Chapter 10—Developing, Positioning, and Differentiating
Products Through the Life Cycle
True/False Questions
1. The new product development process starts with profitability analysis of the ideas. False (moderate)
p. 191
2. A product-positioning map uses selected criteria to show where a product stands in relationship to
comparable products. True (moderate) p. 192
3. Less than 10 percent of “new” products are entirely new and innovative. True (easy) p. 189
4. An existing product that has been repositioned can be considered a new product. True (moderate) p.
190
5. In spite of the benefits of test marketing, many firms today question its value. True (moderate) p.
195
6. Concept testing is the most expensive part of the new product development process. False
(moderate) p. 192
7. Some products fail because they have too much support from upper-level management True
(difficult) p. 190
8. The basic strategy for managing the growth stage of the PLC is product expansion. False (moderate)
pp. 198-199
9. Personal influence is most important in the awareness stage of the adoption process. False (difficult)
pp. 197-198
10. Many of the best ideas for new industrial products originate with customer ideas. True (moderate) p.
191
11. The stage of the product life cycle characterized by low sales, heavy promotion, low profit, and
minimal competition is the introduction stage. False (moderate) p. 199
12. Typically, the longest stage in the product life cycle is the maturity stage. True (moderate) p. 199
13. Increasing usage, frequency of use, or variety of use are all acceptable product modification strategies
for a product in the maturity stage of the life cycle. False (moderate) p. 199
14. Alpha testing means testing a product within the firm, beta testing means enlisting customers to use
the product and provide feedback. True (easy) p. 194
15. Differentiation is the act of designing a company’s offerings and image so that they occupy a
meaningful and distinct competitive position in the target customers’ minds. False (moderate) p. 204
16. Conformance quality refers to the level at which the product’s primary characteristics operate. False
(moderate) p. 205
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17. Ways of differentiating service offerings include customer training, ordering ease, and delivery. True
(easy) p. 206
18. The firm can differentiate itself and its marketing offerings through control of its product, service,
personnel, channel, and image. True (moderate). pp. 204-207
19. The way the public perceives a company and its products is the company’s image. True (easy) p. 207
20. Simulated test marketing and test marketing are the same thing. False (moderate) p. 195
Multiple Choice Questions
21. When SAP software added a Windows-style “back” button to its industrial invoice management
software, the new product _______________.
a.) used a repositioning strategy
b.) introduced a new product line
c.) added to an existing product line
d.) improved upon an existing product (easy) p. 190
e.) used a market diversification strategy
22. Mazda’s Miata convertible originally drew the most interest from women between the ages of 35-55.
In order to interest more potential customers in the roadster, Mazda beefed up the model with heavier
shocks and a faster engine, then emphasized performance in its advertising. This is an example of
creating a new product by _____________.
a.) repositioning (moderate) p. 190
b.) the development of a new product line
c.) a market diversification strategy
d.) a product development strategy
e.) a new-to-the-world product
23. Why do new products fail?
a.) Since most products today have a longer product life, there is less need for new products.
b.) Social and governmental deregulations have made new-product development costs more
expensive, and therefore, producers avoid new product ventures.
c.) Marketers tend to underestimate the market size and underestimate demand, which results in lost
customers.
d.) New-product development costs are higher than anticipated, and competitors respond more
effectively than predicted. (difficult) p. 190
e.) The underpricing of the product causes customers to overstock and depletes all future demand for
the product.
