Chapter 8 Innovation and New Product Development 1) A(n) ________ is defined as a tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process. A) private brand B) service variability C) core product D) product E) innovation Answer: D 2) Which of the following is an example of a good? A) a massage B) a handbag C) a medical examination by a doctor D) an idea for a new television show E) dry cleaning Answer: B 3) Which of the following adjectives best describes products that would be classified as goods? A) nonperishable B) convenient C) disposable D) tangible E) heterogeneous Answer: D 4) ________ are a form of product that are essentially intangible. A) Innovations B) Services C) Brands D) Consumer products E) Supplements Answer: B 5) A product has three distinct layers. The most basic level is the ________, which consists of all the benefits the product will provide for consumers or business customers. A) actual product B) augmented product C) core product D) innovation E) brand Answer: C 6) A product has three distinct layers. The second layer is the ________, which is the physical good or delivered service. A) actual product B) augmented product C) core product D) innovation E) brand Answer: A 7) The ________ is the actual product plus supporting features, such as delivery, installation, financing, and warranty. A) brand B) innovation C) augmented product D) potential product E) core product Answer: C 8) The ________ for a guest paying for a night's stay at a hotel is rest and sleep. A) generic product B) core product C) value-deliverable product D) augmented product E) actual product Answer: B 9) The ________ for a guest paying for a night's stay at a hotel is the use of a bed, bathroom, towels, dresser, light, and closet. A) actual product B) core product C) value-deliverable product D) customized benefit E) augmented product Answer: A 10) The ________ for a guest paying for a night's stay at a hotel would include express checkout and superb room service. A) actual product B) value network C) augmented product D) potential product E) core product Answer: C 11) The state of Missouri is a product that can be promoted as a great place to locate a new business. Answer: True 12) Explain the following statement: "A product is a bundle of attributes." Answer: A product is not just a thing in a package. It includes the package, the brand name, the product benefits, and supporting features in addition to the physical good. A product is everything a consumer receives in an exchange. This question can also be answered in terms of the core product, the actual product, and the augmented product. 13) Explain the three layers of the product the marketer needs to understand to adequately serve the consumer. Answer: The three layers of the product are the core product, the actual product, and the augmented product. The core product consists of all the benefits the product will provide for the consumer or business. The actual product is the physical good or the delivered service that supplies the desired benefit. The augmented product is the actual product plus other supporting features such as a warranty, credit, delivery, installation, and repair service after the sale. 14) Is marketing more about supplying benefits or attributes? Explain your answer. Answer: Marketing is more about supplying benefits, as consumers are much more interested in what benefits–or outcomes–products will provide. 15) Generally, consumer goods are either ________ or ________. A) convenience products; staples B) durable goods; nondurable goods C) industrial products; packaged goods D) shopping products; impulse products E) shopping products; convenience products Answer: B 16) Which of the following is the best example of a durable good? A) a bag of cat food B) a refrigerator C) a bottle of nail polish D) a package of lightbulbs E) a box of detergent Answer: B 17) Which of the following is the best example of a nondurable good? A) a dishwasher B) a book shelf C) a freezer D) a newspaper E) a file cabinet Answer: D 18) Which of the following statements about durable goods is true? A) Durable goods are more likely than perishable goods to involve low-involvement decisions. B) The information search is quicker for durable goods than it is for nondurable goods. C) Consumers purchasing durable goods are likely to use habitual decision making. D) Product evaluation is more likely to take place for nondurable goods than for durable goods. E) Durable goods provide a benefit over a long period of time. Answer: E 19) We consume ________ in the short term rather than the long term. A) unsought products B) specialty products C) raw materials D) durable goods E) nondurable goods Answer: E 20) We are more likely to purchase ________ under conditions of high involvement and ________ under conditions of low involvement. A) durable goods; nondurable goods B) nondurable goods; durable goods C) staples; impulse products D) impulse products; staples E) emergency products; unsought products Answer: A 21) ________ include convenience products, shopping