Question 1

The speed with which a new product will proceed through the product adoption process is affected by all of the following factors EXCEPT:

Accepted Answer

Price is not a factor that affects the speed with which a new product will proceed through the product adoption process. However, relative advantage, compatibility, and complexity are all factors that impact the speed of adoption.

Question 2

Which of the following seeks to assure new product success by encouraging consumers to switch to the new offering?

Accepted Answer

Customer migration refers to the process of encouraging consumers to switch to a new product offering. This is often done through targeted marketing and promotions, such as offering discounts or free trials. By focusing on getting consumers to switch to the new product, companies can ensure its success in the marketplace. Primary demand refers to creating demand for a new product category, while skimming involves setting a high price for a new product to maximize profits from early adopters. Temporary demand refers to a short-term increase in demand, such as due to a seasonal or promotional event.

Question 3

With reference to the classic diffusion theory of Everett Rogers,the _____ of a product indicates how easy it is for the user to see the benefits of using the product.

Accepted Answer

Communicability refers to how easily the benefits of a product can be observed and communicated to others, which is a key factor in its adoption according to Rogers' diffusion theory.

Question 4

With reference to mass customization,which of the following types of customizers let the customers do the customizing themselves according to their performance needs?

Accepted Answer

Adaptive customizers let customers customize products themselves according to their performance needs. Cosmetic customizers allow customers to change the appearance of the product, collaborative customizers involve working with the company to create a customized product, and transparent customizers provide a pre-configured set of options for customers to choose from.

Question 5

The Leo Burnett advertising agency uses scanner data to cluster food buyers into six groups.Which of these groups consists of people who buy all major brands,always on deals?

Accepted Answer

The group that consists of people who buy all major brands, always on deals are known as price-driven buyers.

Question 6

For a new entry or line addition in an established market the emphasis is on stimulation of _____,which entails drawing market share away from competition.

Accepted Answer

Selective demand focuses on attracting customers from competitors by highlighting the unique benefits of the new entry or line addition.

Question 7

_____ segment information in combination with brand perceptions can be very helpful in developing a positioning strategy.

Accepted Answer

Benefit segment information can reveal what specific benefits or solutions are important to different customer groups. Combining this with brand perceptions can help develop a positioning strategy that emphasizes the brand's unique benefits and differentiation in the minds of target customers. Geographic, demographic, and end-use information can also be helpful, but benefit segmentation is the most directly relevant to developing a positioning strategy.

Question 8

The marketing cost associated with the launch of a new product can be considered as a(n)_____.

Accepted Answer

The marketing cost associated with the launch of a new product is considered an investment because it is a planned expense with the expectation of generating future revenue and profits. It is not a fixed cost or a recurring cost because it varies depending on the product, market, and launch strategy. It is not an opportunity cost because it is a direct cost associated with the launch and promotion of the new product.

Question 9

The America-First Corporation is preparing to introduce a new-to-the-world product.The firm must attempt to:

Accepted Answer

As the product is new-to-the-world, there is no existing demand or need for it. Therefore, the America-First Corporation must attempt to stimulate primary demand for the product category, which involves creating awareness and interest among potential customers about the benefits and uses of the new product.

Question 10

Cereal makers often introduce new cereals "tied to" the introduction of a popular movie for children.These "new" products are MOST likely to remain in the market:

Accepted Answer

Cereal makers often introduce new cereals tied to the introduction of a popular movie for children. These cereals are introduced as a promotional campaign and are only intended to be in the market temporarily until the promotion ends. Once the promotion ends, the cereal may be discontinued or replaced with a new one.

Question 11

As the Aten Corp.introduces its new product into "upscale" stores,its "old" products are moved to "mass-merchandisers" and eventually,to discount stores.Identify the product replacement strategy being employed by the firm.

Accepted Answer

The answer of As the Aten Corp.introduces its new product...

Question 12

Under the _____ product replacement strategy,the old product is kept in the market with the new,but its support is slowly withdrawn.

Accepted Answer

The answer of Under the _____ product replacement strategy,the old...

Question 13

Under _____,customers build the desired product,get an assessment of the resulting price,and state their likelihood of making a purchase.

Accepted Answer

The answer of Under _____,customers build the desired product,get an...

Question 14

Which of the following is a product level performance measure used by firms as a goal for individual products?

Accepted Answer

The answer of Which of the following is a product...

Question 15

Ralph Corp. ,deliberately seeks out very small targets (neighborhoods or industrial subsets)with unique purchase patterns.The firm is targeting _____.

Accepted Answer

Ralph Corp. is targeting micromarkets, which are very specific and niche markets with unique purchase patterns.

Question 16

Japanese eyewear retailer Paris Miki inputs customer frame style preferences with facial features into a design system that makes frame and lens recommendations,which are further refined by customer and optician working together.Identify the type of mass customization being used by Paris Miki.

Accepted Answer

Paris Miki is using collaborative mass customization as it involves customer and optician working together to refine frame and lens recommendations.

Question 17

Markets segmented according to variables such as values,activities,and lifestyles can be best described as using _____ segmentation.

Accepted Answer

Behavioral and psychographic segmentation involves dividing a market based on consumer behavior, attitudes, lifestyle, and values. This type of segmentation allows for a deeper understanding of consumer motivations and can be more effective in targeting niche markets. End-use and benefit segmentation focus on the benefits or functionality of a product, while geographic and demographic segmentation are based on location and demographic factors such as age, income, and education. Therefore, C is the best choice as it is the only option that accurately describes the segmentation based on variables such as values, activities, and lifestyles.

Question 18

Zircon Inc. ,generally drops the "old" product as soon as the new product intended to replace it has been announced.The firm is using which of the following product replacement strategies?

Accepted Answer

The "butt-on" product replacement strategy involves discontinuing the old product as soon as the new product is announced, which aligns with Zircon Inc.'s approach.

Question 19

The cash-to-cash matrix was first used by _____.

Accepted Answer

The cash-to-cash matrix is a supply chain management tool used to analyze the time it takes for a company to convert its investments in inventory and other resources into cash received from customers. Therefore, supply chain managers are the best choice.

Question 20

Tailoring a good or service to the unique specifications of individual customers is known as _____.

Accepted Answer

Mass customization involves tailoring products or services to meet the unique needs of individual customers while still using efficient production methods. This approach allows companies to offer personalized solutions while achieving economies of scale. Mass production involves creating standardized products in large quantities, while target marketing involves identifying specific customer segments and tailoring marketing efforts to appeal to those groups. Customer service refers to the support and assistance provided to customers during and after the purchase process.

Quiz 16: Strategic Launch Planning