MARKETING CHAPTER 11 PITT

new-product strategy
a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
product development
a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products
brainstorming
the process of getting a group to think of unlimited ways to vary a product or solve a problem
screening
the first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason
concept test
a test to evaluate a new-product idea, usually before any prototype has been created
business analysis
the second stage of the screening process where the preliminary figures for demand, cost, sales, and profitability are calculated
development
the stage in the product development process in which a prototype is developed and a marketing strategy is outlined
simultaneous product development
a team-oriented approach to new-product development
test marketing
the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
simulated (laboratory) market testing
the presentation of advertising and other promotional materials for several products, including a test product, to members of the product’s target market
commercialization
the decision to market a product
innovation
a product perceived as new by a potential adopter
diffusion
the process by which the adoption of an innovation spreads
product life cycle (PLC)
a concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death)
product category
all brands that satisfy a particular type of need
introductory stage
the full-scale launch of a new product into a market place
growth stage
the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy
maturity stage
a period during which sales increase at a decreasing rate
decline stage
a long-run drop in sales
t/f A product must be a discontinuous innovation to be considered a “new” product.
false
There are six categories of new products, only one of which is new-to-the-world discontinuous innovative products.
t/f he development of 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.
false
line extensions are considered to be a type of new product
t/f Central Bark is a dog day care center. When you check your dog into a Central Bark you know your pooch will be pampered. Since kennels have been boarding dogs for years, the dog day care is not really a new product.
false
there are many types of new product ranging form new-to-the-world products to low-price products
t/f Very few firms follow a formal new-product development process.
false
most companies follow a formal new-product development process
t/f A firm’s new-product strategy links the new-product development process with the objectives of the marketing departments, the business unit, and the corporation.
true
t/f For a firm that adheres to the product concept, the logical place to start generating new-product ideas is with the customers of the firm.
false
firms adhering the marketing concept logically start generating new product ideas from customers
t/f The two techniques considered most useful for generating new-product ideas are customer-generation and competitive imitation.
false
the two techniques considered most useful for generating new-product ideas are brainstorming and focus group exercises
t/f Seven employees from a company are trying to come up with ideas for new-product development. The employees are all in a room together, shouting out potential ideas. The ideas are written down and evaluated as they are generated. This is an example of brainstorming
false
brainstorming doesn’t involve evaluation of ideas as they are generated; criticism of any kind is avoided
t/f Most new-product ideas are rejected at the idea generation stage
false
most are rejected at the idea screening stage
t/f It is considered inefficient to use concept tests during the idea screening stage of the new-product development process.
false
during the idea screening stage of the new-product development process, it is appropriate to use concept tests
t/f Concepts tests are considered fairly good predictors of success for line extensions and for products that do not require major changes in consumer behavior.
true
t/f Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game. This firm is engaged in a new-product business analysis
true
t/f Basically, all that happens in the development stage of the new-product process is that the first prototype of the product is developed.
false
not only is a prototype developed, where appropriate, but also preliminary decisions on every aspect of the four P’s are developed at this stage
t/f 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
false
a test market is not a laboratory test
t/f One benefit of test marketing is that the marketing activity is shielded from competitors.
false
test marketing may result in a serious problem if a firm’s competitors find out about the new product before it has been fully introduced
t/f The Internet offers a fast, cost-effective way to conduct test marketing.
true
t/f The most important factor in successful new-product introductions is a good match between product characteristics and market needs.
true
t/f Increasing globalization of markets and competition provides a reason for multinational firms to consider new-product development from a worldwide perspective
true
T./F adaptation is the process by which the adoption of an innovation spreads
false
this is the process referred to as diffusion
t/f consumers described as laggards tend to rely on group norms when deciding to adopt an innovation
false
laggards don’t rely on group norms, and their independence is rooted in their ties to tradition
t/f The Sumatra Coffee Company has two new products. One is a simple hand-cranked coffee grinder. The other is a combination grinder and brewer that also can be used to dispense hot milk. Of these two, the hand-cranked grinder will probably be diffused more quickly because it is less complex.
true
t/fProcter & 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.
true
t/f he product life cycle is a biological metaphor that traces the stages of a product’s acceptance, from its introduction (birth) to its decline (death).
