Question 1

IBM's ViaVoice speech recognition software,which enabled users to speak into a computer and have the computer translate their speech to the computer screen meant that people had to learn totally new behaviours to produce word processed documents.This is an example of:
A)continuous innovation.
B)dynamically continuous innovation.
C)dramatically continuous innovation.
D)discontinuous innovation.

Accepted Answer

Discontinuous innovation refers to a product or service that requires consumers to adopt entirely new behaviors. IBM's ViaVoice required users to learn new ways of interacting with their computers, fitting the definition of discontinuous innovation.

Question 2

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous,dynamically continuous,and discontinuous innovation continuum for physical products.This hierarchy consists of ______ categories.
A)four
B)five
C)six
D)seven

Accepted Answer

The answer of Services-marketing experts generally agree that there is...

Question 3

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous,dynamically continuous,and discontinuous innovation continuum for physical products.Many Canadian banks now offer their customers insurance offerings would be example of:
A)style changes
B)process-line extensions
C)service-line extensions
D)major service innovations

Accepted Answer

Service-line extensions refer to adding new services that are closely related to existing services offered by the company. In the case of Canadian banks offering insurance to their customers, this is a service-line extension as it is closely related to their existing banking services. Style changes refer to cosmetic changes in the service, process-line extensions refer to changes in the process of delivering the service, and major service innovations refer to entirely new services that are not related to existing services offered by the company.

Question 4

Heinz launched its EZ Squirt Ketchup in an array of unlikely hues-from green and orange to pink and teal-with kid-friendly squeeze bottles and nozzles.When it was introduced,it would have been an example of a:
A)continuous innovation.
B)dynamically continuous innovation.
C)dramatically continuous innovation.
D)discontinuous innovation.

Accepted Answer

Heinz's EZ Squirt Ketchup represents a dynamically continuous innovation because it involves a change in the product that requires a slight change in consumer behavior, such as the new colors and packaging, but does not alter the fundamental way the product is used.

Question 5

Napster software allowed an individual to easily search and swap MP3 (a technique for compressing files into a size that moves faster on the Internet)musical files with other individuals.When it was introduced,it would have been an example of a:
A)continuous innovation.
B)dynamically continuous innovation.
C)dramatically continuous innovation.
D)discontinuous innovation.

Accepted Answer

Napster software was a completely new and innovative technology that disrupted the music industry's traditional distribution model. It was a disruptive innovation or a discontinuous innovation.

Question 6

In the early 1900s,your great-grandfather probably purchased his first automobile.After years of driving horses and buggies,your great-grandfather got in his new car and drove it into his new garage.Great-grandfather's new automobile was an example of a:
A)continuous innovation.
B)dynamically continuous innovation.
C)dramatically continuous innovation.
D)discontinuous innovation.

Accepted Answer

A discontinuous innovation is a new product that requires consumers to adopt new behaviors, as automobiles did when they replaced horse-drawn carriages.

Question 7

According to Figure 10-2,column "B" represents a
A)discontinuous innovation.
B)dynamically continuous innovation.
C)spontaneous innovation.
D)simultaneous innovation.

Accepted Answer

Column "B" represents a dynamically continuous innovation, as it requires some behavior modification and learning on the part of the users, but it does not require a significant change in behavior or complete relearning like a discontinuous innovation would.

Question 8

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways.Which of the following best illustrates these differences?
A)many services require the physical presence of the customer, which demands local decentralized production of the service
B)most service companies focus on creating only incremental improvements
C)most service companies focus on continuous innovation
D)the new-service development process is often easy for the service customer to observe

Accepted Answer

Unlike many tangible products, many services require the physical presence of the customer, which demands local decentralized production of the service. This is a significant difference between service innovation and product innovation because the production and delivery of tangible products can often be centralized and standardized.

Question 9

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways.Which of the following best illustrates these differences?
A)new services usually do not have a tangible product to carry a brand name
B)most service companies focus on creating only incremental improvements
C)most service companies focus on continuous innovation
D)the new-service development process is often easy for the service customer to observe

Accepted Answer

The statement "new services usually do not have a tangible product to carry a brand name" highlights a key difference between creating new services and tangible products. Services often rely on intangible factors such as customer experience and expertise, rather than a physical product with a brand name.

Question 10

There have been pasta sauces on the market for years.These sauces have always required the pasta be pre-cooked before it is mixed with the sauces and other ingredients.The newly developed Prego Pasta Bake Sauce does not require the use of pre-cooked pasta.Prego would most likely promote this product through:
A)personal salespeople.
B)product trials.
C)the implementation of a penetration strategy.
D)advertising how the sauce differs from those currently on the market.

Accepted Answer

Advertising how the sauce differs from those currently on the market would be the best option to promote this product. This approach would emphasize the unique selling proposition of the product as it does not require precooked pasta, which is a significant differentiator from the other pasta sauces available in the market. This would help attract customers' attention and create an interest in trying the product.

