Marketing Final Exam

Life cycle c consumption process d viral process e

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Unformatted text preview: ation ANS: E The final stage in the new-product development process is commercialization, the decision to market the product. PTS: 1 REF: 178 Thinking 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: a. diffusion process b. product life cycle c. consumption process d. viral process e. two-stage process ANS: A The diffusion process is the process by which the adoption of an innovation spreads. PTS: 1 REF: 179 Thinking 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? a. Complexity b. Compatibility c. Relative advantage d. Observability e. Trialability ANS: C Fitbit has a relative advantage over the Nike + iPod and the Zeo devices because it monitors what both of them do separately. PTS: 1 REF: 180 Thinking 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 a(n): a. new product line b. addition to existing product line c. discontinuous innovation d. improvement of existing product e. repositioned product ANS: B The firm makes lures and is simply adding a new one to its product mix. PTS: 1 REF: 172 Thinking 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? a. Commercialization b. Idea generation c. Idea screening d. Concept testing e. Product development ANS: E These lures would be prototypes. PTS: 1 REF: 175 Thinking 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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