Question 1

Dragalong income refers to additional income whereas cannibalized income refers to reduced income.

Accepted Answer

Dragalong income refers to the additional income that is generated as a result of a company's growth or expansion, while cannibalized income refers to the reduction in income from an existing product or service caused by the introduction of a new product or service by the same company.

Question 2

Mobile phone company HCF delayed the introduction of a new cell phone model with innovative features so that the launch could coincide with that of its competitor, LCM, which was introducing a phone with similar features. What kind of entry did HCF use? How can this benefit the company?

Accepted Answer

The answer of Mobile phone company HCF delayed the introduction...

Question 3

Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________ entry.

Accepted Answer

The entry strategy described in the question is known as "late entry." This strategy involves waiting for a competitor to invest in introducing a new product to the market and then entering the market after the competitor has educated consumers and dealt with any initial barriers to entry. The late entrant can then benefit from the groundwork laid by the competitor and potentially gain market share with a lower cost of entry.

Question 4

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States. The company has plans to enter developing markets such as Brazil and India. TechToys, GameTech's major competitor has already started operations in India. GameTech decides to delay its entry to India and to closely observe TechToys' operations in India. What is the possible rationale behind this delaying decision?

Accepted Answer

The answer of GameTech International Inc. engages in the design,...

Question 5

What is the significance of performing business analysis?

Accepted Answer

The answer of What is the significance of performing business...

Question 6

Some firms might delay a new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the late entrant can avoid. This can be classified as a parallel entry.

Accepted Answer

This strategy is known as a "late entry" strategy, not a parallel entry. Parallel entry refers to entering the market at the same time as competitors, whereas late entry involves entering after competitors have already established themselves.

Question 7

Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in?

Accepted Answer

Clara is in the evaluation stage of the consumer-adoption process. She is considering whether or not to buy the vacuum cleaner and is likely doing research, reading reviews, and comparing Armordo to other brands before making a decision.

Question 8

Briefly explain the three choices available to companies when deciding the timing of market entry.

Accepted Answer

The answer of Briefly explain the three choices available to...

Question 9

Robert has heard about the latest cell phone from LG Electronics that features Wi-Fi hotspot technology. Wi-Fi hotspot is a technology that allows users to share mobile internet with other Wi-Fi enabled devices. Robert visits the company's Web site to read more about the phone. Robert is in the ________ stage of consumer-adoption process.

Accepted Answer

Robert is in the interest stage because after becoming aware of the new cell phone, he is seeking more information about it.

Question 10

Troma Inc. is a famous manufacturer of cookware that follows a traditional distributor-retailer system to distribute its products. The company abstains from the use of automated supply chain management (SCM) systems mainly due to the fear of unknown. However, rapidly escalating operational costs and inefficiencies have made it necessary for the company to implement an SCM system. The company goes for a big-bang installation of SCM system to become more competitive and cost effective. Identify the adopter group to which Troma belongs.

Accepted Answer

Troma Inc. is hesitant to adopt automated SCM systems and is only implementing it due to escalating costs, indicating that they are a laggard in this context.

Question 11

A(n) ________ is any good, service, or idea that is perceived as new, no matter how long its history.

Accepted Answer

An innovation is any new idea, product, or service that is perceived as new, regardless of its actual length of existence. It is a broader term than invention, which specifically refers to the creation of something new. A commodity is a basic good or raw material, and adoption refers to the process of accepting and using a new innovation. A novel product may be perceived as new, but it is not a commonly used term in marketing.

Question 12

Which of the following is the mental step in the consumer-adoption process where the customer starts considering whether to try an innovation?

Accepted Answer

The mental step in the consumer-adoption process where the customer starts considering whether to try an innovation is evaluation. This involves the customer weighing the costs and benefits of adopting the innovation and deciding whether it is worth trying.

Question 13

Adopters of new products move through five stages. These stages begin with ________ and follow with interest, evaluation, trial, and adoption.

Accepted Answer

The five stages of the adoption process are awareness, interest, evaluation, trial, and adoption. The first stage is awareness, where the consumer becomes aware of a new product or innovation.

Question 14

Identify the stage in the consumer adoption process in which the customer is stimulated to seek information about the innovation.

Accepted Answer

The stage in the consumer adoption process where the customer is stimulated to seek information about the innovation is the interest stage. During this stage, the customer is aware of the innovation but is seeking more information before deciding whether or not to adopt it. This is when the customer becomes interested and starts to actively seek out more information about the innovation.

Question 15

After a test, the most customer-appealing offer will be the most profitable offer to make.

Accepted Answer

The most customer-appealing offer may not necessarily be the most profitable offer. It's important to consider the costs associated with the offer and the potential revenue it will generate. Sometimes, offering a less appealing but higher-priced option can be more profitable in the long run.

Question 16

Survival-age distribution refers to the number of customers that the product has in year one, two, three, and so on.

Accepted Answer

Survival-age distribution refers to the proportion of customers that remain loyal to a product or service after a certain period of time, not the number of customers in each year.

Question 17

A business analysis is typically performed after management has developed the product concept and marketing strategy.

Accepted Answer

The answer of A business analysis is typically performed after...

Question 18

Modular function deployment methodology takes the list of desired customer attributes generated by market research and turns them into a list of engineering attributes that engineers can use.

Accepted Answer

The answer of Modular function deployment methodology takes the list...

Question 19

People who are technology enthusiasts, venturesome, and who enjoy tinkering with new products and mastering their intricacies are called ________.

Accepted Answer

Innovators are the ones who are technology enthusiasts, venturesome, and enjoy exploring new products and working out their complexities. They are the first ones to adopt new technologies and are willing to take the risk associated with trying out new products.

Question 20

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?

Accepted Answer

The timing strategy used here is parallel entry, as the company is launching an apple flavor brand at the same time as its competitor.

Quiz 15: Introducing New Market Offerings