Question 1

Lead users are those buyers who want to be the first to have the new product or service.

Accepted Answer

The answer of Lead users are those buyers who want...

Question 2

Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services.

Accepted Answer

The answer of Although innovation strategies may not work in...

Question 3

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

Consumers are more likely to adopt new products that are compatible with their current behaviour, beliefs, and values. This means that products that are consistent with consumers' past behaviour have a higher chance of being accepted and diffused rapidly. For example, smartphones were quickly adopted because they were compatible with consumers' existing use of computers and the internet. On the other hand, products that require significant changes in behaviour or habits may face more resistance and slower adoption rates.

Question 4

When Glenn asked a few of his regular customers to test his prototype surfboard, he was engaging in alpha testing.

Accepted Answer

The answer of When Glenn asked a few of his...

Question 5

The stage in a product life cycle in which innovators are the main consumers is called the stage.

Accepted Answer

The introduction stage is when a product is first launched, and innovators, who are eager to try new products, are the primary consumers.

Question 6

Firms with single products are better able to withstand external shocks, including changes in consumer preferences or intensive competitive activity.

Accepted Answer

Firms with single products are actually more vulnerable to external shocks as they rely heavily on the performance of one product. Any changes in consumer preferences, competitive activity, or supply chain disruptions can have a significant impact on their revenue and profitability. Diversification of product offerings can help reduce this risk by spreading out the impact across multiple products.

Question 7

Firms can create and deliver value more effectively by adding new products to their offerings.

Accepted Answer

Adding new products can help firms meet diverse customer needs, tap into new markets, and differentiate themselves from competitors, thereby enhancing value creation and delivery.

Question 8

Innovators are often regarded as the opinion leaders for particular product categories.

Accepted Answer

The answer of Innovators are often regarded as the opinion...

Question 9

Innovators are crucial to the success of a new product because they help the product gain market acceptance.

Accepted Answer

Innovators are the first group of consumers to adopt a new product and their willingness to try and adopt new products is critical to the success of a new product in the market. As they share their positive experiences with others, it helps to gain market acceptance for the product.

Question 10

Dean Jones is the chief technology officer of a company that offers online education.Jones is interested in buying a new 3-D technology product but decides to wait until two versions of the product are released to be sure of its maturity.Jones belongs to the category of according to the diffusion of innovation theory.

Accepted Answer

Early majority buyers are those who adopt a new product after seeing it successfully used by early adopters, indicating that they wait for the product to mature and become more reliable before purchasing.

Question 11

Nancy is a professional photographer and has been looking to buy a new digital camera that improves picture quality.After extensive research about a new camera that was released into the market two weeks ago, she decides to buy it because she is convinced that it will produce the picture quality she has been looking for.This shows that Nancy belongs to the group of:

Accepted Answer

Nancy belongs to the group of early adopters because she decided to purchase a new camera shortly after its release, indicating she is willing to try new products before the majority of consumers.

Question 12

Who among the following can be regarded as a laggard according to the diffusion of innovation theory?

Accepted Answer

Emily can be regarded as a laggard because she continues to use outdated technology (cassette tapes) despite the availability of more advanced options (CDs and MP3s), which is characteristic of laggards in the diffusion of innovation theory.

Question 13

When the firm launched its product, it was no longer a new product, as it had to compete with two competitors in the market and hence the firm released the product with a variation.Because of this, the product would be in the stage of the product life cycle.

Accepted Answer

The answer of When the firm launched its product, it...

Question 14

A car manufacturing firm is experiencing a decline in sales for a model that it released during the 1990s.At this stage, the firm should focus all its marketing efforts toward:

Accepted Answer

Targeting brand loyalists can help maintain sales by focusing on customers who have a strong preference for the model, even as overall demand declines.

Question 15

Based on the graph, which of the following stages in a product's life cycle is characterized by increasing competitors and a rapid rise in industrial sales?

Accepted Answer

The growth stage is characterized by increasing competitors and a rapid rise in industrial sales.

Question 16

Until recently, Tina has been watching cable TV, even though 50 percent of the country has moved to satellite TV.Though she was aware of the benefits of satellite television, Tina did not make the move to adopt the new technology until after her friend explained that Tina could receive good benefits at low costs.Tina belongs to the category of buyers according to the diffusion of innovation theory.

Accepted Answer

Tina belongs to the "late majority" category because she adopted the new technology after a significant portion of the population had already done so, and she needed additional persuasion from her friend to make the switch.

Question 17

If a firm is facing intense competition on the prices of its product and in turn it is leading to a decrease in the firm's profit margins, then the product is said to be in the stage of its life cycle.

Accepted Answer

In the maturity stage, competition is intense, leading to price wars and reduced profit margins as firms try to maintain market share.

Question 18

Liquid paper correction fluid was developed by paying attention to lead users.

Accepted Answer

Liquid paper correction fluid was developed by paying attention to lead users, who are individuals who are highly knowledgeable about a product or service and are willing to provide feedback to the company.

Question 19

Disruptive products require a higher level of learning from consumers.

Accepted Answer

Disruptive products are often innovative and may require consumers to learn new ways of doing things, which can take time and effort. This makes the learning curve higher than for products that are more traditional and familiar.

Question 20

George is curious about the new tablet that will be released in the market in the next few days.Although he owns a similar product from a rival company, he is interested in the additional features that the new product offers and decides to buy it.Hence, George belongs to the category of:

Accepted Answer

Innovators are the first group of people to adopt a new product or technology. They are willing to take risks and are interested in new ideas and innovations, which aligns with George's behavior of buying a new product for its additional features despite already owning a similar one.

Quiz 8: Product, Branding, and Packaging Decisions