24. One of the factors Madique and Zirger discovered that accounts for the success of new products in the
electronics industry is _______________.
a.) the ability to learn from competitors’ mistakes by introducing the product after them
b.) how low the producer sets the product’s predicted contribution margin
c.) the higher performance-to-cost ratio for the new product (difficult) p. 190
d.) a minimization of product launching expenditures coupled with the ability to offer the lowest
price
e.) the product’s development and sponsorship by a single entrepreneur with the drive to make the
product successful
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25. In terms of new-product development, Spam Meat Product’s annual Great Ideas for Spam! contest
brings together Spam cooking ideas from all over the world. Each contestant hopes his or her idea for
a new recipe will win the grand prize. For the makers of Spam, the contest serves as an avenue for
_______________.
a.) idea screening
b.) idea generation (moderate) p. 191
c.) concept development
d.) prototype development
e.) business analysis
26. According to Hippel, the highest percentage of ideas for new industrial products comes from
_______________.
a.) sales representatives and intermediaries
b.) scientists and engineers
c.) examining competitors
d.) top management
e.) customers (easy) p. 191
27. A potential marketer of new combination bread and sandwich maker machine asks consumers, “Do
you understand how the machine can benefit you?” and “Would this type of machine solve a need for
you?” This marketer is in the _______________ stage of new-product development.
a.) concept development and testing (difficult) pp. 192-193
b.) business analysis
c.) product development
d.) idea generation
e.) market testing
28. If a marketer wanted to evaluate the communicability and believability of a new bread and sandwich
maker during concept testing, he might ask which of the following questions?
a.) Are the benefits to be gained from the combination of bread and sandwich making clear to
you? (difficult) p. 192
b.) Do you see the bread and sandwich maker as solving a problem or filling a need for you?
c.) Would you definitely, probably, probably not, or definitely not buy the bread and sandwich
making machine?
d.) Do other products clean as well and as easily as this combination machine will?
e.) Who do you see as the primary market for this machine?
29. The marketing strategy plan consists of three parts. The first part consists of describing the
_______________.
a.) product’s features, advantages, and benefits
b.) target market size, structure, and the behavior of its target market (moderate) p. 193
c.) planned price, distribution strategy, and marketing budget
d.) long-run sales, profit goals, and marketing mix strategy
e.) target market composition, its long-run sales goals, and the product’s planned pricing strategy
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30. Neelim is trying to decide how many people will buy her new scrapbooking software and the
accompanying printer accessories only once, how many will buy it more than once, but only
infrequently, and how many will become frequent purchasers of her scrapbooking product line. She is
engaged in _______________.
a.) estimating costs and profits
b.) marketing strategy development
c.) estimating total sales (moderate) p. 193
d.) risk analysis
e.) sales-wave research
31. EA, a gaming software products company has developed a role-playing game (RPG) incorporating
ideas supplied by some of the most famous game writers in the world. The company asked about one
hundred people to download the company’s RPG, play it extensively, and give feedback on it. EA is
using _______________ testing.
a.) beta (moderate) p. 194
b.) concept
c.) market
d.) alpha (moderate)
e.) simulated
32. As a part of new-product development, beta testing is most useful when _______________.
a.) the potential customers are homogeneous
b.) the company is quite knowledgeable on the potential applications of the product
c.) opinion leadership from early adopters is sought (difficult) p. 194
d.) the buying center for the product is limited to the individual making the actual purchase
e.) all of the above occur
33. Seven-Up briefly marketed a soda brand called Seven-Up Gold in medium-sized cities like Virginia
Beach. The product had a spiced flavor and contained caffeine. It was never introduced nationally.
Seven-Up was probably engaging in _______________.
a.) full-blown test marketing
b.) controlled test marketing (moderate) p. 195
c.) simulated test marketing
d.) sales-wave research
e.) alpha testing
34. The least expensive method of performing a market test for a new children’s over-the-counter remedy
would be to use _______________.
a.) simulated test marketing
b.) conjoint analysis
c.) controlled test marketing
d.) test markets
e.) sales-wave research (moderate) p. 195
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35. Suppose a marketing research firm that manages a panel of retail stores agrees (for a fee) to study a
company’s new candy bar-based granola product. The research firm provides sales results and
evaluates the impact of promotion. This is an example of _______________.
