Deck 8: Developing and Managing Offerings: What Do Customers

Question 1

Accelerating the development process can significantly improve an organization's chance to achieve a first-mover advantage.

Answer 1

True

Question 2

Leapfrogging can occur in the development phase of the PLC.

Answer 2

True

Question 3

Beta testing should be utilized for all new products except simple updates of existing offerings and/or line extensions.

Answer 3

False

Question 4

Question marks are products that are usually thought to be in the decline stage of their life.

Question 5

The sales potential for a completely new product is less than for a me-too product.

Question 6

Competition against an innovative product is most likely to enter the market in the maturity stage.

Question 7

A product is a collection of solutions to needs and wants.

Question 8

The ability to manufacture and service a product is the most important factor in screening new products.

Question 9

Sometimes,simple changes in product design can have a major impact on product cost.

Question 10

A single product launch can mean the difference between profit and loss for many companies.

Question 11

Rapid advances in technology have resulted in significantly longer product life cycles.

Question 12

Products should be "harvested" as soon as they become unprofitable.

Question 13

The first step of the Quality Function Deployment system links product characteristics to what supplier's want.

Question 14

It is possible for a "dog" to become a "cash cow" AND vice-versa over time.

Question 15

When there is integration and market orientation,customer insight is more readily accessible to product designers.

Question 16

A technology platform is the core technology that often forms the basis for a product line or group of products.

Question 17

According to the first-mover advantage concept,the first firm to market a "new" product is guaranteed to be successful.

Question 18

A global launch implies faster sales acceleration,which leads to a faster return on new product investment.

Question 19

Lead users should be involved as early as possible in the new product development process.

Question 20

Innovative firms tend to focus on investment risk.

Question 21

A product line is typically composed of several products based on the same:

A) Key features
B) Technology platform
C) Standardization and grading
D) Production orientation
E) Qualifying dimensions

Question 22

Which of the following should happen in the growth stage of the product life cycle?

A) Attempt to maintain price to the end
B) Cut low-gross-margin products from the line
C) Long-term price reduction or at least a short-term price promotion
D) Sales force incentives and management
E) Consider divesting while it is a going concern

Question 23

In the maturity stage:

A) Competition against an innovative product is most likely to enter the market
B) Marketing expenses should begin to decline
C) Vendors begin to differentiate their product in order to create secondary demand
D) Primary demand must be created
E) Sales are relatively low and profits are unlikely

Question 24

_____ is the core expertise that is often the basis for a product line.

A) A dimension
B) A product feature
C) A technology platform
D) A production plan
E) The sales mix

Question 25

For truly innovative products,this stage of the PLC requires marketers to educate buyers and channel members as to the function of the product.

A) Growth
B) Decline
C) Development
D) Introduction
E) Maturity

Question 26

During the growth stage,product differentiation may be employed in an attempt to stimulate:

A) Primary demand
B) Laggard buyers
C) Competition
D) Secondary demand
E) First-mover advantage

Question 27

Sales level off during the _____ stage of the PLC.

A) Growth
B) Introduction
C) Decline
D) Development
E) Maturity

Question 28

In the decline stage of the PLC:

A) Sales and profits stabilize
B) Marketing investment is maintained
C) Products are added to the market
D) Marketers seek new markets/applications for the product
E) Marketing expenses should begin to decline

Question 29

Generally,sales are low and profits are not expected in the _____ stage of the PLC.

A) Introduction
B) Growth
C) Maturity
D) Saturation
E) Idea generation

Question 30

_____ are defined as the application of specialized competences through acts or processes for the benefit of another.

A) Services
B) Products
C) Technology platforms
D) Rolling launches
E) First-mover advantages

Question 31

Rapid expansion of distributors and product line expansion take place in which stage of the product life cycle?

A) Introduction
B) Development
C) Growth
D) Maturity
E) Decline

Question 32

A group of related products constitutes a(n):

A) Product range
B) Product category
C) Product portfolio
D) Product line
E) Product assortment

Question 33

Sales and profits for a successful product typically increase at their fastest rate during the:

A) Introduction stage
B) Growth stage
C) Maturity stage
D) Development stage
E) Decline stage

Question 34

There is a high probability of a product being leapfrogged when:

A) The product which fails in one market finds new life in another
B) The product falls out of favor in one market
C) A competitor brings out a product that is at least one step better technologically
D) The product does not make it to the maturity stage of the PLC
E) Sales of products decline and they are removed from the market

Question 35

In terms of the product life cycle,which of the following is a common recommendation for the development stage?