true
t/f The growth stage is the first stage of the product life cycle
false
the introductory stage is the first stage
t/f Increasing competition, aggressive brand advertising, and healthy profits are all characteristics found in the introductory stage of the product life cycle.
false
this describes the growth stage
t/f profits typically reach their peak during growth stage of the product life cycle
true
t/f during the maturity stage of the product life cycle, marginal competitors start dropping out of the market
true
t/f many products may experience short-term fluctuations in sales, but a long-term drop in sales probably signifies that a product is in decline stage of the product life cycle
true
t/f the product life cycle concept encourages marketing managers to act reactively
false
the product life cycle concept encourages marketing managers to plan so that they can take the initiative instead of reacting to past events
New products are important to a company for all the following reasons EXCEPT:
a.
increased revenues
b.
immediate profits
c.
sustained growth
d.
replacement of obsolete items
e.
increased profits
B
ew-to-the-world products, where the product category itself is new, are also called:
a.
discontinuous innovations
b.
moderate innovations
c.
slow-diffusing products
d.
venture products
e.
creative offerings
A
Sony has developed a wireless speaker that sits unobtrusively on a desktop. The tiny yet strong twin speakers use Bluetooth to stream music directly from a PC or MP3 player. This small Sony wireless speaker, which is radically different from anything currently on the market, would be classified as a(n):
a.
discontinuous innovation
b.
slow-diffusing product
c.
episodic innovation
d.
venture product
e.
sporadic innovation
A
Which of the following would be considered a new product?
a.
A new product line
b.
A new-to-the-world product
c.
An addition to an existing product line
d.
An improvement or revision of an existing product
e.
All of these choices
E
Marketers consider all of the following examples of new products EXCEPT:
a.
a 2010 model year automobile with the same style, parts, and color as the 2009 model
b.
the addition of a management consultant service to a company that once specialized in investment management
c.
a new design for Reach brand toothbrushes
d.
a new flavor of Ben & Jerry’s brand ice cream
e.
the development of a less-painful procedure for the treatment of varicose veins
A
When Glade began marketing a clean linen-scented air spray, this represented which new product category?
a.
Repositioning strategy
b.
New product line
c.
Addition to existing product line
d.
Discontinuous innovation
e.
Revision of existing products
C
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?
a.
Discontinuous innovation
b.
New to market
c.
New product line
d.
Lower priced
e.
Addition to existing product line
E
For years, Diet Dr. Pepper has been considered a diet drink. After declining sales, the company is attempting to present Diet Dr. Pepper as an alternative to having a dessert. This is an example of a _____ strategy.
a.
discontinuous innovation
b.
niche
c.
new-product-line
d.
retargeting
e.
repositioning
E
When Apple, Inc. recently introduced the new version of its iPhone 3G, it was twice as fast and cost half the price of the original iPhone. Since it was not trying to reach a new target market, Apple was using which new product strategy?
a.
Improved product
b.
Addition to existing product line
c.
Discontinuous innovation
d.
Repositioned product
e.
New product line
A
When Procter & Gamble wanted to enter the hair-care market, it purchased Wella, a leading German company specializing in hair-care products. What new product category does this acquisition represent for P&G?
a.
Repositioning strategy
b.
New product line
c.
Addition to existing product line
d.
Discontinuous innovation
e.
Revision of existing products
B
Oakley, a manufacturer of protective eyewear for various kinds of sports, has introduced sunglasses that play music. The glasses weigh just a few ounces and can hold up to 120 songs. These sunglasses would be an example of a(n):
a.
repositioning strategy
b.
new product line
c.
addition to existing product line
d.
discontinuous innovation
e.
revision of existing products
C
Victorinex has long manufactured Swiss Army knives and developed a line of upscale Swiss Army watches. The Swiss Army brand gave the company credibility over other watch manufacturers and allowed the company to continue targeting sports-minded males between the ages of 18 and 35 years. Victorinex used which strategy to create new products?
a.
New-to-the-world product
b.
New product line
c.
Repositioned product
d.
Addition to a current product line
e.
Discontinuous innovation
B
_____ 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.
a.
