Question 1

In marketing a new product to the late majority and laggards,a company should emphasize the advanced technological features of the new product.

Accepted Answer

A) True 
 B)False  False

Question 2

If a firm wishes to avoid giving away its own installed base or complementary goods advantages to others,it should ensure that its products are incompatible with those of future entrants.

Accepted Answer

A) True 
 B)False  True

Question 3

When manufacturers bypass wholesalers and retailers to sell directly to end users it is called backward compatibility.

Accepted Answer

A) True 
 B)False  False

Question 4

Marketing channels that enable high content and selective reach are appropriate for innovators and early adopters.

Accepted Answer

A) True 
 B)False

Question 5

When Sports 360,a sports bar in New York,saw yet another sports bar open up across the street it knew that it would have to lower its price again to stay in business.The city already had too many sports bars and Sports 360 intended on being one of those left after the inevitable shake out.The best pricing strategy for Sports 360 will be:

Accepted Answer

A)  premium pricing. 
B)  market skimming. 
C)  survival pricing. 
D)  a freemium program. 
A)  premium pricing. 
B)  market skimming. 
C)  survival pricing. 
D)  a freemium program.

Question 6

Blue Water Publication is planning to sell its books solely through its Web site BlueWaterbooks.com.By doing so,it ceases to require wholesalers and retailers.This is an example of:

Accepted Answer

A)  disintermediation. 
B)  backward compatibility. 
C)  value added reselling. 
D)  bundling arrangement. 
A)  disintermediation. 
B)  backward compatibility. 
C)  value added reselling. 
D)  bundling arrangement.

Question 7

A(n) _____ price strategy prices goods to cover variable costs and some fixed costs.

Accepted Answer

A)  market skimming 
B)  penetration 
C)  survival 
D)  economy 
A)  market skimming 
B)  penetration 
C)  survival 
D)  economy

Question 8

Which of the following is true of the different advertising media?

Accepted Answer

A)  Magazines have a short ad purchase lead time. 
B)  Yellow pages have low believability and are expensive. 
C)  Newsletters have a narrow reach, but provide high selectivity. 
D)  Telephone advertising has relatively low cost. 
A)  Magazines have a short ad purchase lead time. 
B)  Yellow pages have low believability and are expensive. 
C)  Newsletters have a narrow reach, but provide high selectivity. 
D)  Telephone advertising has relatively low cost.

Question 9

Super Alarm Inc.makes customized door security systems which it sells under its own brand name.These security systems require installation,extensive customer education,and regular services._____ will be the most appropriate selling method for Super Alarm Inc.

Accepted Answer

A)  Employing a direct sales force 
B)  Creating an online ordering system 
C)  Using a mail-order catalog system 
D)  Using a cannibalization strategy 
A)  Employing a direct sales force 
B)  Creating an online ordering system 
C)  Using a mail-order catalog system 
D)  Using a cannibalization strategy

Question 10

Bundling relationships occur when firms encourage distributors to carry their products by offering them guarantees (such as promising to take back unsold stock) or agreeing to sell the product on consignment.

Accepted Answer

A) True 
 B)False

Question 11

BioSense Prosthetics was a leader in the prosthetic arm market and profits from it were very high.The firm developed a new computerized prosthetic arm that would render its previous prosthetics obsolete.It decided to withhold the new computerized prosthetic arm from the market.This will allow the firm to:

Accepted Answer

A)  minimize its return on investment in developing each generation of the product. 
B)  make its products backward compatible. 
C)  avoid cannibalization of the sales of its current prosthetics. 
D)  build a larger installed base for the new computerized prosthetic. 
A)  minimize its return on investment in developing each generation of the product. 
B)  make its products backward compatible. 
C)  avoid cannibalization of the sales of its current prosthetics. 
D)  build a larger installed base for the new computerized prosthetic.

Question 12

BioSense Prosthetics was a leader in the prosthetic arm market and profits from its prosthetics were very high.BioSense developed a computerized prosthetic arm and is trying to decide when to introduce it to the market.What options does it have?

Accepted Answer

One option is to withhold the computeriz

Question 13

If customers require extensive education and service,selling through mail order or online ordering may be the best option.

Accepted Answer

A) True 
 B)False

Question 14

Maverick Systems was a leader in the phone market and profits from its cell phones were very high.Maverick Systems developed a new generation smartphone and has been advised by a consulting firm to "embrace cannibalization." This means that the company should:

Accepted Answer

A)  introduce the new technology right away and increase its market lead while taking away profits from its present product. 
B)  delay introduction of the next generation product until profits have begun to significantly decrease for the current product. 
C)  use up most of its financial resources in promoting the new phone. 
D)  wait for the previous cell phone to become obsolete and then introduce this new phone into the market. 
A)  introduce the new technology right away and increase its market lead while taking away profits from its present product. 
B)  delay introduction of the next generation product until profits have begun to significantly decrease for the current product. 
C)  use up most of its financial resources in promoting the new phone. 
D)  wait for the previous cell phone to become obsolete and then introduce this new phone into the market.

Question 15

Gerald Rupert is a retired race car driver.He is writing a book and planning a video release to share his racing experiences.He is trying to decide whether to market these items directly to consumers over the Internet or to use intermediaries.To make this decision he needs to know the pros and cons of each route.Provide the necessary information and make a recommendation to him.

Accepted Answer

Gerald Rupert can sell the book and the

Question 16

BioMark Lifesystems wanted to enhance the adoption of its new diagnostic substances by medical laboratories.It made an agreement with the dominant producer of syringes and test tubes to have its diagnostic substances sold to laboratories in a package along with the syringes and tubes.This arrangement is known as:

Accepted Answer

A)  sponsorship. 
B)  product modularity. 
C)  a bundling relationship. 
D)  disintermediation. 
A)  sponsorship. 
B)  product modularity. 
C)  a bundling relationship. 
D)  disintermediation.

