Multiple Choice Questions

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is
  • beta testing
  • relative advantage
  • product launch
  • product development
Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them. An example of such a mature product is
  • refrigerators
  • early adopter
  • customer input
  • relative advantage
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.
  • early adopter
  • brainstorming
  • maturity
  • compatibility
Which of the following adopter categories refers to the last large group of buyers to enter a new product market?
  • late majority
  • non-adopters
  • reducing the costs of production
  • stagnation
When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in
  • premarket testing
  • customer input
  • reverse innovation
  • late majority
During the __________ stage of the product life cycle, there are few but an increasing number of competitors.
  • innovators
  • late majority
  • innovation
  • growth
During the ___________ stage of the product life cycle, firms either position themselves for a niche market of loyal consumers or they exit the market.
  • decline
  • growth
  • maturity
  • prototypes
Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in
  • alpha testing
  • prototypes
  • beta testing
  • brainstorming
The __________ is a specific price at which manufacturers encourage retailers to sell a product.
  • product launch
  • performing product development
  • manufacturers suggested retail price
  • reducing the costs of production
__________ are special incentives offering reduced prices for a limited time, offered to retailers to get them to try a new product.
  • manufacturers suggested retail price
  • introductory price promotions
  • reverse engineering
  • innovation
Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are __________, who can provide ideas for new and improved products.
  • laggard
  • early adopter
  • lead users
  • maturity
At the end of a brainstorming session, participants are often asked to
  • product development
  • performing product development
  • starting to make preliminary decisions about the target market
  • vote on the best ideas
__________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.
  • innovation
  • product launch
  • reverse engineering
  • premarket testing
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
  • creating diversification and reducing risk
  • coordination of delivery and storage
  • why it took her s long to consider the new product line
  • capitalize on the pioneers weaknesses
Beverly is assessing the results of a new product launch of a series of e-books for her bookstore. When evaluating the results, Beverly will likely consider all of the following except
  • spread positive word of mouth to other physicians
  • why it took her s long to consider the new product line
  • panelists scan their receipts on a home scanning device
  • other consumers defer to their judgement, creating the opportunity for word of mouth referrals
Now that the consumer demand is building for Miranda's new organic shampoo, she and her team face a new set of decisions. Which of the following is not one of the decision items on the agenda for the team discussion of place in the marketing mix for a new product launch?
  • keeping up in a market where sales come mostly from new products
  • should be done when the new product does not contribute to the health and well-being of human users.
  • spread positive word of mouth to other physicians
  • Should slotting allowances be given to get the product into stores?
When microwaves were new, they often cost over $300, were huge, and 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.
  • trade promotions
  • test marketing
  • early adopter
  • late majority
Cathy has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line. Olay is in the _________ stage of the product life cycle.
  • compatibility
  • maturity
  • alpha testing
  • laggard
In many cases, pioneers lose their market lead and initial market share to imitators who
  • capitalize on the pioneers weaknesses
  • it may start to see profits toward the end of this stage
  • panelists scan their receipts on a home scanning device
  • Laggards are a major focus of marketing efforts.
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
  • test marketing
  • lead users
  • slotting allowance
  • relative advantage
Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve?
  • innovators, early adopters, early majority, late majority, laggards
  • starting to make preliminary decisions about the target market
  • the Mercedes mini SUV, smaller version of larger SUV's
  • Laggards are a major focus of marketing efforts.
As it pertains to the diffusion of innovation, if the __________ group is relatively small, the number of people who ultimately adopt the innovation likely will also be small.
  • late majority
  • premarket testing
  • early adopter
  • alpha testing
One of the potential benefits to a firm of introducing new-to-the-world products or services is
  • late majority
  • establishing an early market share lead
  • performing product development
  • establishment of a completely new market
When conducting exploratory concept testing for her firm's new Internet antipiracy software, which is the most important question that Dee should ask?
  • Will respondents purchase the software if it becomes available?