A) Freeze R&D and product modifications
B) Niche marketing
C) Prune product lines
D) Withdraw from channels in order of their unprofitability
E) Expand distributor network

Question 36

Secondary demand is:

A) Demand for a particular vendor's offering
B) Demand for truly innovative products
C) Derived from consumer demand
D) Demand derived from government purchases
E) Affected by derived demand

Question 37

Cutting low-gross-margin products from the line takes place in which stage of the product life cycle?

A) Growth
B) Introduction
C) Development
D) Decline
E) Maturity

Question 38

All the following are true of products EXCEPT:

A) A collection of features
B) A collection of advantages
C) A collection of buyer benefits
D) Includes services
E) Includes only tangibles

Question 39

The stage in a product's life when it is designed and readied for market is the:

A) Growth stage
B) Maturity stage
C) Decline stage
D) Introduction stage
E) Development stage

Question 40

During the introduction stage of the PLC,the focus is on:

A) Maximizing profit
B) Generating product concepts
C) Creating primary demand
D) Meeting strong price competition
E) Producing enough product to meet demand

Question 41

Products with low share in a poor market are called:

A) Stars
B) Question marks
C) Cows
D) Dogs
E) Category killers

Question 42

Whenever a firm introduces a new product,it is taking a(n):

A) Market risk
B) Investment risk
C) Product risk
D) Opportunity risk
E) Commodity risk

Question 43

Testing the product at the customer's location,to see if the product will work under real-world conditions is:

A) Operational testing
B) Alpha testing
C) Simulated testing
D) Beta testing
E) Internal acceptance testing

Question 44

In terms of the GE grid,this is a determinant of business strength.

A) Company's image
B) Social environment
C) Diversity
D) Competitive structure change
E) Technology change

Question 45

In the BCG approach to portfolio management,products having high market share and strengths in a steady market are called:

A) Cash cows
B) Stars
C) Dogs
D) Question marks
E) Category killers

Question 46

Whenever a firm declines to introduce a potential new product,it is accepting a(n):

A) Opportunity risk
B) Investment risk
C) Product risk
D) Commodity risk
E) Market risk

Question 47

Question marks:

A) Require a great deal of investment, using cash generated from cash cows
B) Are those products with low share in a poor market
C) Have high market share and strength in a steady market
D) Are those products that should contribute the most to the company's profit
E) Are those products that are usually thought to be in the decline stage of their life

Question 48

In terms of the GE grid,a product that is sold in an attractive market and represents a strong product for the company would be similar to a _____ in the BCG matrix.

A) Dog
B) Question mark
C) Category killer
D) Star
E) Cash cow

Question 49

Which of the following BCG product categories require large investments to maintain their rapid growth in a market already largely dominated by the firm?

A) Dogs
B) Cash cows
C) Stars
D) Question marks
E) Category killers

Question 50

The GE grid "positions" the firm's product portfolio along two "dimensions" based on:

A) Market share and profitability
B) Market attractiveness and business strength
C) Sales and market share
D) PLC stage and sales volume
E) PLC stage and BCG rating

Question 51

In this stage of the product development process,information is gathered to determine development costs and time,potential sales,and other factors that influence whether the process should continue.

A) Beta testing
B) Idea generation
C) Specifying features
D) Product development
E) Screening and preliminary investigation

Question 52

A composite measure of the potential for sales and profits in a particular market segment is:

A) A first-mover advantage
B) Business strength
C) Market attractiveness
D) Primary demand
E) Secondary demand

Question 53

Balancing risk and return among all product investments and managing all products simultaneously is:

A) Product life cycle management
B) Product differentiation
C) Product portfolio management
D) Product data management
E) Product positioning

Question 54

Which of the following is the simplest of the grid models?

A) GE grid
B) Product/market grid
C) Balanced scorecard
D) Positioning grid
E) BCG grid

Question 55

What is the purpose of the product development step in the product development process?

A) To introduce the product into the market
B) To test the product at the customer's location, to see if the product will work under real-world conditions
C) To develop and test a prototype of the product in the lab, based on the specifications developed in the previous step
D) To evaluate the product and adapt elements of the marketing program to fit changing market conditions
E) To develop detailed specifications of the product

Question 56

In most cases,these products are not worth much investment and most companies want to withdraw them quickly from the market.

