58. _____ embrace products relatively early in the product life cycle, are likely to be community oriented,
and often are opinion leaders themselves.
a.
Early adopters
b.
Innovators
c.
Early majority
d.
Late majority
e.
Laggards
59. Jim didn’t buy a netbook computer when they first came out, but he did purchase one a year after they
were introduced into the market. He is very active in his church and local arts council, and many of
his friends asked him which brand to buy when they were considering purchasing a netbook. Jim is
best described as a(n):
a.
innovator
b.
early adopter
c.
early majority
d.
leading consumer
e.
proactive
60. A company has learned members of its target market are likely to collect more information and
evaluate more brands than early adopters. They are cautious and thoughtful and do not try the product
without asking someone else. The customers’ dominant characteristic is deliberateness. In terms of the
diffusion process, these customers are most likely:
a.
innovators
b.
early minority
c.
laggards
d.
early majority
e.
late majority
61. The _____ adopt a product because most of their friends have already done so, and their adoption is
usually the result of pressure to conform because they rely on group norms.
a.
laggards
b.
early adopters
c.
early majority
d.
innovators
e.
late majority
62. Liz tends to adopt new products sooner than a lot of other people, but she weighs the pros and cons
before buying. She does considerable product research, but her friends don’t really look to her for
information. She really deliberates before she makes a purchase. Liz is best described as a(n):
a.
innovator
b.
early adopter
c.
early majority
d.
late majority
e.
laggard
63. Which category of adopters adopt a new product because most of their friends have already adopted it?
a.
innovators
b.
early majority
c.
early adopters
d.
laggards
e.
late majority
64. Leon is not very quick to purchase innovative products when they come out, but after a while he
breaks down and buys if after most of his friends have bought it. He gets most of his information from
them when he decides to buy something. He is very skeptical of marketing, so he trusts his friends
more than anything. Leon is best described as a(n):
a.
innovator
b.
early adopter
c.
early majority
d.
late majority
e.
laggard
65. Among the late majority group, adoption of a product primarily results from:
a.
word-of-mouth communications
b.
print advertising
c.
advertising in nontraditional media
d.
broadcast advertising
e.
sales promotions
66. In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely
on the norms of the group but are independent because they are tradition-bound. They tend to have the
lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly
advancing society. They are called:
a.
generics
b.
late majority
c.
decliners
d.
laggards
e.
late diffusers
67. Which is the last adopter category to adopt an innovation?
a.
late majority
b.
laggards
c.
late diffusers
d.
reluctant adopters
e.
traditionalists
68. All of the following are product characteristics influencing the rate of adoption EXCEPT:
a.
complexity
b.
compatibility
c.
relative advantage
d.
observability
e.
distribution
69. Which product factor influencing the rate of adoption represents the degree of difficulty involved in
understanding and using a new product?
a.
complexity
b.
compatibility
c.
relative advantage
d.
observability
e.
trialability
70. Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently introduced
Oakley’s Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs. Which
of the following product characteristics would likely exert the greatest influence on the market success
of these new glasses?
a.
compatibility
b.
comparability
c.
complexity
d.
tangibility
e.
competitive advantage
71. Which product characteristic affecting the rate of adoption represents the degree to which the new
product is consistent with existing values and product knowledge, past experiences, and current needs?
a.
complexity
b.
compatibility
c.
relative advantage
d.
observability
e.
trialability
72. A European dairy, which is famous for its rich ice creams, has introduced basil, tomato, fennel, and
oregano flavored ice creams. Which of the following product characteristics would most likely
influence the market success of these new flavors?
a.
compatibility
b.
comparability
c.
complexity
d.
tangibility
e.
competitive advantage
73. When the Segway Human Transporter was introduced in 2002, many people expected the product to
be a phenomenal success. While the Segway is still on the market it has never been the success so
many expected. A recent Wall Street Journal article suggested that the Segway, while brilliant
technologically, seemed impractical to most people as it could not be used to replace their current
method of transportation. In other words, the Segway had problems with _____.
a.
compatibility
b.
relative advantage
c.
observability
d.
trialability
e.
longevity
74. Many product failures such as Cucumber antiperspirant spray, Toaster Eggs, and Health-Sea sea-
sausages most likely did not succeed because they did not conform to the product characteristic of:
a.
complexity
b.
trialability
c.
total advantage
d.
observability
e.
compatibility
75. The product characteristic affecting the rate of adoption characterized by the degree to which a product
is perceived as superior to existing substitutes is:
a.
compatibility
b.
complexity
c.
relative advantage
d.
product differentiation
e.