Brainstorming
b.
Diffusing
c.
Repositioning
d.
Screening
e.
Reciprocit
C
Companies that are most likely to succeed in the development and introduction of new products typically are characterized by all of the following EXCEPT:
a.
establish an environment conducive to achieving new-product objectives
b.
make the long-term commitment needed to support innovation and new-product development
c.
capitalize on experience to achieve and maintain competitive advantage
d.
use a company-specific approach, driven by corporate objectives and strategies, with a well-defined new-product strategy at its core
e.
introduce ten new products every year
E
A(n) _____ links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.
a.
product-review committee
b.
concept test
c.
episodic innovation
d.
new-product strategy
e.
product strategy bridge
D
The first stage of the new-product development process is:
a.
screening and concept testing
b.
establishing the new-product strategy
c.
exploring opportunities
d.
developing a business analysis
e.
the building of a prototype
B
A new-product strategy:
a.
links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
b.
is part of an organization’s overall marketing strategy
c.
specifies the roles new products play in the organization’s overall plans
d.
describes the characteristics of products the organization wants to offer and the markets it wants to serve
e.
is accurately described by all of these
E
Which of the following is the LEAST likely source for new-product ideas?
a.
A company’s distributors
b.
Its customers
c.
Its employees
d.
Its financial lenders
e.
Its competitors
d
A manufacturer of office furnishings is finding it difficult to compete with cheaper imported merchandise. Which of the following is a potential source of new-product ideas that would allow it to compete more effectively?
a.
Current retailers who carry the manufacturer’s equipment
b.
Its foreign competitors
c.
The company’s employees
d.
Customers who have requested its catalogs
e.
All of these
E
The process of converting applications for new technologies into marketable products is called:
a.
basic research
b.
product modification
c.
marketing development
d.
product development
e.
correlation analysis
D
_____ 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.
a.
New-product brain dumping
b.
Screening
c.
A focus group interview
d.
Brainstorming
e.
Diffusion
D
Mosaic Labs has developed a chemical compound that prevents mildew in even the most humid climates. The week after the compound was invented, a group of the firm’s employees got together and listed ways the product might be used. This is an example of:
a.
focusing grouping
b.
brainstorming
c.
concept testing
d.
venture group activities
e.
screening
B
The same manufacturer produces Hanes, Playtex, and Bali clothing for women. This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new-product ideas, such as jewelry, wide shoes, and belts. The manufacturer used a research technique called a:
a.
focus group
b.
brainstorming session
c.
buying center
d.
product-review committee
e.
venture team
A
Which of the following stages of the new-product development process is the first filter, which serves to eliminate new-product ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason?
a.
Applied diffusion
b.
Introductory diffusion
c.
Business analysis
d.
Test marketing
e.
Idea screening
E
At what stage of the new-product development process are most new-product ideas rejected?
a.
Test marketing
b.
Diffusion
c.
Business analysis
d.
Idea screening
e.
Idea generation
D
After the research team at Nabisco had generated more than two dozen new-product ideas for a substitute for partially hydrogenated oils that tastes the same but has zero trans fat, the company formed a committee to analyze whether the product ideas were consistent with the organization’s new-product strategy. This is called:
a.
business analysis
b.
diffusion
c.
idea screening
d.
test marketing
e.
idea generation
C
Top managers at a commercial real estate firm that specializes in site location and installation of cell phone towers considered providing the same service for windmill location and installation but decided this was not within the company’s corporate mission. Which stage of the new-product development process was reached?
a.
Development
b.
Idea generation
c.
Idea screening
d.
Business analysis
e.
Customer testing
C
A European dairy that is famous for its rich ice creams has introduced basil-, tomato-, fennel-, and oregano-flavored ice creams. In the process of developing these new flavors, the dairy surveyed world-famous chefs to determine which nontraditional flavors had the greatest level of marketability. This survey would have happened during which stage of the product development process?
a.
Concept testing
b.
Brainstorming
c.
Basic research
d.
Idea screening
e.
