Deck 7: Managing Products for Business Markets

Question 1

Among technology adopters,these customers make the bulk of technology purchases in organizations and seek products from a market leader with a proven track record of providing useful productivity improvements. This describes:

A)technology enthusiasts.
B)visionaries.
C)skeptics.
D)pragmatists.
E)product champions.

Answer 1

D

Question 2

Which of the following dimensions of a product market definition is(are)relevant?

A)the alternative technologies available to satisfy a particular need (technology dimension)
B)the sequence of stages along which competitors serving the market can operate (value-added system dimension)
C)the customer groups that have needs that must be served (customer segment dimension)
D)all of the above
E)(a)and (c)only

Answer 2

D

Question 3

Among technology adopters,these customers have access to organizational resources and can assume an influential role in giving an innovation a boost during the early stages of market development. However,these customers frequently demand modifications to the product that are difficult for the innovator to provide. This describes:

A)technology enthusiasts.
B)visionaries.
C)skeptics.
D)pragmatists.
E)product champions.

Answer 3

B

Question 4

When the buyer is purchasing a company's capability in a particular area,such as maintenance or machine repair,the customer is buying:

A)a catalog item.
B)an industrial service.
C)a custom-designed item.
D)a generic product class.
E)a specialty item.

Question 5

During the tornado phase of the adoption life cycle,the business marketing strategist should:

A)focus on market segmentation.
B)extend distribution channels.
C)drive to the next lower price point.
D)all of the above.
E)(b)and (c)only.

Question 6

The quality standards set out by the Geneva-based International Standards Organization are referred to as:

A)ISO 9000
B)Six Sigma
C)the Big Q
D)none of the above.

Question 7

During the bowling alley phase of the adoption life cycle,the business marketing strategist should:

A)focus on market segmentation.
B)extend distribution channels.
C)drive to the next lower price point.
D)all of the above.
E)(b)and (c)only.

Question 8

If organizational buyers view a particular attribute as being neither important nor differentiating,an appropriate generic strategy for a product manager to follow would be to:

A)increase the importance of the attribute to customers.
B)increase the difference between the competition and the firm's brand.
C)convert this determinant attribute into a non-determinant one.
D)all of the above
E)(a)and (b)

Question 9

Industrial product lines that are offered only in certain configurations and are produced in anticipation of orders are called:

A)custom-designed items.
B)services.
C)catalog items.
D)custom-built items.
E)component items.

Question 10

A lathe manufacturer that offers a line of products in different sizes,with a range of options (such as different motor sizes)and accessories for different applications is a producer of:

A)custom-designed items.
B)services.
C)catalog items.
D)custom-built items.
E)proprietary items.

Question 11

All of the following are dimensions relevant to the definition of a product-market except:

A)customer function.
B)technological.
C)customer segment.
D)physical distribution system.
E)value-added system.

Question 12

Because organizational buyers perceive products as bundles of attributes,the product strategist should examine the attributes that assume a central role in buying decisions. Attributes that are both important and differentiating are called:

A)primary attributes.
B)star attributes.
C)determinant attributes.
D)quality attributes.
E)dominant attributes.

Question 13

Among technology adopters,these customers serve as a gatekeeper to the rest of the technology life cycle and their endorsement is needed for an innovation to get a fair hearing in the organization. However,they do not have access to the resources needed to move an organization toward a large-scale commitment to the new technology. This describes:

A)technology enthusiasts.
B)visionaries.
C)skeptics.
D)pragmatists.
E)product champions.

Question 14

The stage in the adoption life cycle where a product gains acceptance from segments within the mainstream market but has yet to achieve widespread adoption is referred to as:

A)the segmentation phase.
B)the early market phase.
C)the bowling alley phase.
D)the mainstreet phase.
E)the tornado phase.

Question 15

Industrial product lines that are created to meet the needs of one or a small group of customers are defined as:

A)custom-built items.
B)catalog items.
C)proprietary items.
D)custom-designed items.
E)component items.

Question 16

Consider this dilemma: A product manager finds that organizational buyers view a particular product attribute as being both important and differentiating;unfortunately,the firm's brand is viewed as being inferior to competing brands on this attribute. In this situation,an appropriate generic strategy for the product manager to follow would be to:

A)increase the importance of the attribute to customers.
B)increase the difference between the competition and the firm's brand.
C)convert this determinant attribute into a non-determinant one.
D)all of the above
E)(a)and (b)

Question 17

Some industrial products are created to meet the needs of one or a small group of customers. Boeing,for example,serves a very defined group of customers with its 747 aircraft model. This is an example of:

A)a proprietary product.
B)a specialty product.
C)a custom-built product.
D)a custom-designed product.
E)a catalog product.

