Question 1

The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use.
-Refer to Fitbit.The fact that Fitbit can monitor motion while awake and asleep makes it different from competing products that might increase its rate of adoption.Which product characteristic affecting the rate of adoption does this illustrate?
A) complexity
B) compatibility
C) relative advantage
D) observability
E) trialability

Accepted Answer

Fitbit has a relative advantage over the Nike + iPod and the Zeo devices because it monitors what both of them do separately.

Question 2

Going to the Dogs
Demand for pet services is greatly increasing across the United States. In fact,Americans will spend nearly $44 billion dollars on their pets this year.Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion.Daycare services for dogs now include toy rooms,outside play areas,doggie massages,treadmills,swimming pools and cushy beds for nap time.Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,depending on the amenities that the pet owner chooses.
-Refer to Going to the Dogs.One challenge to adoption of the dog daycare is the fact that dog owners are used to paying a somewhat minimal fee for boarding their dog in a kennel,while a daycare center may demand many times as much for the same time span.This suggests the _____ of the new product may affect the rate of diffusion.
A) compatibility
B) complexity
C) relative advantage
D) observability
E) trialability

Accepted Answer

Compatibility refers to the degree to which the new product is consistent with existing values and product knowledge.

Question 3

The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use.
-Refer to Fitbit.The idea for the Fitbit was generated from an employee retreat in which everyone was encouraged to think of unlimited product ideas for the fitness-minded consumer.Participants did not critique any of the ideas as the goal at that point was just to generate ideas.What idea-generating technique does this illustrate?
A) Brainstorming
B) Brain dumping
C) Snowball sampling
D) Laddering
E) Entropy

Accepted Answer

The goal of brainstorming is to get a group to think of unlimited ways to vary a product or solve a problem,and members avoid criticism of an idea no matter how ridiculous it may seem.

Question 4

Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century."
-Refer to Rapala.The degree to which the newest lures are perceived as superior to earlier models refers to their _____,a characteristic used to predict the rate of adoption.
A) trialability
B) observability
C) relative advantage
D) differentiation capability
E) complexity

Accepted Answer

Relative advantage is the degree to which a product is perceived as superior to existing substitutes.

Question 5

Going to the Dogs
Demand for pet services is greatly increasing across the United States. In fact,Americans will spend nearly $44 billion dollars on their pets this year.Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion.Daycare services for dogs now include toy rooms,outside play areas,doggie massages,treadmills,swimming pools and cushy beds for nap time.Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,depending on the amenities that the pet owner chooses.
-Refer to Going to the Dogs.Central Bark Doggie Day Care currently has 31 locations,with a new Gainesville,FL location coming soon.With the opening of competition in the form of Camp Bow Wow and others,it appears that the dog daycare product is moving into the _____ stage of the product life cycle.
A) commercialization
B) introductory
C) growth
D) maturity
E) decline

Accepted Answer

A competitor entering the market is an indicator of the growth stage in the PLC.

Question 6

Going to the Dogs
Demand for pet services is greatly increasing across the United States. In fact,Americans will spend nearly $44 billion dollars on their pets this year.Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion.Daycare services for dogs now include toy rooms,outside play areas,doggie massages,treadmills,swimming pools and cushy beds for nap time.Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,depending on the amenities that the pet owner chooses.
-Refer to Going to the Dogs.The doggy daycare center is more like a dog resort than a dog kennel.A dog daycare represents what type of new product?
A) Competitive innovation
B) Discontinuous innovation
C) New product lines
D) Revision to an existing product
E) Higher-priced product

Accepted Answer

The dog daycare is an improvement on the standard dog-boarding kennel and,as such,is a revision of an existing product.

Question 7

The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use.
-Refer to Fitbit.The company marketing the Fitbit does not currently market a product like this.Which of the following best represents the category of new product the Fitbit is for this company?
A) New-to-the-world product
B) New product line
C) Additions to existing product lines
D) Repositioned product
E) Incremental product

Accepted Answer

The category of new product lines represent products which the firm has not previously offered.

Question 8

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.

Accepted Answer

The PLC concept encourages marketing managers to think proactively.

Question 9

Going to the Dogs
Demand for pet services is greatly increasing across the United States. In fact,Americans will spend nearly $44 billion dollars on their pets this year.Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion.Daycare services for dogs now include toy rooms,outside play areas,doggie massages,treadmills,swimming pools and cushy beds for nap time.Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,depending on the amenities that the pet owner chooses.
-Refer to Going to the Dogs.Before opening the It's a Dog's Life doggy resort the potential company owners projected the costs involved in providing the services the target market (dog owners)appears to desire.Unfortunately,a decision was made to not proceed with the doggy resort as the owners felt the cost to provide the services was too high considering the rates the target market would be willing to pay.The would be an example of:
A) idea screening
B) concept testing
C) business analysis
D) commercialization
E) test marketing

Accepted Answer

In the business analysis stage preliminary figures for demand,cost,sales,and profitability are calculated

Question 10

The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use.
-Refer to Fitbit.In terms of the new-product development process,Fitbit's availability in retail stores and online is the _____ stage.
A) idea screening
B) idea generation
C) business analysis
D) test marketing
E) commercialization

Accepted Answer

The final stage in the new-product development process is commercialization,the decision to market the product.