  • panelists scan their receipts on a home scanning device
  • satisfying the changing needs of current and new customers
  • were not compatible with European market conditions
Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in
  • premarket testing
  • alpha testing
  • trade promotions
  • beta testing
In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as
  • premarket testing
  • alpha testing
  • beta testing
  • customer input
The diffusion of innovation theory focuses on
  • it may start to see profits toward the end of this stage
  • Will respondents purchase the software if it becomes available?
  • the rate at which consumers are likely to adopt a new product or service
  • innovators, early adopters, early majority, late majority, laggards
Before the development of computer-assisted design software, many firms handcrafted __________, wooden or clay models that served as rough physical representations of a new product.
  • premarket testing
  • prototypes
  • alpha testing
  • maturity
Which of the following is not a reason listed in your text for the high failure rate of new products?
  • innovators, early adopters, early majority, late majority, laggards
  • stagnation
  • starting to make preliminary decisions about the target market
  • failing to introduce lower priced alternatives
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
  • it may start to see profits toward the end of this stage
  • alpha testing
  • spread positive word of mouth to other physicians
  • the Mercedes mini SUV, smaller version of larger SUV's
Which of the following is not one of the four product life cycle stages?
  • non-adopters
  • innovators, early adopters, early majority, late majority, laggards
  • late majority
  • stagnation
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
  • Laggards are a major focus of marketing efforts.
  • were not compatible with European market conditions
  • failing to introduce lower priced alternatives
  • price competition with protracted price wars erodes profits
During the __________ stage of the product life cycle, sales rise, profits rise rapidly, and there are a small but increasing number of competitors.
  • alpha testing
  • decline
  • product launch
  • growth
Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing. Which is the most important question that Kristina should ask?
  • early majority
  • bell shaped
  • Will retailers purchase the swimwear if it becomes available?
  • help extend the product gain market acceptance
The diffusion of innovation theory is useful to marketers in helping them
  • geodemographic segmentation
  • predict which type of customers will buy their products immediately and later
  • manufacturers suggested retail price
  • failing to introduce lower priced alternatives
Successful first movers create a market or a product category. They often benefit from being readily recognizable to consumers and
  • panelists scan their receipts on a home scanning device
  • diffusion of innovation
  • establishing an early market share lead
  • coordination of delivery and storage
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 40 years. Uncle Burton is a(n) __________ in the diffusion of innovation process for telephones.
  • innovator
  • laggard
  • opinion leaders
  • help extend the product gain market acceptance
Companies that develop customized-business software often work closely with their users when installing their products. This close contact often creates new product ideas through
  • customer input
  • early adopter
  • alpha testing
  • observability
The CEO of David's firm just came back from a business seminar. He called David into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that
  • Should slotting allowances be given to get the product into stores?
  • it is often impossible to identify with precision where a product is in the product life cycle.
  • beta testingA beta test is a test of the product conducted by key customers. Participation in NASCAR and other racing organizations offers auto companies a chance to do this.
  • innovators, early adopters, early majority, late majority, laggards
For new product marketers, early adopters are important because they tend to be
  • innovator
  • decline
  • opinion leaders
  • lead users
Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation.
  • alpha testing
  • brainstorming
  • early adopter
  • premarket testing
The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) __________ in the MP3 player market.
  • maturity
  • pioneer
  • refrigerators
  • product launch
Barbara is using a test model of her firm's new inline skates to see if they work according to the design specifications. Barbara is involved in
  • relative advantage
  • alpha testing
  • early adopter
  • innovation
By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked, and profits were declining. These firms entered the market during the __________ stage of the product life cycle.
  • pioneer
  • alpha testing
  • test marketing
  • maturity
The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix.
  • reverse engineering
  • slotting allowance
  • product launch
  • alpha testing
Firms can measure the success of a new product by all of the following factors except
  • fewer competitors in the market
  • panelists scan their receipts on a home scanning device
  • the Mercedes mini SUV, smaller version of larger SUV's
  • reducing the costs of production
Robin recently bought Voice over Internet Protocol (VoIP) phone service. 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.
  • compatibility
  • late majority
  • early adopter
  • refrigerators
Paul listens to music on his iPod and iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the __________ stage of the product life cycle.
  • until a superior product comes along to replace it.
