Mini Test 5

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One of the disadvantages of bringing a discontinuous innovation to market is?

You may have to spend a lot of effort helping customers understand the value of the new product.

The last group in the diffusion process, non-adopters, represent people who will never buy the new product. Why is it important to remember this group when dealing with new product introductions?

Because you need to take these people into account in order to understand the true market potential for your new product.

Bruce was writing test questions for his marketing class. It was getting very late in the afternoon and he was tired. So he went over to the student union looking for a snack. He noticed that he could buy ice cream for $3 including tip. He thought that he could save a lot of money if he had a refrigerator in his office. They are sort of expensive and take up space so he would probably have to do some looking. He went online and found a number of small refrigerators. Armed with the information about what should be available and what a good price would be, he stopped at three appliance stores before selecting a refrigerator for his office. In terms of product classification, a refrigerator is a(n) for Bruce?

Shopping good

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company typically first create a physical prototype of a new product?

Development

A ____________ is a style that has been adopted by a significant number of people for a reasonably long period of time?

Fashion

Each of the individual ____________ in a product line are frequently assigned a unique SKU number.

Product items

Common strategy to extend the life of a product in the maturity stage of the product life cycle is to ____________?

Introduce incremental innovations

What do we mean when we speak of the length of a product line?

The number of choices within a product category

The goal at the ______________ stage of the product life cycle is to build market share and differentiate the product.

Growth

According to diffusion theory, the first 2.5% of the population to adopt a product are called __________?

Innovators and exiting the market.

For new products that have a major benefit to the customer, but the benefit is not obvious by casual inspection, ____________ becomes an important factor in whether customers will adopt the new product?

Trialability

Companies frequently develop new products by combining two different technologies to come up with a product that represents a dynamically continuous innovation. This is known as _____________?

Convergence

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company be seeking input from customers, following up on complaints, listening to employees, analyzing market research and monitoring competitors?

Idea generation

In order to get an individual to adopt a new product the first thing you need to create is?

Awareness

One common strategy to extend the life of a product in the maturity stage of the product life cycle is to ____________?

Introduce incremental innovations

According to your instructor, the value of having a lot of offerings within a product line is?

Each product satisfies slightly different needs which allows you to target different market segments within the product category.

What do we mean when we speak of the length of a product line?

The number of choices within a product category

_____________ refers to the number of product lines in a company's product mix.

Breadth

The two components of quality are?

Benefits received, consistency.

According to the research discussed in class, what is the most important factor affecting the success rate of a new product introduction?

Insignificant point of difference.

What do we mean when we say that, from the consumer perspective, new products span a continuum from small, incremental changes to radically different products?

That 'newness' is hard to define and new could mean different things for different products.

According to your instructor, the value of having a broad product mix is?

It allows you to meet other needs of the customers in your target market, increasing the strength of the relationship with your target customers.

The _________________ is a concept that explains how products go through four distinct stages from birth to death.

Product life cycle.

According to your instructor, most consumer products are in the _____________ of the product life cycle?

Maturity

In the maturity stage of the product life cycle, profits can be increased by?

Reducing your costs.

Bruce was writing test questions for his marketing class. It was getting very late in the afternoon and he was tired. So he went over to the student union looking for a snack. He noticed that he could buy ice cream for $3 including tip. He thought that he could save a lot of money if he had a refrigerator in his office. They are sort of expensive, take up space, and last a long time, so he would probably have to do some looking. He went online and found a number of small refrigerators. Armed with the information about what should be available and what a good price would be, he stopped at three appliance stores before selecting a refrigerator for his office. In terms of product classification, a refrigerator is a(n) for Bruce?

Durable good.

_____________ looks at how new products are adopted by entire populations.

Diffusion theory

The biggest disadvantage to introducing a new product that represents a continuous innovation is that?

It is difficult to gain a sustainable competitive advantage with incremental changes.

______________ is the loss of sales from an existing product when a new product is introduced.

Cannibalization

Bruce Company is a small startup with just enough money in the bank to get it through the end of the month. Which market entry strategy might work best for Bruce Company?

First mover strategy, it is riskier and Bruce Company has little to lose if it doesn't work out.

The LOWER the ___________ the more likely people will be to adopt your new product?

Complexity

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company define the marketing strategy for and determine the projected income from a new product?

Business analysis

A continuous innovation is?

A continuous innovation is all of these things.

Which of the following statements about new product development is TRUE?

The vast majority of new products introduced to the market place fail.

One of the strategies during the decline stage of the product life cycle is to sell the product to another company or simply to stop producing the product. This strategy is called?

Exiting the market.

