Question 1

Even if they succeed,new-to-the-world products are
A) not always profitable.
B) not adopted by everyone at the same time.
C) sometimes copycat brands.
D) not subject to the law of first movers.
E) typically very short-lived.

Accepted Answer

The answer of Even if they succeed,new-to-the-world products are
A) not...

Question 2

Innovators are a critical group of new product adopters because they
A) are the major source of innovation.
B) act as reverse engineering consultants.
C) help with test marketing.
D) help the product gain market acceptance.
E) extend the product life cycle.

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 3

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
A) diversify.
B) intensify his prototyping.
C) expand his early adopter market segment.
D) market the same products to similar customers.
E) focus on concept testing.

Accepted Answer

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

Question 4

Which of the following is NOT one of the five groups in the diffusion of innovation curve?
A) Innovators.
B) Non-adopters.
C) Late majority.
D) Early majority.
E) Early adopters.

Accepted Answer

The diffusion of innovation curve consists of five groups: Innovators, Early Adopters, Early Majority, Late Majority, and Laggards. Non-adopters are not a recognized group in the diffusion of innovation curve.

Question 5

Which of the following is NOT one of the benefits to a firm of new product development?
A) Reduced costs of production.
B) Satisfying the changing needs of current and new customers.
C) Avoiding market saturation from products that have been on the market for a long time.
D) Creating diversification and reducing risk.
E) Keeping up in a market where sales come mostly from new products.

Accepted Answer

New product development often involves research and development, marketing efforts, and testing which can increase costs in the short-term. While long-term benefits may include cost savings, reducing costs is not typically a direct benefit of new product development.

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.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopters

Accepted Answer

Innovators are the first to adopt new technology and are usually knowledgeable and influential in their social circles, just like Jeremy in this scenario.

Question 7

In the diffusion of innovation process,innovators enjoy taking risks and are regarded as highly knowledgeable.Marketers want to identify innovators because
A) they prefer products from established market leaders.
B) other consumers defer to their judgment,creating the opportunity for word-of-mouth referrals.
C) they are especially price conscious.
D) they are easily influenced by reminder advertising.
E) they encourage competitors to enter the market.

Accepted Answer

Innovators are highly influential in spreading the word about new products and services through word-of-mouth referrals. They enjoy taking risks and are highly knowledgeable, making their opinions and recommendations highly valued by other consumers. Marketers want to identify innovators because they can help create buzz and excitement for a new product or service, leading to increased adoption by the early majority and eventually the mass market.

Question 8

Brian is trying to sell a new line of ultrasound imaging equipment.Unlike existing technology,these machines are compact,creating the potential for general practice physicians to have and use them in their offices.Brian is trying to identify innovators in his market,knowing these customers will
A) spread positive word of mouth to other physicians.
B) buy one for each office in their practices.
C) reposition his products.
D) create demand among the late majority.
E) not need any service or support when using the product.

Accepted Answer

Innovators are early adopters who actively seek out new technology and are willing to take risks by being the first to use it. They are also influential in their social networks, which means that if they have a positive experience with the new ultrasound imaging equipment, they are likely to spread positive word-of-mouth to other physicians. This can lead to increased sales and adoption of the product by later adopter categories.

Question 9

One of the potential benefits to a firm of introducing new-to-the-world products or services is:
A) cost savings.
B) late majority marketing.
C) establishing a completely new market.
D) the ability to avoid paying pioneers for new product development.
E) capitalizing on existing consumer preferences.

Accepted Answer

Introducing new-to-the-world products or services can establish a completely new market, which can lead to first-mover advantage, higher profit margins, and long-term success. This can be a significant benefit for the firm.

Question 10

The diffusion of innovation theory focuses on
A) the geographic boundaries of innovation.
B) the relationship between pioneer brands and imitators.
C) the psychological traits of innovators.
D) the rate at which consumers are likely to adopt a new product or service.
E) the way a product moves through the product life cycle.

Accepted Answer

The diffusion of innovation theory focuses on the rate at which consumers are likely to adopt a new product or service. The theory seeks to understand why some innovations are adopted quickly while others are not, and the factors that influence this adoption process. It does not focus on the geographic boundaries of innovation, the relationship between pioneer brands and imitators, the psychological traits of innovators, or the way a product moves through the product life cycle.

Question 11

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
A) keeping up in a market where sales come mostly from new products.
B) satisfying the changing needs of former customers.
C) avoiding market penetration from products that have been on the market for a long time.
D) creating diversification and reducing risk.
E) taking advantage of a long product cycle.

Accepted Answer

Computer game companies know that sales in their market come mostly from new products, so they monitor blogs to create new games that will appeal to customers looking for the latest and greatest. This allows them to maintain their competitive edge and keep up with changing trends in the industry.

