Midterm Review Flashcards
1
Q
Consumer decision making process
A
- Need recognition
- Search for alternative
- Evaluation of alternative
- Actual purchase
- Post purchase evaluation
2
Q
Business decision making process
A
- Derived
- In elastic
- Joint
- Fluctuating demand
3
Q
Types of business product
A
Major equipment Accessory equipment Raw material Component parts Processed material Supply
4
Q
Product life cycle
A
Introductory
Growth
Maturity
Decline
5
Q
What is a new product?
A
- New to the world
- New to the firm
- Additions to existing product line
- improvement and revisions to existing product
- repositioned products
- lower priced products
6
Q
Advantages of new product
A
- increased sales through longer sales life
- increased product loyalty
- more resale opportunities
- greater market responsiveness
- sustained leadership position
7
Q
Why do new products fail?
A
- 50%+ of new product fail
- no discernible benefits
- poor match between features and customer desires
- overestimation of market size
- incorrect positioning
- price too higher or too low
- inadequate distribution
- poor promotion
- inferior product
8
Q
Diffusion of innovation
A
Innovator 2.5% Early adapters 13.5% Early majority 34% Late majority 34% Laggards 16%
9
Q
Stages in new product development
A
$ idea generation \$\$ idea screening \$\$$ concept development strategy \$\$\$\$ marketing strategy \$\$\$\$$ business analysts \$\$\$\$\$\$\$\$ product development \$\$\$\$$ test marketing \$\$\$\$\$\$\$\$\$\$\$\$$ commercializations
10
Q
Influence on the rate of adoption
A
- Relative advantage
- Compatibility
- Complexity
- Trial ability
- Observability
Apply and make decision
Either slow or fast
11
Q
Market forecasts = ?
A
Market potential x 10%
12
Q
Purchase probability
A
75% 25% 10% 5% 2%
13
Q
ATAR
A
Awareness
Trial
Availability
Repeat purchases
14
Q
ATAR forecast steps
A
MP
TU = MP * AW * T * AV
RU = TU * R
Total unit = TU + RU
15
Q
Star
A
High high