products, specialty products, and unsought products. A) Specialty services B) Consumer products C) Line extensions D) Industrial products E) Component products Answer: B 22) A(n) ________ is typically a nondurable good or service that consumers purchase frequently with a minimum of comparison and effort. A) specialty product B) MRO product C) shopping product D) convenience product E) unsought product Answer: D 23) Which of the following is the best example of a convenience product? A) a silk scarf B) a subscription to a magazine C) a gallon of milk D) a lawn mower E) a CD player Answer: C 24) Marketers classify convenience products as ________. A) staple products, impulse products, and emergency products B) specialty products, shopping products, and unsought products C) core products, actual products, and augmented products D) generic products and branded products E) attribute-based products and price-based products Answer: A 25) Which type of product is a basic or necessary item that is available almost everywhere? A) emergency product B) staple product C) impulse product D) shopping product E) unsought product Answer: B 26) When we need a(n) ________, price and product quality may be irrelevant to our purchase decision. A) emergency product B) staple product C) impulse product D) shopping product E) unsought product Answer: A 27) A(n) ________ is a good or service for which consumers will spend time and effort gathering information on price, product attributes, and product quality. A) impulse product B) homogeneous product C) shopping product D) convenience product E) emergency product Answer: C 28) A fast-moving consumer good, also known as a(n) ________, is a low-cost good that people consume quickly and replace frequently. A) impulse product B) emergency product C) consumer packaged good D) specialty good E) shopping product Answer: C 29) ________ have unique characteristics that are important to buyers at almost any price. A) Specialty products B) Staple products C) Impulse products D) MRO products E) Unsought products Answer: A 30) Consumers usually know a good deal about ________ and are loyal to specific brands. A) specialty products B) unsought products C) impulse products D) MRO products E) emergency products Answer: A 31) ________ are consumer products for which a consumer either has little awareness or interest until a need arises. These products require a lot of advertising, personal selling, and other marketing efforts. A) Specialty products B) MRO products C) Unsought products D) Shopping products E) Staple products Answer: C 32) ________ is the category of B2B products that refers to the products an organization uses in its daily operations. A) Raw materials B) Component parts C) Equipment D) Processed materials E) MRO products Answer: C 33) Heavy equipment, which includes items such as buildings and robotics, is also referred to as ________. A) component parts B) capital equipment C) accessory equipment D) operating supplies E) specialized services Answer: B 34) In terms of B2B products, computers and printers are examples of ________. A) component parts B) capital equipment C) accessory equipment D) operating supplies E) specialized services Answer: C 35) MRO products are goods that businesses use for ________. A) management, research, and order-processing B) marketing, relationship-building, and operating C) maintenance, research, and organizing D) maintenance, repair, and operating E) marketing, research, and organizing Answer: D 36) For the business market, a multipurpose absorbent used to clean up any type of spills would be an example of a(n) ________. A) repair product B) operating supply C) maintenance product D) restoration product E) consumer product Answer: C 37) For a veterinarian's office, the paper used to print payment receipts is an example of a(n) ________. A) repair product B) operating supply C) maintenance product D) component part E) raw material Answer: B 38) In the business market, organizational customers purchase products from the fishing and agricultural industries to use in their finished products. These are examples of ________. A) component parts B) accessory equipment C) processed materials D) MRO products E) raw materials Answer: E 39) ________ are manufactured goods or subassemblies of finished items that organizations need to complete their own products. A) Component parts B) Accessory equipment materials C) Processed materials D) MRO products E) Raw materials Answer: A 40) Which of the following products would most consumers classify as a shopping product? A) a subscription to a the Wall Street Journal B) a winter coat C) a box of adhesive bandages D) a can of soup E) a pack of gum Answer: B 41) Camille was standing in the checkout line at her neighborhood grocery last night when she saw a display of Hostess Twinkies. She remembered how much she had enjoyed Twinkies as a child, and she knew she just had to buy a package of Twinkies, even though it was not on her shopping list. For Camille, Twinkies are an example of a(n) ________. A) unsought