  • late majority
  • early majority
  • decline
Which of the following is not a characteristic of products in the maturity stage of the product life cycle?
  • geodemographic segmentation
  • the Mercedes mini SUV, smaller version of larger SUV's
  • innovators, early adopters, early majority, late majority, laggards
  • Laggards are a major focus of marketing efforts.
One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for _______ the product.
  • beta testingA beta test is a test of the product conducted by key customers. Participation in NASCAR and other racing organizations offers auto companies a chance to do this.
  • alpha testing
  • relative advantage
  • test marketing
A major limitation in the use of internal R&D departments for new idea generation is
  • innovators, early adopters, early majority, late majority, laggards
  • it may start to see profits toward the end of this stage
  • the costs associated with an internal r&D department tend to be quite high
  • price competition with protracted price wars erodes profits
Zappos.com, an online shoe store, offers an easy, no-hassle return procedure. This relates to the _______ of its products.
  • maturity
  • trialability
  • compatibility
  • late majority
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.
  • innovation
  • innovator
  • sales would be low and profits nonexistent, but he would attract golf equipment innovators.
  • lead users
Which of the following is least likely to be a source of ideas for new products?
  • geodemographic segmentation
  • the Mercedes mini SUV, smaller version of larger SUV's
  • non-adopters
  • evaluation
Bob and George live in the United States. Bob recently asked for George's cell phone number, but George said he didn't own a cell phone. George would probably be considered a(n) __________ in the diffusion of innovation process.
  • laggard
  • maturity
  • prototypes
  • growth
Which of the following is not a stage in the product life cycle?
  • the Mercedes mini SUV, smaller version of larger SUV's
  • reducing the costs of production
  • evaluation
  • introduction
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.
  • maturity
  • test marketing
  • late majority
  • alpha testing
Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in
  • premarket testing
  • reverse innovation
  • alpha testing
  • test marketing
The growth phase of the product life cycle is always dynamic. Which of the following does not occur in this phase?
  • failing to introduce lower priced alternatives
  • price competition with protracted price wars erodes profits
  • why it took her s long to consider the new product line
  • diffusion of innovation
When a manufacturer launches a new product, it may offer __________ to wholesalers and retailers, including introductory price promotions, special events, and personal selling.
  • trade promotions
  • late majority
  • alpha testing
  • test marketing
Which of the following is not one of the five groups in the diffusion of innovation curve?
  • evaluation
  • stagnation
  • reducing the costs of production
  • non-adopters
__________ are customers who modify existing products according to their own ideas to suit their specific needs.
  • late majority
  • until a superior product comes along to replace it.
  • lead users
  • early majority
One of the key characteristics of brainstorming sessions is
  • establishment of a completely new market
  • not adopted by everyone at the same time
  • no idea is immediately accepted or rejected
  • starting to make preliminary decisions about the target market
The __________ diffusion of innovation group is crucial because few new products can be profitable until this large group buys them.
  • early majority
  • slotting allowance
  • early adopter
  • reverse engineering
Concept testing is important because it can
  • starting to make preliminary decisions about the target market
  • the costs associated with an internal r&D department tend to be quite high
  • help a firm avoid the costs of unnecessary product development.
  • it may start to see profits toward the end of this stage
A(n) __________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products.
  • observability
  • maturity
  • trialability
  • slotting allowance
Innovators are a critical group of new product adopters because they
  • late majority
  • sales would be low and profits nonexistent, but he would attract golf equipment innovators.
  • bell shaped
  • help extend the product gain market acceptance
Inkjet printers were a big improvement over the dot-matrix printers they replaced. Inkjet printers gained rapid acceptance in the marketplace primarily because of their
  • relative advantage
  • test marketing
  • reverse engineering
  • refrigerators
Which of the following would not be part of the launch of a new product?
  • starting to make preliminary decisions about the target market
  • the Mercedes mini SUV, smaller version of larger SUV's
  • geodemographic segmentation
  • Laggards are a major focus of marketing efforts.
__________ is the process by which ideas are transformed into new products and services that will help firms grow.
  • innovators
  • innovation
  • slotting allowance
  • evaluation
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Multiple Choice Questions
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