Question 1

If a company is inventing new technology in the pursuit of the technological advance itself, it would be responding to which force?

Accepted Answer

Technology push is the force that drives a company to invent new technology in the pursuit of the technological advance itself.

Question 2

Developing the technology for an innovation is the first step in which type of innovation?

Accepted Answer

Technology push innovation is driven by technological advancements, and the first step is to develop the technology for the innovation.

Question 3

When 3M developed thin plastic film with microlouvers they did not have a commercial application in mind. Innovation of this type would be classified as:

Accepted Answer

Technology push refers to innovations that are developed due to advancements in technology without a specific market demand or application in mind initially.

Question 4

Which of the following characteristics tends to differentiate technology-push innovations from market-pull innovations?

Accepted Answer

Technology-push innovations often face slow customer adoption because they are developed based on technological advancements rather than existing market needs, leading to a lack of immediate problems they solve for customers.

Question 5

Which of the following questions helps to determine if customers need a product or service that your company's thinking of developing?

Accepted Answer

Both questions are important because they help assess the necessity and potential success of a new product or service by identifying unmet needs and evaluating the competitive advantage of the proposed solution.

Question 6

What is the best way to determine if customers have unsolved problems or problems that could be solved in a better way by a new product?

Accepted Answer

The answer of What is the best way to determine...

Question 7

What would be a reason why companies often fail to assess the needs of a customer?

Accepted Answer

Product developers may be overly confident in the value of their products, leading them to neglect thorough assessment of customer needs.

Question 8

What would be a reason why companies often fail to assess the needs of a customer?

Accepted Answer

All the options provided are valid reasons why companies might fail to assess customer needs: developers' bias towards their products, structural or procedural barriers to collecting customer feedback, and the evolving nature of customer needs.

Question 9

Which theory helps to explain why new products must offer benefits to customers that are significantly greater than those offered by existing alternatives?

Accepted Answer

Prospect theory explains how people make decisions based on perceived gains and losses rather than final outcomes, highlighting the importance of offering significant benefits to encourage customers to switch from existing alternatives.

Question 10

According to prospect theory, how much better do the benefits of the new product have to be in order for a customer to adopt in?

Accepted Answer

According to prospect theory, the benefits of the new product have to be two to three times better than the benefits of the old product in order for a customer to adopt it.

Question 11

Why is developing a profitable product difficult?

Accepted Answer

Developing a profitable product involves multiple challenges, including estimating future costs, predicting sales levels needed for profitability, and projecting future profits, making all aspects difficult.

Question 12

What pricing theory includes setting a high price to earn the highest possible profit?

Accepted Answer

Price skimming is a pricing theory that involves setting a high price for a new product or service in order to earn the highest possible profit.

Question 13

What pricing theory includes setting a low price to get the highest possible market share?

Accepted Answer

Penetration pricing involves setting a low price to quickly gain a large market share and attract customers away from competitors.

Question 14

If you need to introduce a product to a large market and there was the opportunity to raise prices in the future, what pricing strategy would be most effective?

Accepted Answer

Penetration pricing is effective for introducing a product to a large market as it involves setting a low initial price to attract customers and gain market share quickly, with the potential to raise prices later once the product is established.

Question 15

What pricing strategy was PayPal using when it paid its customers to use its online payment system initially because it knew that if customers adopted its service, it would be hard for competitors to dislodge it, and it could raise prices later?

Accepted Answer

PayPal used penetration pricing by initially paying customers to use its service to quickly gain market share and establish a strong user base, making it difficult for competitors to compete.

Question 16

Which of the following factors needs to be considered when setting a pricing strategy?

Accepted Answer

All of the factors listed are important when setting a pricing strategy, as they can influence demand, competition, and customer expectations.

Question 17

For which pricing factor do you need to consider the relationship between the price of a product and customer adoption patterns?

Accepted Answer

The answer of For which pricing factor do you need...

Question 18

For which pricing factor do you need to remember that even totally new products are limited in their price range because customers will substitute related products if the price of the new product is not within the expected range?

Accepted Answer

The nature of the market into which you are selling affects pricing because customers have expectations based on existing products. If a new product is priced too high, customers may choose substitutes.

Question 19

If prices are routinely discounted for your product, which factor needs particular attention when setting the price?

Accepted Answer

The answer of If prices are routinely discounted for your...

Question 20

For which pricing factor is it critically important to understand the relationship between fixed and variable costs?

Accepted Answer

Understanding the company's cost structure is crucial because it involves analyzing the relationship between fixed and variable costs, which directly impacts pricing strategies and profitability.

Quiz 6: Customer Needs

If a company is inventing new technology in the pursuit of the technological advance itself, it would be responding to which force?

Developing the technology for an innovation is the first step in which type of innovation?

When 3M developed thin plastic film with microlouvers they did not have a commercial application in mind. Innovation of this type would be classified as:

Which of the following characteristics tends to differentiate technology-push innovations from market-pull innovations?

Which of the following questions helps to determine if customers need a product or service that your company's thinking of developing?

What is the best way to determine if customers have unsolved problems or problems that could be solved in a better way by a new product?

What would be a reason why companies often fail to assess the needs of a customer?

What would be a reason why companies often fail to assess the needs of a customer?

Which theory helps to explain why new products must offer benefits to customers that are significantly greater than those offered by existing alternatives?

According to prospect theory, how much better do the benefits of the new product have to be in order for a customer to adopt in?

Why is developing a profitable product difficult?

What pricing theory includes setting a high price to earn the highest possible profit?

What pricing theory includes setting a low price to get the highest possible market share?

If you need to introduce a product to a large market and there was the opportunity to raise prices in the future, what pricing strategy would be most effective?

What pricing strategy was PayPal using when it paid its customers to use its online payment system initially because it knew that if customers adopted its service, it would be hard for competitors to dislodge it, and it could raise prices later?

Which of the following factors needs to be considered when setting a pricing strategy?

For which pricing factor do you need to consider the relationship between the price of a product and customer adoption patterns?

For which pricing factor do you need to remember that even totally new products are limited in their price range because customers will substitute related products if the price of the new product is not within the expected range?

If prices are routinely discounted for your product, which factor needs particular attention when setting the price?

For which pricing factor is it critically important to understand the relationship between fixed and variable costs?