MP Ch 11 Worksheet

A furniture manufacturer with a reputation for making plain, lightweight foldable steel chairs decides to make cushioned chairs with printed upholstery. The new type of chair will be a ______.

• product line extension

• discontinuous innovation or new-to-the-world product

• repositioned product

• lower-priced product

Geraldo, a construction worker, tends to buy a new gadget if most of his friends have them and only after they've teased him about not having the gadget yet. He relies on reviews from his friends rather than on television or newspaper advertisements to make his purchase decisions. It can be inferred that when it comes to the diffusion of innovation Geraldo belongs to the group of ______.

• early adopters

• innovators

• late majority

• early majority

Expressions Inc., a toiletries manufacturing firm, has launched a new range of organic sanitizing wipes. It wants to test its consumers' reactions to this new product in an economical way. Therefore, Expressions creates flyers that advertise several of its products along with the new product and send them to a few selected members of the target market. Besides this, it also takes the members to a mock shop and monitors their shopping behavior. In this scenario, Expressions is using ______.

• scanner-based research testing

• simulated (laboratory) market testing

• virtual test marketing

• traditional test marketing

Indicate the answer choice that best completes the statement or answers the question. 4. Jonas, a retiree, wants to use his savings to open a day care facility for dogs. After deciding on the services that he would provide to his customers, he calculates costs versus the demand and the profit he could make depending on the volume of sales. After extensive deliberation, Jonas decides to take a bank loan because the needed initial investment is too high for opening the facility. Jonas is currently in the ______ stage of the new-product development process.

• commercialization

• business analysis

• idea generation

• test marketing

Indicate the answer choice that best completes the statement or answers the question. 5. Samsung is best known for its smartphones, tablets, and televisions. Years ago, when it decided to expand its business activities and operations into ship building and military hardware, it was gearing to offer ______.

• discontinuous innovations or new-to-the-world products

• new product lines

• repositioned products

• product line extensions

A company well known for its easy-to-cook breakfast cereals was facing stiff competition from the many players in the market. The company changed its campaign to focus on dietary needs rather than just convenience, thus targeting a segment of consumers looking for healthy diet. This is an example of a ______.

• product line extension

• discontinuous innovation or new-to-the-world product

• repositioned product

• new and improved product

NaturalOats, an oatmeal cookie product, has been in the market for more than seven years and is now in its decline stage. In this case, which of the following strategies would be successful in marketing NaturalOats?

• Lengthen the product line

• Focus on adding new users

• Spend heavily on advertising to educate consumers about the product's benefits

• Eliminate all nonessential marketing expenses and let sales decline

Lewis bought his first LED flat screen television after flat screen televisions were already widely diffused. He is most likely to be one among the______ .

• early adopters

• early majority

• late majority

• laggards

Reynold's Furnishers is experiencing a period when their sales are increasing at a slower rate. The company realizes that new users cannot be added indefinitely and that, sooner or later, its market will approach saturation. Which stage is the company now entering?

• End of the decline stage

• End of the introductory stage

• Beginning of the growth stage

• Beginning of the maturity stage

The Shaw Corp. manufactures and sells accessories for cell phones. To boost its sales, the research and development team decides to use product modification as an approach to new product development. In this scenario, the research and development team will most likely________.

• eliminate products that are inconsistent with Shaw's business mission

• develop products by applying new technology

• make a slight change in the design or function of the existing products

• add new products to supplement Shaw's established product line