Deck 13: Crafting a Deployment Strategy Index

Question 1

If Circle Systems decides to not make its new PDA backward compatible with programs written for the old PDA,its sales of PDA programs would be more profitable assuming consumers upgrade.

Answer 1

True

Question 2

Radio advertising offers high sensory richness.

Answer 2

False

Question 3

If your objective is maximum market skimming,you will initially set a high price.

Answer 3

True

Question 4

Wholesalers sell goods to the public.

Question 5

Innovators are unwilling to accept incompleteness in products.

Question 6

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

Question 7

Most firms find it easy to make the transition between successfully selling to early adopters and the early majority.

Question 8

If a company,through promotion,can create a large perceived installed base where one does not yet exist,it can lead to a large actual installed base.

Question 9

A "connector" can spark an information epidemic about a new product.

Question 10

Cannibalization is the process by which a firm's financial resources are depleted by a single product offering.

Question 11

When a company asks another firm to develop a complementary good,one incentive that is often used is a guarantee that specific quantities of that complimentary good will be sold.

Question 12

If you are seeking to become the dominant design of a new technology,then penetration pricing will not work.

Question 13

To be effective,advertising for technology should always concentrate on the real message and not try to be entertaining.

Question 14

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

Question 15

Online distribution is suitable when customers are disbursed and require extensive education about the product.

Question 16

Opening a technology completely may result in a loss of compatibility and erosion of product quality.

Question 17

Bundling products together can offer firms the advantage of switching costs.

Question 18

Firms should constantly focus on launching their products as early as possible.

Question 19

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

Question 20

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

Question 21

When Foxie,Ltd.developed a new facial cream that buyers in California loved,it delayed its entry into that market by another 6 months.Foxie had just moved from a small facility employing 20 persons to a larger production facility that could accommodate 120 employees.It appears the delay in going into California was so that its introduction could coincide with

A) investment commitments.
B) production capacity.
C) seasonal fluctuations.
D) pent up demand.

Question 22

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

A) Magazines have a "junk mail" image.
B) Yellow pages have high believability.
C) Newsletters have a wide reach.
D) Telephone advertising is relatively low cost.

Question 23

Which of the following is a predictable competitive response to high initial prices?

A) Competition has an incentive to enter the market
B) Competition will stay out of the market because your product quality must be high
C) Competing companies may report you for price gouging
D) Competition will offer radically different products

Question 24

When Johnson Tanning Products finally developed a superior sun tan lotion,it decided that the best time to introduce it was in the spring.This would help take advantage of

A) seasonal effects.
B) tax refunds.
C) pent up demand.
D) the time value of money.

Question 25

Jones Enterprises wanted to tailor its advertising for its new Financial software to early adopters.It needs to use an advertising message and medium that

A) is very entertaining.
B) enables Jones to provide high technical content.
C) can reach the masses.
D) makes the product seem practical and cost effective.

Question 26

When eBay developed its online auction service,a need arose for making online payments and PayPal was born.This is an example of how moving commerce online

A) can create additional intermediaries.
B) reduces effectiveness.
C) necessitates the need for virtual alliances.
D) poses additional costs to suppliers and customers.

Question 27

When a firm wants to shift its advertising focus from early adopters to the early majority,its advertising should change from emphasizing

A) ease of use to technical superiority.
B) legitimacy to fit with way of life.
C) technological features to ease of use.
D) consistency to legitimacy.

Question 28

T.H.E.Computer Company buys computer components and assembles them into a computer that it sells under its own brand name.T.H.E.is a(n)

A) pirate operator.
B) original equipment manufacturer (OEM).
C) disintermediary.
D) wholesaler.

Question 29

If Circle Systems makes its smartphone technology open,it will attract more software companies to write programs for use on its smartphone.The downside to this is

A) its installed base will also decline.
B) the underlying platform used by Circle could become fragmented.
C) nobody will adopt the smartphone.
D) this practice is illegal.

Question 30

Which of the following is an advantage of using the Internet for advertising over other media?

A) It is a well-established medium.
B) It has a high number of users.
C) It has interactive possibility.
D) It is uncluttered.

Question 31

Emily was looking for a firewall for her home computer.She finally decided on a particular brand because it also included a free anti-spam package to block unwanted email as a bonus.This is an example of

A) a premium.
B) vaporware.
C) cash rebate.
D) introductory pricing.

Question 32

Multiplex Graphics Company has just released a graphics enhancement software program that it wants potential users to experience.Which of the following media would be most appropriate for this product?

A) Newspapers
B) Radio
C) Direct mail
D) Television

Question 33

When eBay offered special auctions with all proceeds going to the families of victims of the September 11,2001,terrorist attack on the World Trade Center,everyone thought it was a great gesture.This is an example of

A) advertising.
B) publicity.
C) promotion.
D) subliminal advertising.

