Marketing Final Exam

Characterized as being venturesome pts 1 ref 179

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Unformatted text preview: C: BLOOMS Application 116. Refer to Voodoo Envy. With very few competitors and high product prices, those purchasing ultra-thin computers now are probably the most venturesome consumers, also known as the: a. innovators b. late majority c. late adopters d. early adopters e. early majority ANS: A Innovators are the first to buy new products. They are often characterized as being venturesome. PTS: 1 REF: 179 Thinking KEY: CB&E Model Customer OBJ: 11-4 TOP: AACSB Reflective MSC: BLOOMS Application 117. Refer to Voodoo Envy. Two advantages the Voodoo Envy has over the MacBook Air are removable batteries and an Ethernet port. In other words, since the Voodoo Envy has these features that are consistent with full-size laptops, in terms of the adoption process, it has the advantage of: a. compatibility b. complexity c. d. e. maturity observability trialability ANS: A Compatibility refers to the degree to which the new product is consistent with existing values and product knowledge. PTS: 1 REF: 180 Thinking KEY: CB&E Model Product OBJ: 11-4 TOP: AACSB Reflective MSC: BLOOMS Application 118. Refer to Voodoo Envy. The price of the Voodoo Envy is expected to be approximately $2,000. According to Forrester Research, anything above $1,500 in this market would be considered “ultra expensive.” In order to motivate consumers to spend $2,000 for the Voodoo Envy, HP will probably need to spend considerable money on advertising to educate consumers to the advantages of ultra-thin laptops. This is a characteristic of which stage of the product life cycle? a. Equity b. Growth c. Maturity d. Introductory e. Decline ANS: D Marketing costs are high because the market needs to be educated about the product in the introductory stage of the product life cycle. PTS: 1 REF: 181-182 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Application ESSAY 1. Name and describe the six categories of new products. ANS: NEW-TO-THE-WORLD PRODUCTS (DISCONTINUOUS INNOVATIONS) create an entirely new market. New-to-the-world products represent the smallest category of new products. NEW PRODUCT LINES are products the firm has not offered in the past but will introduce into an established market. ADDITIONS TO EXISTING PRODUCT LINES are new products that supplement a firm’s established line. Complementary products can also supplement a firm’s offerings. IMPROVEMENTS OR REVISIONS OF EXISTING PRODUCTS are usually minor changes that may entail addition or deletion of ingredients. Many of these products are labeled “new and improved.” REPOSITIONED PRODUCTS are existing products targeted at new markets or market segments. LOWER-PRICED PRODUCTS are those that provide similar performance to competing brands at a lower cost. Lower cost may result from technological advantages, economies of scale in production, or lower marketing costs. PTS: 1 REF: 179-180 Communication KEY: CB&E Model Product OBJ: 11-1 TOP: AACSB MSC: BLOOMS Synthesis 2. List the s...
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