product B) impulse product C) staple D) emergency product E) MRO product Answer: B 42) Marissa arrived early for her job interview. She was very excited about the opportunity to interview for a prestigious position. As she got out of the car, she got a run in her pantyhose. She was pleased to see a convenience store down the road and went there to purchase a replacement pair of pantyhose. For Marissa, the pantyhose is an example of a(n) ________. A) unsought product B) impulse product C) staple D) emergency product E) MRO product Answer: D 43) Tony wanted to buy a pair of binoculars, but not just any brand. He wanted to buy a pair of Steiner Night hunters, just like the pair he had learned about in his newest copy of Peter's Hunt Magazine. He had to visit five different sporting goods stores before he found this brand. For Tony, the Steiner Night hunter is an example of a(n) ________. A) specialty product B) staple C) shopping product D) convenience product E) unsought product Answer: A 44) For an amusement park, concession food stands and the amusement rides themselves are examples of ________. A) MRO products B) specialty products C) processed materials D) equipment E) convenience products Answer: D 45) At a retail store, the display racks on which clothes are hung, the shelving, and the cash registers are all examples of ________. A) accessory equipment B) shopping products C) capital equipment D) component parts E) MRO products Answer: A 46) The vehicle jack and other hand tools carried by a truck driver in case of a flat tire are examples of which type of business product? A) repair products B) operating supplies C) maintenance products D) light equipment E) component parts Answer: A 47) An Internet company helps other online businesses with handling distribution bottlenecks, including managing tariffs and exchange rates for international shipping. This company provides a(n) ________. A) component service B) processed product C) MRO product D) specialized service E) MRO service Answer: D 48) Marketers classify products based on where and how consumers buy the products. Answer: True 49) Nondurable goods are more likely than durable goods to be purchased under conditions of high involvement. Answer: False 50) The purchase of a shopping product typically involves habitual consumer decision making. Answer: False 51) The purchase of a specialty product typically involves extended problem solving for the consumer. Answer: True 52) Some business customers purchase specialized services that are essential to the operation of an organization but not part of the production of a product. Answer: True 53) Explain durable and nondurable goods. Give an example of each. Answer: Durable and nondurable goods are goods that have been classified according to how long the product lasts. Durable goods are consumer products that last many years, such as refrigerators, computers, bedroom furniture, and cars. Nondurable goods are consumer products that are consumed in the short term, such as a newspaper, soda, chewing gum, and deodorant. 54) Compare and contrast the three types of convenience products. Answer: Marketers classify convenience products as either staple products, impulse products, or emergency products. Staple products are basic or necessary items that are available almost everywhere. Impulse products are items people buy on the spur of the moment. Emergency products are those products we purchase when we're in dire need, such as umbrellas during a rain storm. 55) Explain impulse products. Identify two challenges marketers may have regarding impulse products. Answer: An impulse product is something people buy on the spur of the moment. With an impulse product, marketers have two challenges. (1) Create a product or package design that is enticing and "reaches out and grabs the customer." (2) Make sure the product is highly visible by securing prime end-aisle or checkout lane space for the product. 56) Explain why consumers may not "sweat the details" when they choose among nondurable goods but have a higher level of involvement when they choose among durable goods. Answer: Nondurable goods are consumed in the short term. They don't last long, so consumers are not making a long-term commitment when purchasing them. Durable goods, on the other hand, are for the long term. 57) Explain why the price and perhaps the quality of an emergency product may not be an issue at the time of purchase. Answer: Emergency products are those products purchased when there is a dire, immediate need. Therefore, price and sometimes the product quality may be irrelevant to the purchasing decision. No matter the price, the customer needs the product now. 58) In business-to-business products, what is the difference between capital equipment and accessory equipment? Answer: Capital equipment, sometimes referred to as installations, refers to big-ticket items that last for a number of years. Accessory equipment refers to portable items that cost less and have a shorter life span than capital equipment. 