Question 1

Market researchers have determined nine categories of lifestyles for computer users.One of the categories is described as "Fast Forwards," who eagerly purchase brand new technology for home,office,and personal use.This group is most likely to adopt new technology when it is in which stage of its product life cycle?

Accepted Answer

The "Fast Forwards" category is described as eager adopters of brand new technology, indicating that they are likely to be early adopters. Early adopters tend to adopt technology during the innovation stage of its product life cycle.

Question 2

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 earbud phone.The entire device fits in your ear.It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well.It picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the earbud phone lists for $329.
-Refer to Jabra Corporation.The Jabra 1000 is similar to the earbud system in an iPod,which may increase adoption rates.This suggests that the rate of diffusion might be affected by which of the following?

Accepted Answer

Compatibility refers to the degree to which the new product is consistent with existing values and product knowledge.

Question 3

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 earbud phone.The entire device fits in your ear.It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well.It picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the earbud phone lists for $329.
-Refer to Jabra Corporation.When the Jabra 1000 was first launched,it most likely appealed to which product adopter category?

Accepted Answer

Innovators are eager to try new ideas and products almost as an obsession.Since the Jabra 1000 is a new-to-the-world product,innovators should be the first adopters.

Question 4

In the early 1900s,a new product was developed-the phonograph record.It allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Digital downloading of songs from online stores like iTunes has become the norm.Today,most stores no longer carry records,which have become a niche product.
-Refer to Music Industry.The phonograph record industry is currently in what stage of the product life cycle?

Accepted Answer

The long-run drop in sales signals that the industry is in the decline stage of the life cycle.

Question 5

Which of the following products is most likely to be in the decline stage of its product life cycle?

Accepted Answer

Sales are falling,and the product is not being supported by marketing efforts even though there are still some cassette tape players in use.

Question 6

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 earbud phone.The entire device fits in your ear.It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well.It picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the earbud phone lists for $329.
-Refer to Jabra Corporation.The Jabra 1000 is technically advanced and somewhat difficult for people to understand.Thus,what might affect the rate of diffusion?

Accepted Answer

Complexity refers to the degree of difficulty involved in understanding and using a new product.

Question 7

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 earbud phone.The entire device fits in your ear.It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well.It picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the earbud phone lists for $329.
-Refer to Jabra Corporation.When the first Jabra 1000 was sold,the initial sale signalled the start of which stage of the product life cycle?

Accepted Answer

The initial sale of the Jabra 1000 earbud phone signals the start of the introductory stage of the product life cycle, as the product is being launched and introduced to the market.

Question 8

You are a product manager for a manufacturer of trampolines.You have determined that the trampoline is in the maturity stage of the product life cycle.What should you do to keep your product from entering the decline stage?

Accepted Answer

In the maturity stage, the market is saturated and competition is high, so it's important to promote the product heavily to dealers and customers to maintain or increase market share. This will keep the product top of mind and relevant to customers. Choices A and B are not ideal because increasing primary demand or raising prices may not be effective in this stage. Choice C may do more harm than good by eliminating necessary marketing expenses that could support the product's success.

Question 9

What is the rate of sales decline during the decline stage of the product life cycle largely governed by?

Accepted Answer

Changing consumer tastes can force a product into decline,particularly if an alternative is available.

Question 10

The marketing manager for Iams Pet Food wants to base the marketing strategy she implements for the company's products on the product life cycle stages.What should she do?

Accepted Answer

Adding new ingredients or flavors to existing products can help to extend their life cycle and keep them in the maturity stage for longer. This allows the company to continue marketing these products and generating revenue from them. Starting test marketing for new products every time an existing product enters the maturity stage (B) may not be the most cost-effective strategy, as it can be expensive and time-consuming. Changing private brands to generic brands (C) is not typically a recommended marketing strategy, as it can decrease brand recognition and loyalty. Creating a line extension for every product (D) may be too costly and cumbersome for the company, as not all products may need or benefit from a line extension.

Question 11

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.com for $5.95.
-Refer to Amusement Park Games.In terms of the new-product development process,what were Richardson's friends who encouraged him to put his ideas in a book involved in?

Accepted Answer

Richardson's friends were involved in the idea generation stage of the new-product development process by suggesting he write a book about his winning strategies for amusement park games.

