SDSU Olsen BA370 Chapter 12,13,14
And Chapter 15 Assessment
Questions 2025-2026 Updated with All
Correct Answers.
market saturation - Answer longer a product exists in the marketplace, the more likely it is
that the market will become saturated
reasons firms create new products - Answer changing customer needs
market saturation
managing risk through diversity
fashion cycles
improving business relationships
diffusion of innovation - Answer process by which the use of an innovation spreads
throughout a market group
pioneers - Answer breakthroughs; first movers; establish completely new market or radically
change rules of competition/consumer preferences
time of adoption of innovation - Answer innovators --> early adopters --> early majority -->
late majority --> laggards
innovators - Answer buyers who want to be the first on the block to have the new product or
service; 2.5% of total market
early adopters - Answer second subgroup that uses product/service innovation; 13.5% of
total market
early majority - Answer new products/services can be profitable until this group buys them;
34% of total market
late majority - Answer when entering market, product has achieved its full market potential;
, how to use diffusion of innovation - Answer relative advantage
compatibility
observability
complexity and trialability
how firms develop new products - Answer idea generation - concept testing - product
development - market testing - product launch - evaluation of results
alpha testing - Answer occur in R and D department
beta testing - Answer uses potential consumers
slotting allowance - Answer fee paid to get new products into stores or to gain more or
better shelf space for their products
product life cycle - Answer introduction - growth - maturity - decline
factors differentiating services from goods - Answer inseparable
heterogeneous (variability)
perishable
intangible
4 service gaps - Answer knowledge gap (service quality, zone of tolerance)
standards gap (training employees, measuring service performance)
delivery gap (providing support and incentives)
communication gap
zone of tolerance - Answer area between customers' expectations regarding their desired
service and min level of acceptable service
And Chapter 15 Assessment
Questions 2025-2026 Updated with All
Correct Answers.
market saturation - Answer longer a product exists in the marketplace, the more likely it is
that the market will become saturated
reasons firms create new products - Answer changing customer needs
market saturation
managing risk through diversity
fashion cycles
improving business relationships
diffusion of innovation - Answer process by which the use of an innovation spreads
throughout a market group
pioneers - Answer breakthroughs; first movers; establish completely new market or radically
change rules of competition/consumer preferences
time of adoption of innovation - Answer innovators --> early adopters --> early majority -->
late majority --> laggards
innovators - Answer buyers who want to be the first on the block to have the new product or
service; 2.5% of total market
early adopters - Answer second subgroup that uses product/service innovation; 13.5% of
total market
early majority - Answer new products/services can be profitable until this group buys them;
34% of total market
late majority - Answer when entering market, product has achieved its full market potential;
, how to use diffusion of innovation - Answer relative advantage
compatibility
observability
complexity and trialability
how firms develop new products - Answer idea generation - concept testing - product
development - market testing - product launch - evaluation of results
alpha testing - Answer occur in R and D department
beta testing - Answer uses potential consumers
slotting allowance - Answer fee paid to get new products into stores or to gain more or
better shelf space for their products
product life cycle - Answer introduction - growth - maturity - decline
factors differentiating services from goods - Answer inseparable
heterogeneous (variability)
perishable
intangible
4 service gaps - Answer knowledge gap (service quality, zone of tolerance)
standards gap (training employees, measuring service performance)
delivery gap (providing support and incentives)
communication gap
zone of tolerance - Answer area between customers' expectations regarding their desired
service and min level of acceptable service
