MARK 3000 EXAM 2 ACTUAL GRANTHAM CH 10, 11,

MARK 3000 EXAM 2 (ACTUAL / ) GRANTHAM CH 10, 11,

12, 14, 15. QUESTIONS AND VERIFIED CORRECT ANSWERS

Early Adopters - ---Answers---The second group of consumers in the diffusion of innovation model, after innovators, to use a product or service innovation; generally don't like to take as much risk as innovators but instead wait and purchase the product after careful review

• opinion leaders, well respected, integrated, care what ppl

think

Early Majority - ---Answers---members don't like to take much risk and therefore tend to wait until bugs are worked out of a particular product; few new products can be profitable until this large group buys them

• deliberate, intentionally evaluate alternatives, collect info,

weigh pros + cons

Late Majority - ---Answers---The last group of buyers to enter a new product market; when they do, the product has achieved its full market potential

• skeptics, adopt new product after they see it works for

others

Laggards - ---Answers---Consumers who like to avoid change and rely on traditional products until they are no longer available, often ignored by mkters- products in early decline or late maturity when they become interested 1 / 4

• traditional

Product Development Process - ---Answers---Idea generation Concept testing Product development Market testing Product launch Evaluation of results

Grewal, Dhruv. M: Marketing (Page 248). McGraw-Hill Higher

Education. Kindle Edition.

Idea Generation - ---Answers---Development of viable new product ideas

Concept Testing - ---Answers---Testing the new product idea among a set of potential customers (JUST THE IDEA ITSELF), no significant investment made yet

Product Development - ---Answers---Development of prototypes and/or the product

Market Testing - ---Answers---Testing the actual products in a few test markets

• / 4

Product Launch - ---Answers---Full scale commercialization of the product

Evaluation of Results - ---Answers---Analysis of the performance of the new product and making appropriate modifications

Sources of ideas - ---Answers---Includes Internal R&D, R&D Consortia, Licensing, Brainstorming, Outsourcing, Competitors' products, and Customer input

Reverse Engineering - ---Answers---Involves taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist

Lead Users - ---Answers---Innovative product users who modify existing products according to their own ideas to suit their specific needs

Concepts - ---Answers---Brief written descriptions of a product or service; its technology, working principles, and

forms: and what customer needs it would satisfy

Concept Testing - ---Answers---The process in which a concept statement that describes a product or a service is presented to potential buyers or users to obtain their reactions 3 / 4

Product Development - ---Answers---Also called product design; entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features

Prototype - ---Answers---The first physical form or service description of a new product, still in rough or tentative form, that has the same properties as a new product but its produced through different manufacturing processes, sometimes even crafted individually

Alpha Testing - ---Answers---An attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended; occurs in the firm's research and development (R&D) department

• internal to company (ex. Chick-fil-A gives employees free

lunch- tries new things out on them first)

Beta Testing - ---Answers---Having potential consumers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its use.

• external to company (ex. having ppl try out Google Glass)

Premarket Test - ---Answers---Conducted before a product or service is brought to market to determine how many

• / 4