A) Category killers
B) Question marks
C) Cash cows
D) Stars
E) Dogs

Question 57

Products depicted by the BCG model as having low market share/strength in high-growth markets are:

A) Stars
B) Question marks
C) Dogs
D) Category killers
E) Cash cows

Question 58

Which of the following is a PLC dimension?

A) The company's image
B) People resources
C) Growth rate
D) Market size
E) Time

Question 59

All of the following statements about new products are true EXCEPT:

A) More than one-third of all new products fail
B) Old products are being withdrawn from the market at an increasingly rapid rate
C) The key to successful products is solid planning
D) The risk associated with new product development has been drastically reduced
E) New products may mean the difference between profit and loss for a firm

Question 60

In terms of the GE grid,which of the following is a market attractiveness determinant?

A) Company's image
B) Market share
C) Social environment
D) People resources
E) Company growth rate

Question 61

Once invested,development costs are BEST described as:

A) Opportunity costs
B) Sunk costs
C) Fixed costs
D) Variable costs
E) Marginal costs

Question 62

Compare and contrast primary demand and secondary demand?

Question 63

Write a short note on lead users.What are the advantages of being lead users?

Question 64

The concept of involving suppliers early in the product design process is:

A) EOQ
B) JIT
C) EDI
D) ESI
E) SRM

Question 65

Which of the following is not a step in the Galileo process of screening new ideas?

A) Questions
B) Beta testing
C) A rating system
D) A generic evaluation model
E) Templates

Question 66

The least important factor that is considered in screening and preliminary investigation is:

A) Market potential
B) Consistency with corporate objectives
C) The ability to serve customers' needs
D) The ability to manufacture and service the product
E) The competitive advantage gained with the product

Question 67

The significant market share advantage to be gained by being the first in the market is a(n):

A) Entrant advantage
B) Primary advantage
C) Initial-entrant premium
D) First-mover advantage
E) Absolute advantage

Question 68

Which of the following statements about lead users is false?

A) Lead users are the first to manufacture and service products
B) They possess important insight into the evolution of their needs and the needs of customers similar to them
C) Lead users are able to generate solutions to needs independently of manufacturers
D) Lead users are those users that have found solutions to problems before others in their industry
E) Strategically, lead users are accounts for which partnering relationships should be developed

Question 69

Which of the following is the most important factor in screening and preliminary investigation?

A) Ability to manufacture and service the product
B) Ability to serve customers' needs
C) Market potential
D) Competitive advantage gained with the product
E) Consistency with corporate objectives

Question 70

In terms of using upgrades strategically,by quickly launching a product that meets the most important need,many companies gain the:

A) First-mover advantage
B) Primary advantage
C) Initial-entrant premium
D) Premium entrant advantage
E) Absolute advantage

Question 71

Consumers who develop their own solutions to problems using available technology in a new or innovative way are:

A) Desk jobbers
B) Laggards
C) Lead users
D) Innovators
E) Early adopters

Question 72

Write a short note on the keys to innovation?

Question 73

In this stage of the product development process,elements of the marketing program are adapted to fit changing market conditions.

A) Launch
B) Evaluation
C) Specifying features
D) Product development
E) Beta testing

Question 74

Quality Function Deployment seeks to describe how benefits are linked to all the following EXCEPT:

A) Product
B) Component part
C) Inventory control
D) Production controls
E) Process characteristics

Question 75

All of the following are prime causes of new product failure EXCEPT:

A) Failure to use beta testing
B) Lack of marketing orientation
C) Poor coordination
D) Failure to have a technological advantage
E) Failure to use a technological advantage

Question 76

Define leapfrogging.What are its consequences?

Question 77

In terms of the QFD,the process characteristics step:

A) Can assess the performance of products
B) Implements the processes for monitoring the actual production process
C) Plans production of the product
D) Is completed with the aid of suppliers
E) Examines the manufacturing process

Question 78

Define beta testing.What are its disadvantages?

Question 79

The QFD process should begin with:

A) Linking customer desires to what the product should have
B) Identifying current competitor firms/products
C) Identifying logical suppliers
D) Identifying required parts/materials
E) Developing the marketing mix

Question 80

What is the reason behind some companies not beta testing?

A) It would increase the opportunity costs
B) Competitors can get an early peek at the product
C) There is no well-defined market for the product
D) It requires a great deal of investment
E) It is highly unprofitable