a.) simulated test marketing
b.) controlled test marketing (moderate) p. 195
c.) test markets
d.) conjoint market analysis
e.) sales-wave research
36. Which of the following is the most expensive part of the new product development process?
a.) concept testing
b.) business analysis
c.) product development
d.) commercialization (moderate) p. 196
e.) idea generation
37. McDonald’s is preparing (yet another time) to roll out a new version of its McRib product.
McDonald’s is currently deciding if its new product should enter the market at the same time it knows
a new Arby’s barbeque product is coming out. The firm is devising its _______________ for newproduct commercialization.
a.) geographic strategy
b.) introductory market strategy
c.) market-penetration plan
d.) market pricing plan
e.) timing (moderate) p. 196
38. When Vivendi-Universal premiered the movie Amelie, it first introduced it to audiences in France,
Germany, and the U.K., and then in other European countries. Six months later it was shown on a
limited number of U.S. screens. Vivendi-Universal used a(n) _______________ strategy for the
commercialization of its new film.
a.) market-skimming
b.) geographic (easy) p. 196
c.) introductory market
d.) market-penetration
e.) timing
39. During commercialization, a company must develop an action plan for the rollout. The action plan
answers the commercialization question of _______________.
a.) what?
b.) where?
c.) how? (moderate) p. 196
d.) to whom?
e.) who?
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40. During the implementation of the introductory marketing strategy, a marketer could use
_______________ to show the simultaneous and sequential activities that must take place to launch
the new product.
a.) a Gantt chart
b.) a PERT table
c.) a position map
d.) critical path scheduling (moderate) p. 196
e.) a rollout plan
41. Before Dede read the article about Toyota’s new super-efficient, low-polluting car, the Prius (the car
is propelled by a hybrid of an electric motor and small gasoline engine), she had previously heard that
the product existed, but didn’t know much about it. Having read the article, she now wants to learn
even more about the new car. In terms of the adoption process, Dede has moved from
_______________.
a.) evaluation to trial
b.) awareness to interest (easy) p. 197
c.) awareness to evaluation
d.) interest to evaluation
e.) interest to trial
42. Guadalupe is thinking about buying a Handspring brand personal digital assistant (PDA). The market
is constantly changing, so she has read Consumer Reports, talked to several salespeople, and avidly
watched for sales. Verna has also checked her bank account to see if she can afford a PDA with a
built-in wi-fi connection to allow her an Internet connection while on the road. She is in the
_______________ stage of the consumer adoption process.
a.) awareness
b.) interest
c.) adoption
d.) evaluation (moderate) p. 197
e.) trial
43. Personal influence is most important in the _______________ stage of the adoption process.
a.) awareness
b.) interest
c.) evaluation (moderate) p. 197
d.) trial
e.) adoption
44. Pre-made Rice Krispy treats were a huge success because they were perceived as much easier than
making the recipe yourself - which required consumers to melt marshmallows, use large mixing
bowls, and stir for just the right amount of time. Pre-packaged Rice Krispy treats had a high level of
_______________ when compared to the former way of obtaining this tasty dessert.
a.) relative advantage (moderate) p. 198
b.) divisibility
c.) communicability
d.) complexity
e.) comparability
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45. Birth control pills didn’t diffuse as quickly in predominately Roman Catholic countries as they did in
the United States. This is an example of problems with the new product’s _______________.
a.) relative advantage
b.) compatibility (moderate) p. 198
c.) communicability
d.) complexity
e.) divisibility
46. When a new product innovation is relatively difficult to understand or use, the characteristic of
_______________ slows the adoption rate of the new product.
a.) relative advantage
b.) divisibility
c.) communicability
d.) complexity (moderate) p. 198
e.) compatibility
47. According to the concept of the product life cycle, _______________.
a.) products have a limited life (difficult) p. 198
b.) products spend a predetermined amount of time in each stage of the life cycle; this time span is
determined by the product category
c.) most products require the same level of marketing throughout their life cycle
d.) a product’s profits are fixed throughout its life cycle
e.) all products begin at the introductory stage and move through all the life cycles stages at a steady
rate
48. Which of the following is not an underlying assumption of the product life cycle?
a.) products have a limited life
b.) products pass through distinct stages with different challenges to the marketer
c.) services do not pass through life-cycle stages like products do (moderate) p. 198
d.) profits rise and fall at different stages
e.) products require different marketing and other business strategies in each stage
49. The stage of the life cycle characterized by low sales, heavy promotion, low profit, and minimal
competition is the _______________ stage.
