119) GameTech International Inc. engages in the design, development, and marketing of
interactive electronic bingo systems primarily in the United States. Some top managers want to
collect sales-wave research, but others disagree, offering several disadvantages. List these
disadvantages.
120) For a frequently purchased new product, the seller estimates repeat sales as well as first–
time sales. A high rate of repeat purchasing means customers ________.
A) value price more than differentiation
B) do not support innovation on brands
C) value differentiation more than price
D) prefer personalized products rather than standard ones
E) are satisfied with the product
121) Poga International, a multinational beverage corporation identifies that one of its
competitors is launching an apple flavored drink. The company decides to launch an apple flavor
brand along with its competitor. What timing strategy is used here?
A) first entry
B) blunt entry
C) parallel entry
D) late entry
E) exchange entry
122) Some firms might delay the launch of their products until after the competitor has borne the
cost of educating the market. Such an entry is called ________ entry.
A) strategic payoff
B) parallel
C) balancing
D) late
E) compensating
123) After a test, the most customer-appealing offer will be the most profitable offer to make.
124) A business analysis is typically performed after management has developed the product
concept and marketing strategy.
125) Survival-age distribution refers to the number of customers that the product has in year one,
two, three, and so on.
126) Dragalong income refers to additional income whereas cannibalized income refers to
reduced income.
127) Modular function deployment methodology takes the list of desired customer attributes
generated by market research and turns them into a list of engineering attributes that engineers
can use.
128) Some firms might delay a new product launch until after the competitor has borne the cost
of educating the market and its product may reveal flaws the late entrant can avoid. This can be
classified as a parallel entry.
129) Briefly explain the three choices available to companies when deciding the timing of
market entry.
130) What is the significance of performing business analysis?
131) Mobile phone company HCF delayed the introduction of a new cell phone model with
innovative features so that the launch could coincide with that of its competitor, LCM, which
was introducing a phone with similar features. What kind of entry did HCF use? How can this
benefit the company?
132) GameTech International Inc. engages in the design, development, and marketing of
interactive electronic bingo systems primarily in the United States. The company has plans to
enter developing markets such as Brazil and India. TechToys, GameTech’s major competitor has
already started operations in India. GameTech decides to delay its entry to India and to closely
observe TechToys’ operations in India. What is the possible rationale behind this delaying
decision?
133) A(n) ________ is any good, service, or idea that is perceived as new, no matter how long its
history.
A) commodity
B) innovation
C) adoption
D) invention
E) novel product
134) Adopters of new products move through five stages. These stages begin with ________ and
follow with interest, evaluation, trial, and adoption.
A) awareness
B) investigation
C) trial
D) innovation
E) diffusion
135) Identify the stage in the consumer adoption process in which the customer is stimulated to
seek information about the innovation.
A) awareness
B) adoption
C) interest
D) evaluation
E) trial
136) Robert has heard about the latest cell phone from LG Electronics that features Wi-Fi
hotspot technology. Wi-Fi hotspot is a technology that allows users to share mobile internet with
other Wi-Fi enabled devices. Robert visits the company’s Web site to read more about the phone.
Robert is in the ________ stage of consumer-adoption process.
A) interest
B) awareness
C) evaluation
D) trial
E) adoption
137) Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she
knows that the product is a success. She has started considering whether or not to buy the
vacuum cleaner. What stage of the consumer-adoption process is Clara in?
A) awareness
B) adoption
C) evaluation
D) trial
E) interest
138) Which of the following is the mental step in the consumer-adoption process where the
customer starts considering whether to try an innovation?
A) adoption
B) trial
C) awareness
D) evaluation
E) interest
139) People who are technology enthusiasts, venturesome, and who enjoy tinkering with new
products and mastering their intricacies are called ________.
A) innovators
B) early adopters
C) early majority
D) investigators
E) experimenters
140) Troma Inc. is a famous manufacturer of cookware that follows a traditional distributor-
retailer system to distribute its products. The company abstains from the use of automated supply
chain management (SCM) systems mainly due to the fear of unknown. However, rapidly
escalating operational costs and inefficiencies have made it necessary for the company to
implement an SCM system. The company goes for a big-bang installation of SCM system to
become more competitive and cost effective. Identify the adopter group to which Troma belongs.
A) innovator
B) early adopter
C) early majority
D) laggard
E) late majority
141) Jason is a technology enthusiast who is happy to conduct alpha and beta testing and report
on early weaknesses of consumer electronics products. He is most likely to fall in the ________
adopter category.
A) late majority
B) early
C) early majority
D) innovator
E) laggard
142) Which of the following characteristics is closely associated with late majority adopter
groups?
A) superior technological knowledge
B) low price sensitiveness
C) opinion leadership
D) deliberate pragmatism
E) high risk aversion
143) Joseph, a student of Columbia University, finds many of his classmates have purchased an
iPad tablet from Apple. The iPad, launched a few months before has been identified as a very
useful product and many students in the US have rated it highly. Considering all these, Joseph
also decides to purchase an iPad. Which of the following is the adopter group to which Joseph
belongs?
A) early adopter
B) innovator
C) late majority
D) laggard
E) early majority
144) Five characteristics influence the rate of adoption of an innovation. One of these is
________.
A) marketing expertise
B) relative advantage
C) packaging attractiveness
D) government regulations
E) place of value exchange
145) ________ is the effect one person has on another’s attitude or purchase probability.
A) Sharing power
B) Collaborative power
C) Market influence
D) Brand power
E) Personal influence
146) Relative advantage of an innovation refers to the degree to which ________.
A) it matches the values and experiences of the individuals
B) it is difficult to understand or use
C) it can be tried on a limited basis
D) it appears superior to existing products
E) the benefits of use are observable or describable to others
147) The degree to which the beneficial results of an innovation’s use are observable or
describable to others is called ________.
A) divisibility
B) communicability
C) compatibility
D) relative advantage
E) plainness
148) Which of the following terms refers to the degree to which the innovation can be tried on a
limited basis?
A) compatibility
B) relative advantage
C) divisibility
D) communicability
E) complexity
149) At the interest stage of the consumer-adoption process, the consumer becomes aware of the
innovation but lacks information about it.
150) The step in the consumer-adoption process where a consumer considers whether to try the
innovation is interest.
151) Compatibility refers to the degree to which the innovation matches the values and
experiences of the individuals.
152) What is the consumer-adoption process? What are the various steps in the process?
153) A customer survey at a mall revealed that Zoe is considered to be an early adopter. What
does this mean?
154) Identify the five main characteristics that affect the diffusion of innovations. Describe each
and provide an example.