59) How are processed materials different from raw materials? Answer: Raw materials such as those from the agricultural and mining industries are transformed by manufacturers into processed materials. 60) The Federal Trade Commission says that a product may be called new for only ________. A) three months B) six months C) nine months D) one year E) two years Answer: B 61) Marketers classify innovations based on their ________. A) degree of newness B) cost to manufacture C) prices D) degree of tangibility E) contribution margins Answer: A 62) A ________ is a modification to an existing product. A) technical innovation B) continuous innovation C) discontinuous innovation D) commercial innovation E) dynamically discontinuous innovation Answer: B 63) A(n) ________ is a new product that copies, with slight modification, the design of an original product. A) augmented product B) discontinuous innovation C) dynamically continuous innovation D) continuous innovation E) knockoff Answer: E 64) A consumer doesn't have to learn anything new to use a ________. A) dynamically continuous innovation B) dynamically continuous new product C) discontinuous new product D) continuous innovation E) discontinuous innovation Answer: D 65) A(n) ________ is a pronounced modification to an existing product that requires a modest amount of learning or change in behavior to use it. A) dynamically continuous innovation B) augmented product C) competitive innovation D) continuous innovation E) discontinuous innovation Answer: A 66) Consumers must engage in a great amount of learning to use a(n) ________ because no similar product has ever been on the market. A) dynamically continuous innovation B) augmented product C) competitive innovation D) continuous innovation E) discontinuous innovation Answer: E 67) Pepsi-Cola's development of Wild Cherry Pepsi, a cherry-flavored soda, is an example of a ________. A) dynamically continuous innovation B) nonradical innovation C) competitive innovation D) continuous innovation E) discontinuous innovation Answer: D 68) Even though most people in the original target market for electric toothbrushes already knew how to brush their teeth, consumers still had some learning to do in order to make good use of the new brushing technique. The electric toothbrush is an example of a ________. A) dynamically continuous innovation B) nonradical innovation C) competitive innovation D) knockoff E) discontinuous innovation Answer: A 69) The built-in, fold-down child seats, designed to replace traditional car seat and booster seats, such as those found in Chrysler minivans are an example of a ________. A) dynamically continuous innovation B) nonradical innovation C) competitive innovation D) continuous innovation E) discontinuous innovation Answer: A 70) Prior to the development of the cardiac stent, surgeons used balloons to clear obstructed heart vessels, but there was no way to ensure the vessels would stay open. The stent is a tiny metal scaffold that props open the formerly obstructed blood vessel and keeps it from becoming obstructed again. Surgeons who use the stent had to engage in a great deal of learning to understand its use and its value in patient care. There was nothing like the stent on the market when it first appeared. The cardiac stent is an example of a ________. A) dynamically continuous innovation B) nonradical innovation C) competitive innovation D) continuous innovation E) discontinuous innovation Answer: E 71) From a marketing standpoint, a new product is anything that customers perceive as new and different. Answer: True 72) The more innovative a new product is, the more quickly it will spread throughout a population. Answer: False 73) It's usually easier to convince customers to adopt a continuous innovation than a discontinuous innovation. Answer: True 74) The development of a new television show using the same format as an existing series is an example of a dynamically continuous innovation. Answer: False 75) The addition of sugar-free canned fruits to Del Monte's line of canned fruits and vegetables is an example of a discontinuous innovation. Answer: False 76) Marketers classify innovations into three categories based on their degree of newness. Explain these categories, identifying the role the consumer has in each. Answer: (1) A continuous innovation is a modification of an existing product. The consumer does not have to learn anything to use a continuous innovation. (2) A dynamically continuous innovation is a pronounced modification to an existing product that requires the consumer to engage in a modest amount of learning or a change in behavior to use. (3) A discontinuous innovation creates major changes in the way we live. To use a discontinuous innovation, consumers must engage in a great amount of learning because no similar product has ever been on the market. 77) How do marketers define innovation? Answer: Marketers define innovation as anything that customers perceive as new and different. 