480 exam 2 2023 with verified questions and answers

innovators Are first to buy and typically described as venturesome, younger, well educated, financially stable, and willing to take risks. early adopters Are local opinion leaders who read magazines and who are integrated into the social system more than the average consumer early majority Solid, middle-class consumers who are more deliberate and cautions late majority Described as older, more conservative, traditional, and skeptical of new products laggards Resistant to change, conservative, like tradition, often older and lower in socioeconomic status primary demand demand in the entire product category (new to the firm) selective demand our particular brand in the category (product improvement, line extension) historical data past data analogous data similar to the products we are forecasting m market potential y(t) cumulative number of adopters at time t p innovators adoption rate q immitators adoption rate product design Bundling of attributes in a manner that addresses the needs of both customers and firms customer expectations Main driver of product design firm resources All assets, capabilities, organizational processes, firm attributes, information, knowledge, etc. controlled by a firm that enable a firm to conceive and implement strategies that improve its efficiency and effectiveness ergonomic issues How does the product conform to physical state of consumer (sounds, five senses, design fits with capabilities) regulatory requirements Rules and regulations marketing strategy Target market, value positioning, distribution, price, promotion unaided recall ask a consumer to name all brands that they are aware of aided recall Provide brand name and indicate familiarity concept/product evaluation Evaluate product concepts form a financial, customer, and firm perspective Avoidance Don't take a concept forward, too risky- drop it, no resources o Might discard a successful idea Acceptance High risk, but bear them because finances will be high. Take forward as is, test, launch Modify Return could be greater if we alter it Transfer Transfer risk onto another party (alliances to develop) ATAR Model Method used during the concept evaluation stage of new product development that allows managers to forecast the expected financial performance of a new product through the use of secondary sources and surrogate questions Surrogate questions Specify domain, generate sample, collect data, purify measure, collect data. Represents a question asked of consumers about a topic of interest to marketers Awareness Of the people in our target market, what percentage are aware of our brand? o Brand platform o Type of innovation Trial Of the people who are aware, what percent are willing to try it? o Perceived risk o Relative benefit o Complexity o Compatibility o Communicability o Trialability Perceived risk • Financial • Social • Physical Relative benefit Compared to what people use today, do you see a benefit to our brand over another? Complexity How difficult to use/how much learning is involved? Compatibility How well does it fit with your lifestyle and technology that you currently use? Communicability How easily can other consumers learn about the product? • Word of mouth • Visibility (can it be seen) Trailability Can consumers experience the product without purchase? (samples, demonstrations) Availability Of the people that are aware of the product and are willing to try it, what percent can actually get it? (Distribution) o Nature of product o Distribution strategy o Regulation Nature of product Can affect distribution/availability- some products might need installations or technicians Distribution strategy Where the product is sold • Intensive: Sell in all outlets • Exclusive: Only through one channel • Selective: In the middle of the two Regulation Laws, alcohol- cant drink until 21 Repeat Willing to purchase multiple times Customer benefits o Customer satisfaction o Brand loyalty Conjoint analysis Statistical technique used to aid in the design of new products. Allows firms to pick specific attributes and what they might look like Customer outcomes Cognitive Behavioral Affective Cognitive o Customer satisfaction: Influence likelihood of satisfaction o Awareness o Associations: Design to promote an understanding Behavioral o Word-of-mouth: Get them to talk about it (communicability) o Trial: Actual purchase o Repeat purchase: Design it to promote repeat Affective o Direction: Positive or negative reaction o Intensity: How strong of a reaction Firm outcomes • Financial • Market • Operational Category competitors Products in the same product category that compete against one another to provide similar benefits to customers Budget competitors Products that are from different product categories and provide different benefits but compete for the financial resources of a customer Generic competitors Product from a different product category that attempts to provide the same benefits