Question 1

After a test, the most customer-appealing offer will be the most profitable offer to make.

Accepted Answer

While a customer-appealing offer may generate a lot of sales initially, it may not necessarily be the most profitable in the long run. It's important to consider factors such as production costs and margins when determining the profitability of an offer.

Question 2

Which of the following is the mental step in the consumer-adoption process where the customer starts considering whether to try an innovation?

Accepted Answer

Evaluation is the mental step where the consumer considers whether to try an innovation. At this stage, the consumer evaluates the advantages and disadvantages of the innovation and decides whether to move forward with the adoption process. Awareness is the first step where the consumer becomes aware of the innovation, interest follows where the consumer shows interest in the innovation, trial is the stage where the customer tries the innovation to determine its usefulness, and adoption is when the customer decides to continue using the innovation.

Question 3

Modular function deployment methodology takes the list of desired customer attributes generated by market research and turns them into a list of engineering attributes that engineers can use.

Accepted Answer

The answer of Modular function deployment methodology takes the list...

Question 4

Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________ entry.

Accepted Answer

The entry where a firm delays its product launch until after the competitor has educated the market is called late entry. This strategy allows the late entrant to benefit from the initial market development initiated by the first mover and avoid the high costs and risks associated with educating the market.

Question 5

What is the significance of performing business analysis?

Accepted Answer

The answer of What is the significance of performing business...

Question 6

Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in?

Accepted Answer

Clara is in the evaluation stage where she is actively considering the purchase of the Armordo vacuum cleaner. She is aware of the brand and its success, but she has not yet tried or adopted the product.

Question 7

Adopters of new products move through five stages. These stages begin with ________ and follow with interest, evaluation, trial, and adoption.

Accepted Answer

The first stage of the adoption process is awareness, in which the consumer becomes aware of the new product or innovation. The other options are later stages in the process.

Question 8

Troma Inc. is a famous manufacturer of cookware that follows a traditional distributor-retailer system to distribute its products. The company abstains from the use of automated supply chain management (SCM) systems mainly due to the fear of unknown. However, rapidly escalating operational costs and inefficiencies have made it necessary for the company to implement an SCM system. The company goes for a big-bang installation of SCM system to become more competitive and cost effective. Identify the adopter group to which Troma belongs.

Accepted Answer

Troma belongs to the laggard adopter group because they have abstained from using automated SCM systems and have only decided to implement it after incurring significant inefficiencies and cost issues. The fact that they are going for a big-bang installation is also indicative of a laggard approach, as this is a high-risk strategy with less room for error and less willingness to embrace change.

Question 9

A business analysis is typically performed after management has developed the product concept and marketing strategy.

Accepted Answer

A business analysis is conducted to evaluate the feasibility, costs, and potential profitability of a product concept and marketing strategy before proceeding with development.

Question 10

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?

Accepted Answer

The timing strategy used here is parallel entry, where Poga International launches its apple flavor brand along with its competitor. It involves entering the market at the same time as the competitor with a similar product. This strategy is used to capitalize on the market trend and to gain market share by offering a similar product.

Question 11

Robert has heard about the latest cell phone from LG Electronics that features Wi-Fi hotspot technology. Wi-Fi hotspot is a technology that allows users to share mobile internet with other Wi-Fi enabled devices. Robert visits the company's Web site to read more about the phone. Robert is in the ________ stage of consumer-adoption process.

Accepted Answer

Robert is in the interest stage because after becoming aware of the new cell phone, he is seeking more information about it.

Question 12

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States. The company has plans to enter developing markets such as Brazil and India. TechToys, GameTech's major competitor has already started operations in India. GameTech decides to delay its entry to India and to closely observe TechToys' operations in India. What is the possible rationale behind this delaying decision?

Accepted Answer

The answer of GameTech International Inc. engages in the design,...

Question 13

Briefly explain the three choices available to companies when deciding the timing of market entry.

Accepted Answer

The answer of Briefly explain the three choices available to...

Question 14

Survival-age distribution refers to the number of customers that the product has in year one, two, three, and so on.

Accepted Answer

Survival-age distribution refers to the proportion of customers that remain loyal to a product or service after a certain period of time, not the number of customers in each year.

Question 15

People who are technology enthusiasts, venturesome, and who enjoy tinkering with new products and mastering their intricacies are called ________.

Accepted Answer

Innovators are the first individuals to adopt new technology products. They are described as adventurous and like to tinker with new products and become proficient on how to use them.

Question 16

Some firms might delay a new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the late entrant can avoid. This can be classified as a parallel entry.

Accepted Answer

This strategy is known as a "late entry" strategy, not a parallel entry. Parallel entry refers to entering the market at the same time as competitors, whereas late entry involves entering after competitors have already established themselves.

Question 17

Identify the stage in the consumer adoption process in which the customer is stimulated to seek information about the innovation.

Accepted Answer

During the interest stage, the customer becomes interested in the innovation, which stimulates them to seek more information about the product.

Question 18

A(n) ________ is any good, service, or idea that is perceived as new, no matter how long its history.

Accepted Answer

An innovation is defined as any new idea, product, or service that is perceived as new. This can include things that have been around for a long time but are perceived as new in a particular context or market. A commodity is a basic good or raw material, adoption refers to the process of selecting and using an innovation, an invention is a new idea or device, and a novel product is a new product. None of these completely capture the definition of something perceived as new, which is why B is the best answer.

Question 19

Dragalong income refers to additional income whereas cannibalized income refers to reduced income.

Accepted Answer

Dragalong income refers to the additional income generated by a company due to the success or growth of another product or service, while cannibalized income refers to the loss of revenue from an existing product or service due to the introduction of a new product or service within the same market.

Question 20

Mobile phone company HCF delayed the introduction of a new cell phone model with innovative features so that the launch could coincide with that of its competitor, LCM, which was introducing a phone with similar features. What kind of entry did HCF use? How can this benefit the company?

Accepted Answer

The answer of Mobile phone company HCF delayed the introduction...

Quiz 15: Introducing New Market Offerings