78) Why would a company create a knockoff of a product? Answer: A knockoff product is a new product that copies, with slight modification, the design of an original product. Firms deliberately create knockoff products with the intent to sell to a larger or different market than consumers who would buy the original product. 79) What might a firm measure in order to examine its level of innovation? Answer: A firm might examine how its strategy, culture, and processes foster innovation. 80) The first phase of new product development is ________. A) problem recognition B) product concept screening C) idea generation D) product concept development E) business analysis Answer: C 81) In most companies, ________ is a well-defined and systematic approach to innovation. A) research and development B) diffusion C) adoption D) positioning E) augmentation Answer: A 82) Marketers would be most likely to use a focus group in which stage of new product development? A) idea generation B) problem recognition C) business analysis D) positioning strategy E) product adoption Answer: A 83) In the ________ phase of new product development, marketers estimate the technical and the commercial success of an idea for a new product. A) problem recognition B) product concept development and screening C) idea generation D) commercialization E) technical development Answer: B 84) In the new product development process, a description of the features a product will have and the benefits those features will provide a customer is called a ________. A) product idea B) product concept C) product image D) product innovation E) product adoption Answer: B 85) Through ________, an organization collaborates with customers and other stakeholders to create worth in the new product development process. A) augmentation B) innovation C) value co-creation D) diffusion E) adoption Answer: C 86) Marketers estimate ________ when they determine whether anyone is likely to buy a new product. A) pricing points B) distribution costs C) commercial success D) technical success E) creative success Answer: C 87) Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process. A) business feasibility B) feasibility study C) business analysis D) product acceptance E) technical development Answer: C 88) The business analysis for a new product begins with ________. A) idea generation B) problem recognition C) assessing how the new product will fit into a firm's total product mix D) perceptual mapping E) identifying the distribution channel for the product Answer: C 89) During which stage of new-product development will management most likely consider whether the new product will cannibalize sales of the company's existing products? A) idea generation B) marketing strategy development C) business analysis D) product concept development E) test marketing Answer: C 90) Once a new product or service passes the business analysis phase, it moves into the ________ phase. A) concept development B) technical development C) market testing D) strategy development E) product proposal Answer: B 91) After the business analysis phase of the new product development process, a physical version of the product is typically developed. This is called a ________. A) test market B) focus group C) business analysis D) product concept E) prototype Answer: E 92) The need to apply for a patent would most likely arise during which phase of new product development? A) business analysis B) technical development C) test marketing D) strategy development E) product proposal Answer: B 93) One of the advantages of test marketing is the ________. A) low cost B) ability to keep information from falling into competitors' hands C) opportunity to survey prospective customers D) ability to evaluate a product and its marketing program before commercialization E) opportunity to sell existing products to a core customer base Answer: D 94) Bonneville Communications is concerned about test marketing its new device. Which of the following is NOT a disadvantage of test marketing that would likely concern Bonneville Communications? A) Test marketing costs can be high. B) Test markets give competitors a peek at the company's promotional strategy. C) Test marketing allows time for competitors to gain advantages. D) People who are surveyed tend to tell less than the truth. E) Test marketing does not guarantee success. Answer: D 95) The last stage in the new product development process is ________. A) commercialization B) business analysis C) generation D) concept testing E) product concept development Answer: A 96) Introducing a new product into the market is called ________. A) technical development B) new product development C) experimenting D) commercialization E) marketing development Answer: D 97) Which of the following costs is most likely associated with the commercialization stage of new product development? A) implementing trade promotion plans for channel members B) paying groups of target consumers for product feedback C) determining the product's planned price, distribution, and marketing budget D) developing a prototype of the product E) identifying target markets Answer: A 98) Bossa Nova founder and CEO