NEWBIES
NEW PRDT DEVELOPMENT
NEW PRDT DEVELOPMENT
What is globalization (driver of innovation).
In economics and in marketing, the assumption is made that "rational people think" how?
What is at the margin.
This "type" of new product represents the SMALLEST percentage of new product development.
What is "new to the market products".
This type of "ADOPTOR" is the last to the party, resistant to change, and may even tell the new technology to "get off my lawn!"
Who is a LAGGARD.
In this stage of the product life cycle, firms emphasis the DIFFERENCES between their brand and the competition.
What is the growth stage.
Every product or service is "sensitive" to price changes, the measure of this sensitivity is known as what?
What is elasticity.
In this pricing strategy, firms lower prices to a level at which revenue covers costs only, allowing the firm to survive a challenging period.
What is survival pricing.
The practice of constantly come out with "new" models of products which make earlier models obsolete is known as this.
What is planned obsolescence.
What is the awareness stage.
Introducing a new product to a geographically limited area or customer group to see how well the product sells and the reaction from potential consumers is known as?
What is test marketing.
This common mistake occurs when firms charge less than a buyer is willing and able to spend on the item.
What is underpricing.
When a large firm (i.e. Walmart) enters a smaller market and deliberately loses money by pricing far too low to drive out the competition is known as this.
What is Predatory Pricing.
Amazon purchasing Whole Foods is an example of this type of "new product development".
What is New Category Entries
A consumer is less likely to adopt a product/service that is confusing or difficult. This refers to which factor of diffusion?
What is complexity.
The rise of social media influencers is an example of the importance of this diffusion factor.
What is observability.
When demand increases as prices increase, this is what type of product?
What is a Prestige product.
The Law of Demand states this
This stage of the Product Life Cycle is marked by high profitability, steady market share; however at ever increasing marketing expenditures.
What is the maturity stage.
The adoption process stage where consumers really put a new product through its paces and "try it out."
What is the trial period stage.
This group of adopters are where most consumers find themselves, careful in their approach and comparing options before purchase.
Who are the Early Majority.
This pricing strategy is often implemented by firms when a new technology or improved product is launched for the first time into the marketplace.
What is price skimming or profit maximization.
The point at which the costs of producing a product equal the revenue made from selling the product.
What is the break even point.