Question 18

St. Louis Capital Equipment Company found that organizational buyers view reliability as being important in the purchase of a machine tool. In turn,research indicates that a new model recently introduced by the firm is viewed by organizational buyers as being superior to competing brands on the reliability dimension. Thus,reliability would be classified as a _____ attribute.

A)primary
B)star
C)dominant
D)determinant
E)focal

Question 19

NCR offers a set of basic equipment items to retailers that includes numerous accessories and options. The retailer can begin with a simple cash register or checkstand system and later add inventory control systems for the store and ultimately a computer that ties multiple stores in a chain together. This provides an example of:

A)proprietary products.
B)specialty products.
C)custom-built products.
D)custom-designed products.
E)catalog products.

Question 20

_____ represents the place that a product occupies in a particular market;it is found by measuring organizational buyers' perceptions and preferences for a product in relation to its competitors.

A)Product positioning
B)Product anchor
C)Product determinacy
D)Product segment
E)Product attribute

Question 21

In the technology adoption life cycle,the gap between visionaries and pragmatists where sales often drop significantly is called:

A)the bowling alley.
B)main street.
C)the chasm.
D)the end of life.
E)the early market.

Question 22

The first stage of the quality movement:

A)centers on conformance to standards or success in meeting specifications.
B)emphasized that quality was more than a technical specialty.
C)examines a firm's quality performance relative to competitors.
D)focuses on market-perceived quality and value versus that of competitors.

Question 23

_____ represents a business customer's overall assessment of a relationship with a supplier based on perceptions of benefits received and sacrifices made.

A)Market analysis
B)A value network
C)Customer value
D)Relationship management
E)Relationship quality

Question 24

A brand mantra is

A)a very short summary of the essence of the brand
B)is used to communicate the core values of the brand
C)helps employees understand the key meaning of the company's product
D)is crucial in the overall process of building a strong brand
E)all of the above.

Question 25

The basic premise of his CBBE model is that the power of a brand lies in

A)What consumers have learned,felt,seen,and heard about the brand over time
B)The market share it commands
C)How the decision maker perceives the ultimate value of the item
D)None of the above
E)All of the above

Question 26

Which of the following is NOT a step in the product-positioning process?

A)Identify the relative set of competitive products.
B)Determine the product's current position versus competing offerings.
C)Develop an evoked or consideration set of possible positions.
D)Examine the fit between preferences of segments and the current product position.

Question 27

A ____ establishes the distinct arena in which the business marketer competes.

A)target market
B)product market
C)market segment
D)competitive analysis

Question 28

Which dimension of the product market definition considers the distinct customer needs that must be served?

A)Customer function.
B)Technological.
C)Customer segment.
D)Value-added system.

Question 29

The percentage of organizational buyers who have a positive image of a company minus the buyer with a negative opinion is called:

A)brand attitude.
B)brand equity.
C)a strong brand
D)none of the above.

Question 30

The main factor stimulating the megatrend of sustainability is

A)Intensified global competition for natural resources
B)Escalating public concern
C)Escalating government concern
D)Natural resource depletion
E)All of the above

Question 31

In the technology adoption life cycle,the stage that represents a period of aftermarket development where supply exceeds demand is called:

A)the chasm.
B)the tornado.
C)the bowling alley.
D)the main street.
E)the end of life.

Question 32

In stage three of the quality movement attention shifts:

A)from zero defects in products to zero defections in customers.
B)to customer loyalty.
C)to the conformance to standards or success in meeting specifications.
D)(a)and (b)only.
E)(a)and (c)only.

Question 33

Benefits and sacrifices are both considered when assessing customer value. Sacrifices include:

A)the purchase price.
B)acquisition costs.
C)operations costs.
D)All of the above.
E)Only a and b.

Question 34

In the technology adoption life cycle,the main goal of the ____ stage is to develop value-based strategies targeted to particular end user segments.

A)chasm
B)tornado
C)bowling alley
D)main street
E)end of life

Question 35

Which of the following statements is false in regard to brand attitude for high-technology firms?

A)The appointment of a well-recognized executive officer who introduced a new strategy increases
B)Brand attitude is independent of competitive actions.
C)Changes in brand attitude have been shown to be associated with stock market performance.
D)Investments in building brand attitude for high-technology firms increases the firm's value.

Question 36

The standard of quality that means a product would have to have a defect level of no more than 3.4 parts per million is called:

A)Six Sigma
B)ISO 9000
C)the Big Q
D)none of the above.

Question 37

Among technology adopters,these customers are ever-present critics of the hype surrounding high-technology products.