Alton Johnson was fascinated with the fruits of Brazil, a fascination that led him to develop juices with these new fruit flavors for the American market. Johnson's interest in Brazilian fruits is an example of ________. A) idea screening B) idea generation C) concept testing D) product development E) product manufacturing Answer: B 99) A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. The first crude pair of blurry goggles developed by the entrepreneurs to show to prospective customers was a(n) ________. A) prototype B) component part C) synergistic model D) ideation E) patent Answer: A 100) Procter & Gamble introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Foods became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This act illustrates ________. A) why many companies engage in test marketing B) one of the problems associated with test marketing C) why prototypes are so important D) how idea screening can make a product a commercial success E) the variety of sources for idea generation Answer: B 101) Burger King developed a new french fry to compete with McDonald's fry—considered the world's best. Burger King's specifications included that the crunch would last for seven or more chews. The product failed because consumers did not like the fry as much as McDonald's fry. Burger King did not ________ the idea for both technical and commercial value. A) test market B) advertise C) screen D) promote E) style Answer: C 102) Procter & Gamble introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Foods became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new-product development process before Procter & Gamble could. A) commercialization B) business analysis C) idea generation D) screening E) product concept development Answer: A 103) In the product concept development and screening phase of new product development, successes generally occur much more frequently than failures. Answer: False 104) Idea generation is also known as the ideation phase of product development. Answer: True 105) Business analysis for a new product begins with assessing how the new product will fit the firm's total product mix. Answer: True 106) Test marketing is an inexpensive way to predict whether a new product will be a success. Answer: False 107) Simulated test marketing can help a company determine where in a store a product should be placed to maximize sales. Answer: True 108) Commercialization comes in the middle of the new-product development process. Answer: False 109) What are the disadvantages and advantages associated with test marketing? Answer: The disadvantages of test marketing are high costs; the competitor getting a free and early look at the product, the introductory price, and the intended promotional strategy; and the competitor getting an opportunity to enter the market first with a competing product. The advantages of test marketing are the opportunity to evaluate and improve the marketing program, to discover a need to improve the product itself, or to discover that the new product idea will not succeed and the product should be abandoned before more costs are incurred. 110) A fast-food chain wanted to add a new product to its breakfast menu. The company considered a pancake shaped like a muffin. The problem was determining how a customer would add syrup to the pancake while eating and driving. Fortunately, one of the company's suppliers developed a crystallized syrup that seeps through the pancake once it is heated. Explain the phase of new-product development that occurred during this process with the chain and its supplier? Support your rationale. Answer: Technical development occurred during this scenario with the fast-food chain and its supplier. Technical development occurs when a firm's engineers work with marketers to refine the design and production process. The pancake was refined and redesigned to allow the new type of syrup to be added to the pancake. 111) What are the phases involved in the development of a new product? Answer: There are seven phases in the development of a new product. The seven phases are: idea generation, product concept development and screening, marketing strategy development, business analysis, technical development, test marketing, and commercialization. 112) What must marketers do during the marketing strategy development phase of the new-product-development process? Answer: Marketers must identify the target market, estimate its size, and determine how the product can be positioned to effectively address the target market's needs. 113) What are prototypes? During which phase of the new-product-development process would a company develop prototypes? Answer: A prototype is a physical version of a product that is often evaluated by prospective customers. Prototypes are made during the technical development stage just prior to test marketing. 