Question 1

Some consumers are hesitant to try new products. In general, they are risk averse, so they only buy new technology after it has been well established, and often after facing peer pressure from others. These consumers tend to be older as well. These customers would tend to fall into the ______ category of the diffusion process.

Accepted Answer

These consumers are described as risk averse, preferring to adopt new technology only after it has become well established and often due to peer pressure. This behavior aligns with the characteristics of the "late majority" group in the diffusion of innovations theory, which describes how a new product or idea is adopted by a population.

Question 2

Arm & Hammer continues to introduce new products based on the "eliminates odors" selling proposition. A couple of years ago, one of Arm & Hammers winners was the Arm & Hammer Cat Litter. This product has had initial success and sales are still increasing. Which of the following marketing activities would be appropriate now for the A & H Cat Litter?

Accepted Answer

Providing coupons to motivate hesitant buyers to try the item is an appropriate marketing activity for the A & H Cat Litter because it will encourage people who are on the fence about buying the product to give it a try.

Question 3

Some new products are introduced and quickly are accepted by the marketplace. Other products take years before they spread across society. A product that is complex and hard to understand is likely to diffuse across society:

Accepted Answer

Products that are complex and hard to understand typically diffuse more slowly than simpler products because potential users may need more time to understand their value and learn how to use them effectively.

Question 4

The product life cycle is particularly useful for product managers since all the categories are equal length.

Accepted Answer

The product life cycle stages (introduction, growth, maturity, and decline) do not have equal lengths; the duration of each stage can vary significantly depending on the product, market conditions, and management strategies.

Question 5

360 degree cameras provide a complete view of any situation. However, the cost of these cameras is still quite expensive, and they are growing their share of the market very slowly. With low-sales volume, manufacturers are still not making a profit on the cameras, but they are optimistic sales will increase in the coming year and eventually start to show profits. 360 degree cameras are in the __________ stage of the product life cycle.

Accepted Answer

360 degree cameras are in the introduction stage of the product life cycle, characterized by low sales, high costs, and lack of profitability, but with expectations of future growth.

Question 6

Wilma is an older consumer that is very hesitant to buy new products. In fact, Wilma still has a landline phone and listens to music on a cassette deck. When asked a cell phone, Wilma responded, "Those new-fangled things are just not for me!" Wilma would fall into the ______ category of the diffusion process.

Accepted Answer

Wilma's reluctance to adopt new technology and preference for older, more familiar products categorizes her as a "laggard" in the diffusion process. Laggards are the last to adopt new products, often due to skepticism or comfort with traditional options.

Question 7

4K curved screen televisions were introduced to the consumer market in April 2014. Led by Korean manufacturers Samsung and LG, prices were high and sales slow for the first two years. Currently, sales are increasing at an increasing rate, they have gained much wider distribution, and new competitors have entered the market. Manufacturers are now realizing profits from the 4K curved televisions, which are in the __________ stage of the product life cycle.

Accepted Answer

The correct answer is A) growth because the description indicates that sales of 4K curved screen televisions are increasing at an increasing rate, they have gained wider distribution, and new competitors have entered the market, all of which are characteristics of the growth stage in the product life cycle.

Question 8

While Cheerios have been around for nearly 80 years, General Mills developed the gluten-free version of the Cheerios just 2 years ago. To introduce the new product, heavy television advertising campaigns were launched to create awareness about the product. Additional promotions were introduced to induce distribution partners, like wholesalers and retailers, to carry the product. From these activities, it appears General Mills treated the Gluten-Free Cheerios as in the _______ stage of the product life cycle.

Accepted Answer

The activities described, such as heavy advertising and promotions to create awareness and induce distribution, are characteristic of the introduction stage of the product life cycle. This stage involves introducing a new product to the market and efforts to build product awareness.

Question 9

The Sanyo Xacti HD1010 was named the "2008 Gadget of the Year." The pistol-shaped Xacti is a digital camera and video camera in one. Instead of the bulky and heavy digital cameras and video recorders of the time, the Xacti combined the functions of both. Xacti takes 4-megapixel stills and 1080i video. While the Xacti looked promising and initial sales increased rapidly, it was just a few years before the cameras in cell phones were able to provide the same capabilities in a much smaller package. As a result, sales dropped rapidly. It is safe to say the Xacti in the _______ stage of the product life cycle. ?

Accepted Answer

The Sanyo Xacti HD1010 is in the decline stage of the product life cycle because sales dropped rapidly as cell phone cameras began to offer the same capabilities in a smaller package, indicating a decrease in demand and market share.

Question 10

Marketing activities tend to change over the product life cycle. What stage of the life cycle focuses on stimulating demand by using advertising to communicate product features and persuading channel members for carry the product?

