Question 1

Which of the following is a part of the second stage of reverse innovation?
A)probing for new insights
B)verifying the size of the opportunities
C)determining new product benefits that address unmet customer needs
D)building a value proposition around the competitive advantages of the product
E)"inventing to order" with continuous customer involvement and feedback

Accepted Answer

Determining new product benefits that address unmet customer needs is a part of the second stage of reverse innovation. The other options are part of different stages - A is part of the first stage, B is part of the third stage, D is part of the fourth stage, and E is part of the fifth stage.

Question 2

Market-based businesses differ from product-focused businesses in that market-based businesses ________.
A)focus on products and services
B)are providers of solutions
C)have a narrow view of customers' underlying problems
D)lack a strong customer focus
E)lack knowledge of customer usage

Accepted Answer

Market-based businesses focus on identifying and understanding customers' needs and providing solutions to address those needs, rather than just focusing on the products or services they offer. This requires a strong customer focus and knowledge of how customers are using their products or services. A narrow view of customers' underlying problems would not be effective in a market-based business.

Question 3

Logic teach Inc. ,a software manufacturing firm,specializes in inventory management and billing software for supermarkets and hotels.The product has a price of $500,acquisition cost of $100,installation cost of $300,and usage and maintenance cost of $300.What is the life-cycle cost of Logic Tech's inventory management software?
A)$1,200
B)$300
C)$600
D)$1,000
E)$500

Accepted Answer

The life-cycle cost includes the acquisition cost ($100), installation cost ($300), usage and maintenance cost ($300), and the price of the product ($500), totaling $1,200.

Question 4

Which of the following is a potential problem that a customer can face at the order entry stage of the customer order cycle?
A)The order is in process but the customer is not aware of order status.
B)The product is delivered late or damaged.
C)The wrong product is delivered.
D)The order is priced incorrectly.
E)The product's user manual is inadequate.

Accepted Answer

Pricing errors can occur at the order entry stage, potentially leading to the customer paying more than they intended or being charged incorrectly. The other issues listed (order status, delivery, product accuracy, user manual) typically occur at later stages in the customer order cycle.

Question 5

Customers in which of the following subsets of consumers take product usage beyond its intended capability,and act as co-inventors?
A)captive customers
B)prosumers
C)mainstream customers
D)spinners
E)laggards

Accepted Answer

Prosumers are customers who not only consume the product but also take product usage beyond its intended capability and act as co-inventors. They are proactive in suggesting improvements and modifications for the product. Captive customers are loyal customers who stick to one particular brand, mainstream customers are the typical average customers, laggards are the last group to adopt a new product, and spinners is not a commonly used term in the context of consumer behavior.

Question 6

The process of taking a closer look at the customer ordering process from the customer's viewpoint,with the objective of uncovering any potential problems or sources of frustration in the purchasing process is called ________.
A)lead user analysis
B)the Kano method
C)conjoint analysis
D)acquisition analysis
E)"staple yourself to an order"

Accepted Answer

This process is referred to as "staple yourself to an order," which involves closely examining the customer ordering process from the customer's perspective to identify any potential issues or frustrations.

Question 7

A recent Consumer Reports study analyzed toasters and found that the average performance rating for all toasters tested was 70 with an average price of $33.Coffers is a brand of toaster that sells for $32 and received an overall performance rating of 84.What is Coffers's relative performance against other toasters tested?
A)4
B)38
C)83.5
D)98.5
E)120

Accepted Answer

The answer of A recent Consumer Reports study analyzed toasters...

Question 8

The relative performance metric can be created by ________.
A)dividing the performance rating of a product by the average performance rating of all products in the market
B)dividing the overall rating of a product's performance by the rating of the top-performing brand
C)dividing the overall rating of a product's performance by its price
D)dividing the overall rating of a product's performance by the average price for products in that product category
E)dividing the overall rating of a product's performance by the cost of manufacturing the product

Accepted Answer

Dividing the performance rating of a product by the average performance rating of all products in the market creates a relative performance metric.