114) ________ is the process by which a consumer or business customer begins to buy and use a new good, service, or idea. A) Commercialization B) Product testing C) Product adoption D) Diffusion E) Positioning Answer: C 115) Diffusion refers to ________. A) how promotion is used to support products throughout their product life cycle B) the second stage of the market segmentation process C) the methodology for evaluating new product ideas D) how the use of a product spreads throughout a population E) the selection of opinion leaders to encourage product acceptance Answer: D 116) Change happens quickly when a process reaches the moment of critical mass, which is called the ________. A) adoption point B) diffusion point C) innovation point D) trial point E) tipping point Answer: E 117) The first step in the adoption process is ________. A) product evaluation B) awareness C) problem recognition D) evaluation E) interest Answer: B 118) Marketers may conduct a massive advertising campaign, called a ________, to educate consumers about a new product. A) media blitz B) diffusion network C) trial market D) test market E) tipping point Answer: A 119) Marketers are primarily striving to generate customer ________ when they use a teaser advertisement created to give prospective customers just enough information about a new product to make them curious. A) confirmation B) interest C) evaluation D) adoption E) impulse purchasing Answer: B 120) In which stage of the consumer's adoption of a new product does the purchase actually take place? A) awareness B) adoption C) interest D) tipping point E) evaluation Answer: B 121) A(n) ________ is made on the spur of the moment without any planning or search effort. A) high-involvement purchase B) commodity purchase C) impulse purchase D) unsought purchase E) fast-moving purchase Answer: C 122) The last stage in the product adoption process is ________. A) awareness B) adoption C) interest D) confirmation E) evaluation Answer: D 123) Unlike innovators, early adopters ________. A) compose the smallest of the adopter categories B) have greater concern for social acceptance C) have stronger physiological needs than others in the population D) are light media users E) are well educated Answer: B 124) Which of the following statements about the adopter categories is true? A) More than 50 percent of the population is classified as late majority adopters. B) Early adopters are risk averse. C) Early majority adopters are typically middle class and like to buy established products. D) Innovators are a much larger group than laggards. E) Late majority adopters are typically unconcerned about social acceptance. Answer: C 125) ________ are the last in the population to adopt a new product. A) Laggards B) Late majority adopters C) Innovators D) Impulse buyers E) Dawdlers Answer: A 126) ________ are typically lower in social class than other adopter categories and are bound by tradition. A) Early adopters B) Early majority C) Late majority D) Laggards E) Impulse buyers Answer: D 127) Which of the following is NOT one of the five characteristics of innovations that affect the rate of adoption? A) relative advantage B) tangibility C) observability D) trialability E) compatibility Answer: B 128) ________ is the degree to which a consumer perceives that a new product provides superior benefits. A) Compatibility B) Complexity C) Relative advantage D) Comparability E) Tangibility Answer: C 129) ________ is the extent to which a new product is consistent with existing cultural values, customs, and practices. A) Compatibility B) Complexity C) Relative advantage D) Comparability E) Tangibility Answer: A 130) ________ is the degree to which consumers find a new product or its use difficult to understand. A) Compatibility B) Complexity C) Relative advantage D) Comparability E) Tangibility Answer: B 131) ________ is how visible a new product and its benefits are to others who might adopt it. A) Compatibility B) Observability C) Relative advantage D) Comparability E) Tangibility Answer: B 132) A web site is full of games, activities, music, and stories that appeal to children of all ages. Before a parent commits to paying the annual membership fee to gain access to the site, she can register for one free month of use. By accepting the free month's usage, potential adopters move into the ________ stage. A) interest B) awareness C) trial D) confirmation E) evaluation Answer: C 133) Which of the following new products had the greatest degree of observability when it was introduced? A) nail clippers designed to prevent ingrown toenails B) Tylenol PM, a nonprescription sleep aid C) Dr. Scholl's shoe inserts D) Splenda sugar substitute E) rollerblades Answer: E 134) Traffic in major metropolitan areas is too often brought to a standstill because accident investigators must painstakingly measure skid marks and other evidence to determine culpability. After a police chief missed an important meeting because of a wreck investigation, he was pleased to find an article about a company that markets a new high-tech crash investigation system that shortens the time required for these investigations by 40 percent. In which stage of the adoption process is the police chief? A) evaluation B) trial C) interest