Applied research
D
The screening and concept testing stage of the new-product development process is used to:
a.
eliminate undesirable ideas and predict consumer acceptance
b.
refine the promotion campaign to be used with the new product
c.
determine the potential profits to be gained from the new product
d.
determine how long the test market should be run
e.
generate new-product ideas
A
____ evaluate new-product ideas usually before any prototype has been created.
a.
Concept tests
b.
Simulated market tests
c.
Market tests
d.
User tests
e.
Venture analyses
A
After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created, the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers. The consumer group was asked to evaluate the ideas in terms of their marketability. This stage of new-product development is called:
a.
prototype screening
b.
concept testing
c.
market testing
d.
idea manipulation
e.
idea diffusing
B
In the _____ stage of new-product development, preliminary demand, cost, sales, and profitability estimates are made.
a.
prototype screening
b.
idea generation
c.
concept testing
d.
post-brainstorming
e.
business analysis
E
Middleton has developed the Flybar 1200, an extreme pogo stick that propels users more than five feet into the air. During the _____ stage of its new-product development process, a group was assigned the task of estimating preliminary demand for the product, costs (including issues with liability), sales, and future profitability.
a.
business analysis
b.
idea generation
c.
concept testing
d.
screening
e.
test marketing
A
n the _____ stage of new-product development, the technical feasibility of manufacturing the new product is examined as a prototype is produced.
a.
screening
b.
development
c.
market testing
d.
concept testing
e.
business analysis
B
A team-oriented approach to new-product development is referred to as:
a.
simultaneous product development
b.
synergistic product development
c.
commercialized product development
d.
synchronized product development
e.
parallel product development
A
Which of the following statements about simultaneous product development is true?
a.
Simultaneous product development refers to the practice of developing multiple new products at the same time.
b.
With simultaneous product development, all relevant functional areas and outside suppliers participate in all stages of the development process.
c.
All departments within the company work together at the same time, but to maintain a high level of secrecy, no one outside the company is involved in simultaneous product development.
d.
Simultaneous product development actually increases the length of time it takes to get a product to market and the time the product will stay in the growth stage of its product life cycle.
e.
All of these statements about simultaneous product development are true.
B
_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
a.
Use testing
b.
Test marketing
c.
Concept testing
d.
Laboratory testing
e.
Discontinuous innovation
B
When selecting a test market city, a researcher should look for a city:
a.
where the demographics and purchasing habits mirror the overall market for the product
b.
that has media spillover from other cities to increase media alternatives
c.
that is as large as possible
d.
that has limited distribution
e.
where there is no competition
A
A(n) _____ typically entails showing members of the product’s target market advertising and other promotional materials for several products, including the test product. These people are then taken to a mock or real store, where their purchases are recorded.
a.
adoption-rate test
b.
real test market
c.
concept test
d.
simulated (laboratory) market test
e.
consumer juried test
D
The maker of Purell hand sanitizer tested consumers’ reactions to its Purell Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads, make out a grocery list, and then “shop” in a mock store filled with real products, including the new product. This is an example of a(n):
a.
adoption-rate test
b.
simulated (laboratory) market test
c.
concept test
d.
use test
e.
juried consumer test
B
Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?
a.
Product sampling
b.
Simulated product adoption
c.
Online test marketing
d.
Simulated diffusion
e.
Market concentration
C
The final stage in the new-product development process is:
a.
product testing
b.
market testing
c.
commercialization
d.
product prototyping
e.
simulated marketing
C
During the _____ stage of the new-product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin.
a.
commercialization
b.
product testing
c.
market analysis
d.
product prototyping
e.
simulated marketing
A
Firms that routinely experience success in new-product introduction tend to have:
a.
strong leadership
b.
a history of a sales orientation
c.
an obsession with quantity rather than quality
d.
an unwillingness to fail
e.
all of the choices
A
The main goal of the global product development process is to:
a.
come up with a single standard product or product line suitable for all global markets
b.
expand the number of different new-product offerings so that individual country needs are more likely to be met
c.
develop every product for potential worldwide distribution and adaptation to other countries
d.
come up with new-product ideas in the United States and use global markets as test markets
e.
repeat the steps in the process with marketing teams in each and every foreign country targeted
C
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 called a(n):
a.
innovation
b.
diffusion
c.
discontinuous product
d.
laggard
e.