Question 17

In the context of a firm's product diffusion curve,when there is a chasm between the early adopters and early majority customers:

Accepted Answer

A)  the firm must reduce its production capacity. 
B)  the firm should improve its efficiency to target the mass market. 
C)  the early majority market becomes saturated. 
D)  the early majority market is ready to buy the product. 
A)  the firm must reduce its production capacity. 
B)  the firm should improve its efficiency to target the mass market. 
C)  the early majority market becomes saturated. 
D)  the early majority market is ready to buy the product.

Question 18

The value of a technological innovation is solely determined by what the technology can do.

Accepted Answer

A) True 
 B)False

Question 19

Frosty Products is coming out with a new type of computerized refrigerator with a flat panel display that accesses the Internet for recipes,nutrition information,etc.Which group (innovators,early adopters,early majority,late majority,or laggards) should the company target its promotion toward initially,and what type of message and medium should it use?

Accepted Answer

Not only are innovators and early adopte

Question 20

_____ marketing is an attempt to capitalize on the social networks of individuals to stimulate word-of-mouth advertising.

Accepted Answer

A)  Ambush 
B)  Viral 
C)  Test 
D)  Real-time 
A)  Ambush 
B)  Viral 
C)  Test 
D)  Real-time

In marketing a new product to the late majority and laggards,a company should emphasize the advanced technological features of the new product.

If a firm wishes to avoid giving away its own installed base or complementary goods advantages to others,it should ensure that its products are incompatible with those of future entrants.

When manufacturers bypass wholesalers and retailers to sell directly to end users it is called backward compatibility.

Marketing channels that enable high content and selective reach are appropriate for innovators and early adopters.

Blue Water Publication is planning to sell its books solely through its Web site BlueWaterbooks.com.By doing so,it ceases to require wholesalers and retailers.This is an example of:

A(n) _____ price strategy prices goods to cover variable costs and some fixed costs.

Which of the following is true of the different advertising media?

Super Alarm Inc.makes customized door security systems which it sells under its own brand name.These security systems require installation,extensive customer education,and regular services._____ will be the most appropriate selling method for Super Alarm Inc.

Bundling relationships occur when firms encourage distributors to carry their products by offering them guarantees (such as promising to take back unsold stock) or agreeing to sell the product on consignment.

BioSense Prosthetics was a leader in the prosthetic arm market and profits from its prosthetics were very high.BioSense developed a computerized prosthetic arm and is trying to decide when to introduce it to the market.What options does it have?

If customers require extensive education and service,selling through mail order or online ordering may be the best option.

Maverick Systems was a leader in the phone market and profits from its cell phones were very high.Maverick Systems developed a new generation smartphone and has been advised by a consulting firm to "embrace cannibalization." This means that the company should:

In the context of a firm's product diffusion curve,when there is a chasm between the early adopters and early majority customers:

The value of a technological innovation is solely determined by what the technology can do.

_____ marketing is an attempt to capitalize on the social networks of individuals to stimulate word-of-mouth advertising.

Introduction

Sources of Innovation

Types and Patterns of Innovation

Standards Battles and Design Dominance

Timing of Entry

Defining the Organizations Strategic Direction

Choosing Innovation Projects

Collaboration Strategies

Protecting Innovation

Organizing for Innovation

Managing the New Product Development Process

Managing New Product Development Teams

Filters

Exam 13: Crafting a Deployment Strategy

In marketing a new product to the late majority and laggards,a company should emphasize the advanced technological features of the new product.

If a firm wishes to avoid giving away its own installed base or complementary goods advantages to others,it should ensure that its products are incompatible with those of future entrants.

When manufacturers bypass wholesalers and retailers to sell directly to end users it is called backward compatibility.

Marketing channels that enable high content and selective reach are appropriate for innovators and early adopters.

Blue Water Publication is planning to sell its books solely through its Web site BlueWaterbooks.com.By doing so,it ceases to require wholesalers and retailers.This is an example of:

A(n) _____ price strategy prices goods to cover variable costs and some fixed costs.

Which of the following is true of the different advertising media?

Super Alarm Inc.makes customized door security systems which it sells under its own brand name.These security systems require installation,extensive customer education,and regular services._____ will be the most appropriate selling method for Super Alarm Inc.

Bundling relationships occur when firms encourage distributors to carry their products by offering them guarantees (such as promising to take back unsold stock) or agreeing to sell the product on consignment.

BioSense Prosthetics was a leader in the prosthetic arm market and profits from its prosthetics were very high.BioSense developed a computerized prosthetic arm and is trying to decide when to introduce it to the market.What options does it have?

If customers require extensive education and service,selling through mail order or online ordering may be the best option.

Maverick Systems was a leader in the phone market and profits from its cell phones were very high.Maverick Systems developed a new generation smartphone and has been advised by a consulting firm to "embrace cannibalization." This means that the company should:

In the context of a firm's product diffusion curve,when there is a chasm between the early adopters and early majority customers:

The value of a technological innovation is solely determined by what the technology can do.

_____ marketing is an attempt to capitalize on the social networks of individuals to stimulate word-of-mouth advertising.

Introduction

Sources of Innovation

Types and Patterns of Innovation

Standards Battles and Design Dominance

Timing of Entry

Defining the Organizations Strategic Direction

Choosing Innovation Projects

Collaboration Strategies

Protecting Innovation

Organizing for Innovation

Managing the New Product Development Process

Managing New Product Development Teams

Filters