Question 1

When Clary Laboratories released Pearl Soft Shampoo in the late 1970s it was an innovative hair care concept because it repaired split ends.Even though the new product was an improvement on the previous one,Clary Laboratories entered the market with low prices and dealer incentives.Discuss the possible reasons for this marketing strategy.

Accepted Answer

The answer of When Clary Laboratories released Pearl Soft Shampoo...

Question 2

Which of the following is an advantage of making a new generation of technology backward compatible?

Accepted Answer

A)  Consumers will have to buy completely new complements. 
B)  Consumer switching costs may be lower because they anticipate using their existing complements. 
C)  It allows a firm to reap the benefits of cannibalization. 
D)  It is typically less expensive to make a new generation of technology backward compatible than to make it incompatible.

Question 3

If a firm willingly cannibalizes its existing products with more advanced products,the firm can make it very easy for other firms to achieve a technological lead large enough to prove persuasive to customers.

Accepted Answer

A) True 
 B)False

Question 4

Phoenix System's desktop is almost in its saturation stage and is mostly being adopted by laggards in the computer market.The company must ensure that its marketing message:

Accepted Answer

A)  is high on technical content. 
B)  stresses on simplicity and reliability of the desktop. 
C)  stresses on the leading-edge nature of the desktop. 
D)  reaches the audience through an expensive marketing channel.

Question 5

Cannibalization is the process by which a firm's sales of one product diminishes as a result of a substitute product offering by a competitor.

Accepted Answer

A) True 
 B)False

Question 6

Genetech Inc.has produced a new generation video game console.The new product can still be used to run the same games as the previous generation of the video game console.In this context,Genetech is typically applying:

Accepted Answer

A)  backward integration. 
B)  backward compatibility. 
C)  backward linkage. 
D)  backward traceability.

Question 7

Preadvertised products that are not actually on the market yet and may not even exist are referred to as _____.

Accepted Answer

A)  substitute products 
B)  value-added products 
C)  consignments 
D)  vaporware

Question 8

Viral marketing is based on the fact that people are more receptive to,or have greater faith in,information that comes through personal contacts.

Accepted Answer

A) True 
 B)False

Question 9

If a firm's objective is maximum market skimming,it will initially set a high price on new products.

Accepted Answer

A) True 
 B)False

Question 10

Firms intending to maximize market share,typically use market skimming pricing strategy.

Accepted Answer

A) True 
 B)False

Exam 13: Crafting a Deployment Strategy

Which of the following is an advantage of making a new generation of technology backward compatible?

If a firm willingly cannibalizes its existing products with more advanced products,the firm can make it very easy for other firms to achieve a technological lead large enough to prove persuasive to customers.

Phoenix System's desktop is almost in its saturation stage and is mostly being adopted by laggards in the computer market.The company must ensure that its marketing message:

Cannibalization is the process by which a firm's sales of one product diminishes as a result of a substitute product offering by a competitor.

Genetech Inc.has produced a new generation video game console.The new product can still be used to run the same games as the previous generation of the video game console.In this context,Genetech is typically applying:

Preadvertised products that are not actually on the market yet and may not even exist are referred to as _____.

Viral marketing is based on the fact that people are more receptive to,or have greater faith in,information that comes through personal contacts.

If a firm's objective is maximum market skimming,it will initially set a high price on new products.

Firms intending to maximize market share,typically use market skimming pricing strategy.