simulated new product
A
Because Laurence did not know companies actually sold pet insurance so that owners could pay for operations on their pets in the event of a sickness or accident, he paid almost $4,000 to have his dog’s broken hip replaced. Once he discovered such a product existed, he perceived the insurance to be a(n):
a.
heterogeneous shopping product
b.
diffusion
c.
market laggard
d.
product diversification
e.
innovation
E
The process by which the adoption of an innovation spreads is referred to as:
a.
diffusion
b.
circulation
c.
transmission
d.
dissemination
e.
dispersion
A
The process by which the adoption of 3D HD televisions spreads is an example of:
a.
test marketing
b.
diffusion
c.
product dissemination
d.
innovative dispersal
e.
marketing communication
B
_____ are eager to try new ideas and products. They typically have higher incomes, are better educated, and are more cosmopolitan than other categories of adopters.
a.
Early adopters
b.
Innovators
c.
Early majority
d.
Late majority
e.
Laggards
B
Mitch purchased a 32-inch HD television right after they were introduced in the marketplace and paid over $8,000 for it. He has a master’s degree in business and is well-informed about electronic products. He is venturesome and is always looking for new products to try. Mitch is best described as a(n):
a.
early adopter
b.
early majority
c.
innovator
d.
diffusers
e.
lead consumer
C
_____ embrace products relatively early in the product life cycle, are likely to be community oriented, and often are opinion leaders themselves.
a.
Early adopters
b.
Innovators
c.
Early majority
d.
Late majority
e.
Laggards
A
Jim didn’t buy a netbook computer when they first came out, but he did purchase one a year after they were introduced to the market. He is very active in his church and local arts council, and many of his friends asked him which brand to buy when they were considering purchasing a netbook. Jim is best described as a(n):
a.
innovator
b.
early adopter
c.
early majority
d.
leading consumer
e.
proactive
B
All of the following statements about how adopters participate in the diffusion process are true EXCEPT:
a.
early adopters may also be opinion leaders
b.
laggards are the last consumers to adopt a new product
c.
there are three categories of consumers who will adopt an innovation
d.
the dominant characteristic of members of the late majority is skepticism
e.
innovators are the first to purchase a new product
C
All of the following are categories of adopters in the diffusion process of innovations EXCEPT:
a.
laggards
b.
innovators
c.
early majority
d.
early adopters
e.
doubters
E
A company has learned that members of its target market are likely to collect more information and evaluate more brands than early adopters. They are cautious and thoughtful and do not try the product without asking someone else. The customers’ dominant characteristic is deliberateness. In terms of the diffusion process, these customers are most likely:
a.
innovators
b.
early minority
c.
laggards
d.
early majority
e.
late majority
D
Liz tends to adopt new products sooner than a lot of other people, but she weighs the pros and cons before buying. She does considerable product research, but her friends don’t really look to her for information. She really deliberates before she makes a purchase. Liz is best described as a(n):
a.
innovator
b.
early adopter
c.
early majority
d.
late majority
e.
laggard
C
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.
a.
laggards
b.
early adopters
c.
early majority
d.
innovators
e.
late majority
E
Which category of adopters adopt a new product because most of their friends have already adopted it?
a.
Innovators
b.
Early majority
c.
Early adopters
d.
Laggards
e.
Late majority
E
Leon is not very quick to purchase innovative products when they come out, but after a while he breaks down and buys if after most of his friends have bought it. He gets most of his information from them when he decides to buy something. He is very skeptical of marketing, so he trusts his friends more than anything. Leon is best described as a(n):
a.
innovator
b.
early adopter
c.
early majority
d.
late majority
e.
laggard
D
Among the late majority group, adoption of a product primarily results from:
a.
word-of-mouth communications
b.
print advertising
c.
advertising in nontraditional media
d.
broadcast advertising
e.
sales promotions
A
In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are bound to tradition. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. They are called:
a.
generics
b.
late majority
c.
decliners
d.
laggards
e.
late diffusers
D
Which is the last adopter category to adopt an innovation?
a.
Late majority
b.
Laggards
c.
Late diffusers
d.
Reluctant adopters
e.
