Question 1

Apple recently introduced a newly designed iPod nano with Multi-Touch capability,a built-in FM radio,and mix-making Genius.Since it was not trying to reach a new target market,Apple was using which new product strategy?

Accepted Answer

Apple was improving its iPod nano product.

Question 2

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 3

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

Accepted Answer

The introductory stage is the first stage.

Question 4

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 5

Procter & Gamble introduced a new fabric softener dispenser that consumers stick to the inside of the dryer drum and sent consumers free samples in the mail.This strategy likely increased the rate of adoption of the new product.

Accepted Answer

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

Question 6

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

Accepted Answer

The concept of "organized abandonment" is indeed based upon a periodic audit of all goods and services that a firm markets. This involves identifying and discontinuing products or services that are no longer profitable or do not align with the company's overall strategy.

Question 7

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 8

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

Accepted Answer

During the growth stage, sales are increasing rapidly and the product is gaining acceptance in the market. As a result, profits tend to reach their highest point during this stage.

Question 9

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

Accepted Answer

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

Question 10

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 11

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.

Question 12

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

Accepted Answer

While new products bring the potential advantage of increased margins,they do not bring immediate profit.

Question 13

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 a 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 14

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 15

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 correctly predicts that the hand-cranked coffee grinder will diffuse more quickly because it is less complex than the combination grinder and brewer.

Question 16

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 have different needs and motivations than the other groups in the adoption curve, and therefore require a different approach in marketing messages. They are usually more willing to take risks and try new things, so messages should be focused on innovation, exclusivity, and being the first to try something new. On the other hand, messages directed toward late majority and laggards should focus on practicality, reliability, and reassurance, as these groups are more skeptical and risk-averse.

Question 17

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

Accepted Answer

This was a new product that supplemented,but did not replace,a firm's established line.

Question 18

For years,Diet Dr.Pepper has been considered a diet drink.After declining sales,the company is attempting to present Diet Dr.Pepper as an alternative to having a dessert.This is an example of a _____ strategy.

Accepted Answer

One way to create innovative products is to target new markets through repositioning.Repositioning is an attempt to change the market's perception of a product.

Question 19

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.

Question 20

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.

Quiz 21: Developing and Managing Products