Question 1

The success achieved by firms when they take their inventions to market is referred to as

Accepted Answer

Conversion-ability refers to the capability of firms to successfully transform their inventions into marketable products or services, thereby achieving success in the marketplace.

Question 2

If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms to meet local differences in five different foreign markets, the component of the Product Component Model that is most likely to be under consideration is

Accepted Answer

The core component of the Product Component Model is most likely to be under consideration when a company wishes to alter a product's platform to manufacture it in various forms to meet local differences in foreign markets. This is because the core component involves the main product itself, including its design and features, which would need to be adapted to suit different market needs.

Question 3

What factor is mainly responsible for a perceptual bias when interpreting the characteristics of a product?

Accepted Answer

A market analyst's self-reference criterion is mainly responsible for a perceptual bias when interpreting the characteristics of a product because it involves the unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions.

Question 4

Sarj, a specialist in product design, is responsible for a product's functional design. With respect to the Product Component Model, in which component category would Sarj's talents most likely be used?

Accepted Answer

Sarj's role in functional design directly contributes to the core component of a product, which encompasses the primary functions and features that fulfill the product's main purpose.

Question 5

A Brazilian food company had to change the labeling on its products to meet the specifications regarding vegetarian and nonvegetarian foods set by the government in the Taiwan market. It also had to mention the ingredients in Taiwanese to provide clarity to local customers. The component of the product that is affected is the ________ component.

Accepted Answer

The component affected is the packaging, as the changes involve modifying the labels on the products to meet specific market regulations and language requirements.

Question 6

Dr. Thomas is a dentist practicing in Chicago. During a four-day stretch in March, it snowed so heavily that not a single patient was able to visit him. Since none of the appointments took place, he did not make any money in those four days, even though his normal expenses remained. In this scenario, which characteristic of services most likely affected Dr. Thomas' business?

Accepted Answer

Perishability is the characteristic of services that most likely affected Dr. Thomas' business. Services are perishable in that they cannot be stored for later sale or use. If a service is not used at the time it is offered, the opportunity to provide and sell that service is lost forever, as was the case with Dr. Thomas' dental appointments during the snowstorm.

Question 7

A South Korean electronics company had to add detailed instructions about the repair and replacement of its product to make it easier for the local consumers to maintain it. Which element of the Product Component Model relates to this issue?

Accepted Answer

Support services relate to the additional services provided to help consumers use and maintain a product, such as repair and replacement instructions.

Question 8

When a company alters the price of its product to compete with local companies in the international market, it is focusing on the ________ component of the product, according to the Product Component Model.

Accepted Answer

The answer of When a company alters the price of...

Question 9

Eugene bought a new watch in January, and by March it stopped keeping time accurately. The warranty was still valid, so he sent it back to the manufacturer for repair. According to the Product Component Model, this demonstrates the ________ component of the product.

Accepted Answer

The support services component of the Product Component Model refers to the after-sales services provided by the company, such as warranties, repairs, and customer service. Eugene sending his watch back for repair under warranty is an example of utilizing the product's support services.

Question 10

The product platform, design features, and functional features are all found in the ________ component of the physical product according to the Product Component Model.

Accepted Answer

The Product Component Model identifies the core component as encompassing the product platform, design features, and functional features, which are fundamental aspects of the product itself.

Question 11

How do the vast majority of services enter a foreign market?

Accepted Answer

The vast majority of services enter a foreign market through licensing, franchising, or direct investment. These methods allow companies to expand their operations internationally by leveraging local market knowledge and networks, while also maintaining control over their brand and business model.

Question 12

Dry cleaning, hair styling, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which characteristic of services is being referred to here?

Accepted Answer

Intangibility refers to the characteristic of services that cannot be seen, touched, or made tangible in any way before they are bought and consumed. Dry cleaning, hair styling, and hotel accommodations are examples of services that are intangible, as their value is realized through the process or experience rather than a physical product.

Question 13

A Canadian computer company had difficulties when it first entered the Japanese market. Some of its computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be an insignificant problem in Canada, it was certainly a cause of concern in quality-conscious Japan. Which component of the Product Component Model should the company concentrate on to fix this problem?

Accepted Answer

The issue described involves the wrapping on the instruction manual being damaged, which falls under the "packaging" component of the Product Component Model. Packaging is crucial in markets like Japan, where there is a high emphasis on quality and presentation.

Question 14

The washing machines marketed by Talcho failed in Asian markets as those countries lacked the skills necessary to repair and maintain Talcho's products. Also, the washing machine parts available in local markets were not compatible with these machines. This product failure is most likely to be a result of lack of attention by the company to the ________ component of the product.

Accepted Answer

The failure is attributed to the lack of support services, such as repair and maintenance capabilities and the availability of compatible parts in the local markets where the washing machines were sold.

Question 15

Appliances-a-Rama, an Indian company that manufactures kitchen appliances, alters the design of its ranges to suit the needs of its Japanese consumers. The Japanese prefer compact and efficient appliances to fit their small kitchens. According to the Product Component Model, which product component is being addressed?

Accepted Answer

The core component is being addressed because the fundamental design and functionality of the ranges are altered to meet the specific needs of the Japanese market, which involves making them compact and efficient for small kitchens. This directly impacts the primary purpose and use of the product.

Question 16

Since the consumer is automatically angry with the manufacturer when something goes wrong with the vehicle, repair and maintenance has become a concern of the various automobile manufacturers. In which component of the Product Component Model would the management need to make improvements if problems such as this are to be solved?

Accepted Answer

Support services include maintenance and repair services, which directly address the concern mentioned. Improving these services can help solve issues related to vehicle problems and customer dissatisfaction.

Question 17

A characteristic of a service is that it is ________, since it cannot be stored and must be consumed simultaneously with its creation.

Accepted Answer

A characteristic of a service is that it is perishable, meaning it cannot be stored for future use and must be consumed at the time it is produced.

Question 18

What is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted?

Accepted Answer

International tourism is the largest services export of the United States, generating significant revenue and ranking high among all exports when including goods.

Question 19

Levon, a hairstylist at a salon in Portland, styles his customers in various ways. His work looks different on different people even though he has styled all of them. This unique character of a service that is unique for every customer as it is individually produced is referred to as

Accepted Answer

Heterogeneity refers to the characteristic of services where each service is unique and varies from one customer to another, reflecting the situation described with Levon's hairstyling.

Question 20

Because a service is individually produced and is virtually unique, the service is said to have

Accepted Answer

Services are characterized by heterogeneity, meaning they vary in quality and form from one provider to another and even from one instance to another, making them virtually unique.

Quiz 13: Products and Services for Consumers