Traditionalists
B
All of the following are product characteristics influencing the rate of adoption EXCEPT:
a.
complexity
b.
compatibility
c.
relative advantage
d.
observability
e.
distribution
E
Which product factor influencing the rate of adoption represents the degree of difficulty involved in understanding and using a new product?
a.
Complexity
b.
Compatibility
c.
Relative advantage
d.
Observability
e.
Trialability
A
Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently introduced Oakley’s Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs. Which of the following product characteristics would likely exert the greatest influence on the market success of these new glasses?
a.
Compatibility
b.
Comparability
c.
Complexity
d.
Tangibility
C
Which product characteristic affecting the rate of adoption represents the degree to which the new product is consistent with existing values and product knowledge, past experiences, and current needs?
a.
Complexity
b.
Compatibility
c.
Relative advantage
d.
Observability
e.
Trialability
B
A European dairy that is famous for its rich ice creams has introduced basil-, tomato-, fennel-, and oregano-flavored ice creams. Which of the following product characteristics would most likely influence the market success of these new flavors?
a.
Compatibility
b.
Comparability
c.
Complexity
d.
Tangibility
e.
Competitive advantage
A
When the Segway Human Transporter was introduced in 2002, many people expected the product to be a phenomenal success. While the Segway is still on the market, it has never been the success so many expected. A recent Wall Street Journal article suggested that the Segway, while brilliant technologically, seemed impractical to most people since it could not be used to replace their current method of transportation. In other words, the Segway had problems with:
a.
compatibility
b.
relative advantage
c.
observability
d.
trialability
e.
longevity
A
Many product failures such as Cucumber antiperspirant spray, Toaster Eggs, and Health-Sea sea-sausages most likely did not succeed because they did not conform to the product characteristic of:
a.
complexity
b.
trialability
c.
total advantage
d.
observability
e.
compatibility
E
The product characteristic affecting the rate of adoption characterized by the degree to which a product is perceived as superior to existing substitutes is:
a.
compatibility
b.
complexity
c.
relative advantage
d.
product differentiation
e.
competitive advantage
C
Biopure Corp. is developing a human blood substitute called Hemopure. Unlike donated human blood that needs to be refrigerated and expires after a short period of time, Hemopure is shelf stable and can be stored for two years or more. Also, it does not need to be matched to a person’s blood type. These factors make it well-suited for trauma cases where blood must be transfused at an accident site or on the battlefield. Which product characteristic influencing the rate of adoption does this represent?
a.
Complexity
b.
Compatibility
c.
Relative advantage
d.
Observability
e.
Trialability
C
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?
a.
Observability
b.
Diffusion
c.
Adoption
d.
Trialability
e.
Complexity
A
Razor scooters gained instant popularity because walkers and runners frequently saw people on the scooters zipping by them and having fun. This information suggests the adoption rate of the Razor scooter was most affected by which product characteristic?
a.
Complexity
b.
Trialability
c.
Relative advantage
d.
Observability
e.
Compatibility
D
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.
a.
relative advantage
b.
observability
c.
trialability
d.
complexity
e.
compatibility
B
The degree to which a product can be used on a limited basis represents which product characteristic influencing the rate of adoption?
a.
Complexity
b.
Trialability
c.
Observability
d.
Relative advantage
e.
Sampling
B
Which of the following products has the lowest level of trialability?
a.
An Internet chat room
b.
Low-fat ice cream
c.
Surgically implanted hearing aids
d.
Organic pet food
e.
A new air freshener
C
When Coca-Cola North American debuted Gold Peak iced tea, a spokesperson for the company said, “In looking at the ready-to-drink tea market, we found that the one place that nobody seemed to be playing was in the category of classic iced teas like mother used to make. Gold Peak is a quality product that brings back that classic taste. We’re going to do a lot of sampling with this product because we believe that if people try it, they’re going to love it and stick with it.” In other words, its adoption rate will rely on its:
a.
compatibility
b.
comparability
c.
complexity
d.
trialability
e.
competitive advantage
D
A biological metaphor that traces the stages of a product’s acceptance, from its introduction (birth) to its decline (death) is called the:
a.
product diffusion process
b.
product phase
c.
product adoption stages
d.
