47) When the sequel to Star Wars: The Force Awakens eventually shows up on their regular
television networks, this group might watch it.
A) laggards
B) early majority
C) late majority
D) early adopters
E) innovators
48) 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 ________ adopters.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter
49) 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.
A) innovator
B) laggard
C) late majority adopter
D) early majority adopter
E) early adopter
50) 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.
A) innovator
B) laggard
C) late majority
D) early majority
E) early adopter
51) The diffusion of innovation theory is useful to marketers in helping them
A) adjust to the performance life cycle.
B) avoid the cost of concept testing.
C) predict which types of customers will buy their product immediately and later.
D) predict how long it will take for a new product to gain market acceptance.
E) determine a target market.
52) 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
A) relative advantage.
B) compatibility.
C) observability.
D) associated services.
E) trialability.
53) 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
A) relative advantage.
B) compatibility.
C) observability.
D) complexity.
E) trialability.
54) 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
A) provided equivalent relative advantage for both European and U.S. customers.
B) were not compatible with European market conditions.
C) did not provide benefits that were observable.
D) involved technology that was too complex.
E) could not be easily tried by consumers.
55) 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.
A) relative positioning
B) compatibility
C) observability
D) complexity
E) trialability
56) Many home design businesses volunteer to provide their latest products for tours-of-homes
fundraisers because they know their new products will benefit from
A) relative advantage.
B) compatibility.
C) observability.
D) complexity.
E) trialability.
57) As a promotion technique, samples are often used for new products when ________ will
influence the diffusion of the product.
A) relative advantage
B) compatibility
C) observability
D) complexity
E) trialability
58) Warby Parker, an online retailer for prescription eyewear, offers a free, try-on at home
program for its customers. Customers browse frames on Warby Parker’s website and select five
pairs they would like to try on before buying—or not. Warby Parker handles all the shipping
costs and provides all the return packaging. This relates to the________ of its products.
A) relative advantage
B) compatibility
C) observability
D) complexity
E) trialability
59) To generate ideas for new products, some firms will purchase the rights to use another firm’s
technology. This is known as
A) R&D.
B) licensing.
C) consumer research.
D) outsourcing.
E) brainstorming.
60) In the product development process, what takes place between concept testing and market
testing?
A) securing financial backing
B) conducting marketing research
C) brainstorming
D) determining potential ROI
E) product design
61) Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast
range of diverse tourists and thus might offer insights into what various consumer groups will
like. This is an example of
A) target marketing.
B) test marketing.
C) product marketing.
D) product launching.
E) premarket testing.
62) 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
A) a consortia.
B) reverse innovation.
C) competitive engineering.
D) pioneering.
E) beta testing.
63) 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.
A) R&D
B) licensing technology
C) consumer research
D) geodemographic analysis
E) brainstorming
64) One of the key characteristics of brainstorming sessions is
A) no idea is immediately accepted or rejected.
B) everyone must come up with ideas.
C) the first idea is almost always the best idea.
D) only the marketing team is included in these sessions.
E) the manager should always make the final decision.
65) At the end of a brainstorming session, participants are often asked to
A) identify the worst ideas.
B) defer to management for the final decision.
C) identify which ideas each person proposed.
D) vote on the best ideas.
E) propose one more new idea each.
66) ________ involves taking apart a product, analyzing it, and creating an improved product
that does not infringe on the competitor’s patents.
A) Reverse innovation
B) Reverse engineering
C) Selective dissection
D) Redistribution
E) Creative destruction
67) 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
A) reverse engineering.
B) licensing technology.
C) customer input.
D) R&D consortia.
E) clinical trials.
68) 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.
A) laggards
B) market testers
C) lead users
D) reverse engineers
E) concept testers
69) The National Institutes of Health (NIH) sponsors medical foundations to conduct research to
treat rare diseases. The research is then disseminated to the medical community, thus
encouraging the development of drugs and therapies more quickly and at a lower cost than would
be possible if the research were privately funded. This is an example of
A) early adopters.
B) market testers.
C) an R&D consortia.
D) reverse engineers.
E) concept testers.
