Question 1

Which of the following is LEAST likely to be a source of ideas for new products?
A) R&D efforts
B) Licensing technology
C) Consumer research
D) Geodemographic segmentation
E) Brainstorming

Accepted Answer

Geodemographic segmentation is a marketing technique that involves dividing a population into small groups based on demographic data, such as age, income, and location. While this technique can help companies better target their marketing efforts, it is unlikely to generate new product ideas. In contrast, R&D efforts, licensing technology, consumer research, and brainstorming are all commonly used methods for generating new product ideas.

Question 2

If the _____________ diffusion of innovation group is relatively small,the number of people who ultimately adopt the innovation likely will also be small.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

The answer of If the _____________ diffusion of innovation group...

Question 3

As soon as she saw one,Hillary wanted a flat-screen television,but she was worried about making the wrong choice.She waited until there were many alternatives in the market with lower prices and improved quality.Hillary is part of the __________ diffusion of innovation group.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

Hillary waited for the product to become more widely adopted and for prices to decrease, indicating that she was not an innovator or an early adopter. She was not hesitant to adopt the technology, but waited for it to become more mainstream before making a purchase. This behavior is characteristic of the early majority group.

Question 4

The ________________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

The early majority diffusion of innovation group is crucial because this is the group that represents a large portion of the market and must buy the product for it to be profitable. The innovators and early adopters may try new products, but it is the early majority that makes the product mainstream and financially successful. The late majority and laggards follow the trend set by the early majority, but by then the product may already be declining in popularity or replaced by a newer innovation.

Question 5

The diffusion of innovation theory is useful to marketers in helping them
A) adjust to the performance life cycle.
B) avoid the cost of concept testing.
C) predict which types of customers will buy their product immediately and later.
D) predict how long it will take for a new product to gain market acceptance.
E) forecast sales for a new product.

Accepted Answer

The answer of The diffusion of innovation theory is useful...

Question 6

Robin recently bought Voice over Internet protocol (VOIP)phone service (phone service delivered over the Internet).A few of Robin's friends bought VOIP before she did,but many other friends were interested in Robin's opinions of the new phone service.Robin is a(n)________________ in this product category.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

Based on the given information, Robin is not the first in her network to adopt VOIP, but she also did not wait until many others had already tried it. This puts her in the early adopter category, which refers to individuals who are willing to try new products before the majority of their peers.

Question 7

Samples are often used for new products when _________________ will influence the diffusion of the product.
A) relative advantage
B) compatibility
C) observability
D) complexity
E) trialability

Accepted Answer

Samples are a way to allow potential customers to trial a product, allowing for increased trialability. This directly influences the diffusion of the product by increasing the likelihood of adoption. Factors such as relative advantage, compatibility, observability, and complexity can also influence diffusion, but they are not directly related to the use of samples.

Question 8

Zappos.com,an online shoe store,worked to overcome the problem of new product ______________ with its easy,no hassle return procedure.
A) relative advantage
B) compatibility
C) observability
D) complexity
E) trialability

Accepted Answer

The word "trialability" refers to the ease with which a customer can try out a new product without significant cost or risk. In Zappos' case, their easy return policy allowed customers to try out their shoes without fear of being stuck with a product that did not fit or suit them, which helped to overcome the problem of new product trialability.

Question 9

When automobile manufacturers introduced SUVs,they distributed and promoted them in the United States,but not in Europe where gasoline is heavily taxed and roads are much smaller.Car manufacturers recognized that this new line of cars
A) provided equivalent relative advantage for both European and U.S.customers.
B) were not compatible with European market conditions.
C) did not provide benefits that were observable.
D) involved technology that was too complex.
E) could not be easily tried by consumers.

Accepted Answer

The passage explicitly states that SUVs were not promoted in Europe because they were not compatible with the market conditions. Gasoline is heavily taxed in Europe and roads are smaller, making SUVs less practical and less desirable for European customers. Therefore, option B is the best choice. Options A, C, D, and E are not mentioned in the passage and are not supported by the information given.

Question 10

Bob and George live in the United States.Bob recently asked for George's cell phone number,but George said he didn't have one.George would probably be considered a(n)_________________ in the diffusion of innovation process.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

Laggards are the last group to adopt new innovations and are resistant to change. George's lack of a cell phone indicates a lack of adoption of a relatively mainstream technology, which suggests he is a laggard.

Question 11

The _________________ diffusion of innovation group is the last large group of consumers to adopt a new product or service.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

The answer of The _________________ diffusion of innovation group is...

Question 12

Between concept testing and market testing,a firm should engage in which stage of the product development process?
A) securing financial backing
B) marketing research
C) brainstorming
D) determining potential ROI
E) product development

Accepted Answer

The answer of Between concept testing and market testing,a firm...

Question 13

For new product marketers,early adopters are important because they tend to be
A) few in number.
B) the first to adopt a new product.
C) opinion leaders.
D) fond of prototypes.
E) alpha testing enthusiasts.

Accepted Answer

The answer of For new product marketers,early adopters are important...

Question 14

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from
A) relative advantage.
B) compatibility.
C) observability.
D) complexity.
E) trialability.

