Question 1

Successful first movers create a market or a product category.They often benefit from being readily recognizable to consumers and:

Accepted Answer

Successful first movers who create a market or a product category often establish an early market share lead. This early lead gives them the advantage of being recognizable to consumers and building brand recognition, which can be hard for competitors to overcome. They may still need to advertise and conduct test marketing, but their early lead gives them a head start in these efforts. Using prototypes and motivating laggards may be tactics used by successful first movers, but they are not the main benefits they gain from being first to the market.

Question 2

One of the potential benefits to a firm of introducing new-to-the-world products or services is:

Accepted Answer

Introducing new-to-the-world products or services can lead to a greater market share that can be held over an extended period of time. This is because the firm is able to establish itself as a pioneer and gain a competitive advantage in the market. The other options (A, B, D, and E) are not accurate or relevant to the benefits of introducing new-to-the-world products or services.

Question 3

In many cases,pioneers lose their market lead and initial market share to imitators who:

Accepted Answer

Imitators often study the pioneers' strengths and weaknesses through market research and capitalize on the pioneers' weaknesses to create better or improved products that attract consumers away from the original pioneer.

Question 4

Which of the following was NOT a new-to the-world product or service when it was introduced?

Accepted Answer

The answer of Which of the following was NOT a...

Question 5

Many restaurants offer daily specials,appetizers,entrees,and desserts not listed on their standard menu.These daily specials primarily provide the new product benefit of:

Accepted Answer

Daily specials allow restaurants to satisfy the changing needs of current and new customers by offering unique and unexpected menu items. This can attract new customers and keep current ones interested in the restaurant's offerings.

Question 6

Whenever Donald considers upgrading his personal computer system,he consults with Jeremy,a knowledgeable friend who always has the newest technology.For Donald,Jeremy is a(n)__________ in the diffusion of innovation curve.

Accepted Answer

Innovators are individuals who are the first to adopt new technology and are sought out for their opinion and knowledge on the latest innovations. Jeremy is a knowledgeable friend who always has the newest technology, suggesting that he fits the profile of an innovator.

Question 7

Early personal computers cost several thousand dollars,allowing competitors:

Accepted Answer

The high cost of early personal computers allowed competitors to introduce lower-priced alternatives, which would appeal to customers who couldn't afford the more expensive models. This strategy helped to create a larger consumer base for personal computers and ultimately led to increased demand and adoption of the technology.

Question 8

Even if they succeed,new-to-the-world products are:

Accepted Answer

New-to-the-world products are typically adopted by different segments of the market at different times, following the diffusion of innovation theory.

Question 9

Computer game companies constantly monitor computer game-related blogs keeping track of the latest hot products,because they know that their customers crave the "latest and greatest" games.They use this information to create new products that primarily provide the benefit of:

Accepted Answer

Monitoring blogs helps companies keep up in a market where sales are driven by new and trending products, ensuring they meet customer demand for the latest games.

Question 10

The diffusion of innovation theory focuses on:

Accepted Answer

The diffusion of innovation theory focuses on the rate at which consumers are likely to adopt a new product or service. This theory examines how quickly different groups of people adopt new ideas or technologies and identifies the factors that influence their adoption. While geographic boundaries, pioneer brands, imitators, and psychological traits are all relevant to innovation and adoption, they are not the primary focus of the diffusion of innovation theory.

Question 11

Without new products,a firm can:

Accepted Answer

Without new products, a firm is limited in its ability to expand its customer base and must focus primarily on marketing to its existing customer base or similar customers. Therefore, option A is the best choice. Option B is incorrect because diversification into new product lines requires the introduction of new products. Option C is incorrect because product reincarnation typically involves making improvements to existing products, rather than introducing entirely new products. Option D is incorrect because increasing prices without offering new products may not be a sustainable strategy, as customers may seek out competitors' products that offer better value. Option E is also incorrect because competitors may still introduce new products that could impact the firm's market share.

Question 12

Innovators are a critical group of new product adopters because they:

Accepted Answer

Innovators play a crucial role in the adoption process of new products by being among the first to adopt and use these products, thereby helping them gain acceptance in the market. Their early adoption encourages others to try the product, contributing to its overall market success.

Question 13

In the diffusion of innovation process,innovators enjoy taking risks and are regarded as highly knowledgeable.Marketers want to identify innovators because:

Accepted Answer

Innovators are regarded as highly knowledgeable and enjoy taking risks. Other consumers often defer to their judgment, creating the opportunity for positive word-of-mouth referrals. Therefore, marketers want to identify and target innovators to take advantage of this influence on other consumers. Option A, C, and D are incorrect as there is no evidence to support these statements in regards to innovators.

Question 14

The process by which the use of a new product or service spreads throughout a market group is referred to as:

Accepted Answer

The process described is known as diffusion of innovation, which refers to the spread of a new product or service throughout a market group over time. The other options in the list are either too specific (new product introduction, lead user dispersion) or too broad (product life cycle, product development diffusion) to accurately describe this process.

Question 15

Which of the following is NOT one of the five groups in the diffusion of innovation curve?

Accepted Answer

The five groups in the diffusion of innovation curve are innovators, early adopters, early majority, late majority, and laggards (or sometimes called resistors or non-adopters). Therefore, B is not one of the five groups.

Question 16

If they create new markets,pioneer or breakthrough products:

Accepted Answer

Creating new markets, pioneering or breakthrough products can add tremendous value to firms, as they can result in a competitive advantage and increased revenue.

Question 17

Motorola was a pioneer in developing cell phone technology,but their early phones weighed several pounds and required frequent recharging.As a pioneer,Motorola:

Accepted Answer

The answer of Motorola was a pioneer in developing cell...

Question 18

By adding new product lines beyond its core business of computer software,like the XBox 360 game system,Microsoft primarily benefits by:

Accepted Answer

By diversifying its product portfolio and venturing into new markets like gaming, Microsoft is spreading its risks across multiple products and markets. This reduces its dependence on its core business of computer software and makes it less vulnerable in case of a downturn in any one particular market.

Question 19

Eric is a sales rep for an established building materials manufacturer.Business is good,but he is concerned that the company has spent little on new product development and has not created a new product in over five years.Without new products,Eric can only market to his current customers or:

Accepted Answer

The answer of Eric is a sales rep for an...

Question 20

Which of the following is NOT one of the benefits to a firm of new product development?

Accepted Answer

New product development often involves significant investment in research and development, marketing, and production, which can lead to higher costs in the short-term. While long-term benefits may include increased sales and reduced costs through economies of scale, reduced costs of production is not a direct benefit of new product development.

Quiz 11: Developing New Products