Question 1

__________ tends to be higher when the product has a clear relative advantage over existing products, is compatible with the customer's lifestyle, is not overly complex (or the complexity is masked by a user-friendly interface), and is easily tried or sampled in order to facilitate initial assessment.

Accepted Answer

Consumer acceptance is higher when a product has a clear advantage, compatibility, simplicity, and trialability, as these factors make it more appealing and easier for consumers to adopt.

Question 2

There is less risk with __________ new products than with __________ new products.

Accepted Answer

The answer of There is less risk with __________ new...

Question 3

Regarding fast-growing economies, what does "BRIC" stand for?

Accepted Answer

BRIC stands for Brazil, Russia, India, and China, which are considered major emerging national economies.

Question 4

In which phase of the product life cycle is customer awareness getting stronger and some buzz occurring in the marketplace?

Accepted Answer

During the market growth phase, customer awareness increases, and the product starts gaining popularity, leading to buzz in the marketplace.

Question 5

Procter & Gamble determined that its Thermacare Heat Wrap was underperforming and lacked a desired level of growth potential, so it decided to sell the brand.In what phase of the product life cycle was Thermacare Heat Wrap?

Accepted Answer

The decision to sell the brand due to underperformance and lack of growth potential indicates that Thermacare Heat Wrap was in the decline phase of the product life cycle.

Question 6

Amos does not want to find new customers or create new products.Instead, he is opening more stores and improving the marketing mix-more intriguing advertising, better pricing, better reward program, better in-store service, better store ambience, etc.What strategy is he using?

Accepted Answer

Amos is using a market penetration strategy, which focuses on increasing sales of existing products to the current market through tactics like opening more stores and enhancing the marketing mix.

Question 7

What growth strategy combines new markets and new products?

Accepted Answer

Diversification is a growth strategy that involves entering new markets with new products, expanding the company's reach and offerings.

Question 8

The stage of the product life cycle where sales and profits drop and new products replace older generations is called

Accepted Answer

The decline stage is where sales and profits drop as new products replace older generations.

Question 9

Simone started the meeting at BCD Co.by focusing the attendees on the company's current status."We have a good product mix," she stated."To continue to grow, we need to target more segments." Which strategic path is Simone pursuing?

Accepted Answer

Simone is focusing on targeting more segments, which aligns with market development, as it involves expanding into new markets or segments with existing products.

Question 10

The most stunning demographic trend in America and Western Europe is that the population is becoming

Accepted Answer

The population in America and Western Europe is aging due to lower birth rates and increased life expectancy, leading to a higher proportion of older individuals.

Question 11

The __________ are more risk averse and waiting to hear that people who have already adopted the product have had favorable experiences with the new product.

Accepted Answer

The early majority are more risk-averse compared to innovators and early adopters, and they prefer to wait for feedback from those who have already tried the product before adopting it themselves.

Question 12

Company ABC is about to launch a fuller product line in an effort to satisfy more customer segments in the market.Given these activities, Company ABC's current product(s) is most likely in which stage of the product life cycle?

Accepted Answer

Company ABC is expanding its product line to satisfy more customer segments, which is a common strategy during the maturity stage to maximize market share and fend off competition.

Question 13

What sub population is growing faster than any other in the United States?

Accepted Answer

The Hispanic population is growing faster than any other subpopulation in the United States due to higher birth rates and immigration.

Question 14

ABC Co.wants to grow through innovation.It has modified several of its products and developed two new products for its customers.Which strategy is ABC Co.using?

Accepted Answer

ABC Co. is using a product development strategy as it involves modifying existing products and creating new products for its current market.

Question 15

Hannah and Ellen rely on consistent messages received via word of mouth and are older and more conservative than other customers of Product X.Hannah and Ellen most likely fall into which of the following categories?

Accepted Answer

Hannah and Ellen are described as older, more conservative, and reliant on word of mouth, which aligns with the characteristics of the late majority in the adoption curve.

Question 16

A product has more competition during the __________ stage than in any other stage in its life cycle.

Accepted Answer

During the market maturity stage, many competitors have entered the market, leading to increased competition as companies try to differentiate their products and maintain market share.

Question 17

The __________ are a group of approximately 10-15% of the population who is so influential that the loss of one of these customers costs the firm more than the loss of later adopters.

Accepted Answer

Early adopters are influential customers who are crucial for the success of a product, as they help in spreading the word and influencing later adopters. Losing them can significantly impact a firm's success.

Question 18

What term refers to the group of people who are the most risk averse, skeptical of new products, and stereotypically lower in income?

Accepted Answer

Laggards are typically the most risk-averse, skeptical of new products, and often have lower income levels compared to other groups in the adoption curve.

Question 19

The __________ are 3-5% of consumers who like to try new ideas and are willing to take risks.They tend to be relatively educated, and capable and confident in assessing information about a product on their own.

Accepted Answer

Innovators are the first group to adopt new ideas and products, making up about 3-5% of consumers. They are risk-takers, well-educated, and confident in evaluating new products independently.

Question 20

Which growth strategy is the toughest?

Accepted Answer

Diversification is the toughest growth strategy because it involves entering a completely new market with new products, which requires significant resources, research, and carries higher risks compared to other strategies.

Quiz 8: New Products and Innovation

There is less risk with new products than with new products.