Accepted Answer

Observability refers to the degree to which the results of an innovation or product are visible to others. By participating in tours-of-homes fundraisers, home design businesses can showcase their latest products to potential customers, making the benefits and appeal of these products more observable to a wider audience. This visibility can increase interest and demand for their products.

Question 15

When microwaves were new,they often cost over $300,were huge,and were had numerous settings and options.Brenda and Bart waited,concerned about potential health hazards and wishing for more choices in the market.By the time they purchased a microwave,sales of microwaves had leveled off and prices had declined significantly.Brenda and Bart were part of the ______________ diffusion of innovation group.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

Brenda and Bart waited until prices declined and sales leveled off, indicating they purchased during the late majority phase, when the product is more widely accepted and affordable.

Question 16

Laptop computers,personal digital assistants,and cellular phones were all readily accepted and diffused in U.S.markets where business and personal lifestyles tend to be faster-paced,compared to many other areas in the world.These products offered ________ with consumers' needs and priorities.
A) relative positioning
B) compatibility
C) observability
D) complexity
E) trialability

Accepted Answer

Compatibility refers to how well a product fits with consumers' current technologies and their preferences. As laptops, PDAs, and cellular phones were readily accepted and diffused in the fast-paced U.S. market, it suggests that they were compatible with consumers' needs and priorities. Options A, C, D, and E are not suitable as they respectively refer to the product's positioning relative to competitors, its ability to be observed, its level of complexity, and its ease of trial.

Question 17

When John began helping his favorite uncle Burton with his finances,he discovered his uncle was still renting a rotary-dial telephone from the phone company.Uncle Burton had paid thousands of dollars in rental fees over the previous forty years.Uncle Burton is a(n)______________ in the diffusion of innovation process for telephones.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

As Uncle Burton is still renting a rotary-dial telephone after 40 years, despite the availability of newer technologies, he can be considered a laggard in the diffusion of innovation process. Laggards are slow to adopt new technologies and are often reluctant to change from traditional methods.

Question 18

By the time BMW got into the mini-SUV market,sales had leveled off and were even starting to decline.BMW had to target its marketing efforts toward the _________________ diffusion of innovation group.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter

Accepted Answer

The late majority is the group of consumers who adopt a new product after it has been accepted by the early majority. As sales were declining for the mini-SUV market, BMW had to target this group in order to increase sales.

Question 19

Inkjet personal computer printers were a big improvement over the dot matrix printers they replaced.Inkjet printers gained rapid acceptance in the marketplace primarily because of their
A) relative advantage.
B) compatibility.
C) observability.
D) complexity.
E) trialability.

Accepted Answer

Inkjet printers had a relative advantage over dot matrix printers in terms of their printing quality, speed, and ease of use. This advantage made them popular in the market. Compatibility, observability, complexity, and trialability may have also played a role in their acceptance, but to a lesser extent than their relative advantage.

Question 20

Early personal computer users remember the cumbersome,user-unfriendly "DOS" system.When Apple introduced System 1 and Microsoft introduced Windows,both of which were much easier to use,these new products diffused rapidly because of their
A) relative advantage.
B) compatibility.
C) observability.
D) complexity.
E) trialability.

Accepted Answer

The relative advantage of System 1 and Windows over DOS (in terms of being much easier to use) is the reason why they diffused rapidly.

Quiz 12: Developing New Products

Which of the following is LEAST likely to be a source of ideas for new products?

If the _____________ diffusion of innovation group is relatively small,the number of people who ultimately adopt the innovation likely will also be small.

As soon as she saw one,Hillary wanted a flat-screen television,but she was worried about making the wrong choice.She waited until there were many alternatives in the market with lower prices and improved quality.Hillary is part of the __________ diffusion of innovation group.

The ________________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them.

The diffusion of innovation theory is useful to marketers in helping them

Samples are often used for new products when _________________ will influence the diffusion of the product.

Zappos.com,an online shoe store,worked to overcome the problem of new product ______________ with its easy,no hassle return procedure.

When automobile manufacturers introduced SUVs,they distributed and promoted them in the United States,but not in Europe where gasoline is heavily taxed and roads are much smaller.Car manufacturers recognized that this new line of cars

Bob and George live in the United States.Bob recently asked for George's cell phone number,but George said he didn't have one.George would probably be considered a(n) _________________ in the diffusion of innovation process.

The _________________ diffusion of innovation group is the last large group of consumers to adopt a new product or service.

Between concept testing and market testing,a firm should engage in which stage of the product development process?

For new product marketers,early adopters are important because they tend to be

Many home design businesses volunteer to provide their latest products for tours-of-homes fundraisers because they know their new products will benefit from

Laptop computers,personal digital assistants,and cellular phones were all readily accepted and diffused in U.S.markets where business and personal lifestyles tend to be faster-paced,compared to many other areas in the world.These products offered ________ with consumers' needs and priorities.

By the time BMW got into the mini-SUV market,sales had leveled off and were even starting to decline.BMW had to target its marketing efforts toward the _________________ diffusion of innovation group.

Inkjet personal computer printers were a big improvement over the dot matrix printers they replaced.Inkjet printers gained rapid acceptance in the marketplace primarily because of their

Early personal computer users remember the cumbersome,user-unfriendly "DOS" system.When Apple introduced System 1 and Microsoft introduced Windows,both of which were much easier to use,these new products diffused rapidly because of their