Chapter 08 New Products and Innovation

A  True

B  False

A  False

B  True

A  early majority

B  innovators

C  laggards

D  early adopters

A  False

B  True

A  market introduction

B  market maturity

C  product decline

D  product saturation

A  True

B  False

A  beta product model

B  product life cycle

C  simulated market

D  motivational circle

A  False

B  True

A  application of conjoint analysis to customer data.

B  prediction of a product’s likely success using customer data.

C  factor used to distinguish between two different core product attributes.

D  factor that distinguishes external test markets from internal test markets.

A  conjoint

B  area

C  electronic

D  simulated

A  creating the physical prototype of a product, and testing it under typical usage conditions.

B  estimating the profitability and break-even point of a product idea using statistical tools.

C  launching a product and estimating the sales volume of the same product.

D  building a product with minimal features, and testing it on the internal shareholders of a firm.

A  combining two product attributes to form a single product attribute.

B  combining two products from different product categories.

C  combining two products from the same product category.

D  combining two customer segments to form a new customer segment.

A  asks a group of people to describe the use of a product in a specific category.

B  groups customer segments into a separate niche market segment.

C  groups customer segments based on demographic factors.

D  uses quantitative techniques to collect the primary data for new product development.

A  problem solving

B  concept testing

C  brainstorming

D  refining

A  A firm following the top-down approach uses subliminal ads to promote its stock product, while a firm following the marketing approach uses perceptual fluency ads to promote its stock product.

B  A firm following the top-down approach asks for customers’ feedback at the end of a process, while a firm following the marketing approach asks for customers’ feedback at most phases in a process.

C  A firm following the top-down approach relates to the macro-environmental factors of the firm, while a firm following the marketing approach relates to the micro-environmental factors of the firm.

D  A firm following the top-down approach deals with brand extensions, while a firm following the marketing approach deals with product line extensions.

A  True

B  False

A  the firm’s product distributors.

B  the firm’s customers.

C  within the firm.

D  the primary raw material suppliers.