Question 1

Competitors still enter the maturity stage of the product life cycle because there is still an opportunity for success of a niche product.An example of this was when Audi entered the SUV market during its maturity stage.

Accepted Answer

This is true. Competitors can still enter the maturity stage of a product life cycle if they offer a unique or niche product that can succeed even in a saturated market. The example of Audi entering the SUV market during its maturity stage shows that there are still opportunities for growth and success in this stage.

Question 2

A stock keeping unit (SKU)is a unique identification number used to track a product in the consumer's home.

Accepted Answer

An SKU is a unique identification number used to track a product through a distribution system, inventory management, and pricing.

Question 3

The new-product development process can be described in three steps: (1)identify product opportunities,(2)define the marketplace parameters for the possibility of government regulation,and (3)develop the product opportunity.

Accepted Answer

The new-product development process consists of three main activities: (1) identify product opportunities, (2) define the product opportunity, and (3) develop the product opportunity.

Question 4

BMW has used the concept "Ban Boredom" as one of the key benefits of its MINI line.For the people in the MINI's target market,this is an attractive benefit.

Accepted Answer

In creating an effective new-product marketing strategy it is important to clearly identify the product benefits to the target.

Question 5

Luxury cars such as the Chevrolet Corvette are available with tires that enable the driver to continue driving even after the tire has been damaged.This is an example of Corvette using style as a differentiator.

Accepted Answer

Increasingly, consumers and businesses evaluate the repairability, or ease of fixing a problem with the product, as part of the product evaluation process. As a result, companies have built better diagnostics into their products to help isolate, identify, and repair products without the need for the costly repairs of a professional service. Luxury cars such as the Corvette are available with tires that enable the driver to continue driving even after the tire has been damaged.

Question 6

Everyone in a target market falls into one of five groups based on their willingness to try the innovation,including innovators,early adopters,early majority,late majority,and laggards.

Accepted Answer

The answer of Everyone in a target market falls into...

Question 7

When consumers purchase a product for the purpose of making a value decision in the product adoption process,it is called the trial stage.

Accepted Answer

Trial purchase is the focus of a product launch marketing plan, because if you can get consumers to try the product, you can win them over with superior product design, features, and value.

Question 8

Product life cycle (PLC)includes four basic stages: introduction,growth,maturity,and decline.

Accepted Answer

Companies create, launch, and transform products as market conditions change over time. This product evolution is referred to as the product life cycle (PLC) and defines the life of a product in four basic stages: introduction, growth, maturity, and decline .

Question 9

The maturity stage of the PLC is characterized as having a few large players dominate the market followed by a number of smaller companies with specific products meeting specialized market needs.

Accepted Answer

This statement is true. During the maturity stage of the PLC, the market becomes saturated and a few large players dominate the market. Smaller companies may still operate in the market, but they typically have more specialized products to meet specific market needs.

Question 10

Style is very difficult to assess.Firms do not use style often in as much as it is easy to copy.

Accepted Answer

One of the most difficult discriminators to accurately assess and build into a product is the look and feel of the product, or style. It is easy for someone to say a particular product has style, but designing it into a product can be a challenge. More than any other discriminator, style offers the advantage of being difficult to copy.

Question 11

The business case analysis is an overall evaluation of a product and usually assesses the product's probability of success.

Accepted Answer

The business case analysis is an overall evaluation of a product and usually assesses the product's probability of success. It is often done when there are changes to an existing marketing plan, such as an increase in the marketing communications budget. The business case would assess the feasibility of increasing the communications budget.

Question 12

The number of products purchased by the same customer is called repeat purchases.This can be important with things like stereos and cell phones because they rely on loyalty for success.

Accepted Answer

Repeat purchases are defined as the number of products purchased by the same customer. This can be important with frequently purchased products such as convenience goods that rely on frequent repeat purchases for success.

Question 13

One of the disadvantages of using style as a discriminator is that consumer tastes change over time and what is considered stylish can quickly lose its appeal.

Accepted Answer

The real challenge is that style can be difficult to create consistently. Consumer tastes change over time, and what is considered stylish can quickly lose it appeal.

Question 14

The essential benefit is the fundamental need met by the product.

Accepted Answer

The essential benefit is the fundamental need met by the product. No matter what other value-added product experiences are provided to the customer, the essential benefit must be part of the encounter.

Question 15

Late majority are product followers that are price-sensitive and risk-averse.

Accepted Answer

Late majority (34 percent)-product followers who are price-sensitive and risk-averse. They purchase older generation or discontinued models with lower prices and fewer product features.

Question 16

Brand-new technologies are what people often consider a "new product." An example of this is the group of companies working on harnessing the wave action of the oceans off the Scottish coast and other rough sea areas.

Accepted Answer

Most people would define new as a product that has not been available before or bears little resemblance to an existing product. Desktop computers, cell phones, and tablet computers are examples of new-to-the-world products considered disruptive innovations.

Question 17

An individual moves through five stages before adopting a product,including awareness,interest,trial,testing,and adoption.

Accepted Answer

An individual moves through five stages before adopting a product.

Question 18

Early adopters are opinion leaders who seek out new products but are price-sensitive to innovation.

Accepted Answer

Early adopters (13 percent)-product opinion leaders who seek out new products consistent with the personal self-image. This group is not price-sensitive and is willing to pay the price premium for a product. At the same time, early adopters demand a high level of personalized service and product features.

Question 19

Parents buying their daughter a pair of jeans would probably consider Aeropostale jeans to be just another pair of jeans; however,to the teenager,the same purchase makes an important statement about herself and her choice of clothes.

Accepted Answer

Parents buying their daughter a pair of jeans would probably consider Hollister jeans to be just another pair of jeans.

Question 20

Sometimes a company can make a product that is too reliable.An example of this would be a computer that cost a large premium over competition but would last for years.The problem is that technology changes too rapidly so better,cheaper,and faster models will come out and make the expensive,long-lasting model obsolete.

Accepted Answer

A product can be too reliable. While it is possible to build computers that will last for years and cost a premium, most computer manufacturers do not build them because computer technology changes so quickly and product improvements happen so fast that people will not pay the premium for a computer that will last for many years. They know that better, cheaper technology will be available before the computer actually malfunctions.

Quiz 7: Product Strategy and New-Product Development