Question 1

Short Case Scenario 12-1
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The Super V is reviewing the pricing strategy used to this point. Bill, a recent graduate with a degree in economics, is insistent that they should price the speakers to maximize profits. He explains, "It is basic economics-companies price their products to maximize products. There's no question-this is the strategy that we should take." Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is on the right track. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the speakers should be priced higher than the Superior V, while others are arguing for a lower price.
-Farrah explains why Superior Stereo Systems might not want to set prices for the Superior V at a level which maximizes profits.What do you expect that Farrah will tell Bill?

Accepted Answer

The answer of Short Case Scenario 12-1
Bill and Farrah have...

Question 2

Short Case Scenario 12-1
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The Super V is reviewing the pricing strategy used to this point. Bill, a recent graduate with a degree in economics, is insistent that they should price the speakers to maximize profits. He explains, "It is basic economics-companies price their products to maximize products. There's no question-this is the strategy that we should take." Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is on the right track. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the speakers should be priced higher than the Superior V, while others are arguing for a lower price.
-Discussion turns to promotion of the new Superior VI speakers.What are Superior's options in promotion?

Accepted Answer

The answer of Short Case Scenario 12-1
Bill and Farrah have...

Question 3

Short Case Scenario 12-1
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The Super V is reviewing the pricing strategy used to this point. Bill, a recent graduate with a degree in economics, is insistent that they should price the speakers to maximize profits. He explains, "It is basic economics-companies price their products to maximize products. There's no question-this is the strategy that we should take." Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is on the right track. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the speakers should be priced higher than the Superior V, while others are arguing for a lower price.
-A piece of bad publicity has surfaced about Superior's quality.How can Superior counter this negativity?

Accepted Answer

The answer of Short Case Scenario 12-1
Bill and Farrah have...

Question 4

A Blackberry is a smartphone that features wireless Internet access and PC-style office applications.

Accepted Answer

A Blackberry is a smartphone that features wireless Internet access and PC-style office applications.

Question 5

Short Case Scenario 12-1
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The Super V is reviewing the pricing strategy used to this point. Bill, a recent graduate with a degree in economics, is insistent that they should price the speakers to maximize profits. He explains, "It is basic economics-companies price their products to maximize products. There's no question-this is the strategy that we should take." Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is on the right track. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the speakers should be priced higher than the Superior V, while others are arguing for a lower price.
-Why might Superior want to utilize odd-even pricing for their systems?

Accepted Answer

The answer of Short Case Scenario 12-1
Bill and Farrah have...

Question 6

Short Case Scenario 12-1
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The Super V is reviewing the pricing strategy used to this point. Bill, a recent graduate with a degree in economics, is insistent that they should price the speakers to maximize profits. He explains, "It is basic economics-companies price their products to maximize products. There's no question-this is the strategy that we should take." Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is on the right track. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the speakers should be priced higher than the Superior V, while others are arguing for a lower price.
-How might Superior benefit from the use of intermediaries?

Accepted Answer

The answer of Short Case Scenario 12-1
Bill and Farrah have...

Question 7

Short Case Scenario 12-1
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The Super V is reviewing the pricing strategy used to this point. Bill, a recent graduate with a degree in economics, is insistent that they should price the speakers to maximize profits. He explains, "It is basic economics-companies price their products to maximize products. There's no question-this is the strategy that we should take." Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is on the right track. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the speakers should be priced higher than the Superior V, while others are arguing for a lower price.
-How might Superior benefit from using e-catalogs?

Accepted Answer

The answer of Short Case Scenario 12-1
Bill and Farrah have...

Question 8

Because networks enable firms to maintain information linkages among both employees and customers,more work and customer satisfaction can be accomplished with fewer people.

Accepted Answer

This statement highlights the benefits of networks in maintaining information linkages among employees and customers. As a result, work can be accomplished efficiently with fewer people, which can lead to increased productivity and customer satisfaction.

Question 9

Hypertext transfer protocol (HTTP)is a basic communications protocol used to receive e-mail.

Accepted Answer

HTTP is a basic communications protocol used for transmitting data over the internet, not specifically for receiving e-mail. The protocol used for receiving e-mail is typically POP3 or IMAP.

Question 10

Short Case Scenario 12-1
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The Super V is reviewing the pricing strategy used to this point. Bill, a recent graduate with a degree in economics, is insistent that they should price the speakers to maximize profits. He explains, "It is basic economics-companies price their products to maximize products. There's no question-this is the strategy that we should take." Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is on the right track. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the speakers should be priced higher than the Superior V, while others are arguing for a lower price.
-When putting together the promotion campaign for Superior,what purposes of promotion should managers at Superior keep in mind?