D) confirmation E) adoption Answer: C 135) One of the reasons given for the success of reality television shows is that the shows appeal to a cultural bias that real-life drama is preferable to fiction. Americans desire adventure and escapism that offer them the opportunity for participation but do not require it. In terms of the five characteristics of innovations that affect the rate of adoption, reality television shows have a high degree of ________. A) innovation B) complexity C) tangibility D) divisibility E) compatibility Answer: E 136) In terms of the five characteristics of innovations that affect the rate of adoption, the digital camera would most clearly have a higher degree of ________ than flavored bottled water. A) compatibility B) complexity C) tangibility D) comparability E) trialability Answer: B 137) Product adoption is the process by which a consumer or business customer begins to buy and use a new good, service, or idea. Answer: True 138) The first step in the product adoption process is to create interest. Answer: False 139) The evaluation stage is longer for an impulse purchase than it is for a shopping product. Answer: False 140) Innovators tend to be better off financially than consumers in other adopter groups. Answer: True 141) The largest adopter category is the early adopters. Answer: False 142) Laggards tend to be in a higher social class than consumers in other adopter categories. Answer: False 143) Consumers' perception of relative advantage would help determine the success of a new magazine targeted to girls between the ages of 14 and 17. Answer: True 144) Consumers would perceive a ceiling fan as having greater trialability than a new kind of snack food. Answer: False 145) Explain why marketers need to understand the views of consumers in dealing with the compatibility and complexity of innovations. Answer: Compatibility is the extent to which a new product is consistent with existing cultural values, customs, and practices. By anticipating compatibility issues early in the new product development stage, marketing strategies can address any such problems in planning communication programs, or there may be opportunities for altering product designs to overcome any consumer objections. Complexity is the degree to which consumers find a new product or its use difficult to understand. Perhaps if the consumer does not understand what a product can do or how to use it, the product will not be purchased. 146) Microsoft launched a massive $500 million marketing campaign when it introduced the Xbox, promoting the new product through in-store merchandising, retailer incentives, events, and sponsorships, in addition to traditional advertising. What stage of the consumers' adoption of a new product was Microsoft most trying to influence? Support your answer. Answer: Microsoft may have been trying to influence the awareness and the interest stages. In the awareness stage, consumers learned about the Xbox for the first time. In the interest stage, consumers began to see how the Xbox might satisfy a need. 147) White Wave Inc., the maker of Silk soy milk, gave away free samples of its product to get consumers to try the first refrigerated soy milk sold in America. What stage of the consumers' adoption of a new product was White Wave Inc. trying to influence? Support your answer. Answer: White Wave Inc. was attempting to move consumers to the trial stage of the adoption of a new product by offering potential consumers samples of the company's soy milk. 148) Why is reselling the customer an important part of confirmation after the adoption of an innovation? Answer: Favorable experiences contribute to new customers becoming loyal adopters, as their initially positive opinions result in confirmation of the product. Even loyal customers may decide that a new product is not meeting expectations and reject it. Some marketers feel that reselling the customer in the confirmation stage is important, so they use advertisements, sales presentations, and other communications to reinforce a customer's choice. 149) What category of consumer adopters would purchase a product when it is no longer considered new or different but before it is considered a necessity? Explain your answer. Answer: Consumers classified as the early majority avoid being either the first or last to try an innovation. When early majority adopters purchase a product, the product is no longer considered new or different. The product has already been established. 150) What category of consumer adopters would purchase a product when the product is no longer considered to be risky? Explain your answer. Answer: The late majority adopters and the laggards adopt an innovation after the innovation is no longer new–it is so well established that it is an economic necessity or it has been superseded by other innovations. Test Bank for Marketing: Real People, Real Choices Michael R. Solomon, Greg W. Marshall, Elnora W. Stuart 9780132948937, 9780135199893, 9780134292663, 9780135209929
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