Deck 9: Developing and Launching New Offerings

Question 1

Why do new programs and services offered by nonprofits fail?

Answer 1

.Idea is pushed through despite a lack of supporting evidence
.Poor organizational systems for evaluating and implementing ideas, poor criteria
.High development costs, poor or inadequate promotion, aggressive competitive response
.Poor market size measurement, forecasting and market research
. Poor planning, positioning, segmentation and/or budgeting

Question 2

Describe the five adopter groups in terms of their values

Answer 2

.Innovators - venturesome, like new ideas, risk takers, cosmopolitan
.Early adopters - respected, opinion leaders, balanced risk takers
.Early majority - deliberate, adopt ides before the majority, respond to opinions of others
.Late majority - skeptical, only adopt an innovation with the weight of the majority
.Laggards - traditional, slow to adopt

Question 3

Describe the sequence of tasks in the adoption of a new behavior and how they relate to the Stages of Change.

Answer 3

.Knowledge (Pre-contemplation stage) - awareness and information about the offer
.Persuasion (contemplation stage) - motivated to act by incentives or coercion
.Decision (preparation and action stages) - wants to know the consequences of the desired behavior
.Confirmation (maintenance stage - continuing the behavior once adopted

Question 4

An organization may well choose to maintain the status quo as a growth strategy when

A) it wishes to extend the market
B) it wishes to diversify its offerings
C) it wishes to penetrate the existing market
D) it wishes to respond to a declining market
E) it faces little or no competition

Question 5

The greatest risk for a new product or service offering is to present

A) a similar offering to an existing market
B) a dissimilar offering to a radically different market
C) a similar offering to different but similar market
D) a dissimilar offering to an existing market
E) a similar offering to a dissimilar market

Question 6

An organization may well choose to maintain the existing offer in existing market approach as a growth strategy when

A) it wishes to extend the market to new geographic areas
B) it wishes to diversify its offerings by creating a new service or product
C) it wishes to cut costs and accept modest growth though better and more efficient marketing and operations to its current clients
D) it wishes to respond to a declining market
E) it faces significant competition

Question 7

A new offering follows a growth pattern known as

A) the diversification cycle
B) the offer extension cycle
C) the offer life cycle
D) the opperant resources process
E) the innovation adoption cycle

Question 8

Which of the following is NOT a source for new idea generation

A) Taking ideas from similar organizations or competitors
B) Reach for prior experiences and prior approaches
C) Review of sources of grants and foundation bequests
D) Review of journals, newspapers and magazines
E) Ask employees and volunteers currently on staff

Question 9

The introduction to market activities include

A) deciding where, when, how, and to whom a new product should be launched
B) seeking the target market's reaction to a new product
C) using break-even analysis to determine the attractiveness of the proposal
D) developing a preliminary outline of the marketing strategy it will use to introduce the product
E) develop brochures, schedules, ads, marketing materials and other materials

Question 10

People who are the first to try any new fashion, technology or new product are called

A) early adopters
B) laggards
C) early majority
D) late majority
E) innovators

Question 11

The Rogers - Shoemaker adoption model shows that

A) market segmentation is difficult and very risky for high involvement behaviors
B) the reasons for a slow rate of adoption are too complex to be properly identified
C) a sequence of steps must be gone through for adoption of a new behavior
D) the "Stages of Change" model is not reliable
E) messages aimed at blue-collar workers can also be used for seniors and pregnant women

Question 12

The Rogers - Shoemaker adoption model, which helps to understand the stages of the adoption process, can be used

A) as a guide to understanding consequence selection
B) to develop a segmentation strategy
C) to isolate opinion leaders
D) to assess the riskiness of a particular innovation strategy
E) as a determinant of whether the innovation will succeed or not

Question 13

Which of the following is NOT a characteristic of innovation?

A) relative advantage
B) compatibility
C) comparability
D) complexity
E) communicability