Question 1

When Foxie,Ltd.developed a new facial cream that buyers in California loved,it delayed its entry into that market by another 6 months.Foxie had just moved from a small facility employing 20 persons to a larger production facility that could accommodate 120 employees.It appears the delay in going into California was so that its introduction could coincide with

Accepted Answer

The delay in entering the California market was likely due to Foxie, Ltd. wanting to ensure that they had enough production capacity to meet the demand for their new facial cream. Moving to a larger production facility that can accommodate 120 employees suggests that they were investing in increasing their production capacity, and delaying the market entry would give them time to ramp up production before the product was introduced.

Question 2

Which of the following is true about the different advertising media?

Accepted Answer

The answer of Which of the following is true about...

Question 3

Which of the following is a predictable competitive response to high initial prices?

Accepted Answer

High initial prices give competitors an incentive to enter the market as they see potential profits to be made. They may offer similar products at a lower price or differentiate their products to appeal to a different target market.

Question 4

When Johnson Tanning Products finally developed a superior sun tan lotion,it decided that the best time to introduce it was in the spring.This would help take advantage of

Accepted Answer

The spring is the season associated with warmer weather and increased outdoor activity, which creates a greater demand for sun tan lotion. Thus, Johnson Tanning Products can take advantage of the seasonal effects by introducing the new product during this time. Tax refunds, pent up demand, and the time value of money are not relevant factors in this scenario.

Question 5

Jones Enterprises wanted to tailor its advertising for its new Financial software to early adopters.It needs to use an advertising message and medium that

Accepted Answer

Early adopters are typically more interested in the technical features and benefits of a new product. Using a medium with the ability to provide high technical content, such as a webinar or online demo, would be more effective than a message that is simply entertaining or aimed at the masses. Making the product seem practical and cost effective can also be important, but emphasizing technical details is key to targeting early adopters.

Question 6

When eBay developed its online auction service,a need arose for making online payments and PayPal was born.This is an example of how moving commerce online

Accepted Answer

The development of eBay's online auction service led to the creation of PayPal as an intermediary to facilitate online payments, illustrating how moving commerce online can create additional intermediaries.

Question 7

When a firm wants to shift its advertising focus from early adopters to the early majority,its advertising should change from emphasizing

Accepted Answer

The early majority is more concerned with the practicality and ease of use of a product rather than its technological features, which appeal more to early adopters.

Question 8

T.H.E.Computer Company buys computer components and assembles them into a computer that it sells under its own brand name.T.H.E.is a(n)

Accepted Answer

T.H.E. Computer Company is an original equipment manufacturer (OEM) as it buys computer components and assembles them into a finished product that is sold under its own brand name.

Question 9

If Circle Systems makes its smartphone technology open,it will attract more software companies to write programs for use on its smartphone.The downside to this is

Accepted Answer

Making the smartphone technology open may lead to different software companies using different platforms, which will result in fragmentation of the underlying platform. This could make it difficult for Circle Systems to maintain consistency across its devices and lead to compatibility issues with different software programs.

Question 10

Which of the following is an advantage of using the Internet for advertising over other media?

Accepted Answer

The advantage of using the Internet for advertising over other media is that it has interactive possibilities. This means that advertisers can engage with users through various means such as clickable links, videos, animations, and social media. The ability to interact with users in real-time and receive feedback allows for a more personalized and effective advertising approach. The other options are not necessarily advantages of using the Internet for advertising.

Question 11

Emily was looking for a firewall for her home computer.She finally decided on a particular brand because it also included a free anti-spam package to block unwanted email as a bonus.This is an example of

Accepted Answer

The bonus anti-spam package is a premium, which is an extra feature or benefit offered with a product to make it more appealing to potential customers.

Question 12

Multiplex Graphics Company has just released a graphics enhancement software program that it wants potential users to experience.Which of the following media would be most appropriate for this product?

