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115) How is consumer panel data collected during the test marketing phase of a new product
introduction?
A) Panelists complete a questionnaire about the product.
B) Panelists scan their receipts on a home scanning device.
C) Stores provide sales data to companies.
D) Consumers voluntarily go to a website to record their preferences.
E) Focus groups are held in key markets.
116) After a product has been launched, marketers must undertake a critical postlaunch review to
determine whether the product and its launch were a success or failure and what additional
resources or changes to the marketing mix are needed, if any. For a product that does move on,
the firms can measure the success of the new product by interrelated factors that include all of
the following except
A) its satisfaction of technical requirements.
B) its satisfaction of performance.
C) customer acceptance.
D) its satisfaction of the firm's financial requirements.
E) its satisfaction of the firm's manufacturing requirements.
117) Paul listens to music on his 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.
A) introduction
B) growth
C) evaluation
D) maturity
E) decline
118) 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.
A) introduction
B) growth
C) evaluation
D) maturity
E) decline
119) When a product is successful in the introductory stage of the product life cycle,
A) it moves directly into the maturity stage.
B) it is most likely to begin to launch spinoffs.
C) competition becomes less important.
D) it may start to see profits toward the end of this stage.
E) marketing costs increase significantly.
120) Firms can measure the success of a new product by all of the following factors except
A) satisfaction of its technical requirements.
B) fewer competitors in the market.
C) satisfactory sales and profits.
D) customer acceptance.
E) satisfactory performance.
121) Think back to a time when you have said, "This is great idea. How come nobody thought of
this before?" Assuming no one has thought of it before, what would be the first steps to take to
develop a new product idea?
122) Respond to the statement "Create or die" from a new product innovation perspective.
123) A good friend of yours wonders why you always seem to have the latest technology, long
before anyone else. He then says, "I always want to wait until the bugs have been worked out. It
saves me money and aggravation." Use diffusion of innovation theory to explain how you differ
as consumers, and what this means to marketers.
124) Many car manufacturers have developed prototypes of alternative energy vehicles like
hydrogen-fueled cars. When developing their marketing strategies, how can these firms use the
diffusion of innovation curve in the early stages of product development?
125) What is the difference between an innovator and an early adopter?
126) Around 2006, hybrid cars moved from the early adopter to the early majority stage. What
did this mean for marketers of hybrid cars?
127) Using the diffusion of innovation theory, what factors contributed to the rapid adoption and
success of Amazon.com?
128) General Electric is developing a new magnetic resonance imaging (MRI) device to be
marketed to family practice physicians. These new machines will be much smaller and less
expensive than the existing MRI machines now in most hospitals. What factors will probably
affect the diffusion of these new machines?
129) Marketing is a dynamic practice. While you are watching your competitors, they are
watching you. Assume that you have just redesigned a product that is in the maturity phase of the
product life cycle and have identified some new market segments. How do you think your
competitors will respond?
130) What is the difference between alpha testing and beta testing?
131) When they add products, services, and processes to their offerings, firms can create and
deliver value more effectively by satisfying the changing needs of their current and new
customers or by keeping customers from getting bored with the current product or service
offering. How did Steve Jobs, the Apple company's founder and visionary leader, change the
phone, camera, communication, and technology markets?
132) Carmen is ready to launch her company's new product, a line of chocolate for diabetics,
based on her instincts and knowledge from 30 years of marketing. Her staff is encouraging her to
delay the launch until test marketing can be done. What are the advantages and disadvantages of
each approach?
133) Laura is about to launch a new product: herself! She is running for a local political office.
First-time candidates quickly learn the importance of marketing. She has consulted with various
experts, tested her campaign themes and messages with focus groups, and now is ready to do a
full-scale product launch. Why is her product launch the most critical step? What will she need
to do?
134) A year after expanding his celebrity golf photography business to include golf course
photography, Chet decided it was time to evaluate results. What three interrelated factors will
Chet consider when evaluating the success of his new product?
135) Why is it important for marketers to understand the product life cycle?
136) Many marketers think personal computers in the United States are in the maturity stage of
the product life cycle. What does this mean for manufacturers of personal computers? What can
they do about it?
137) In new product development, what advantage do first movers have?
138) Describe your actions (or someone you know) in a situation where you (or they) were an
innovator in the diffusion of innovation curve.
139) Robin carefully studies her options before buying new products. She enjoys new things,
especially electronic games, and is very knowledgeable about them. Other people often ask her
opinion. In the diffusion of innovation curve, which category does Robin fit in?
140) Describe a product that is in the early majority stage of the new product diffusion curve.
141) Why do you think that many biotechnology firms license their new products?
142) Why do marketers take the time and cost associated with test marketing?
143) Which step in the new product development process is the most critical to the survival of a
firm, and why?
144) Jennifer has just taken over a line of organic teas for her company. She looks at the
company records and sees sales have peaked, profit margins are declining, and there are many
new competitors in that category. Which stage of the product life cycle are her teas in?
145) Define and describe the product life cycle stage in which laggards begin to purchase
products.
146) Explain the concept of outsourcing product development, and give an example of when this
would be a good idea.
147) What is a "new-to-the-world" product, and how does this type of product impact markets
and consumer preferences? Use an example to explain this concept.
148) Why is the failure rate for new products so high?
149) Why are innovators important to marketers?
150) What happens when a product has been in the marketplace for a long time? How can this be
avoided?
