Ch9 PDF

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1. Firms feel compelled to add new products to their offerings to satisfy the changing needs of current and new: domestic and foreign markets

2. New product and service innovation is important because the longer a product or service exists in a given marketplace, the more likely the market will become: saturated

3. One advantage of product innovation is that a firm can expand into different product categories. The point of the ______ strategy is that if some offerings in one category are competing poorly, others in another category could be doing very well. risk diversification

4. Some markets demand a higher frequency of new product releases than others. In which of the following markets does this demand apply? Books Clothing Video games Films

5. Innovation is the process by which ideas are transformed into new products and services that will help the firm grow.

6. Diffusion of innovation refers to the internal process of coming up with new products for testing in a given market. False

7. Firms need to continue to innovate because customer needs: are constantly changing

8. In terms of their place on the diffusion of innovation curve, innovators are the ______ category of product/service adopters. first

9. When a company adds new products, this helps the company to ______ its risk. diversify

10. Without innovation, what options would be available to firms? Take current products to new markets Continue to market current products to current customers

11. Along the diffusion of innovation curve, _______ make up the second consumer group to adopt an innovation; they tend to be leaders in a social setting. early adopters

12. The process by which the deployment of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters is called diffusion of innovation.

13. The early majority represents the earlier half of the two largest consumer categories on the diffusion of innovation curve.

14. Innovators are buyers of a product or service who are the first ones to adopt it.

15. While late to the party, the late majority category of consumers is still significant, making up approximately ______ per cent of the consumer market. 34

16. Early adopters are usually more likely to take risks than are innovators. False

17. Laggards make up roughly ______ per cent of the market. 16

18. If this group does not typically become large enough, the product is likely to fail. Which group is being referred to here? Early majority

19. When the late majority of consumers enters the market, the market has already reached its highest sales level.

20. The Apple iPod was readily accepted by consumers in part because it was an easy way to listen to music anywhere, with considerable advantages over portable CD players. This is an example of a relative advantage in the diffusion process.

21. ______ are consumers who like to avoid changes and rely on traditional products until they are no longer available. Laggards

22. When firms decide to develop new products, it is typically a long process that is broken into ______ stages. six

23. The process by which the use of an innovation, whether it be a product or a service, is spread throughout a market group over time and over various categories of adopters is known as: diffusion of innovation

24. The early majority represents the earlier half of the two largest consumer categories on the diffusion of innovation curve.

25. Concept testing is a written description of a product and its technology. This occurs very early in the new product introduction process, even before the real product has been made, and it helps the firm to avoid the costs of unnecessary product development.

26. ______ deals with perception among consumers that a product is better than its substitutes. Relative advantage

27. Product development or product design entails a process of balancing the following types of considerations: Engineering Manufacturing marketing

28. While there are numerous stages in the product development process, every firm starts to develop new products through ______ and then finishes with an evaluation of ______. idea generation; results

29. A premarket test is when a company shows potential customers the marketing mix variables, after which consumers are surveyed to determine whether they would buy/use the product again.

30. The following diagram shows different sources for generating new ideas for product development. Which of the following sources is likely to be the most expensive? Internal R&D

31. If a firm has a positive result from market testing, the next step is known as the product launch.

32. Concept testing can be as simple as a brief written product description that might also include: visual images customer needs it satisfies

33. Product development entails a process of balancing various engineering, manufacturing, marketing and economic considerations to develop a product's form and features or a service's features.

34. After a new product is launched, what is the next step of the product development process? Evaluation of results

35. Premarket tests involve: tests conducted before a product or service is brought to market to determine how many customers will try and then continue to use it

36. A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the product life cycle.

37. If the market testing returns with positive results, the firm is then ready to introduce the product to the entire market, which is called the product launch. True

38. What are key characteristics of the introduction stage? Few or no competitors Low profits

39. During the ______ stage of the product life cycle, firms attempt to reach new consumers by studying their preferences and producing many competing and different product variations. growth

40. During the maturity phase, firms must defend their market share against competitors.

41. A post-launch review is conducted to determine whether: changes to the marketing mix are needed additional resources are needed the launch was a success or failure

42. When a product is in the decline stage of the product life cycle, the firm will often choose between targeting a niche segment or exiting the market.

43. __________ define(s) the stages products move through as they enter, get established in and ultimately leave the marketplace. The product life cycle

44. New products and services that consumers accept rapidly have a high ______ rate early in their product life cycles, which will accelerate the diffusion process across the various stages. adoption

45. The introduction stage of the life cycle for a new product or service category, such as microwave ovens in 1971 and personal computers in 1981, usually starts with a single firm and innovators who try the new offering.

46. Typically during the growth stage of the product life cycle, typical consumers would be early adopters and early majority.

47. The maturity stage of the product life cycle is characterised by the adoption of the product by the late majority and good profitability.

48. Based on the history of dozens of ______ products, the product life cycle concept provides 'rules' for detecting the key turning points in the cycle. consumer

49. Identify the steps taken by firms that offer products in the decline stage of the product life cycle. Completely exit the market Create a niche segment

50. During the introduction stage, sales are ______ and there are ______ competitors. very low; no or very few

51. The product life cycle is a valid idea and new analytical tools now provide 'rules' for detecting key turning points in the cycle....