one: a. market testers b. reverse engineers c. lead users d. concept testers e. early adopters
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c. lead users
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The growth phase of the product life cycle is always dynamic. Which of the following does NOT occur in this phase? Select one: a. Some competitors will exit in an industry shakeout. b. Price competition with protracted price wars erodes profits. c. Some new competitors may enter the market with similar products. d. Profits increase as economies of scale are attained. e. Profits increase as sales increase.
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b. Price competition with protracted price wars erodes profits.
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ANo __________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products. Select one: a. facilitating payment b. introductory price promotion c. slotting allowance d. place holder e. stocking premium
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c. slotting allowance
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Which of the following adopter categories refers to the last large group of buyers to enter a new product market? Select one: a. Late majority b. Early majority c. Innovators d. Laggards e. Early adopters
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a. Late majority
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Robin recently bought Voice over Internet Protocol (VoIP) phone service. 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 aNo __________ in this product category. Select one: a. early majority b. laggard c. early adopter d. late majority e. innovator
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c. early adopter
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Pioneer or breakthrough products Select one: a. will likely result in late maturity buying. b. incorporate reverse engineering outputs. c. can change consumer preferences. d. must be geographically centered. e. require the use of concept testing services.
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c. can change consumer preferences.
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Laptop computers, personal digital assistants, and cellular phones were all readily accepted and diffused in U.S. markets where business and personal lifestyles tend to be faster-paced, compared to many other areas in the world. These products offered __________ with consumers' needs and priorities. Select one: a. trialability b. observability c. relative positioning d. compatibility e. complexity
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d. compatibility
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During the __________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense. Select one: a. introduction b. decline c. maturity d. leveling e. growth
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c. maturity
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Early personal computer users remember the cumbersome, user-unfriendly DOS system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their Select one: a. compatibility. b. complexity. c. relative advantage. d. trialability. e. observability.
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c. relative advantage.
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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 alternatives in the market with lower prices and improved quality. Hillary is part of the __________ diffusion of innovation group. Select one: a. early majority b. innovator c. late majority d. laggard e. early adopter
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a. early majority
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How is consumer panel data collected during the test marketing phase of a new product introduction? Select one: a. Stores provide sales data to companies. b. Panelists scan their receipts on a home scanning device. c. Focus groups are held in key markets. d. Panelists complete a questionnaire about the product. e. Consumers voluntarily go to a website to record their preferences.
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b. Panelists scan their receipts on a home scanning device.
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Between concept testing and market testing, a firm should engage in which stage of the product development process? Select one: a. brainstorming b. securing financial backing c. determining potential ROI d. marketing research e. product development
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e. product development
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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 Select one: a. premarket testing. b. product development. c. test marketing. d. concept testing. e. product launch.
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a. premarket testing.
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One of the potential benefits to a firm of introducing new-to-the-world products or services is Select one: a. the ability to avoid paying pioneers for new product development. b. cost savings. c. capitalizing on existing consumer preferences. d. establishing a completely new market. e. late majority marketing.
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d. establishing a completely new market.
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Samples are often used for new products when __________ will influence the diffusion of the product. Select one: a. complexity b. compatibility c. trialability d. relative advantage e. observability
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c. trialability
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By adding new product lines beyond its core business of computer software, like the Zune MP3 player and Xbox 360 game system, Microsoft primarily benefits by Select one: a. spreading out production costs. b. satisfying the changing needs of the technological research staff. c. avoiding market saturation from products that have just been introduced to the market. d. keeping up in a market where sales come mostly from new products. e. creating diversification and reducing risk.
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e. creating diversification and reducing risk.
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Which of the following is NOT a stage in the product life cycle? Select one: a. evaluation b. decline c. growth d. introduction e. maturity
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a. evaluation
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The __________ diffusion of innovation group is the last large group of consumers to adopt a new product or service. Select one: a. innovator b. laggard c. late majority d. early majority e. early adopter
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c. late majority
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The pharmaceutical industry often justifies the high prices for new drugs by arguing that it researches as many as one hundred new compounds before it comes up with one __________, an extremely successful product that pays for the costs associated with the other attempts to develop new products. Select one: a. blockbuster b. pioneer c. first mover d. standout e. premium product
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a. blockbuster
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Early personal computers cost several thousand dollars, allowing competitors Select one: a. to spend less on introductory advertising. b. to promote alternative brands in that product category. c. to introduce lower-priced alternatives. d. to focus on making improved versions. e. to focus on creating demand for their brand.
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c. to introduce lower-priced alternatives.
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A major limitation in the use of internal R&D departments for new idea generation is that Select one: a. they tend to create too many blockbusters. b. few scientists have practical ideas. c. they tend to be dissolved once sufficient ideas have been generated. d. the costs tend to be quite high. e. few scientists have ideas.
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d. the costs tend to be quite high.
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Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation. Select one: a. licensing technology b. consumer research c. R&D d. geodemographic analysis e. brainstorming
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e. brainstorming
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Brian is trying to sell a new line of ultrasound imaging equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Brian is trying to identify innovators in his market, knowing these customers will Select one: a. spread positive word of mouth to other physicians. b. reposition his products. c. create demand among the late majority. d. not need any service or support when using the product. e. buy one for each office in their practices.
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a. spread positive word of mouth to other physicians.
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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. Select one: a. innovator b. laggard c. late majority d. early adopter e. early majority
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c. late majority
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In one test before product launch, customers try a sample product and are then surveyed to understand whether they would buy/use the product again. This is known as Select one: a. alpha testing. b. market testing. c. premarket testing. d. pre-launch testing. e. concept testing.
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c. premarket testing.
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When testing new products, most firms consider the question of whether testing products on animals Select one: a. should be done outside of the United States to avoid consumer backlash. b. should be done when the new product does not contribute to the health and well-being of human users. c. should be done with animal activists present. d. should be done only by companies large enough to be ethically responsible. e. should always be done in the animal's natural environment.
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b. should be done when the new product does not contribute to the health and well-being of human users.
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During the __________ stage of the product life cycle, there are few but an increasing number of competitors. Select one: a. introduction b. maturity c. growth d. decline e. innovation
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c. growth
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When Dr. Putt invented his Eye-Over-the-Ball (EOB) golf putting device, he knew during the introductory stage Select one: a. sales would level off, profits would decline, and mature golfers would be attracted to his product. b. sales would slow down, profits would peak, and early adopters of golf equipment would be his major customers. c. sales would be low, profits would be high, and all potential golfers would jump at the opportunity to buy his product. d. sales would be low and profits nonexistent, but he would attract golf equipment innovators. e. sales would rise quickly, profits would jump, and even laggards would buy his product.
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d. sales would be low and profits nonexistent, but he would attract golf equipment innovators.
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The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them. Select one: a. laggard b. innovator c. early majority d. early adopter e. late majority
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c. early majority
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If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of Select one: a. premarket tests. b. concept testing. c. beta testing. d. test marketing. e. market testing.
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c. beta testing.
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A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum failed during the __________ stage of new product development, when they are introduced to a limited geographical area. Select one: a. pretesting b. concept testing c. product development d. product launch e. test marketing
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e. test marketing
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Cathy has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's regenerist line. Olay is in the _________ stage of the product life cycle. Select one: a. growth b. evaluation c. decline d. maturity e. introduction
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d. maturity
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In many cases, pioneers lose their market lead and initial market share to imitators who Select one: a. utilize alpha-beta testing. b. capitalize on the pioneers' weaknesses. c. target late maturity consumers. d. ignore patents and copyrights. e. create similar products with reduced value to consumers.
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b. capitalize on the pioneers' weaknesses.