a.) introduction (moderate) p. 199
b.) growth
c.) repositioning
d.) maturity
e.) decline
50. In the Schnaars study of 28 industries in which imitators surpassed the innovators, which of the
following was not a common weakness of the failing pioneers?
a.) new products that were too crude
b.) products that were improperly positioned
c.) products appeared before strong demand
d.) too many new products in the pipeline (moderate) p. 200
e.) managerial incompetence or unhealthy complacency
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51. In the growth stage a firm should pursue _______________.
a.) new pricing and marketing strategies
b.) market expansion strategies (moderate) p. 200
c.) a repositioning strategy
d.) a new product strategy
e.) market concentration strategies
52. The stage in the product life cycle in which the marketing objective is to maximize profit while
defending market share is the _______________ stage.
a.) introduction
b.) growth
c.) rejuvenation
d.) maturity (moderate) p. 201
e.) decline
53. Price reductions, promotion cutbacks, and competitor dropout characterize the _______________
stage of the life cycle.
a.) introduction
b.) growth
c.) stable maturity
d.) decaying maturity
e.) decline (easy) p. 201
54. When a firm’s product enters the decline stage _______________.
a.) most firms don’t have a plan for handling this stage (difficult) p. 202
b.) most companies drop the product immediately
c.) the firm should retain the product because the costs of maintaining a weak product are relatively
low
d.) the firm should seek to increase sales through a marketing-mix modification strategy
e.) the firm should retain the product because the costs of reintroducing the product later are higher
than any maintenance costs required at this stage
55. While many swear by the product life cycle (PLC), some criticize the concept because
_______________.
a.) PLC doesn’t help managers compare product performance to other similar products
b.) PLC is an ineffective product management tool
c.) marketers can seldom tell what stage of the PLC a product is in (difficult) p. 202
d.) the product life-cycle pattern is an inevitable pattern relatively unaffected by marketing strategies
e.) PLC is not applicable to any services
56. Volkswagen continued to sell its sedan (Beetle) in Brazil and Mexico for nearly 20 years after it
withdrew the product from the U.S. The company reduced R&D costs for the car to virtually nothing
during that time, and did no advertising. In product life cycle terms, VW was _____________ with
the Beetle.
a.) divesting
b.) harvesting (moderate) p. 202
c.) maintaining
d.) reducing overcapacity
e.) engaging in product improvements
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57. _______________ is an important product attribute to most buyers and represents the expected
operating life of the product under natural and/or stressful conditions.
a.) Durability (easy) p. 205
b.) Performance quality
c.) Reliability
d.) Efficiency
e.) Conformance quality
58. Purchasers of high capacity office copying machines are concerned about the costs and lost
productivity caused by breakdowns and repair time. Purchasers of these items focus on
_______________ and will pay a premium for it.
a.) repairability
b.) durability
c.) efficiency
d.) reliability (moderate) p. 205
e.) performance conformance
59. Bill and his partner love to brew and drink their own beer. Bill made the purchase decision for a
grain roaster based on the relative ease and speed with which it could be fixed if something went
wrong. Bill bought a particular brand and type of roaster because of its _______________.
a.) repairability (moderate) p. 205
b.) durability
c.) reliability
d.) trustworthiness
e.) performance quality
60. Miss Kim’s nail techs and massage therapists are trained to cater to every whim of their clients.
Because their needs are often met even before they realize they have them, some guests are even
convinced that its employees have ESP. This is an example of _______________.