The augmented product on the layers of the product concept refers to:

The actual product along with other features such as a service guarantee and cool packaging that enhance the value of the core benefit delivered to the customer.

A dynamically continuous innovation is?

Somewhere in the middle of the new product continuum.

Demand for a ______________ is derived.

Business good

When it comes to carrying inventory in the fashion industry, which approach tends to be the most profitable.

Carry just enough inventory to meet anticipated demand. This will allow you to capitalize on the demand that has been created for the product without the expense of getting rid of excess inventory at a discount. That may hurt the brand's image.

The introductory stage pricing strategy that attempts to gain as much market share as possible, even though it may mean more time before the product becomes profitable is called?

Penetration pricing.

Bruce was writing test questions for his marketing class. It was getting very late in the afternoon and he was tired. So he went over to the student union and bought a big bowl of ice cream. In terms of product classification, ice cream could best be described as a(n) for Bruce?

non-durable good

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company identify feasible ideas and turn them into product concepts?

Screening and evaluation

The central level of the levels of the product concept consists of:

The core benefit that a consumer will get from the product.

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company typically determine the relative importance of new product development to the overall goals of the organization?

New-product strategy development

The goal at the ______________ stage of the product life cycle is to maintain market share and extend the life of the product.

Maturity

The goal at the ______________ stage of the product life cycle is to maximize profit without investing a lot of resources in the product.

Decline

The first step in using the levels of the product concept is to:

Determine what is the core benefit the consumer will receive from the product.

The actual product, in the levels of the product concept refers to:

The bundle of tangible and intangible attributes we normally think of as the product.

The goal at the ______________ stage of the product life cycle is to get people to try the product for the first time.

Introductory

When dealing with tangible products, consistency is usually measured in terms of?

Defects

The value of the levels of the product concept is that the actual product can be thought of as?

A way to deliver the core benefit to the consumer.

Bruce was writing test questions for his marketing class. It was getting very late in the afternoon and he was tired. So he went over to the student union looking for a snack. On his way he noticed someone had set up a table with information on cellular phones. As he tried to walk past the table, a salesperson stopped him and asked him if he would like to buy a cell phone for a very low introductory rate. In terms of product classification, a cell phone could best be described as a(n) for bruce?

Unsought product

Bruce was writing test questions for his marketing class. It was getting very late in the afternoon and he was tired. So he went over to the student union fro a bowl of ice cream. All they had was Dreyers Ice Cream and Bruce was really in the mood for Haagen Daz. So he walked over to Stonestown mall in order to get a bowl of Haagen Daz Ice Cream even though he really didn't have the time. In terms of product classification, Haagen Daz ice cream could best be described as a(n) for Bruce?

Specialty good

One of the strategies during the decline stage of the product life cycle is to stop spending money on advertising continue to sell the product as long as customers are willing to buy it. This strategy is called?

Milking the product

_____________ is an example of a product normally considered to be a production good in business?

Component parts

Bruce worked for the Ohio Table pad company. The table pad industry was created in the early 20th century and became very profitable in the post world war II economic boom. In recent years, the number of table pad manufacturers had declined and fewer customers were buying table pads because formal dining rooms were out of fashion and new protective finishes made the need for table pads less obvious to consumers. Table pads were in the ____________ stage of the product life cycle?

Decline

The product life cycle consists of two curves which show the expected _________ and ________ of a product over time.

Sales, profits.

A ____________ is a good, service or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other form of value.

Product

The ______________ is an important factor during the introductory stage of the product life cycle?

New product adoption process

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a identify feasible ideas and turn them into product concepts?

Screening and evaluation

Which of the following statements about the growth stage of the product life cycle is FALSE?

Increasing demand and decreasing competition lead to higher profits.

Bruce was writing test questions for his marketing class. It was getting very late in the afternoon and he was tired. So he went over to the student union looking for a snack. The first thing he saw was ice cream so he bought a big bowl of it. In terms of product classification, ice cream could best be described as a(n) for Bruce?

Convenience good

In class, your instructor presented research about businesses showing profit leaders generate 39% of sales from new products while profit laggards generate 23% of sales from new products. What was the point he was trying to make?

It is really important for businesses to develop new products.

A ___________ is a distinctive manner of dress or presentation?

Style

Discontinuous innovation is?

A discontinuous innovation is all of these things

Which of the following is NOT a characteristic of a product line?

Tend to be the same from company to company

______________ is the loss of sales from an existing product when a new product is introduced.

Cannibalization

Which of the following statements about the product life cycle is TRUE?

The product life cycle deals with aggregate demand over the lifetime of a product

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company introduce the new product into the company's overall product mix?

Commercialization

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