Question 9

McCann Chemicals is a multinational pharmaceutical company with headquarters in New York.The firm invites all the research scientists at McCann Chemicals,as well as clinicians and academicians to work on open-source projects funded by the firm.McCann Chemicals has a special web site that is used to create an open-ended group of prosumers,professionals,specialists,and employees,who can share information and help each other.In this example,McCann Chemicals is using which of the following methods?
A)reverse innovation
B)emphatic method
C)vertical integration
D)mass collaboration
E)horizontal integration

Accepted Answer

The example describes McCann Chemicals using an open-source project and a special website to create a group of professionals to share information and collaborate. This method is called mass collaboration, where a large group of people work together to achieve a common goal.

Question 10

Consumers can purchase inkjet printers for as little as $30.However,the price of replacement ink cartridges can be as much or more than the purchase price of the printer.This is part of the ________ of an inkjet printer.
A)disposal costs
B)acquisition costs
C)usage costs
D)repair costs
E)ownership costs

Accepted Answer

The cost of replacement ink cartridges is a recurring cost that is incurred during the usage of the printer, making it a usage cost.

Question 11

Which of the following refers to using collective intelligence to solve specific problems or solicit ideas-often as part of a competition or for a reward?
A)onboarding
B)crowdsourcing
C)benchmarking
D)mass collaboration
E)outsourcing

Accepted Answer

Crowdsourcing refers to using collective intelligence to solve specific problems or solicit ideas, often as part of a competition or for a reward. Onboarding refers to the process of integrating new employees into an organization. Benchmarking refers to comparing one's business processes and performance metrics to industry bests or best practices from other industries. Mass collaboration refers to large-scale collaborative work through technology. Outsourcing refers to contracting work to an external organization.

Question 12

Which of the following statements is true about prosumers?
A)They are employees who test a product before it is released in the market.
B)They are employees who interact with customers to gather information about product preferences.
C)The are the first users of a new product.
D)They are advanced users who do not always represent the needs of an overall target market.
E)They are consumers who purchase a product only when there are some discounts.

Accepted Answer

Prosumers are advanced users who go beyond the traditional role of being consumers and also provide feedback to companies to improve products. However, their needs and preferences may not always align with the overall target market, so companies need to be careful when considering their input. The other options are not accurate descriptions of prosumers.

Question 13

The fair price for the Merrill Microwaves,manufactured by Merrill Inc. ,is considerably higher than its actual price of $140.Merrill Microwaves have a relative performance rating of 125.According to this data,Merrill Microwaves provides ________.
A)lower-quality products at higher prices
B)superior-quality products at higher prices
C)products with very high life-cycle cost
D)relatively lower value to the customers when compared to an average relative performance rating
E)a very good value for customers,but it may be underpricing the product

Accepted Answer

The relative performance rating of 125 suggests that Merrill Microwaves are of superior quality (since 100 would be average), and the statement that the fair price is considerably higher than its actual price of $140 indicates that customers are getting a very good value. This implies that the product may be underpriced.

Question 14

Amtech Inc. ,an American firm that manufactures inkjet cartridges,also provides inkjet refill services at all its stores.The firm manufactures and sells "do it yourself" kits that allows customers to do their own inkjet refills.Amtech Inc.lowers the total cost of the product by solving its customers' problem of throwing away empty cartridges,and also enables customers to save money.In this example, Amtech Inc.reduces which of the following costs for their customers?
A)resale costs
B)acquisition costs
C)repair costs
D)insurance costs
E)disposal costs

Accepted Answer

Amtech Inc. is reducing the cost of disposal for its customers by providing inkjet refill services and "do it yourself" kits that allow customers to refill their inkjet cartridges instead of throwing them away.

Question 15

Which of the following is used to determine a product's life-cycle cost?
A)disposal cost
B)direct materials cost
C)direct labor cost
D)cost of satisfaction
E)distribution cost

Accepted Answer

Disposal cost is typically included in a product's life-cycle cost calculation as it considers the cost of disposing of the product at the end of its useful life. This cost can have a significant impact on the overall cost of the product, especially for products that are difficult or expensive to dispose of.