Question 34

When Microsoft released Word for Windows,WordPerfect had about 80 percent of the word processing market.Microsoft donated free copies of Word to colleges and universities.This is an example of a(n)

A) alliance with a distributor.
B) bundling relationship.
C) contract or sponsorship.
D) guarantee or consignment.

Question 35

When Sports Paradise 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 Paradise intended on being one of those left after the inevitable shake out.Sports Paradise will be following a _____ pricing strategy.

A) penetration
B) skimming
C) survival
D) predatory

Question 36

Mallard Prosthetics was a leader in the prosthetic arm market and profits from its prosthetics were very high.When Mallard developed a computerized prosthetic that would render its previous prosthetics obsolete,it decided to withhold it from the market probably so that

A) competitors would have time to catch up.
B) it could further develop the product and increase its leadership position.
C) it would not cannibalize the sales of its current prosthetics.
D) people could get used to the idea of a computerized prosthetic.

Question 37

If a firm invests in continuous innovation and willingly cannibalizes its existing products with more advanced products,the firm can

A) lose a significant number of customers.
B) introduce the next generation product while continuing to reap profits from the current product.
C) prevent competitors from achieving a significant technological gap.
D) just use deployment as a mechanism to earn revenues from its innovations.

Question 38

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

A) Consumers will have to buy completely new complements.
B) Consumer switching costs may be lower because they anticipate using their existing complements.
C) Competitors will be unable to imitate the company's strategy of making the technology backward compatible.
D) It is typically less expensive to make a new generation of technology backward compatible than to not make it backward compatible.

Question 39

Mallard Prosthetics was a leader in the prosthetic arm market and profits from its prosthetics were very high.Mallard developed a computerized prosthetic arm and has been advised by a consulting firm to "embrace cannibalization." This means that the company should

A) introduce the new technology right away and increase its market lead while taking away profits from its present product.
B) introduce the new technology and hope that it "eats up the competition."
C) use up most of its financial resources in promoting the new prosthetic arm.
D) only offer the new prosthetic arm in certain isolated markets (islands of the market).

Question 40

Biogyn Lifesciences wanted to enhance the adoption of its new diagnostic substances by hospitals.So,it made an agreement with the dominant producer of glass slides and test tubes to have its diagnostic substances sold to hospitals in a package with the glass slides and tubes.This is known as

A) backward compatibility.
B) penetration pricing.
C) a bundling relationship.
D) disintermediation.

Question 41

Frankl 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 towards initially and what type of message and medium should it use?

Question 42

Gary is a member of a service club in Franklinville.When the club wants to promote a cause or have a fund raising event,Gary is put in charge because everyone likes listening to him speak and he seems to get everyone excited about the event.Gary is a

A) connector.
B) maven.
C) salesperson.
D) social proliferate.

Question 43

After completing the first draft of a textbook manuscript on Data Mining of Information,McGraw-Hill asked leading university professors to review the book and give feedback.The publisher was not only finding ways to improve the book,but also pre-marketing it to

A) known opinion leaders.
B) partners.
C) students through an intermediary.
D) allies.

Question 44

When S.C.Johnson released Agree Shampoo in the late 1970s it was an innovative hair care concept because it repaired split ends.Since it was such an improvement why would S.C.Johnson enter the market with low prices and dealer incentives as it did?

Question 45

When anyone in Metropolis wants to know where to buy a computer and at the best price they all turn to Francis who can always give the answer.Francis is a

A) connector.
B) maven.
C) salesperson.
D) social proliferate.

Question 46

A company's _____ is a good indicator of its likelihood of success when introducing a new product.

A) track record
B) advertising
C) business forecast
D) management board

Question 47

Gary London is a retired race car driver who helped Dale Earnhardt,Jr.get his start.Gary London is writing a book and making a video about the early days of Dale Earnhardt.He is trying to decide whether to market these items direct over the Internet or to use intermediaries.To make this decision he needs to know the pros and cons of each route.Provide that information and make a recommendation to him.

Question 48

Friction Technologies has come out with a new fuel-efficient engine for automobiles.Explain how Friction might use connectors,mavens,and salespersons to create an information epidemic about this new product.

Question 49

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

Question 50

Ronnie is on the Board of Directors or Trustees of seven different nonprofit organizations and is a member of four different service clubs.Everyone in town seems to know Ronnie and he seems to know everyone.He could be called a

A) connector.
B) maven.
C) salesperson.
D) social proliferate.

Question 51

When there is a chasm between the early adopters and the early majority is a firm's product diffusion curve

A) the firm must reduce its production capacity.
B) the firm focuses on improving its efficiency to target the mass market.
C) the early majority market is saturated.
D) the product requires additional R&D.