U1 definitions

Question 1

lead users

Answer 1

Customers who are good at generating new product ideas or applications of products

Question 2

line extension

Answer 2

A line extension occurs when a company comes out with another model (related product) based on the same platform and brand as one of its other products.

Question 3

Concept testing

Answer 3

. Concept testing involves running the idea of the offering by potential consumers.

Question 4

focus groups

Answer 4

groups of eight to twelve consumers gather and react to the concept,

Question 5

depth interviews

Answer 5

h individuals are presented with the concept and can react to it individually

Question 6

Process feasibility

Answer 6

the degree to which the company can actually make and service the product

Question 7

investment risk

Answer 7

the possibility that the company will fail to earn the appropriate return on the money and effort (the investment) it puts into the new product

Question 8

opportunity risk

Answer 8

the risk that there is a better idea that gets ignored because the firm has invested in the idea at hand.

Question 9

Quality function deployment (QFD)

Answer 9

(QFD) is a process whereby a company begins with the customer’s desired benefits and then designs an offering that delivers those benefits

Question 10

rolling launch

Answer 10

rolling launch in which the offering is made available to certain markets first and then other markets later.

Question 11

market test

Answer 11

Some companies test the complete launch of a product’s marketing plan to ensure that it reaches buyers, gets positive feedback, and generates sales of the product or service. This is called a market test.

Question 12

product life cycle (PLC)

Answer 12

1. introduction stage - The introduction stage is the same as commercialization, or the last stage of the new product development process. Marketing costs are typically higher in this stage than in other stages.
2. The growth stage is characterized by increasing sales, more competitors, and higher profits.
3. the maturity stage

Question 13

penetration pricing strategy

Answer 13

y involves using a low initial price to encourage many customers to try a product. The organization hopes to sell a high volume in order to generate substantial revenues.

Question 14

skimming pricing strategy

Answer 14

which involves setting a high initial price for a product, to more quickly recoup the investment related to its development and marketing. The skimming strategy attracts the top, or high end, of the market.