Question 16

Which of the following statements is true about reverse innovation?
A)It involves learning what customers want but cannot get from existing products.
B)It refers to a new product that fails to address customers' needs.
C)It refers to gradual product improvements that come from technological developments.
D)It starts by encouraging intrapreneurs.
E)It refers to innovative ideas generated by employees within an organization.

Accepted Answer

Reverse innovation involves learning what customers want but cannot get from existing products. It is about bringing products and services developed for emerging markets back to developed markets, rather than the other way around.

Question 17

Stephen bought a new Chevrolet Suburban vehicle by putting $10,000 down and arranging to make monthly payments of $599 for six years.These payments represent the ________ of the vehicle for Stephen.
A)acquisition costs
B)repair costs
C)maintenance costs
D)ownership costs
E)disposal costs

Accepted Answer

The monthly payments of $599 represent the ownership costs for Stephen, as he is making payments to own and finance the vehicle. The other options do not accurately describe these payments.

Question 18

During the ________ stage of reverse innovation,a firm must communicate and deliver a value proposition that is built around the unique customer benefits of the product.
A)developing
B)listening
C)choosing
D)launching
E)identifying

Accepted Answer

During the launching stage, the firm presents its product to the market and communicates the unique value proposition to its customers. This is the stage where the firm must effectively deliver and promote the benefits of the product to its target audience.

Question 19

Suppose the benchmark competitive product has a price of $300,costs $200 to install,and averages $500 in usage and maintenance costs.Your product is priced at $400,costs $100 to install,and averages $400 in usage and maintenance costs.In this situation,the economic value of your product over the benchmark competitive product is ________.
A)-$200
B)-$100
C)$0
D)$100
E)$200

Accepted Answer

The economic value of your product over the benchmark competitive product is calculated by comparing the total costs (price, installation, usage, and maintenance) of both products. The benchmark product's total cost is $300 (price) + $200 (installation) + $500 (usage and maintenance) = $1000. Your product's total cost is $400 (price) + $100 (installation) + $400 (usage and maintenance) = $900. Therefore, the economic value of your product over the benchmark is $1000 - $900 = $100.

Question 20

Crowdsourcing differs from mass collaboration in that crowdsourcing initiatives ________.
A)use collaborative web sites and wikis
B)yield results very slowly
C)facilitate an information-sharing environment
D)have a specific purpose or problem to solve
E)are open-source projects

Accepted Answer

Crowdsourcing initiatives have a specific purpose or problem to solve while mass collaboration can be more general and ongoing.

Quiz 4: The Customer Experience and Value Creation

Which of the following is a part of the second stage of reverse innovation?

Market-based businesses differ from product-focused businesses in that market-based businesses ________.

Which of the following is a potential problem that a customer can face at the order entry stage of the customer order cycle?

Customers in which of the following subsets of consumers take product usage beyond its intended capability,and act as co-inventors?

The process of taking a closer look at the customer ordering process from the customer's viewpoint,with the objective of uncovering any potential problems or sources of frustration in the purchasing process is called ________.

The relative performance metric can be created by ________.

Consumers can purchase inkjet printers for as little as $30.However,the price of replacement ink cartridges can be as much or more than the purchase price of the printer.This is part of the ________ of an inkjet printer.

Which of the following refers to using collective intelligence to solve specific problems or solicit ideas-often as part of a competition or for a reward?

Which of the following statements is true about prosumers?

The fair price for the Merrill Microwaves,manufactured by Merrill Inc. ,is considerably higher than its actual price of $140.Merrill Microwaves have a relative performance rating of 125.According to this data,Merrill Microwaves provides ________.

Which of the following is used to determine a product's life-cycle cost?

Which of the following statements is true about reverse innovation?

Stephen bought a new Chevrolet Suburban vehicle by putting $10,000 down and arranging to make monthly payments of $599 for six years.These payments represent the ________ of the vehicle for Stephen.

During the ________ stage of reverse innovation,a firm must communicate and deliver a value proposition that is built around the unique customer benefits of the product.

Crowdsourcing differs from mass collaboration in that crowdsourcing initiatives ________.