Question 1

At what stage in the consumer adoption process do potential buyers begin to seek information about the product?

Accepted Answer

During the interest stage, potential buyers become aware of the product and start seeking more information about it. This is the phase where they show curiosity and look for details to understand how the product might meet their needs or solve their problems.

Question 2

Apex Corp. has been manufacturing furniture for past several years. Now in order to grow its business, the company has decided to manufacture curtains and bed sheets. What strategy is the company using to target new markets?

Accepted Answer

The answer of Apex Corp. has been manufacturing furniture for...

Question 3

Dali Stationery and Office Supplies is a market leader in China. The company wants to expand its business and is setting up retail chains in other Asian countries. Which new-product development strategy is being used by the company in the above scenario?

Accepted Answer

Market development strategy involves expanding into new markets or geographic areas, which Dali Stationery and Office Supplies is doing by setting up retail chains in other Asian countries outside of its existing market in China.

Question 4

Which action is NOT one of the stages of consumer adoption?

Accepted Answer

Providing feedback to the company via relationship marketing is not considered a stage of consumer adoption. The stages of consumer adoption typically include awareness, interest, evaluation, trial, and adoption. Relationship marketing and feedback mechanisms are strategies used by companies to enhance customer experience and loyalty after the adoption stage.

Question 5

What does the term "product positioning" refers to?

Accepted Answer

Product positioning refers to how consumers perceive a product in terms of its attributes, uses, quality, and its advantages and disadvantages compared to competing brands. It's about the place a product occupies in consumers' minds relative to competing products.

Question 6

What does the product development strategy of product positioning refer to?

Accepted Answer

Product positioning refers to how consumers perceive a product in terms of its attributes, uses, quality, and its advantages and disadvantages compared to other products in the market.

Question 7

Potential consumers experience a series of stages beginning with learning about a new product, trying it, and deciding whether or not to purchase it regularly. What are these series of stages known as?

Accepted Answer

The adoption process describes the stages through which potential consumers learn about a new product, try it, and decide whether to adopt it by making regular purchases.

Question 8

General Motors Automobiles acquired Hughes Aircraft Corporation, a firm that makes aircraft components and electronics. What product development strategy is this acquisition an example of?

Accepted Answer

This acquisition is an example of product diversification because General Motors, primarily an automobile manufacturer, is expanding its product line into a new category, namely aircraft components and electronics, which diversifies its business operations beyond its original market.

Question 9

What is the strategy that seeks to increase sales of existing products in existing markets called?

Accepted Answer

Market penetration is a strategy aimed at increasing sales of existing products to the current market segments without changing the product. This can involve various tactics such as price adjustments, increased marketing efforts, and sales promotions to boost product visibility and consumer demand.

Question 10

Welch's uses commercials promoting the health benefits of grape juice to target seniors and get them to purchase a product they had seldom consumed in the past. What new product development strategy is this an example of?

Accepted Answer

Market development strategy involves targeting a new market segment or demographic with an existing product, which is what Welch's is doing by promoting grape juice to seniors, a demographic that previously did not consume the product frequently.

Question 11

Which of the following is one of the five categories describing adopters of new products?

Accepted Answer

The five categories describing adopters of new products, as outlined in the Diffusion of Innovations theory by Everett Rogers, are innovators, early adopters, early majority, late majority, and laggards. "Early majority" is one of these categories, indicating those who adopt a new product or technology just before the average person.

Question 12

What is locating new markets for existing products called?

Accepted Answer

Market development is the strategy of finding new markets for existing products. This can involve targeting different geographical areas, demographic groups, or new applications for the product.

Question 13

A company introduced a new low-calorie version of one of its popular cold drinks. As a result, the sales of the original cold drink started decreasing because consumers preferred its low calorie version. What is this situation is known as?

Accepted Answer

This situation is known as cannibalization, where the sales of one product decrease due to the introduction of a new product by the same company, as consumers prefer the new product over the old one.

Question 14

In keeping with its corporate strategy of "building a global luxury accessories business," Ralph Lauren introduced a new line of footwear. In business terms, how would the actions of Ralph Lauren be described?

Accepted Answer

Ralph Lauren's introduction of a new line of footwear represents product development, as the company is expanding its product offerings within the existing market of luxury accessories.

Question 15

What is product cannibalization?

Accepted Answer

Product cannibalization refers to the decrease in sales volume, revenue, or market share of one product as a result of the introduction of a new product by the same producer. This typically happens when products are too similar and target the same customer base, leading to customers choosing one product over another within the same brand or product line, rather than capturing additional market share from competitors.

Question 16

​Who is a consumer innovator?

Accepted Answer

The answer of ​Who is a consumer innovator?
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Question 17

Responding to moviegoers' recently revived interest in the 3D format, Panasonic introduced the world's first 3D home entertainment system. What is the strategy used by Panasonic is an example of?

Accepted Answer

Panasonic's introduction of the world's first 3D home entertainment system in response to a revived interest in 3D movies is an example of product development. This strategy involves creating new products or significantly improving existing products to meet emerging or existing market demands.

Question 18

What is a strategy that concentrates on finding new markets for existing products called?

Accepted Answer

Market development is a growth strategy where a business seeks to find new groups of buyers as potential customers for its existing products and services. This can involve targeting different geographical areas, demographics, or new segments within a market.

Question 19

Which of the following is an example of a market penetration strategy for new product development?

Accepted Answer

Market penetration strategies involve efforts to increase market share for existing products or services in existing markets through greater marketing efforts, improvements in existing offerings, or other tactics that encourage higher usage or new applications. Morton Salt advertising a new use for an existing product (salt) to encourage more consumption or to attract new customers within the same market is an example of a market penetration strategy.

Question 20

​What is the introduction of brand new products into readily identifiable or established markets referred to as?

Accepted Answer

Product development strategy involves introducing new products into existing markets to attract more customers or meet the evolving needs of the current market.

Quiz 11: Developing and Managing Brand and Product Strategies