Question 1

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

Accepted Answer

Imitators often study the pioneer's weaknesses and capitalize on them to gain market share. They may offer similar products with better features or lower prices and marketing initiatives that the pioneer cannot match, causing the pioneer to lose market share.

Question 2

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

Accepted Answer

Computer game companies need to keep up with the latest trends and interests of their customers to remain competitive and generate sales. As such, creating new products that cater to these trends and interests is necessary to maintain market share and revenue, as sales typically come from new products.

Question 3

Ellen recently switched from cable to YouTube TV. A few of her friends switched before she did, but many other friends were interested in Ellen's opinion of the television service. Ellen is a(n)________ in this product category.

Accepted Answer

Ellen is an early adopter because she switched to YouTube TV before many of her friends, indicating she is among the first group to try new products after the innovators.

Question 4

By adding new product lines beyond its core business of computer software, like the Surface Pro tablet and Xbox 360 game system, Microsoft primarily benefits by

Accepted Answer

By adding new product lines beyond its core business of computer software, Microsoft is creating diversification and reducing risk. This is because if one product line is not performing well, the company has other sources of revenue to rely on, instead of relying solely on their software sales.

Question 5

Whenever Stephen considers upgrading his computer gaming system, he consults with Pete, a knowledgeable friend who always has the newest technology. For Stephen, Pete is a(n)________ in the diffusion of innovation curve.

Accepted Answer

Pete is considered an innovator because he always has the newest technology, indicating he is among the first to adopt new innovations. Innovators are eager to try new ideas and technologies, often at a stage when they are still unproven or not widely known.

Question 6

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

Accepted Answer

The process of the use of a new product or service spreading throughout a market group is known as diffusion of innovation. This process involves the different stages of adoption by consumers, from early adopters to laggards. The theory behind diffusion of innovation explains how and why people adopt a new product or idea, and is often used by marketers to develop strategies to promote the acceptance and adoption of their products.

Question 7

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

Accepted Answer

Daily specials allow restaurants to cater to the changing tastes and preferences of both current and new customers. This helps them stay relevant in the market and retain their customer base.

Question 8

Terri is trying to sell a new line of mammography equipment. Unlike existing technology, these machines are compact, creating the potential for general practice physicians to have and use them in their offices. Terri would want to identify innovators in his market, knowing these customers will most likely

Accepted Answer

Innovators are the first people to adopt new technology and are often opinion leaders in their field. Their positive word of mouth can help spread awareness and interest in the new line of mammography equipment among other physicians.

Question 9

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

Accepted Answer

Introducing a new-to-the-world product or service can lead to the establishment of a completely new market, creating a first mover advantage and potential for significant profits.

Question 10

For new product marketers, early adopters are important because they tend to be

Accepted Answer

The answer of For new product marketers, early adopters are...

Question 11

Kelsey has been asked to report on how the company's high-rise jeans collection had spread through the marketplace. The management team wants to know which categories of adopters it originally applied to and which ones it applies to today. What process does Kelsey need to review?

Accepted Answer

Kelsey needs to review the diffusion of innovation process, which explains how new products spread through the market and which categories of adopters they apply to.

Question 12

Maria was one of the first people in the virtual waiting room for tickets to see the Broadway production of Hamilton. She had taken the morning off of work to be sure she would get tickets. Maria is an example of a(n)

Accepted Answer

The answer of Maria was one of the first people...

Question 13

The diffusion of innovation theory focuses on

Accepted Answer

The diffusion of innovation theory focuses on the rate at which consumers are likely to adopt a new product or service, categorized into five groups: innovators, early adopters, early majority, late majority, and laggards. This theory helps marketers understand the adoption process and develop strategies to accelerate the adoption rate of their product or service.

Question 14

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

Accepted Answer

New-to-the-world products are typically not adopted by everyone at the same time, as there is often a period of adoption and diffusion before widespread acceptance. However, this does not necessarily mean that they are not profitable or incapable of creating new markets, and they may still be subject to the law of first movers. The statement that they are typically very short-lived is also not necessarily true, as some new-to-the-world products may have long lifecycles if they are successful.

Question 15

The Amazon Echo is an example of ________ because when it was introduced, nothing like it existed on the market.

Accepted Answer

The Amazon Echo was an innovative product because it introduced a new category of voice-activated home assistants and there was no comparable product on the market at the time. The other options, such as trialability, beta-testing, saturation, and laggard, are not applicable to the Amazon Echo's unique position as a first-of-its-kind product.

Question 16

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

Accepted Answer

Innovators are highly knowledgeable and enjoy taking risks, and their opinions are often highly respected by other consumers. This creates the opportunity for word-of-mouth referrals, which can be very valuable for marketers. Innovators are not necessarily price-conscious, easily influenced by reminder advertising, or likely to encourage competitors to enter the market. They may prefer products from established market leaders, but this is not the main reason why marketers want to identify them.

Question 17

A major struggle faced by first movers is that they

Accepted Answer

First movers are the companies that introduce new products or services in the market. They have the added responsibility of establishing a market for the product or service all by themselves. They need to invest heavily in marketing and advertising to create brand awareness and generate demand for the product. This is a major struggle faced by first movers.

Question 18

Innovators are a critical group of new product adopters because they

Accepted Answer

Innovators are the first group of consumers to adopt a new product. They are important because they help a product gain market acceptance by influencing other consumers and by providing valuable feedback to the company about the product's strengths and weaknesses. This can help the company improve the product and make it more appealing to the broader market.

Question 19

Pioneer or breakthrough products are those that

Accepted Answer

Pioneer or breakthrough products have the potential to change consumer preferences by offering something new and innovative. They may create entirely new markets or disrupt existing ones by offering improved solutions to existing problems.

Question 20

Which group is especially essential for bringing the other buying groups into the market?

Accepted Answer

Early adopters are particularly crucial for introducing new products or technologies to the market. They are usually innovative, risk-takers and have a high level of social status in the community. They are often the first to try new products and services, and their opinion and behavior influence the adoption of the product by the early majority.

Quiz 12: Developing New Products