Question 11

Going to the Dogs
Demand for pet services is greatly increasing across the United States. In fact,Americans will spend nearly $44 billion dollars on their pets this year.Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion.Daycare services for dogs now include toy rooms,outside play areas,doggie massages,treadmills,swimming pools and cushy beds for nap time.Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,depending on the amenities that the pet owner chooses.
-Refer to Going to the Dogs.For many dog owners it may be hard to understand the difference between a traditional kennel and a dog daycare,especially given the price differential.As a result,dog daycares may offer special low rates for first-time users in an effort to reduce which of the following issues concerning the rate of diffusion:
A) compatibility
B) complexity
C) observability
D) innovativeness
E) relative advantage

Accepted Answer

By lowering the price for first-time users,the dog daycare will make it easier for dog owners to try the facility and experience its benefits.

Question 12

The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use.
-Refer to Fitbit.The process by which the adoption of this innovative product spreads is called the:
A) diffusion process
B) product life cycle
C) consumption process
D) viral process
E) two-stage process

Accepted Answer

The diffusion process is the process by which the adoption of an innovation spreads.

Question 13

Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century."
-Refer to Rapala.Because buyers of fishing lures want to have the newest,most technologically improved lure,most of Rapala's customers would more than likely fall into the _____ category of adopters.
A) laggards
B) prompt diffusers
C) early adopters
D) innovators
E) early majority

Accepted Answer

Innovators are the first 2.5 percent of all those who adopt the product.

Question 14

Going to the Dogs
Demand for pet services is greatly increasing across the United States. In fact,Americans will spend nearly $44 billion dollars on their pets this year.Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion.Daycare services for dogs now include toy rooms,outside play areas,doggie massages,treadmills,swimming pools and cushy beds for nap time.Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,depending on the amenities that the pet owner chooses.
-Refer to Going to the Dogs.Laura felt a little bad about leaving her dog,Toby,at home all day while she was at work.She remarked to a coworker one day about her concerns and was surprised when the coworker told her about the local "doggy daycare" business,which she had never heard of before.Because Laura did not know such a service existed,"doggy daycare" represented a(n)_____ to her.
A) heterogeneous shopping product
B) diffusion
C) market laggard
D) product diversification
E) innovation

Accepted Answer

An innovation is a roduct perceived as new by a potential adopter.

Question 15

Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century."
-Refer to Rapala.Fishing lures are most likely in the _____ stage of their product life cycle.
A) saturation
B) maturity
C) growth
D) innovation
E) decline

Accepted Answer

One of the characteristics of products in the maturity stage is the addition of annual models.

Question 16

Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century."
-Refer to Rapala.After the trade show,the newest lure made by Rapala will enter which stage of the new-product development process?
A) Commercialization
B) Idea generation
C) Idea screening
D) Concept testing
E) Product development

Accepted Answer

The final stage of the new-product development process is commercialization,the decision to market a product.

Question 17

Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century."
-Refer to Rapala.The "dream lure for the 21ˢᵗ century will more than likely be an example of a(n):
A) new product line
B) addition to existing product line
C) discontinuous innovation
D) improvement to existing product
E) repositioned product

Accepted Answer

The firm makes lures and is simply adding a new one to its product mix.

Question 18

The marketing manager for a company that manufactures pet foods wants to base the marketing strategy she implements for the company's products on the product life cycle stages.In order to do this,she should:
A) add new ingredients to products that enter the maturity stage of the product life cycle
B) start test marketing new products every time an existing product enters the maturity stage of its product life cycle
C) change all private brands to generic brands once a product reaches the maturity stage
D) create a line extension for every product the company makes as soon the product leaves the introductory stage of its product life cycle
E) change the labels on its products as they change stages of the life cycle

Accepted Answer

Adding new ingredients to products in the maturity stage can help differentiate them from competitors and rejuvenate interest, potentially extending their life cycle.

Question 19

Going to the Dogs
Demand for pet services is greatly increasing across the United States. In fact,Americans will spend nearly $44 billion dollars on their pets this year.Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion.Daycare services for dogs now include toy rooms,outside play areas,doggie massages,treadmills,swimming pools and cushy beds for nap time.Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,depending on the amenities that the pet owner chooses.
-Refer to Going to the Dogs.Suppose before opening the It's a Dog's Life doggy resort the owners gathered together a group of ten dog owners to discuss what they would want to see in the ideal dog daycare center.This would be an example of:
A) idea screening
B) diffusion
C) a focus group
D) basic research
E) observation

Accepted Answer

A focus group normally consists of 7 to 10 people gathered together to discuss a topic of interest.

Question 20

Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century."
-Refer to Rapala.The testing of new lures by tournament professionals and fishing guides would take place in which stage of new-product development?
A) Commercialization
B) Idea generation
C) Idea screening
D) Concept testing
E) Product development

Accepted Answer

These lures would be prototypes.

Quiz 11: Developing and Managing Products

Which of the following statements about the product life cycle (PLC) is true?

The marketing manager for a company that manufactures pet foods wants to base the marketing strategy she implements for the company's products on the product life cycle stages.In order to do this,she should: