Question 1

A product design resulting in a price more than customers might reasonably expect to pay is an example of?
A) Poor internal fit
B) Poor external fit
C) Poor internal and external fit
D) Neither poor internal nor poor external fit

Accepted Answer

A product design resulting in a price more than customers might reasonably expect to pay is an example of poor external fit, as the product does not fit the external market demand and price expectations. Poor internal fit refers to the product's components not fitting together properly, which is unrelated to price. Poor internal and external fit refers to both problems occurring. Neither poor internal nor poor external fit refers to a product that fits the market demand and components fit together properly, but this does not relate to the given scenario.

Question 2

Product design involves making decisions about all of the following except?
A) Characteristics of goods and services
B) Pricing of goods and services
C) Features of goods and services
D) Performance of goods and services

Accepted Answer

Product design involves decisions about the characteristics, features, and performance of goods and services, but pricing decisions are typically made by marketing and finance departments.

Question 3

A product from which industry would likely be most affected by shortening product life cycles?
A) Furniture
B) Soda
C) Consumer electronics
D) Grocery goods

Accepted Answer

Consumer electronics are known for having short product life cycles due to rapid advancements in technology and constant innovation. New models are released frequently, often making older models obsolete in just a matter of months. In contrast, industries such as furniture or grocery goods typically have longer life cycles for their products and are not as heavily impacted by rapid changes in consumer demand or technology.

Question 4

Customers are ____________ to be involved in a service process than in a process related to goods.
A) Less likely
B) More likely
C) Neither less nor more likely
D) There is no way to assess this likelihood

Accepted Answer

Customers are more likely to be involved in a service process than in a process related to goods because services are intangible and require more interaction between the customer and service provider to ensure the service meets the customer's needs and expectations.

Question 5

Internal fit, when concerning product design, involves?
A) Condition of the market
B) Desires of customers
C) Operational capabilities/policies of the firm
D) Pricing strategies

Accepted Answer

Internal fit in product design specifically involves ensuring that the operational capabilities and policies of the firm are aligned and integrated with the design of the product. This includes factors such as production processes, supply chain management, and quality control measures. While market conditions, customer desires, and pricing strategies may also influence product design, they are not specifically related to internal fit.

Question 6

Design of goods involves all of the following except?
A) Available of processing equipment
B) Availability of land
C) Availability of factory workers
D) Availability of marketing personnel

Accepted Answer

Design of goods involves factors such as available processing equipment, land, and factory workers, as these are all essential to the manufacturing process. However, availability of marketing personnel is related to the promotion and sale of the goods, rather than design.

Question 7

A unique expertise or skill set that cannot be easily reproduced or imitated by other companies is referred to as a ___________.
A) Core credo
B) Core competency
C) Core concept
D) Core cost-center

Accepted Answer

A unique expertise or skill set that cannot be easily reproduced or imitated by other companies is referred to as a core competency.

Question 8

A fast-food restaurant's ability to quickly provide inexpensive food might be referred to as a?
A) Service recovery effort
B) Process mapping
C) Design acquisition
D) Core competency

Accepted Answer

The restaurant's ability to quickly provide inexpensive food is likely a core competency, which is a unique strength that sets the business apart from competitors and is vital to the success of the business.

Question 9

Poor goods and services designs can lead to all of the following except?
A) Costs due to warranty repairs
B) Costs due to product returns
C) Lost customers
D) Enhanced brand equity

Accepted Answer

Poor goods and services designs can lead to costs due to warranty repairs, costs due to product returns, and lost customers. However, they do not enhance brand equity. In fact, poor design can damage a brand's reputation and decrease its perceived value in the eyes of consumers.

Question 10

In many industries, more than ____________ of revenues are generated from new products introduced during the previous year.
A) 10%
B) 20%
C) 40%
D) 75%

Accepted Answer

According to studies, in many industries, around 40% of revenues are generated from new products introduced during the previous year.

Question 11

Which of the following combinations of success and failure related to modifying corporate core competencies is correct?
A) Blockbuster successful, Netflix successful
B) Blockbuster successful, Netflix failure
C) Blockbuster failure, Netflix successful
D) Blockbuster failure, Netflix failure

Accepted Answer

The question asks about modifying corporate core competencies, and specifically mentions Blockbuster and Netflix. Blockbuster had a core competency in physical video rentals, which failed to adapt to the changing market, while Netflix had a core competency in delivering streaming video, which proved to be successful. Therefore, the correct combination is Blockbuster failure and Netflix success.

Question 12

All of the following are leading to shortened product life cycles except?
A) Decreased competition
B) Changing tastes
C) Cheaper materials
D) Technology changes

Accepted Answer

Decreased competition would actually lead to longer product life cycles as there are fewer competitors introducing new products into the market. The other choices (changing tastes, cheaper materials, technology changes) are all factors that typically lead to shorter product life cycles.

Question 13

Firms can improve their core competencies over time by all of the following except?
A) Maintaining the "status quo"
B) Additional training
C) Use of technology
D) Continued management support

Accepted Answer

Maintaining the "status quo" means staying the same, and not making any changes or improvements. Therefore, this option does not contribute to improving core competencies over time.

Question 14

The automotive industry __________ contract manufacturers for components.
A) Is forbidden from using
B) Relies heavily on
C) Rarely uses
D) At one time was reliant on

Accepted Answer

The word "heavily" indicates that the automotive industry relies extensively on contract manufacturers for components.

Question 15

Product life cycles are, in general?
A) Lengthening
B) Shortening
C) Neither lengthening nor shortening
D) It is impossible to determine how or if product life cycles are changing

Accepted Answer

The advancement of technology and the increasing competition in the market have resulted in a shorter life cycle for products. As products are becoming obsolete faster, companies need to innovate and introduce new products faster to gain a competitive edge. Therefore, product life cycles are shortening.

Question 16

The process of making decisions about the characteristics, features, and performance of a company's goods and services refers to?
A) Product placement
B) Product procurement
C) Product decisions
D) Product design

Accepted Answer

The answer of The process of making decisions about the...

Question 17

Apple's Newton device was an example of?
A) Poor internal fit
B) Poor external fit
C) Poor internal and external fit
D) Neither poor internal nor poor external fit

Accepted Answer

The Newton device was an example of poor external fit because it did not fit well with the consumer preferences and market demands at the time of its release. Its handwriting recognition feature, which was meant to be its unique selling point, did not work well and the device was too costly for most consumers, leading to its failure in the market.

Question 18

When a firm does not have core competencies in an area needed to produce certain products, it may choose to rely upon a(n)?
A) Dependent manufacturer
B) Allied manufacturer
C) Contract manufacturer
D) Conscripted manufacturer

Accepted Answer

When a firm does not possess the core competencies required for manufacturing certain products, it may opt for contract manufacturing, which involves outsourcing the manufacturing process to another company that specializes in the production of those products. This allows the firm to focus on its core competencies, while still producing the necessary products. The other options - dependent manufacturer, allied manufacturer, and conscripted manufacturer - do not accurately describe the outsourcing process.

Question 19

Strategic fit requires alignment of product design with?
A) External fit
B) Internal fit
C) Both external and internal fit
D) Neither external nor internal fit

Accepted Answer

Strategic fit requires alignment of product design with both external and internal fit. External fit refers to the alignment of the product with the external environment, such as customer needs, market trends, and competition. Internal fit refers to the alignment of the product with the internal resources and capabilities of the organization, such as technology, skills, and processes. Both external and internal fit are important for creating a product that is valued by customers and feasible for the organization to produce.

Question 20

A hotel relying on another firm to provide housekeeping services is likely utilizing a?
A) Delivered service
B) Contract service
C) Secondary service
D) Composite service

Accepted Answer

The hotel is utilizing a contract service by relying on another firm to provide housekeeping services. A contract service is a service that is outsourced to another firm through an agreed-upon contract or agreement.

Quiz 3: Product Design and Development

A product design resulting in a price more than customers might reasonably expect to pay is an example of?

Product design involves making decisions about all of the following except?

A product from which industry would likely be most affected by shortening product life cycles?

Customers are ____________ to be involved in a service process than in a process related to goods.

Internal fit, when concerning product design, involves?

Design of goods involves all of the following except?

A unique expertise or skill set that cannot be easily reproduced or imitated by other companies is referred to as a ___________.

A fast-food restaurant's ability to quickly provide inexpensive food might be referred to as a?

Poor goods and services designs can lead to all of the following except?

In many industries, more than ____________ of revenues are generated from new products introduced during the previous year.

Which of the following combinations of success and failure related to modifying corporate core competencies is correct?

All of the following are leading to shortened product life cycles except?

Firms can improve their core competencies over time by all of the following except?

The automotive industry __________ contract manufacturers for components.

Product life cycles are, in general?

The process of making decisions about the characteristics, features, and performance of a company's goods and services refers to?

Apple's Newton device was an example of?

When a firm does not have core competencies in an area needed to produce certain products, it may choose to rely upon a(n) ?

Strategic fit requires alignment of product design with?

A hotel relying on another firm to provide housekeeping services is likely utilizing a?