Filters
Question type
Study Flashcards

Explain the differences between innovators and early adopters.

Correct Answer

verifed

verified

Answers will vary. Innovators are the fi...

View Answer

What are the major implications of the new-product development process and the diffusion process to marketing managers?

Correct Answer

verifed

verified

Answers will vary. The new-product devel...

View Answer

Which of the following is a disadvantage of test marketing?


A) It requires major changes in consumer behavior such as rejecting microwave ovens.
B) It promotes the criticism of an idea, no matter how ridiculous it may seem.
C) It inaccurately predicts the success of a product that creates new consumption patterns.
D) It exposes the new product and its marketing mix to its competitors before its introduction.

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

Which of the following statements is true of the maturity stage of the product life cycle (PLC) ?


A) The beginning of this stage is signaled by increased sales.
B) Niche marketers that target the underserved segments of a market emerge.
C) It is the shortest stage of the PLc.
D) Product design changes tend to become functional rather than stylistic.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Steve, a retiree, wants to open a day care facility for dogs with his savings. After deciding on the services that he would be providing to his customers, he calculates costs versus the demand and the profit he could make depending on the volume of sales. After extensive deliberation, Steve decides to take credit from the bank for opening the facility as the initial investment required is too high. Steve is currently in the _____ stage of the new-product development process.


A) commercialization
B) business analysis
C) idea generation
D) test marketing

E) B) and D)
F) None of the above

Correct Answer

verifed

verified

In the context of the new-product development process, which of the following statements is true of screening?


A) It eliminates ideas that are inconsistent with an organization's new-product strategy.
B) It calculates preliminary figures for demand, cost, sales, and profitability.
C) It involves getting consumer reactions to visual representations of a proposed product.
D) It involves making cosmetic or functional changes to existing products.

E) B) and D)
F) None of the above

Correct Answer

verifed

verified

A product category includes all brands that satisfy a particular type of need.

A) True
B) False

Correct Answer

verifed

verified

Which of the following is a similarity between early adopters and the early majority?


A) Both have the potential to become opinion leaders.
B) Both rely on group norms and values.
C) Both desire to earn the respect of others.
D) Both are influenced by advertising and promotions.

E) All of the above
F) B) and C)

Correct Answer

verifed

verified

Explain absolute and relative product failure. Why do a large proportion of new product introductions fail?

Correct Answer

verifed

verified

Answers will vary. Despite the amount of...

View Answer

How does a multinational corporation meet the needs of the global market?

Correct Answer

verifed

verified

Answers will vary. Increasing globalization of markets and competition provides a reason for multinational firms to consider new-product development from a worldwide perspective. A firm that starts with a global strategy is better able to develop products that are marketable worldwide. In many multinational corporations, every product is developed for potential worldwide distribution, and unique market requirements are satisfied during development whenever possible.Some global marketers design their products to meet regulations in their major markets and then, if necessary, meet smaller markets' requirements country by country. Nissan develops lead-country car models that, with minor changes, can be sold in most markets. With this approach, Nissan has been able to reduce the number of its basic models from 48 to 18. Some products, however, have little potential for global market penetration without modification. Succeeding in some countries (such as China) often requires companies to develop products that meet the unique needs of these populations. In other cases, companies cannot sell their products at affordable prices and still make a profit in many countries.

A new-product strategy links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.

A) True
B) False

Correct Answer

verifed

verified

Cleanz Inc., a toiletries manufacturing firm, has launched a new range of organic sanitizing wipes. It wants to test its consumers' reactions to this new product in an economical way. Therefore, Cleanz sends out flyers to a few selected members of the target market advertising several of its products along with the new product. Besides this, it also takes the members to a mock shop and monitors their shopping behavior. In this scenario, Cleanz is using _____.


A) scanner-based research testing
B) simulated market testing
C) virtual test marketing
D) traditional test marketing

E) All of the above
F) None of the above

Correct Answer

verifed

verified

Which of the following statements is true of simulated market testing?


A) It is often conducted on prototype models during the development stage.
B) It is a useful tool for implementing simultaneous product development.
C) It is the final stage in the new-product development and marketing process.
D) It is used to monitor shopper behavior to assess a product's performance.

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

D

In the context of diffusion of innovation, a dominant characteristic of innovators is tradition.

A) True
B) False

Correct Answer

verifed

verified

Which of the following statements is true of the development stage of the new-product development process?


A) Costs decrease dramatically once a product idea enters the development stage.
B) It involves evaluating a new-product idea before creating any prototype.
C) Simultaneous product development increases the time spent in the development process.
D) It involves examining the feasibility of manufacturing a product at an acceptable cost.

E) None of the above
F) B) and D)

Correct Answer

verifed

verified

A process called 3D printing, or additive manufacturing, is sometimes used to create three-dimensional prototypes quickly and at a relatively low cost.

A) True
B) False

Correct Answer

verifed

verified

Which of the following statements is true of the product life cycle (PLC) ?


A) The PLC dictates the marketing strategy to be used for a product.
B) A product spends the same amount of time in the different stages of the life cycle.
C) The PLC for a product form is longer than the PLC for any one brand.
D) Changes in a product, its uses, its image, or its positioning do not affect its life cycle.

E) B) and C)
F) A) and C)

Correct Answer

verifed

verified

Absolute failure occurs when a product returns a profit but fails to achieve sales, profit, or market share goals.

A) True
B) False

Correct Answer

verifed

verified

False

Steven, a construction worker, tends to buy a new gadget if most of his friends have them. He relies on reviews from his friends rather than on television or newspaper advertisements to make his purchase decisions. It can be inferred that Steven belongs to the category of _____ in the diffusion of innovation.


A) laggards
B) innovators
C) the late majority
D) the early majority

E) C) and D)
F) B) and D)

Correct Answer

verifed

verified

Magnira Corp. is an apparel company. After a slow start, it saw a steep rise in its clientele and a remarkable increase in its profits. However, with the launch of other apparel manufacturers in the market, the profits of Magnira have started declining. To sustain its growth in the market, the managers of Magnira should:


A) focus on primary demand stimulation rather than advertising the brand.
B) shift to aggressive brand advertising and open new branches.
C) suggest top management to reduce the number of employees in the company.
D) distribute the company's products at limited outlets.

E) A) and D)
F) B) and D)

Correct Answer

verifed

verified

Showing 1 - 20 of 54

Related Exams

Exam 1

An Overview of Marketing

40 Questions

Exam 2

Strategic Planning for Competitive Advantage

120 Questions

Exam 3

Ethics and Social Responsibility

60 Questions

Exam 4

The Marketing Environment

84 Questions

Exam 5

Developing a Global Vision

64 Questions

Exam 6

Consumer Decision Making

82 Questions

Exam 7

Business Marketing

70 Questions

Exam 8

Segmenting and Targeting Markets

64 Questions

Exam 9

Marketing Research

45 Questions

Exam 10

Product Concepts

65 Questions

Exam 12

Services and Nonprofit Organization Marketing

61 Questions

Exam 13

Supply Chain Management and Marketing Channels

72 Questions

Exam 14

Retailing

51 Questions

Exam 15

Marketing Communications

60 Questions

Exam 16

Advertising, Public Relations, and Sales Promotion

66 Questions

Exam 17

Personal Selling and Sales Management

40 Questions

Exam 18

Social Media and Marketing

50 Questions

Exam 19

Pricing Concepts

88 Questions

Show Answer