Question 1

Which of the following is not a reason listed in your text for the high failure rate of new products?
A) failing to assess the market properly
B) neglecting to do appropriate product testing
C) targeting the wrong segment
D) overextending a firm's abilities
E) failing to introduce lower-priced alternatives

Accepted Answer

The text lists failing to assess the market properly, neglecting appropriate product testing, targeting the wrong segment, and overextending a firm's abilities as reasons for the high failure rate of new products, but does not mention failing to introduce lower-priced alternatives as a reason.

Question 2

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

Accepted Answer

It is common for new-to-the-world products to have a slow adoption rate and not be immediately adopted by everyone. This is because they often require a shift in consumer behavior or preferences, which takes time. However, if the product is successful, it can eventually create a new market and become profitable. The law of first movers may or may not apply depending on the specifics of the product and market. New-to-the-world products can also vary in terms of longevity, so choice E is not necessarily true for all products.

Question 3

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 rely heavily on sales from new products, so they monitor blogs to stay up-to-date on popular trends and create new products that meet the demand for the latest trends in the market.

Question 4

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 are able to capitalize on the weaknesses exhibited by pioneers in the market, giving them an opportunity to offer better options and eventually, take over the market.

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
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 current and new customers by offering different options than what is listed on the standard menu.

Question 6

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

Question 7

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) establishment of a completely new market.
D) the ability to avoid paying pioneers for new product development.
E) the ability to capitalize on existing consumer preferences.

Accepted Answer

Introducing new-to-the-world products or services allows a company to establish a completely new market, creating a first-mover advantage and potentially dominating the market. This can lead to increased profits and a strong competitive position.

Question 8

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 diversifying its product line, Microsoft is reducing its risk by not relying solely on one product or service for its revenue. This allows the company to better weather shifts in the market and potential declines in sales for any one product.

Question 9

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 most likely
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 are willing to try new technology and are influential in their social networks. If Brian can identify innovators among general practice physicians, they are likely to spread positive word of mouth to other physicians, helping to create demand for the new ultrasound imaging equipment.

Question 10

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 adopter
D) early majority adopter
E) early adopters

Accepted Answer

An innovator is a person who is among the first to adopt new products, services or ideas. Jeremy, who always has the newest technology, can be considered an innovator in the diffusion of innovation curve.

Question 11

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

Successful first movers often establish an early market share lead, which can give them a competitive advantage over later entrants into the market. This can also make them readily recognizable to consumers, as they are often the first brand that consumers associate with a particular product category or market. However, first movers may still need to invest in advertising and marketing to maintain their market position and expand their customer base. Using prototypes or not needing to do test marketing may be strategies that some first movers use, but they are not universal characteristics of successful first movers. Motivating laggards to buy their products is not necessarily a benefit of being a first mover.

Question 12

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 knowledgeable and enjoy taking risks, so other consumers often defer to their judgment and recommendations. Therefore, they create the opportunity for word-of-mouth referrals, which is an effective form of marketing. Marketers want to identify innovators so they can target them with their products and encourage them to spread the word to other potential adopters.

Question 13

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 14

Which of the following is not one of the benefits to a firm of new product development?
A) reducing the 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 with short product life cycles where sales come mostly from new products

Accepted Answer

New product development typically involves significant costs associated with research, design, and launch. Therefore, it is not typically associated with reducing the costs of production. Instead, it is focused on generating revenue and profit through introducing new and improved products to market.

Question 15

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 understanding the rate at which consumers are likely to adopt a new product or service, based on various factors such as the product's characteristics, the communication channels used to promote it, and the social context in which it is introduced. The theory does not focus on geographic boundaries, brand relationships, innovator psychology, or the product life cycle itself.

Question 16

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 market his current products only 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

Eric can market the same products to similar customers, which means finding new customers who have similar needs and interests as his current customers but are not currently being served by his company. This approach doesn't require new product development but rather focuses on expanding the customer base for existing products.

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 described in the question is known as diffusion of innovation. Diffusion of innovation refers to the spread of a new product or service through a market group over time and across various categories of adopters. It is a systematic process that involves the different stages of awareness, interest, evaluation, trial, and adoption. Therefore, option C is the best choice.

Question 18

__________ 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) Competition

Accepted Answer

Innovation is the process of taking an idea and turning it into a new product or service that can be sold in the market. This process can help firms grow by offering something new or unique to customers, which can increase sales and profits. Beta testing is a form of testing used to identify and fix issues before a product is released, while concept testing is used to evaluate the feasibility of an idea before it is developed further. Reverse engineering involves taking apart a product to understand how it works, and competition refers to the rivalry between firms in a particular market.

Question 19

Pioneer or breakthrough products
A) will likely result in late maturity buying.
B) can change consumer preferences.
C) incorporate reverse engineering outputs.
D) require the use of concept testing services.
E) must be geographically centered.

Accepted Answer

Pioneer or breakthrough products have the potential to change consumer preferences as they introduce new features or technologies that were not previously available in the market. This can lead to a shift in how consumers perceive and evaluate products in that category.

Question 20

Which of the following was not a new-to-the-world product or service when it was introduced?
A) Wi-Fi
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 answer of Which of the following was not a...

Quiz 12: Developing New Products

Which of the following is not a reason listed in your text for the high failure rate of new products?

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

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

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

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

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

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

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

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.

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

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

Innovators are a critical group of new product adopters because they

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

The diffusion of innovation theory focuses on

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

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

Pioneer or breakthrough products

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