A)technology enthusiasts.
B)visionaries.
C)pragmatists.
D)conservatives.
E)skeptics.

Question 38

Customer benefits from a relationship with a supplier include which of the following?

A)Core benefits.
B)Add-on benefits.
C)Gross margin benefits.
D)All of the above.
E)Only a and b.

Question 39

Which dimension of the product market definition involves the benefits that are provided to satisfy the needs of the organizational buyers?

A)Customer function.
B)Technological.
C)Customer segment.
D)Value-added system.

Question 40

Among technology adopters,these customers are pessimistic about their ability to derive any value from technology investments and are extremely price sensitive.

A)technology enthusiasts.
B)visionaries.
C)pragmatists.
D)conservatives.
E)skeptics.

Question 41

Brand ____________________refers to the customer's ability to recall or recognize a brand under different conditions.

Question 42

____________________ brand equity is defined as the differential effect that customers' brand knowledge has on their response to marketing activities and programs for that brand.

Question 43

The four dimensions of a product market definition are customer function,environmental,technological,and value-added system.

Question 44

The central success factors for the tornado phase of the technology adoption life cycle are remarkably similar to the bowling alley phase.

Question 45

A mass market strategy is the appropriate course to follow during the bowling alley phase of the technology adoption life cycle process.

Question 46

Visionaries make the bulk of technology purchases in organizations.

Question 47

____________________ is a set of brand assets and liabilities linked to a brand,its name,and symbol that add to or subtract from the value provided by a product or service and/or to that firm's customers.

Question 48

Brand ____________________is described as the ways in which the brand attempts to meet customers' more abstract psychological or social needs.

Question 49

For high-technology firms,well-recognized executives and competitive actions can both be drivers of brand attitude change.

Question 50

Strong brands have a personality that defines how it might be described if it had human qualities (for example,friendly,confident).

Question 51

Custom-built items are created to meet the needs of one or a small group of customers.

Question 52

New products or services that require the end-user and the marketplace to dramatically change their past behavior,with the promise of gaining equally dramatic new benefits are known as ____________________ innovations.

Question 53

Brand ____________________represents the strength of the psychological bond that a customer has with a brand and the degree to which this connection translates into loyalty,attachment,and active engagement with the brand.

Question 54

Proprietary items are industrial products that are offered only in certain configurations and produced in anticipation of orders.

Question 55

Recent research has demonstrated that add-on benefits more strongly influence customer value than core benefits.

Question 56

Custom-designed products are creates to meet the needs of one or a small group of customers.

Question 57

Brand attitude is defined as the percentage of organizational buyers who have a negative image of a company minus the buyers with a positive one.

Question 58

The two forms of customer benefits are core and add-on.

Question 59

Determinant attributes are both important and differentiating in the eyes of business market customers.

Question 60

A finely-tuned market segmentation strategy is critical to success during the tornado phase of the adoption life cycle.

Question 61

Strategy experts suggest that a company's product or service is competitively superior if,at a price equal to the price of competing products,customers always choose it. With this in mind,consider the spectacular growth of Dell Computer-a firm that sells direct to organizations and individuals who can place orders by phone or through the Internet. Using the value-in-use concept,describe the costs and benefits a customer faces in buying a computer directly from Dell. On what dimensions would local computer dealers and retailers enjoy an edge over Dell? Overall,what are the critical factors that shape the product strategy followed by Dell?

Question 62

Main Street represents a stage in the technology adoption life cycle where the frantic waves of adoption have subsided and supply now exceeds demand. Using any product and industry you choose,please describe the strategies that business marketers should follow during this phase.

Question 63

Customer value represents a business customer's overall assessment of a supplier based on perceptions of benefits received and sacrifices made. Discuss the benefits and sacrifices typically considered by customers when assessing value. What has recent research discovered matters most in customer value and how do these findings impact business marketing strategies?

Question 64

Selecting a hypothetical product and market setting,describe how a business marketing manager might use product positioning analysis to examine the competitive position of a product. Drawing on your illustration,suggest the product strategy implications.

Question 65

Along with consumer-goods names like Nike or Coca Cola,the world's most valuable brands include high-tech representatives such as Intel,Hewlett-Packard,IBM,and Microsoft. Describe the attributes of a strong high-tech brand. Do the investments in building a high-tech brand pay off? Explain.

Question 66

The bowling alley represents a stage in the adoption life cycle where a product gains acceptance from selected groups of customers within the mainstream market but has yet to achieve widespread adoption. Describe the strategy that the business marketing firm should follow at this stage in the technology adoption life cycle. Next,explore the factors that trigger a tornado in high-tech markets and discuss how the focus of strategy changes during this chaotic phase.