competitive advantage
76. Biopure Corp. is developing a human blood substitute called Hemopure. Unlike like donated human
blood that needs to be refrigerated and expires after a short period of time, Hemopure is shelf-stable
and can be stored for two years or more. It does not need to be matched to a person’s blood type like
donated blood does. These factors make it well-suited for trauma cases where blood must be
transfused at an accident site or on the battlefield. Which product characteristic influencing the rate of
adoption does this represent?
a.
complexity
b.
compatibility
c.
relative advantage
d.
observability
e.
trialability
77. Which product characteristic affecting the rate of adoption of a new product represents the degree to
which the benefits or other results of using the product can be communicated to target customers?
a.
observability
b.
diffusion
c.
adoption
d.
trialability
e.
complexity
78. Razor scooters gained instant popularity because walkers and runners frequently saw people on the
scooters zipping by them and having fun. This information suggests the adoption rate of the Razor
scooter was most affected by which product characteristic?
a.
complexity
b.
trialability
c.
relative advantage
d.
observability
e.
compatibility
79. A new medication to eliminate fungal growths on people’s toenails may have a slow rate of adoption
because it is not a highly visible item in homes. Also, this item is not often discussed among friends
and coworkers. This is an example of how the characteristic of _____ can work to slow the adoption
process.
a.
relative advantage
b.
observability
c.
trialability
d.
complexity
e.
compatibility
80. The degree to which a product can be used on a limited basis represents which product characteristic
influencing the rate of adoption?
a.
complexity
b.
trialability
c.
observability
d.
relative advantage
e.
sampling
81. Which of the following products has the lowest level of trialability?
a.
an Internet chat room
b.
low-fat ice cream
c.
surgically implanted hearing aids
d.
organic pet food
e.
a new air freshener
82. When Coca-Cola North American debuted Gold Peak iced tea, a spokesperson for the company said,
“In looking at the ready-to-drink tea market, we found that the one place that nobody seemed to be
playing was in the category of classic iced teas like mother used to make. Gold Peak is a quality
product that brings back that classic taste. We’re going to do a lot of sampling with this product
because we believe that if people try it, they’re going to love it and stick with it.” In other words, its
adoption rate will rely on its:
a.
compatibility
b.
comparability
c.
complexity
d.
trialability
e.
competitive advantage
83. A biological metaphor that traces the stages of a product’s acceptance, from its introduction (birth) to
its decline (death) is called the:
a.
product diffusion process
b.
product phase
c.
product adoption stages
d.
product evolution cycle
e.
product life cycle
84. The stages of the product life cycle, in order, are:
a.
introduction, maturity, decline
b.
introduction, growth, maturity, decline
c.
growth, maturity, plateau, decline
d.
innovation, early adoption, late adoption, laggard
e.
category acceptance, category growth, brand acceptance, brand growth
85. What can the marketers of consumer products expect to find when they study and apply the product
life cycle theory to their products?
a.
All products go through every stage of the life cycle.
b.
Changes in a product can change its life cycle.
c.
The amount of time products stay in each stage is standardized for consumer products, but
not industrial products.
d.
All products except those considered faddish go through every stage.
e.
The theory helps to predict how long a firm will stay in each stage.
86. All the brands that satisfy a particular type of need such as shaving products, laundry detergent, soft
drinks, and furniture make up a(n):
a.
product life cycle stage
b.
primary group
c.
adopter category
d.
product category
e.
reference group
87. Patio furniture, lighting fixtures, microwave ovens, canned corn, and athletic shoes are examples of:
a.
PLC line items
b.
line-extendable categories
c.
brand classes
d.
brand groupings
e.
product categories
88. A brand of iced tea, called Gold Peak, has high marketing costs as well as high production costs.
Promotions for the product are aimed at gaining distribution and informing consumers that this
premium product tastes like it’s home-brewed. In which stage of the product life cycle is Gold Peak
iced tea?
a.
introductory
b.
growth
c.
maturity
d.
decline
e.
saturation
89. The length of the introductory stage of the product life cycle for a new product is largely determined
by:
a.
the size of the product
b.
the product’s marketing mix
c.
the efficiency of the test marketing
d.
product characteristics, such as advantages over substitute products
e.
the size of the market
90. The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage.
a.
growth
b.
decline
c.
introductory
d.
maturity
e.
commercialization
91. The advertising strategy during the growth stage of the product life cycle should be to:
a.
aim at the needs of innovators
b.
make the mass market aware of brand benefits
c.
use advertising as a vehicle for introducing the product category benefits
d.
emphasize the product’s low price to help reduce inventories
e.
make the market aware of product category brands
92. During the growth stage of the product life cycle:
a.
there is little emphasis on the distribution strategy
b.
demand for the product is limited to high-income consumers
c.
prices increase due to economies of scale
d.
there is decreased direct competition
e.
profits peak
93. Typically, at the beginning of the maturity stage of the product life cycle, sales:
a.
become flat and do not change
b.
increase at an increasing rate
c.