Accepted Answer

The answer of Short Case Scenario 12-1
Bill and Farrah have...

Question 11

Mass-customization is a principle in which companies produce in very small quantities,and each unit features the unique options that the customer prefers.

Accepted Answer

Mass-customization involves producing in small quantities, but each unit is customized to the customer's preferences, not produced in very small quantities.

Question 12

Short Case Scenario 12-1
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The Super V is reviewing the pricing strategy used to this point. Bill, a recent graduate with a degree in economics, is insistent that they should price the speakers to maximize profits. He explains, "It is basic economics-companies price their products to maximize products. There's no question-this is the strategy that we should take." Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is on the right track. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the speakers should be priced higher than the Superior V, while others are arguing for a lower price.
-Discussion proceeds to pricing of the Superior VI.What are Superior's options in pricing this new product?

Accepted Answer

The answer of Short Case Scenario 12-1
Bill and Farrah have...

Question 13

Not only is IT improving existing businesses,it is creating entirely new businesses where none existed before.

Accepted Answer

IT has led to the creation of entirely new industries such as e-commerce, social media, and online gaming, among others, which did not exist before.

Question 14

The effect of information technology (IT)on business has been immeasurable.

Accepted Answer

IT has transformed the way businesses operate, from improving communication and increasing efficiency to opening up new markets and increasing productivity. Its impact has been significant and far-reaching.

Question 15

An intranet is a private network of internal Web sites and other sources of information available to a company's employees.

Accepted Answer

This statement accurately describes an intranet as a private network for internal use within a company or organization.

Question 16

Short Case Scenario 12-1
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The Super V is reviewing the pricing strategy used to this point. Bill, a recent graduate with a degree in economics, is insistent that they should price the speakers to maximize profits. He explains, "It is basic economics-companies price their products to maximize products. There's no question-this is the strategy that we should take." Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is on the right track. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the speakers should be priced higher than the Superior V, while others are arguing for a lower price.
-In the past,Superior has sold all speakers directly to retailers.They were recently approached by a wholesaler who would like to carry their line of products.Why might they wish to use a wholesaler rather than selling directly to retailers?

Accepted Answer

The answer of Short Case Scenario 12-1
Bill and Farrah have...

Question 17

With databases,specialized software,and networks,instantaneous information is accessible and useful to all levels of management.

Accepted Answer

Databases, specialized software, and networks enable the quick and easy access of information, making it useful to all levels of management.

Question 18

Short Case Scenario 12-1
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The Super V is reviewing the pricing strategy used to this point. Bill, a recent graduate with a degree in economics, is insistent that they should price the speakers to maximize profits. He explains, "It is basic economics-companies price their products to maximize products. There's no question-this is the strategy that we should take." Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is on the right track. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the speakers should be priced higher than the Superior V, while others are arguing for a lower price.
-How can Superior focus on public relations in response to negative publicity about their level of product quality?

Accepted Answer

The answer of Short Case Scenario 12-1
Bill and Farrah have...

Question 19

At one time,upper-level managers concerned themselves with all of the detailed information filtering upward from the workplace because it was inexpensive to gather,fast in coming,and slowly became out of date.

Accepted Answer

Upper-level managers traditionally did not concern themselves with all detailed information because it was expensive to gather, slow in coming, and quickly became outdated.

Question 20

Electronic commerce (e-commerce)is popular with consumers but has hurt productivity.

Accepted Answer

The answer of Electronic commerce (e-commerce)is popular with consumers but...

Quiz 12: Pricing, Distributing, and Promoting Products

A Blackberry is a smartphone that features wireless Internet access and PC-style office applications.

Because networks enable firms to maintain information linkages among both employees and customers,more work and customer satisfaction can be accomplished with fewer people.

Hypertext transfer protocol (HTTP)is a basic communications protocol used to receive e-mail.

Mass-customization is a principle in which companies produce in very small quantities,and each unit features the unique options that the customer prefers.

Not only is IT improving existing businesses,it is creating entirely new businesses where none existed before.

The effect of information technology (IT)on business has been immeasurable.

An intranet is a private network of internal Web sites and other sources of information available to a company's employees.

With databases,specialized software,and networks,instantaneous information is accessible and useful to all levels of management.

At one time,upper-level managers concerned themselves with all of the detailed information filtering upward from the workplace because it was inexpensive to gather,fast in coming,and slowly became out of date.

Electronic commerce (e-commerce)is popular with consumers but has hurt productivity.