70) A company has a new concept for a lightweight electric scooter that can be easily folded and
taken with you inside a building or on public transportation. The company is currently engaged
in concept testing. The most important question during this phase of product development
pertains to
A) the cost of research and development.
B) the price of the final product.
C) the cost to manufacture the product.
D) the costs of marketing and advertising.
E) the respondent’s purchase intentions if the product were made available.
71) When conducting exploratory concept testing for her firm’s new Internet antipiracy software,
which is the most important question that Dee should ask?
A) How long will it take to bring the software to market?
B) Will respondents purchase the software if it becomes available?
C) Who will determine the price to be charged?
D) Where should the product be sold?
E) Which computer trade show will be used to introduce the product?
72) Kristina created a virtual prototype of her new line of swimwear on a website to show to
consumers. Kristina realizes there are multiple lines of swimwear out there and hers will need to
be unique. For Kristina, which important question should she be asking at this point?
A) What retailers should be used to sell the swimwear?
B) Will this swimwear line satisfy an unmet need?
C) What wholesale price should be charged?
D) What promotional plan will work best?
E) In which season should we introduce the product?
73) If a new product concept gets positive evaluations from potential customers during concept
testing, the next step for a firm is
A) market testing.
B) product design.
C) brainstorming.
D) reverse engineering.
E) launching of the product.
74) Hollywood studios typically release movies targeted toward general audiences (G– or PG-
rated movies) during the summer when children are out of school. The timing of the release
pertains to the product’s
A) premarket test.
B) launch.
C) evaluation.
D) research and development.
E) test marketing.
75) 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
A) test marketing.
B) product launch.
C) alpha testing.
D) target marketing.
E) concept testing.
76) 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
A) alpha testing.
B) product launch.
C) test marketing.
D) beta testing.
E) concept testing.
77) YouEye is developing eye tracking technology that works with an individual’s webcam.
Instead of needing to spend thousands of dollars on eye tracking equipment and having
customers come into labs, firms will be able to utilize everyday webcams to track not only what
a person attends to on a computer screen but also his or her emotional reactions to these
products. Firms such as YouEye are automating the
A) premarket testing process.
B) alpha testing process.
C) beta testing process.
D) evaluation process.
E) concept testing process.
78) 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
A) concept testing.
B) market testing.
C) premarket testing.
D) product development.
E) alpha testing.
79) 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.
A) pretesting
B) beta testing
C) test marketing
D) alpha testing
E) concept testing
80) 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
A) premarket testing.
B) product launch.
C) test marketing.
D) product development.
E) concept testing.
81) A marketing professor maintains a museum of failed consumer products. Most new products
in this museum were tested in Ithaca, New York but failed. Likely, the marketers were testing the
products during the ________ stage of new product development.
A) pretesting
B) product launch
C) test marketing
D) product development
E) concept testing
82) When McDonald’s comes up with a new drink or sandwich for its restaurants, it often
markets it in a dozen or so of its outlets. When the company does this, it is engaged in
A) pretesting.
B) product launch.
C) test marketing.
D) product development.
E) concept testing.
83) The ________ step in the product development process is critical, requiring tremendous
resources and extensive coordination of all aspects of the marketing mix.
A) pretesting
B) product launch
C) posttesting
D) product development
E) evaluation of results
84) Which of the following reflects the maturity stage of the product life cycle?
A) Sales: low; Profits: negative or low; Typical consumers: innovators; Competitors: one or few
B) Sales: rising; Profits: rapidly rising; Typical consumers: early adopters and early majority;
Competitors: few but increasing
C) Sales: declining; Profits: declining; Typical consumers: laggards; Competitors: low number of
competitors and products
D) Sales: peak; Profits: peak to declining; Typical Consumers: late majority; Competitors: high
number of competitors and competitive products
E) Sales: peak; Profits: increase; Typical Consumers: laggards; Competitors: low number of
competitors
85) During this stage of the product life cycle, profits rise rapidly, along with sales, and most
adopters are characterized as early or early majority adopters.
A) innovation
B) introduction
C) maturity
D) early maturity
E) growth