product evolution cycle
e.
product life cycle
E
The stages of the product life cycle, in order, are:
a.
introduction, maturity, decline
b.
introduction, growth, maturity, decline
c.
growth, maturity, plateau, decline
d.
innovation, early adoption, late adoption, laggard
e.
category acceptance, category growth, brand acceptance, brand growth
B
All the brands that satisfy a particular type of need such as shaving products, laundry detergent, soft drinks, and furniture make up a(n):
a.
product life cycle stage
b.
primary group
c.
adopter category
d.
product category
e.
reference group
D
Patio furniture, lighting fixtures, microwave ovens, canned corn, and athletic shoes are examples of:
a.
PLC line items
b.
line-extendable categories
c.
brand classes
d.
brand groupings
e.
product categories
E
A brand of iced tea called Gold Peak has high marketing costs as well as high production costs. Promotions for the product are aimed at gaining distribution and informing consumers that this premium product tastes like its home brewed. In which stage of the product life cycle is Gold Peak iced tea?
a.
Introductory
b.
Growth
c.
Maturity
d.
Decline
e.
Saturation
A
The length of the introductory stage of the product life cycle for a new product is largely determined by:
a.
the size of the product
b.
the product’s marketing mix
c.
the efficiency of the test marketing
d.
product characteristics, such as advantages over substitute products
e.
the size of the market
D
The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage.
a.
growth
b.
decline
c.
introductory
d.
maturity
e.
commercialization
A
During the growth stage of the product life cycle:
a.
there is little emphasis on the distribution strategy
b.
demand for the product is limited to high-income consumers
c.
prices increase due to economies of scale
d.
there is decreased direct competition
e.
profits peak
E
At the beginning of the maturity stage of the product life cycle, sales typically:
a.
become flat and do not change
b.
increase at an increasing rate
c.
decrease at a decreasing rate
d.
decrease at an increasing rate
e.
increase at a decreasing rate
E
Normally, the longest stage of the product life cycle is the _____ stage.
a.
maturity
b.
growth
c.
introductory
d.
decline
e.
development
A
In which stage of the product life cycle do marginal competitors start dropping out of the market?
a.
Introduction
b.
Growth
c.
Maturity
d.
Decline
e.
Shake-out
C
BFGoodrich has been manufacturing and marketing automotive tires for over one hundred years. It spends much of its marketing budget on short-term promotions aimed at stealing market share from Goodyear, Dunlop, and other tire manufacturers. From this information, you should know that tires are in the _____ stage of their product life cycle.
a.
maturity
b.
growth
c.
saturation
d.
decline
e.
development
A
A long-run drop in sales signals the beginning of which stage in the product life cycle?
a.
Laggard
b.
Saturation
c.
Deterioration
d.
Decline
e.
Decay
D
Which of the following products is most likely to be in the decline stage of its product life cycle?
a.
Cookie mixes
b.
Wireless mobile phones
c.
Programmable CD-ROMs
d.
Funeral caskets
e.
Prerecorded audiocassette tapes
E
The rate of sales decline during the decline stage of the product life cycle is largely governed by:
a.
the amount of money spent on advertising
b.
the number of competitors in the market
c.
the intensity of the competition’s marketing efforts
d.
the amount of shelf space allotted to the product
e.
how rapidly consumer tastes change or substitute products are adopted
E
You are a product manager for a manufacturer of trampolines. You have determined that the trampoline is in the maturity stage of the product life cycle. To keep your product from entering the decline stage, you should:
a.
use promotion to increase primary demand for trampolines
b.
abandon peripheral target markets for trampolines
c.
raise the price of your trampolines because customers are not price sensitive in this stage
d.
eliminate all unnecessary marketing expense
e.
promote trampolines heavily to dealers and customers
E
Which of the following statements about the product life cycle (PLC) is true?
a.
The PLC concept encourages marketing managers to think reactively.
b.
Marketers do not yet understand the relationship between the adopter categories and the stages of the PLC.
c.
There are as many new buyers in the maturity stage of the PLC as in the growth stage.
d.
The PLC is especially useful as a predicting tool.
e.
Just as there are five adopter categories, there are five PLC stages.
D