a.) a basic customer value hierarchy
b.) a task focus versus a relationship focus on job performance
c.) personnel differentiation (moderate) p. 206
d.) a service provider concentrating on its conformance quality
e.) an emphasis on service style, not service performance
61. A small, highly competitive Internet service provider (ISP) is working hard to identify itself as a
quality, high-service organization by trying to answer all customer questions within four hours of
receipt. This ISP is working on its _______________.
a.) identity (moderate) p. 207
b.) service style
c.) service position
d.) personnel differentiation
e.) perceived differentiation
62. The way the public perceives a company and its products is the company’s _______________.
a.) identity
b.) image (moderate) p. 207
c.) position
d.) style
e.) atmosphere
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63. Robinson’s Pharmacy sponsors a kid's soccer team and an annual charity ball for the Muscular
Dystrophy Foundation as part of its differentiation strategy. This small retailer is using a(n)
_______________ differentiation strategy.
a.) personnel
b.) channel
c.) service
d.) image (moderate) p. 207
e.) community
64. The differences a positioning strategy is built on need to meet certain criteria to be of value in truly
differentiating the company’s products. The manufacturer of Chef’s Fork differentiates this grill
accessory by placing a meat thermometer in its handle. From this description, you know the
manufacturer of this new product has satisfied the criteria of _______________.
a.) distinctiveness and preemption
b.) importance, distinctiveness, superiority (moderate) p. 204
c.) superiority, affordability, and importance
d.) preemption and superiority
e.) importance and preemption
65. If the positioning strategy offers a difference not offered by others or is offered in a sufficiently
different way from others, it meets the criterion of _______________.
a.) distinctiveness (moderate) p. 204
b.) importance
c.) superiority
d.) preemption
e.) profitability
66. Which of the following is not true of Treacy and Wiersema’s Value Disciplines framework?
a.) A firm might choose to be the product leader in their category.
b.) Maintaining distance from suppliers allows the firm freedom to pursue customer value.
(moderate) p. 203
c.) To succeed, a business should become the best in at least one area, and perform adequately in the
others.
d.) One success strategy is to become an operationally excellent firm.
e.) An avenue to success is to be “customer intimate.”
67. Which of the following is true about positioning strategies?
a.) Not all products can be differentiated.
b.) A product that is not positioned as superior, distinctive, preemptive, or affordable will succeed if
it is implemented correctly.
c.) The end result of positioning is the successful creation of a market-focused value
proposition. (difficult) pp. 203-204
d.) Positioning strategies must stress real benefits or they will fail.
e.) All brand differentiation strategies are meaningful and worthwhile.
68. Which of the following is not a way of differentiating a product?
a.) form
b.) installation (easy) pp. 204-207
c.) style
d.) design
e.) repairability
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69. _______________ is the totality of features that affect how a product looks and functions in terms of
customer requirements.
a.) Image
b.) Style
c.) Fashion
d.) Identity
e.) Design (moderate) p. 206
70. McDonald’s people are courteous, IBM folks are professional, Disney associates are upbeat. These
are examples of _______________.
a.) product differentiation
b.) service differentiation
c.) channel differentiation
d.) image differentiation
e.) personnel differentiation (moderate) p. 206
Essay Questions
71. Maurer has developed a hermetic system for smoking meat that uses 50 percent less energy than
industrial-sized smokers currently on the market even though it will smoke the same amount of meat
uniformly. It also has an added advantage in that it is easy to clean because the hermetic system
reduces tar and ash residue. In a short essay, discuss how Maurer would conduct a business-goods
marketing test.
Answer:
Maurer would use alpha testing within the company and beta testing with outside customers. During
beta testing, its vendor’s technical people will observe how test customers use the product, a practice
that might expose unanticipated problems of safety and servicing and alert Maurer to the needs for
customer training and servicing requirements. The vendor can also observe how much value the
equipment adds to the customer’s operation as a clue to subsequent pricing. The vendor will ask the
customers to express their purchase intention and other reactions after the test. A second common
test method Maurer could use would be to introduce the new smoker at trade shows. Trade shows
draw a large number of potential buyers. The vendor can observe how much interest buyers show in
the new smoker. The smoker could also be tested in distributors’ and dealers’ display rooms where
they may stand next to the Maurer’s other products and possibly competitors’ products. Maurer
would come closest to using full test marketing if it gives a limited supply of the product to the sales
force to sell in a limited number of areas that receive promotional support.