Question 12

Which of the following was NOT a new-to the-world product or service when it was introduced?
A) Wi-Fi networking
B) The Mercedes mini sport utility vehicle,a smaller version of its larger SUVs
C) Microsoft's Windows operating system
D) The MP3 player
E) Flat screen TVs

Accepted Answer

The Mercedes mini sport utility vehicle was not a new-to-the-world product; it was a smaller version of an existing product (SUV), whereas the other options were new innovations or technologies when first introduced.

Question 13

By adding new product lines beyond its core business of computer software,like the Zune MP3 player and XBox 360 game system,Microsoft primarily benefits by
A) keeping up in a market where sales come mostly from new products.
B) satisfying the changing needs of the technological research staff.
C) avoiding market saturation from products that have just been introduced to the market.
D) creating diversification and reducing risk.
E) spreading out production costs.

Accepted Answer

By creating new product lines beyond their core business, Microsoft is creating diversification in their portfolio, which helps reduce the risk of relying solely on one product or market. This also allows them to explore new markets and potentially increase their revenue streams.

Question 14

Successful first movers create a market or a product category.They often benefit from being readily recognizable to consumers and
A) not having to pay advertising expenses.
B) using prototypes to dominate the market.
C) not needing to do test marketing.
D) establishing an early market share lead.
E) motivating laggards to buy their products.

Accepted Answer

First movers often establish an early market share lead because they are the first to introduce a new product or create a market category, giving them a competitive advantage over later entrants. They may also benefit from being the first recognizable brand in the category, which can help them build brand loyalty and customer trust.

Question 15

________________ is the process by which ideas are transformed into new products and services that will help firms grow.
A) Beta testing
B) Concept testing
C) Innovation
D) Reverse engineering
E) The product life cycle

Accepted Answer

Innovation is the process of taking an idea and turning it into a new product or service for a company. It's how organizations create new opportunities for growth and gain a competitive advantage in the market.

Question 16

Early personal computers cost several thousand dollars,allowing competitors
A) to focus on creating demand for their brand.
B) to promote alternative brands in that product category.
C) to spend less on introductory advertising.
D) to focus on making improved versions.
E) to introduce lower-priced alternatives.

Accepted Answer

The high cost of early personal computers led to an opportunity for competitors to introduce lower-priced alternatives, allowing them to capture market share and potentially disrupt the dominance of the higher-priced brands.

Question 17

The process by which the use of a new product or service spreads throughout a market group is referred to as
A) new product introduction.
B) lead user dispersion.
C) diffusion of innovation.
D) the product life cycle.
E) product development diffusion.

Accepted Answer

The process by which a new product or service spreads through a market group is referred to as diffusion of innovation. This concept refers to how an innovation (new product or service) is adopted by a market group over time, beginning with innovators and early adopters before spreading to the mass market.

Question 18

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
A) keeping up in a market where sales come mostly from new products.
B) satisfying the changing needs of current and new customers.
C) avoiding market saturation from products that have been on the market for a long time.
D) creating diversification and reducing risk.
E) reduction in cost of ingredients.

Accepted Answer

Daily specials satisfy the changing needs of customers, as they offer variety and cater to individual preferences or dietary restrictions. This can attract both new and returning customers, ultimately boosting sales.

Question 19

If they create new markets,pioneer or breakthrough products
A) will likely result in late maturity buying.
B) can add tremendous value to firms.
C) incorporate reverse engineering outputs.
D) require the use of concept testing services.
E) must be geographically centered.

Accepted Answer

Creating new markets or introducing pioneer or breakthrough products can add significant value to firms, as they enable the company to capture market share and establish itself as an industry leader. This is why many firms invest heavily in research and development to identify new products, technologies, or services that can revolutionize the marketplace. Late maturity buying, reverse engineering outputs, concept testing services, or geographic concentration may be important factors to consider, but they do not directly impact the value of creating new markets or breakthrough products.

Question 20

In many cases,pioneers lose their market lead and initial market share to imitators who
A) capitalize on the pioneers' weaknesses.
B) create similar products with reduced value to consumers.
C) utilize alpha-beta testing.
D) ignore patents and copyrights.
E) target late maturity consumers.

Accepted Answer

Imitators often study the pioneer's strengths and weaknesses, allowing them to capitalize on any weaknesses the pioneer may have had in their product or marketing strategy. As a result, the imitator may be able to capture market share by addressing those weaknesses and offering a better overall product or marketing message.

Quiz 12: Developing New Products

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

Innovators are a critical group of new product adopters because they

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

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

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

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.

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

Brian is trying to sell a new line of ultrasound imaging equipment.Unlike existing technology,these machines are compact,creating the potential for general practice physicians to have and use them in their offices.Brian is trying to identify innovators in his market,knowing these customers will

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

The diffusion of innovation theory focuses on

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

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

By adding new product lines beyond its core business of computer software,like the Zune MP3 player and XBox 360 game system,Microsoft primarily benefits by

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

________________ is the process by which ideas are transformed into new products and services that will help firms grow.

Early personal computers cost several thousand dollars,allowing competitors

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

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

If they create new markets,pioneer or breakthrough products

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