Question 1

Which of the following statements is true of using marketing to shape perceptions and expectations?

Accepted Answer

A)  Preannouncements reduce excitement about a product before its release. 
B)  A firm that aggressively promotes its products loses its actual installed base and its perceived installed base. 
C)  A firm should avoid using vaporware if other vendors beat the firm to market and the firm fears that customers may select a dominant design. 
D)  A firm can signal its commitment to an industry by making substantial investments that would be difficult to reverse.

Question 2

In the context of a firm's product diffusion curve,when there is a chasm between 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.

Question 3

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.In this situation,the best pricing strategy for Sports 360 would be:

Accepted Answer

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

Question 4

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 5

Gemini Car Inc.buys car components from various manufacturers and assembles them into cars,which it sells under its own brand name.From the given information,Gemini Car is most accurately an example of a(n):

Accepted Answer

A)  pirate operator. 
B)  original equipment manufacturer. 
C)  disintermediation factor. 
D)  category captain.

Question 6

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 directly increases the sales of complementary goods for its new generation of technology. 
D)  It is typically less expensive to make a new generation of technology backward compatible than to make it incompatible.

Question 7

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._____ would 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

Question 8

Firms should always be racing to launch their products as early as possible.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Firms often find it is difficult to make the transition between successfully selling to early adopters versus the early majority.

Accepted Answer

A) True 
 B)False

Question 11

Maverick Systems Inc.is a leading company in the mobile phone market,and profits from its mobile phones are very high.Maverick Systems has developed a new generation of smartphones,which is better than its existing line of smartphones,and has decided to embrace cannibalization of its existing line of smartphones.This means that the company is going to:

Accepted Answer

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

Question 12

_____ 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

Question 13

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 14

BioSense Prosthetics Inc.was a leader in the prosthetics market and was earning very high profits.The firm developed a new computerized prosthetic arm that would render its previous models obsolete.It decided to withhold the new computerized prosthetic arm from the market.This would 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 smaller installed base for the new computerized prosthetics.

Question 15

A(n)_____ price strategy is a short-run strategy that prices goods to cover variable costs and some fixed costs,and it is used by firms in industries plagued with intense price competition.

Accepted Answer

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

Question 16

If a firm wishes to avoid giving away its own installed base or complementary goods advantages to others,it may protect them by ensuring its products are incompatible with those of future entrants.

Accepted Answer

A) True 
 B)False

Question 17

A firm can signal its commitment to an industry by making substantial investments that would be difficult to reverse.

Accepted Answer

A) True 
 B)False

Question 18

Speeding Horse Inc.,a leader in the video game console market,is making its new generation consoles backward compatible with its previous games.This means that:

Accepted Answer

A)  it is giving away its own installed base or complementary goods advantages to competitors. 
B)  it is providing a significant incentive to the owners of its previously developed consoles to buy the new console. 
C)  the transition of customers through product generations will become impossible. 
D)  a large range of complementary goods of the previous generations, mainly the games, will lose its existing value and utility.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

In crafting an advertising message,firms must focus more on making the advertisements entertaining and memorable than on providing a significant quantity of informative content.

Accepted Answer

A) True 
 B)False

Exam 13: Crafting a Deployment Strategy

Which of the following statements is true of using marketing to shape perceptions and expectations?

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

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

Gemini Car Inc.buys car components from various manufacturers and assembles them into cars,which it sells under its own brand name.From the given information,Gemini Car is most accurately an example of a(n) :

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

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._____ would be the most appropriate selling method for Super Alarm Inc.

Firms should always be racing to launch their products as early as possible.

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

Firms often find it is difficult to make the transition between successfully selling to early adopters versus the early majority.

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

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

A(n) _____ price strategy is a short-run strategy that prices goods to cover variable costs and some fixed costs,and it is used by firms in industries plagued with intense price competition.

If a firm wishes to avoid giving away its own installed base or complementary goods advantages to others,it may protect them by ensuring its products are incompatible with those of future entrants.

A firm can signal its commitment to an industry by making substantial investments that would be difficult to reverse.

Speeding Horse Inc.,a leader in the video game console market,is making its new generation consoles backward compatible with its previous games.This means that:

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

In crafting an advertising message,firms must focus more on making the advertisements entertaining and memorable than on providing a significant quantity of informative content.