(difficult) pp. 193-195
72. In a short essay, explain the five stages that adopters of new products and services move through.
Then consider the following scenario: Seth comes back to his dorm room from a night out drinking
and entertainment and is excited about a new local band he heard—the Route 66 Killers. He thinks
their retro surf-influenced style sounds interesting. His roommate Bridgett tells Seth the band will
play again at another local nightspot on Friday. A friend that has dropped by mentions that she has
listened to nothing else since buying the Killer’s CD, and she loves their tee-shirt! A fraternity
pledge, Josh, from the apartment next door, heard the band at one of the events during hell week and
says he can’t stand the band since hearing them—not enough punk influence for him and he hates the
drummer, “Animal,” because Josh’s girlfriend flirted with the musician. Now indicate which stage of
the adoption process each of the above participants is in.
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Answer:
The consumer adoption process focuses on the mental processes through which an individual passes
from first hearing about an innovation to final adoption. (1) Awareness. The consumer becomes
aware of the innovation but lacks information about it. (2) Interest. The consumer is stimulated to
seek information about the innovation. (3) Evaluation. The consumer considers whether to try the
innovation. (4) Trial. The consumer tries the innovation to improve his or her estimate of its value.
(5) Adoption. In the case of the Route 66 Killers, the consumer decides to make full and regular use
of the innovation. Seth is in the interest stage. Bridgett is in the evaluation stage. The fraternity
pledge reached the trial stage and stopped. The “friend” is in the adoption stage.
(moderate) p. 197
73. The decline stage of the product life cycle (PLC) has its own special challenges for marketers. In a
short essay, define the five strategies that a marketer can use for rejuvenating a declining product.
What factors determine the strategy that should be implemented?
Answer:
(1) Increase the firm’s investment so as to either dominate the market or strengthen its competitive
position. (2) Maintain the firm’s investment level until the uncertainties about the industry are
resolved. (3) Decrease the firm’s investment level selectively, by dropping unprofitable customer
groups, while simultaneously strengthening the firm’s investment in lucrative niches. (4) Harvest the
firm’s investment to recover cash quickly. (5) Divest the business quickly by disposing of its assets
as advantageously as possible. The appropriate decline strategy depends on the industry’s relative
attractiveness and the company’s competitive strength in that industry.
(moderate) pp. 201-202
74. A father-and-son team owns a company that hand-makes customized high-quality guitars for famous
musicians. The son is convinced that such guitars are in the maturity stage of the product life cycle
(PLC) and wants to implement strategies that will stimulate sales. The father is critical of the whole
PLC concept. Over the years, as more and better-funded competitors entered the market and their
profits shrunk, they have debated the PLC concept. In a short essay, discuss the reasons the son
seems to be so in favor of the PLC concept and the father seems to be so opposed to it?
Answer:
The PLC concept is best used to interpret product and market dynamics. As a planning tool, the PLC
concept helps managers characterize the main marketing challenges in each stage of a product’s life
and develop major alternative marketing strategies. As a control, the PLC concept helps the company
measure product performance against similar products launched in the past. Critics of the PLC
concept contend that life-cycle patterns are too variable in their shape and duration. PLCs lack what
living organisms have—namely, a fixed sequence of stages and a fixed length for each stage. Critics
also charge that marketers can seldom tell what stage the product is in. They charge that the PLC
pattern is the result of marketing strategies rather than an inevitable course that sales must follow.
(moderate) p. 202
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75. Hokaido Specialty Racing designs and installs turbos for enhanced performance of highly-customized
Japanese street racing coupes. During the summer when customers are likely to be involved in
impromptu racing, if the owner of a Hokaido system wants to get maximum short-burst speed, they
must manually set the turbo control for ambient temperature. In a short essay, discuss how Hokaido
could use this product to differentiate its turbo systems?