Accepted Answer

Television would be the best choice for showcasing the graphics enhancement software program as it provides a visual medium that can effectively demonstrate the product's capabilities. Users can see the before-and-after effects of using the software, making it an ideal platform to generate interest and entice potential customers to try the product.

Question 13

When eBay offered special auctions with all proceeds going to the families of victims of the September 11,2001,terrorist attack on the World Trade Center,everyone thought it was a great gesture.This is an example of

Accepted Answer

This is an example of publicity because eBay is getting the word out about their special auctions that are for a charitable cause. It is not necessarily advertising (selling a product or service) or promotion (encouraging people to take a certain action). Subliminal advertising is using hidden messages to manipulate a person's subconscious mind, which is not the case in this situation.

Question 14

When Microsoft released Word for Windows,WordPerfect had about 80 percent of the word processing market.Microsoft donated free copies of Word to colleges and universities.This is an example of a(n)

Accepted Answer

Microsoft donated free copies of Word to colleges and universities as a way of sponsoring or partnering with them. This move helped to promote the use of Word and increase its market share.

Question 15

When Sports Paradise saw yet another sports bar open up across the street it knew that it would have to lower its price again to stay in business.The city already had too many sports bars and Sports Paradise intended on being one of those left after the inevitable shake out.Sports Paradise will be following a _____ pricing strategy.

Accepted Answer

Sports Paradise is trying to survive in a competitive market and is lowering its prices to stay competitive. This is a survival pricing strategy. Penetration pricing involves setting low prices to enter a new market or gain market share, skimming pricing involves setting high prices initially for a new or unique product, and predatory pricing involves intentionally setting low prices to drive out competitors.

Question 16

Mallard Prosthetics was a leader in the prosthetic arm market and profits from its prosthetics were very high.When Mallard developed a computerized prosthetic that would render its previous prosthetics obsolete,it decided to withhold it from the market probably so that

Accepted Answer

By withholding the computerized prosthetic, Mallard Prosthetics could continue to sell their current prosthetics without competition from their own new product. This would not cannibalize their own sales and allow them to maximize profits from both the old and new models.

Question 17

If a firm invests in continuous innovation and willingly cannibalizes its existing products with more advanced products,the firm can

Accepted Answer

By investing in continuous innovation and willingly cannibalizing its existing products, a firm can prevent competitors from achieving a significant technological gap, as it stays ahead in the market with more advanced offerings.

Question 18

Which of the following is an advantage of making a new generation of technology backward compatible?

Accepted Answer

Making a new generation of technology backward compatible can lower consumer switching costs as they can continue to use their existing complements, such as software or accessories. This can make it easier for consumers to adopt the new technology, which can be an advantage for the company.

Question 19

Mallard Prosthetics was a leader in the prosthetic arm market and profits from its prosthetics were very high.Mallard developed a computerized prosthetic arm and has been advised by a consulting firm to "embrace cannibalization." This means that the company should

Accepted Answer

Embracing cannibalization means that the company should introduce the new technology right away, even if it cannibalizes sales from its present product. By doing so, the company can increase its market lead and maintain its competitive edge. Waiting too long could mean that competitors catch up or that new technologies emerge and outcompete Mallard's offerings. Introducing the new prosthetic arm also signals to customers that Mallard is innovating and staying ahead of the curve, which can help boost its brand image and attract new customers.

Question 20

Biogyn Lifesciences wanted to enhance the adoption of its new diagnostic substances by hospitals.So,it made an agreement with the dominant producer of glass slides and test tubes to have its diagnostic substances sold to hospitals in a package with the glass slides and tubes.This is known as

Accepted Answer

This is an example of a bundling relationship, where two or more products are sold together as a package deal to increase their adoption or sales. In this case, Biogyn Lifesciences has bundled its diagnostic substances with glass slides and test tubes to make it more convenient for hospitals to purchase and use them together.

Quiz 13: Crafting a Deployment Strategy Index