In the Early 1900s,a New Product Was Developed-The Phonograph Record,and

question 156

Multiple Choice

In the early 1900s,a new product was developed-the phonograph record,and it allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Today,most stores no longer carry records,which have become a niche product,and digital audiotapes are a new alternative.
-Refer to Music Industry.Digital audio tapes are similar to regular cassette tapes,but with superior sound quality.These characteristics may increase adoption rates.This suggests that which of the following may explain the rate of diffusion?

• A) the complexity of the new product
• B) the observability of the new product
• C) the compatibility of the new product
• D) the trialability of the new product

Understand the concept and calculation of the accounting rate of return for investment assessment.

Apply knowledge of various capital budgeting evaluation methods including payback period, net present value (NPV), internal rate of return (IRR), and profitability index.

Calculate and interpret the payback period for capital investments.

Determine the net present value (NPV) of an investment and understand its implications for project selection.

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Definitions:

Reasonable Product

A product considered to meet a satisfactory standard in terms of quality, functionality, and price.

Cheapest Product

A product offered at the lowest possible price point, often as a strategy to attract cost-conscious consumers or gain market share.

Marketing Mix

The set of controllable tactical marketing tools—product, price, place, and promotion—that a company uses to produce a desired response from its target market.

Right Price

The optimal price point for a product or service that reflects its value to the customer while allowing a business to make a reasonable profit.