Accepted Answer

During the introduction stage of the product life cycle, marketing activities are focused on stimulating demand by advertising the product's features and benefits to create awareness and persuade retailers and other channel members to carry the product. This is crucial for a new product to gain traction in the market.

Question 11

A consumer that is aware of a new product and gathered information about the product so he or she can consider the benefits of the new product compared to what he or she currently uses is in the evaluation stage of the new-product adoption process.

Accepted Answer

In the evaluation stage of the new-product adoption process, consumers assess the product's benefits and decide whether it meets their needs, comparing it to current products they use. This involves gathering information and considering the product's advantages.

Question 12

Samuel is an average American - in regard to virtually every demographic characteristic. Samuel is 45 years old, married with one child, and a first-level manager at Caterpillar in Peoria, Illinois. Samuel is thoughtful and pragmatic in his purchasing decisions, but doesn't want to be left behind. Samuel should be considered a(n):

Accepted Answer

Samuel fits the description of an early majority consumer because he is thoughtful and pragmatic in his purchasing decisions, indicating he adopts new products after a careful review, which is characteristic of the early majority group. This group doesn't rush into new technologies or products but adopts them once they have been proven and accepted by a significant number of people.

Question 13

Researchers at the Massachusetts Institute of Technology (MIT) have built a solar energy device quite different from the traditional solar cell. Known as thermophotovoltaics, these devices are able to capture far more energy from the Sun by turning the sunlight into heat, and then back into light in a more efficient spectrum. Of course, it will take some time before this technology is profitable and widely distributed. These thermophotovoltaics hot cells are in the __________ stage of the product life cycle.

Accepted Answer

The thermophotovoltaics hot cells are in the introduction stage of the product life cycle because they represent a new technology that is not yet widely distributed or profitable, indicating they are at the beginning of their lifecycle.

Question 14

A product that is in the mature stage of the product life cycle has reached a plateau in sales with many competitors existing in the marketplace. An example of this would be:

Accepted Answer

Digital cameras are in the mature stage of the product life cycle because they have reached a plateau in sales, and the market is saturated with many competitors. Other options like VHS video players are in the decline stage, self-driving cars are in the introduction/growth stage, and 3D printers are still emerging, thus in the growth stage.

Question 15

Lily introduced the first drone camera that follows the operator and records video in 2014. While the Lily drone is tough, portable, and waterproof - perfect for videoing your bicycle ride, float down the river, or skiing down a mountain, it was not immediately financially successful. More recently though, sales have increased, the Lily drone camera has become profitable, and other manufacturers have introduced direct competitors. While sales continue to increase, Lily's market share is dropping as the market becomes more competitive. What stage of the product life cycle is the Lily drone camera?

Accepted Answer

The Lily drone camera is in the growth stage of the product life cycle, indicated by increasing sales and the emergence of competitors, despite a decrease in market share as the market becomes more competitive.

Question 16

The adoption process captures the steps individuals go through in deciding to use a new product. Fortunately, marketers know what stage to focus on since all consumers move through the adoption process at the same time.

Accepted Answer

Consumers move through the adoption process at different rates and times, so marketers must tailor their strategies to reach individuals at various stages of the process.

Question 17

Some new products are introduced and quickly are accepted by the marketplace. Other products take years before they spread across society. A product that has a very clear advantage compared to the current products is likely to diffuse across society:

Accepted Answer

Products with a clear and significant advantage over existing options are more likely to be adopted quickly, as they offer compelling reasons for consumers to switch from their current choices.

Question 18

In 2010, Kimberly-Clark introduced the Huggies Little Movers Jeans, a diaper with a denim-like style. Mothers and mommy bloggers loved them and sales took off. Over the years, however, sales have leveled off as competition has grown and the market becomes even more fragmented. Which of the following marketing activities would be appropriate now for the Huggies Little Movers Jeans?

Accepted Answer

Introducing a new color or design of Little Movers would help to refresh the product and appeal to new customers.

Question 19

The Apple iPad was a revolutionary device was introduced in 2010. There was nothing like it on the market and, despite its price of nearly $700, sales immediately took off. In fact, over 300,000 iPads were sold in the United States alone in the first 24 hours after release. There was really nothing like it on the market. While still a highly profitable product, there are now many alternative products on the market and iPad sales are starting to decline. The iPad is in the _______ stage of the product life cycle.

Accepted Answer

The iPad is in the maturity stage of the product life cycle, indicated by the high sales but beginning of a decline due to market saturation and the emergence of alternative products.

Question 20

One model in the marketing discipline discusses four stages of products - the progression through  introduction, growth, maturity, and decline. This model is known as:

Accepted Answer

The product life cycle describes the stages a product goes through from when it is first introduced into the market until its decline. These stages include introduction, growth, maturity, and decline, reflecting the sales and profit trends over time.

Quiz 12: Developing and Managing Products