Question 1

New products are important to a company for all the following reasons EXCEPT:

Accepted Answer

First on the market brings the potential advantage of increased margins,but it does not bring immediate profit.

Question 2

Martina loves her new Kindle and has tweeted to her followers several times about how great the product is.This is an example of communication directly from the marketer to potential adopters.

Accepted Answer

This is an example of word-of-mouth communication among consumers.

Question 3

The growth stage is the first stage of the product life cycle.

Accepted Answer

The introductory stage is the first stage.

Question 4

The Sumatra Coffee Company has two new products.One is a simple hand-cranked coffee grinder.The other is a combination grinder and brewer that also can be used to dispense hot milk.Of these two,the hand-cranked grinder will probably be diffused more quickly because it is less complex.

Accepted Answer

The statement is correct as it suggests that the hand-cranked grinder is less complex and hence will be diffused more quickly.

Question 5

Marketers consider all of the following examples of new products EXCEPT:

Accepted Answer

All these are new products except the new model year with no other changes than the date.

Question 6

Consumers described as laggards tend to rely on group norms when deciding to adopt an innovation.

Accepted Answer

Laggards do not rely on group norms,and their independence is rooted in their ties to tradition.

Question 7

When P&G began marketing Tide Free & Gentle,which is dye- and perfurme-free,this represented which new product category?

Accepted Answer

These are new products that supplement,not replace,a firm's established line.

Question 8

The product life cycle concept encourages marketing managers to act reactively.

Accepted Answer

The product life cycle concept encourages marketing managers to plan so they can take the initiative instead of reacting to past events.

Question 9

Procter & Gamble is introducing a new fabric softener dispenser that consumers stick to the inside of the dryer drum and plans to send consumers free samples in the mail.This strategy will likely increase the rate of adoption of the new product.

Accepted Answer

This will encourage trial,which can increase the rate of adoption.

Question 10

A VCR player is a good example of a product in the maturity stage of the product life cycle.

Accepted Answer

VCR players are in the decline stage,not the maturity stage.

Question 11

Adaptation is the process by which the adoption of an innovation spreads.

Accepted Answer

This process is referred to as diffusion.

Question 12

Which of the following would be considered a new product?

Accepted Answer

A new product is a product new to the world,the market,the producer,the seller,or some combination of these,and there are six categories of new products.

Question 13

New-to-the-world products,where the product category itself is new,are also called:

Accepted Answer

These products create an entirely new market.

Question 14

The concept of "organized abandonment" is based upon a periodic audit of all goods and services that a firm markets.

Accepted Answer

Organized abandonment involves regularly re-evaluating a firm's offerings and cutting those that are no longer profitable or no longer align with the company's goals. This process requires a periodic audit of goods and services, making option A true.

Question 15

Heinz is expected to introduce more than 400 new products in the next two years.One of the products is a spicier ketchup aimed at the baby boomer market.The spicier ketchup would be considered what type of new product?

Accepted Answer

Heinz is well established in the ketchup market.The spicier ketchup will be an addition to its existing product line.

Question 16

Profits typically reach their peak during the growth stage of the product life cycle.

Accepted Answer

During the growth stage, sales and market share are increasing, resulting in higher profits for the company. However, profits may start to decline during the later stages of the product life cycle as the market becomes saturated and competition increases.

Question 17

The product life cycle is a biological metaphor that traces the stages of a product's acceptance,from its introduction (birth)to its decline (death).

Accepted Answer

The statement accurately describes the concept of the product life cycle, which is modeled after the stages of a living organism's life from birth to death.

Question 18

Messages directed directly from marketers toward early adopters should normally use different appeals than messages directed toward the early majority,the late majority,or the laggards.

Accepted Answer

Early adopters tend to be more tech-savvy and risk-tolerant, so messages targeted toward them should focus on innovation and uniqueness. Messages directed toward the early majority should emphasize practical benefits and ease of use. Messaging toward the late majority should emphasize proven reliability and established use cases, while messages for laggards may need to address skepticism or resistance to change.

Question 19

Sony has developed a wireless speaker that sits unobtrusively on a desktop.The tiny,yet strong twin speakers use Bluetooth to stream music directly from your PC or MP3 player.This small Sony wireless speaker,which is radically different from anything currently on the market,would be classified as a(n):

Accepted Answer

New-to-the-world products,where the product category itself is new,are also called discontinuous innovations.

Question 20

Increasing competition,aggressive brand advertising,and healthy profits are all characteristics found in the introductory stage of the product life cycle.

Accepted Answer

This describes the growth stage.

Quiz 11: Developing and Managing Products