Question 1

The rate at which a new product is adopted depends on, among other things, its relative advantage over previous ideas and its compatibility with existing ways of doing things.

Accepted Answer

This statement is true. The relative advantage and compatibility are two of the factors that influence the rate of adoption of new products, according to the Innovation Diffusion Theory.

Question 2

A company extends a brand by attaching unrelated products to a known brand name for instant recognition.

Accepted Answer

This statement describes the concept of brand extension, where a known brand name is used to launch new products or services that may not be related to the original product or service that established the brand's reputation. The goal is to leverage the existing brand recognition to increase the chances of success for the new product or service.

Question 3

Cannibalization is the use of flanker brands to take market share from a competitive brand.

Accepted Answer

Cannibalization refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.

Question 4

The Columbia Sportswear Company decides to produce a line of jackets embroidered with the names of all of the NFL teams.Columbia must first contact the teams and/or the league before using the trademarked names.This is an example of brand licensing.

Accepted Answer

Brand licensing refers to the process of obtaining permission from a brand owner to use their trademarks or other intellectual property for the production and sale of goods or services. In this case, Columbia Sportswear Company would need to obtain permission from the NFL teams and/or the league before using their trademarked names on jackets.

Question 5

New product committee members are not the innovators of a product idea; they are primarily responsible for reviewing and approving an idea already on the table.

Accepted Answer

New product committee members are responsible for evaluating and deciding whether to move forward with an idea that has already been proposed by someone else, such as a product development team or a group of company leaders. Their role is to provide feedback, insights, and guidance on various aspects of the proposed product, including its potential market appeal, feasibility, scalability, and profitability. However, they usually don't come up with the initial spark of inspiration or create the idea from scratch.

Question 6

In the awareness phase of the consumer adoption process, consumers make a trial purchase of an item to determine its usefulness.

Accepted Answer

In the awareness phase, consumers are simply becoming aware of the existence of a product or service, and may seek out more information about it. They do not typically make a trial purchase at this stage.

Question 7

The consumer adoption process describes the acceptance of new products by members of the community or social system.

Accepted Answer

The answer of The consumer adoption process describes the acceptance...

Question 8

Product diversification is a relatively risky expansion strategy because it introduces new products into new markets, unlike other strategies that already have the product or market established.

Accepted Answer

Product diversification involves entering new markets with new products, which is riskier than expanding existing products or entering existing markets.

Question 9

When used as part of an overall new product development strategy, market penetration involves improving the quality of existing products, rather than modifying them, to increase sales.

Accepted Answer

Market penetration typically involves strategies aimed at increasing the market share of an existing product, or promoting a new product, through tactics such as pricing adjustments, increased marketing efforts, and distribution channel expansion, rather than solely focusing on improving product quality.

Question 10

A product development strategy might include flanker brands that are introduced to contribute to the overall market share of the company.

Accepted Answer

Flanker brands are introduced to capture more market share by providing alternatives to the company's main brand without cannibalizing sales. This is a common product development strategy.

Question 11

Line extensions are the addition of new sizes, styles, flavours, or related products to an existing group of products.

Accepted Answer

Line extensions involve adding new variations or related products to an existing line of products.

Question 12

New product venture teams typically have a defined time period in which they are to accomplish their work; they are disbanded afterward.

Accepted Answer

The answer of New product venture teams typically have a...

Question 13

Pantene sent free samples of its new shampoo to a researched list of potential customers.This strategy accelerated and enhanced the evaluation and trial stages of the consumer adoption process.

Accepted Answer

Sending free samples accelerates and enhances the evaluation and trial stages of the consumer adoption process, making it more likely for potential customers to try the product and ultimately adopt it.

Question 14

The product adoption process involves five steps: from becoming aware of a product to the acceptance or rejection of it after a purchase has been made.

Accepted Answer

The product adoption process does involve five steps, from awareness to acceptance or rejection after a purchase.

Question 15

Marketers attempt to place purchasers into categories in the diffusion process depending on their relative time of adoption.Since the categories are based on a normal distribution, the distribution's properties are used to partition them.

Accepted Answer

Marketers do attempt to place purchasers into categories in the diffusion process based on their relative time of adoption, and these categories are based on a normal distribution. The normal distribution's properties are used to partition the categories.

Question 16

Dell Computers has begun marketing its own brand of consumer electronics, such as MP3 players, in what is called a market development strategy.

Accepted Answer

The answer of Dell Computers has begun marketing its own...

Question 17

Brand licensing involves the purchase of the brand name by another company to use on unrelated products.

Accepted Answer

Brand licensing is an agreement where the brand owner allows another company to use the brand name, logo, or other intellectual property for a fee or royalty, but it does not involve the purchase of the brand name by another company.

Question 18

The more complex a new product is by comparison with existing products, the more rapidly it will be adopted by consumers.

Accepted Answer

The more complex a new product is, the slower its adoption rate is likely to be as it may take longer for consumers to understand its benefits and how to use it properly.

Question 19

Overextension of a brand name through a manufacturer's marketing efforts can result in a decrease in the equity of the brand.

Accepted Answer

Overextension occurs when a manufacturer uses the brand name on too many different products, which can dilute the brand's original meaning or confuse consumers. This can lead to a decrease in the equity of the brand, or the value that consumers attribute to it.

Question 20

Consumer innovators are individuals who develop novel uses for products already on the market and are themselves part of the adoption process.

Accepted Answer

The answer of Consumer innovators are individuals who develop novel...

Quiz 10: Developing and Managing Brand and Product Strategies