Question 12

B.F.Goodrich has been manufacturing and marketing automotive tires for over 100 years.It spends much of its marketing budget on short-term promotions aimed at stealing market share from Goodyear,Dunlap,and other tire manufacturers.From this information,in which stage of their product life cycle are tires?

Accepted Answer

Tires are in the maturity stage of their product life cycle, indicated by the intense competition and focus on promotional activities to capture market share from competitors, which is typical of a mature market where products have fully penetrated the market.

Question 13

In the early 1900s,a new product was developed-the phonograph record.It allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Digital downloading of songs from online stores like iTunes has become the norm.Today,most stores no longer carry records,which have become a niche product.
-Refer to Music Industry.Record companies spent a lot of money on product information advertising in the 1920s to educate the public about the new technology.This is a characteristic of which stage of the product life cycle?

Accepted Answer

Marketing costs are high because the market needs to be educated about the product in the introductory stage of the product life cycle.

Question 14

In the early 1900s,a new product was developed-the phonograph record.It allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Digital downloading of songs from online stores like iTunes has become the norm.Today,most stores no longer carry records,which have become a niche product.
-Refer to Music Industry.The scenario outlines the stages of development of the market for phonograph albums.What is the name for this group of stages?

Accepted Answer

The product life cycle traces the stages of a product's acceptance from its introduction to its decline.

Question 15

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.com for $5.95.
-Refer to Amusement Park Games.In terms of the new-product development process,Richardson's several unsuccessful attempts to put his thoughts on paper are an example of which of the following?

Accepted Answer

Idea screening is the process of evaluating new product ideas to determine which ones are worth pursuing. Richardson's several unsuccessful attempts to put his thoughts on paper are an example of idea screening because he was trying to determine which of his ideas were worth pursuing.

Question 16

A long-run drop in sales signals the beginning of which stage in the product life cycle?

Accepted Answer

In the product life cycle, a long-run drop in sales typically indicates the decline stage, where the product experiences reduced demand and market saturation.

Question 17

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 earbud phone.The entire device fits in your ear.It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well.It picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the earbud phone lists for $329.
-Refer to Jabra Corporation.The Jabra 1000 described above is what type of new product?

Accepted Answer

The Jabra 1000 is a new-to-the-world product (the product category itself is new)and,as such,is a discontinuous innovation.

Question 18

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 earbud phone.The entire device fits in your ear.It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well.It picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the earbud phone lists for $329.
-Refer to Jabra Corporation.The Jabra 1000 is superior to existing hands-free telephones,especially with its small size and single part.However,consumers may think its advantages over current hands-free phones may not be worth the additional cost.Thus,what might affect adoption?

Accepted Answer

The relative advantage is the degree to which a product is perceived to be superior to existing substitutes.

Question 19

In the early 1900s,a new product was developed-the phonograph record.It allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Digital downloading of songs from online stores like iTunes has become the norm.Today,most stores no longer carry records,which have become a niche product.
-Refer to Music Industry.The market for record albums in the 1930s suggests phonograph records were in which stage of the product life cycle at that time?

Accepted Answer

The record companies were experiencing strong growth during the 1930s and many competitors were entering the market.These are characteristics of the growth stage of the product life cycle.

Question 20

In the early 1900s,a new product was developed-the phonograph record.It allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Digital downloading of songs from online stores like iTunes has become the norm.Today,most stores no longer carry records,which have become a niche product.
-Refer to Music Industry.The time from the 1940s through the 1960s corresponds to which stage of the product life cycle for phonograph records?

Accepted Answer

A period during which sales continue to increase,but at a decreasing rate,indicates the maturity stage of the life cycle.

Quiz 10: Developing and Managing Products

Which of the following products is most likely to be in the decline stage of its product life cycle?

You are a product manager for a manufacturer of trampolines.You have determined that the trampoline is in the maturity stage of the product life cycle.What should you do to keep your product from entering the decline stage?

What is the rate of sales decline during the decline stage of the product life cycle largely governed by?

The marketing manager for Iams Pet Food wants to base the marketing strategy she implements for the company's products on the product life cycle stages.What should she do?

A long-run drop in sales signals the beginning of which stage in the product life cycle?