decrease at a decreasing rate
d.
decrease at an increasing rate
e.
increase at a decreasing rate
94. Normally, the longest stage of the product life cycle is the _____ stage.
a.
maturity
b.
growth
c.
introductory
d.
decline
e.
development
95. In which stage of the product life cycle do marginal competitors start dropping out of the market?
a.
introduction
b.
growth
c.
maturity
d.
decline
e.
shake-out
96. B.F. Goodrich has been manufacturing and marketing automotive tires for over one hundred 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, you should know tires are in
the _____ stage of their product life cycle.
a.
maturity
b.
growth
c.
saturation
d.
decline
e.
development
97. A long-run drop in sales signals the beginning of which stage in the product life cycle?
a.
laggard stage
b.
saturation stage
c.
deterioration stage
d.
decline stage
e.
decay stage
98. Which of the following products is most likely to be in the decline stage of its product life cycle?
a.
cookie mixes
b.
wireless mobile phones
c.
programmable CD-ROMs
d.
funeral caskets
e.
prerecorded audiocassette tapes
99. The rate of sales decline during the decline stage of the product life cycle is largely governed by:
a.
the amount of money spent on advertising
b.
the number of competitors in the market
c.
the intensity of the competition’s marketing efforts
d.
the amount of shelf space allotted to the product
e.
how rapidly consumer tastes change or substitute products are adopted
100. Which of the following statements about the product life cycle (PLC) is true?
a.
The PLC concept encourages marketing managers to think reactively.
b.
Marketers do not yet understand the relationship between the adopter categories and the
stages of the PLC.
c.
There are as many new buyers in the maturity stage of the PLC as in the growth stage.
d.
The PLC is especially useful as a predicting tool.
e.
Just as there are five adopter categories, there are five PLC stages.
101. 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. To keep your product from entering the
decline stage, you should:
a.
use promotion to increase primary demand for trampolines
b.
abandon peripheral target markets for trampolines
c.
raise the price of your trampolines because customers are not price sensitive in this stage
d.
eliminate all unnecessary marketing expense
e.
promote trampolines heavily to dealers and customers
102. The marketing manager for a company that manufactures pet foods wants to base the marketing
strategy she implements for the company’s products on the product life cycle stages. In order to do this,
she should:
a.
add new ingredients to products that enter the maturity stage of the product life cycle
b.
start test marketing new products every time an existing product enters the maturity stage
of its product life cycle
c.
change all private brands to generic brands once a product reaches the maturity stage
d.
create a line extension for every product the company makes as soon the product leaves
the introductory stage of its product life cycle
e.
change the labels on its products as they change stages of the life cycle
NARRBEGIN: Fitbit
Fitbit
The pedometer is getting kicked up a notch with the new Fitbit device. The Fitbit is a $99 motion-
detecting sensing device that can measure the user’s activity even when asleep. It digitally records the
distance a user walks or runs, right down to the number of steps, and calories burned. The device
wirelessly sends data to its Web site, fitbit.com, giving users minute-by-minute details. Users can add
consumption information at the Web site, allowing an accurate picture of calorie consumption and
expenditures. Unlike other devices, like the Nike + iPod Sport Kit that monitors walking and running
and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping
and sells for $399, the Fitbit combines both functions. The first-time Fitbit setup isn’t very easy for
users, but once over that hurdle, it’s relative easy to use.
NARREND
103. Refer to Fitbit. The company marketing the Fitbit does not currently market a product like this.
Which of the following best represents the category of new product the Fitbit is for this company?
a.
new-to-the-world product
b.
new product line
c.
additions to existing product lines
d.
repositioned product
e.
incremental product
104. Refer to Fitbit. The idea for the Fitbit was generated from an employee retreat in which everyone was
encouraged to think of unlimited product ideas for the fitness-minded consumer. Participants did not
critique any of the ideas as the goal at that point was just to generate ideas. What idea-generating
technique does this illustrate?
a.
brainstorming
b.
brain dumping
c.
snowball sampling
d.
laddering
e.
entropy
105. Refer to Fitbit. In terms of the new-product development process, Fitbit’s availability in retail stores
and online is the _____ stage.
a.
idea screening
b.
idea generation
c.
business analysis
d.
test marketing
e.
commercialization
106. Refer to Fitbit. The process by which the adoption of this innovative product spreads is called the:
a.
diffusion process
b.
product life cycle
c.
consumption process
d.
viral process
e.
two-stage process
107. Refer to Fitbit. The fact that Fitbit can monitor motion while awake and asleep makes it different from
competing products that might increase its rate of adoption. Which product characteristic affecting the
rate of adoption does this illustrate?
a.
complexity
b.
compatibility
c.
relative advantage
d.
observability
e.
trialability
NARRBEGIN: Rapala VMC Corp.