Answer:
Hokaido could make sure customers get top speed while using the turbo. It could have a highly
reliable system. Hokaido could provide more features than the competition, including an automatic
temperature sensor to eliminate the need for customers to adjust for environmental changes. Hokaido
could make sure the form, design, and style of the product are pleasing to the target market. It could
make certain the product is “bullet-proof” in the sense of durability and reliability, and that if
breakdown does occur the product is easily repairable. Finally, Hokaido could assure that the
products are tested and conform to all quality measures.
(easy) p. 205
Mini-Cases
Mini-Case 10-1
In 1991, Jenny Wood was trying to figure out a way to make some extra cash. Her husband was a
student, and they had two small children. She was already selling Jenny’s Country Kitchen gourmet
cocoa mixes at local fairs and craft shows when she came up with the idea for flavored creamers for
coffee. She developed nine different flavors of creamers including raspberry mocha and cherry vanilla.
Response to the creamers was so good she decided to rent a small manufacturing facility. Her continued
success brought her to the attention of some national retailers who were interested in carrying her product.
National exposure on the QVC shopping channel gave the business a big boost in customer awareness.
76. Refer to Mini-Case 10-1. Because this is a small operation, Jenny and her husband would have most
likely used _______________, the simplest method of evaluating the merit of her new product idea.
a.) break-even analysis (easy) p. 194
b.) conjoint analysis
c.) risk analysis
d.) an attribute listing worksheet
e.) extensive concept testing
77. Refer to Mini-Case 10-1. Since her appearance on QVC, Jenny has started a mail-order business.
She has used sales-wave research to estimate trial, first repeat, and customer level of satisfaction with
the flavored creamers. Jenny probably selected sales-wave research because it _______________.
a.) measures the effectiveness of different sales promotions on customer trial rates
b.) does not in any way expose the product to the scrutiny of competitors
c.) can be implemented quickly and can be conducted with a fair amount of security (difficult)
p. 195
d.) is cost-free
e.) indicates the brand’s power to gain distribution and favorable shelf position should she decide to
market to retailers
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78. Refer to Mini-Case 10-1. A consumer who was aware of Jenny’s Country Kitchen flavored creamers,
but who did not know where or how to purchase them, their cost, or their contents and was stimulated
to seek information about the product, would be in the _______________ stage of the new product
adoption process.
a.) interest (moderate) p. 197
b.) trial
c.) diffusion
d.) adoption
e.) evaluation
Mini-Case 10-2
Scooter Williams has devoted his life to all things motorized and on two wheels. He is currently working
for a Honda dealership, but would like to start his own motorcycle repair company. For years he has been
making plans to go independent by offering the service on a mobile basis—that is, he will go to the
motorcycle in need of repair rather than make the biker deliver the ailing machine in the back of a truck.
Scooter figures this will save on retail space and provide added value to those with broken down
motorcycles. The new company will be called Scooter’s.
79. Refer to Mini-Case 10-2. Scooter plans to ask about 30 motorcycle owners about their preferences
regarding commercial motorcycle maintenance, including showing them his ad materials and asking
about acceptable pricing levels. Scooter is engaged in _______________.
a.) controlled test marketing
b.) full-blown test marketing
c.) sales-wave research
d.) covert test marketing
e.) simulated test marketing (difficult) p. 195
80. Refer to Mini-Case 10-2. Some of the owners contacted say they have heard of Scooter’s idea
through friends over the years. They are in what stage of the adoption process?
a.) awareness (easy) p. 197
b.) interest
c.) evaluation
d.) trial
e.) adoption
81. Refer to Mini-Case 10-2. Williams’ mobile service differentiates itself in the marketplace based on
what?
a.) ordering ease
b.) delivery (moderate) p. 206
c.) customer training
d.) installation
e.) customer consulting
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