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The final stage in the new-product development process is commercialization, the decision to
market the product.
KEY: CB&E Model Product OBJ: 11-2 TOP: AACSB Reflective MSC: BLOOMS Application 99. Refer to Fitbit. The process by which the adoption of this innovative product spreads is called the:
product life cycle
The diffusion process is the process by which the adoption of an innovation spreads.
KEY: CB&E Model Product OBJ: 11-4 TOP: AACSB Reflective MSC: BLOOMS Application 100. Refer to Fitbit. The fact that Fitbit can monitor motion while awake and asleep makes it different
from competing products that might increase its rate of adoption. Which product characteristic
affecting the rate of adoption does this illustrate?
Fitbit has a relative advantage over the Nike + iPod and the Zeo devices because it monitors what
both of them do separately.
KEY: CB&E Model Product
Rapala VMC Corporation OBJ: 11-4 TOP: AACSB Reflective MSC: BLOOMS Application Finland-based Rapala VMC Corporation is the world’s largest fishing lure manufacturer. It
developed its first fishing lure––a cigar-shaped minnow––in 1962. The annual market for fishing
lures in terms of retail sales is approximately $600 million. Rapala VMC garnered one-third of
that amount in 2008. New lures must be introduced each year in order to stay competitive in this
industry. Like other lure manufacturers, Rapala focuses on two questions in developing and
making new lures: Does it work, and does it look good? Developing a new lure takes two or three
years and involves extensive field testing by tournament professionals and fishing guides. At the
annual fishing industry trade show in 2008, Rapala unveiled the “dream lure for the 21st century.”
101. Refer to Rapala. The “dream lure for the 21st century” will more than likely be an example of
new product line
addition to existing product line
improvement of existing product
The firm makes lures and is simply adding a new one to its product mix.
KEY: CB&E Model Product OBJ: 11-1 TOP: AACSB Reflective MSC: BLOOMS Application 102. Refer to Rapala. The testing of new lures by tournament professionals and fishing guides would
take place in which stage of new-product development?
These lures would be prototypes.
KEY: CB&E Model Product OBJ: 11-2 TOP: AACSB Reflective MSC: BLOOMS Application 103. Refer to Rapala. After the trade show, the newest lure made by Rapala will enter which stage of
the new-product development proc...
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- Fall '13