Question 11

The emphasis of a marketing strategy for a discontinuous innovation would most likely be to:
A)generate awareness among consumers and obtain widespread distribution.
B)advertise benefits to consumers, stressing point of differentiation and consumer advantage.
C)educate consumers about entirely new consumption patterns through product trial and personal selling.
D)obtain widespread distribution.

Accepted Answer

Since a discontinuous innovation is a new product or service that represents a completely new way of doing things, the emphasis of the marketing strategy would most likely be on educating consumers about entirely new consumption patterns through product trials and personal selling. This is because consumers may not be aware of the product or its benefits, and may require education to adopt new behaviors or consumption patterns. Generating awareness and obtaining widespread distribution may also be important, but educating consumers should be the primary focus. Advertising benefits and stressing differentiation may not be effective if consumers do not yet understand the new product or its value proposition.

Question 12

According to Figure 10-2,column "A" represents a
A)spontaneous innovation.
B)continuous innovation.
C)discontinuous innovation.
D)dynamically continuous innovation.

Accepted Answer

A continuous innovation involves minor changes to existing products and does not require consumers to learn new behaviors.

Question 13

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways.Which of the following best illustrates these differences?
A)the new-service development process is difficult to map out for the service company and often difficult for the service customer to observe
B)most service companies focus on creating only incremental improvements
C)most service companies focus on continuous innovation
D)the new-service development process is often easy to map out for the service company and often easy for the service customer to observe

Accepted Answer

The option A suggests that the new-service development process is difficult to map out for the service company and often difficult for the service customer to observe, which illustrates the major difference between creating and delivering new services compared to new tangible products. Services are intangible and involve multiple interactions, making it hard to develop and deliver them in a predictable, standardized way, unlike tangible products. Option B, C, and D do not highlight the essential differences between new-service development and tangible product development.

Question 14

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous,dynamically continuous,and discontinuous innovation continuum for physical products.A Canadian university or college offering a totally online MBA program where you never have to visit the campus to complete your degree would be example of:
A)style changes
B)process-line extensions
C)major process innovations
D)major service innovations

Accepted Answer

The answer of Services-marketing experts generally agree that there is...

Question 15

According to Figure 10-2,column "C" represents a
A)continuous innovation.
B)discontinuous innovation.
C)dynamically continuous innovation.
D)spontaneous innovation.

Accepted Answer

The answer of According to Figure 10-2,column "C" represents a
A)continuous...

Question 16

Each of the following statements illustrates a reason why creating and delivering new services is much more difficult than creating new tangible products EXCEPT:
A)The new-service development process is also difficult to map out for the service company and often difficult for the service customer to observe.
B)Most service companies focus on creating incremental improvements.
C)New services usually do not have a tangible product to carry a brand name.
D)Many services require the physical presence of the customer, which demands local decentralized production of the service.

Accepted Answer

This statement is actually a reason for why creating and delivering new services is easier than creating new tangible products. Therefore, it is the exception to the given problem.

Question 17

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous,dynamically continuous,and discontinuous innovation continuum for physical products.New uniforms for service personnel and new colour schemes for the service facilities would be examples of:
A)style changes
B)process-line extensions
C)service-line extensions
D)major service innovations

Accepted Answer

Style changes are considered the lowest level of new-service categories, and are similar to style changes for physical products. They involve making cosmetic changes to the service, such as new uniforms or colour schemes for service facilities. They do not significantly alter the service offering itself.

Question 18

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous,dynamically continuous,and discontinuous innovation continuum for physical products.CNNs 24/7 global news service and eBay's online auction services would be examples of:
A)style changes
B)process-line extensions
C)service-line extensions
D)major service innovations

Accepted Answer

CNN's 24/7 global news service and eBay's online auction services are major service innovations as they involve significant changes to the way services are offered, delivered, and experienced by customers. They represent a significant departure from existing service offerings and require significant investment and resources to develop and launch.

Question 19

E-book devices such as Kindle by Amazon changed the way we read! For example,the Kindle is a software and hardware platform that requires you to learn how to use this technology,whether you buy the Kindle reader device or have the content sent to your iPhone.The Kindle would be considered a(n):
A)continuous innovation.
B)discontinuous innovation.
C)dynamically continuous innovation.
D)spontaneous innovation.

Accepted Answer

The Kindle is a discontinuous innovation because it represents a significant departure from traditional reading devices. It requires users to learn new software and hardware, and it offers new features and capabilities that are not available on traditional devices.

Question 20

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways.Which of the following best illustrates these differences?
A)for labour-intensive, interactive services, the actual providers (the service delivery staff) are part of the customer experience and thus are part of the innovation
B)most service companies focus on creating only incremental improvements
C)most service companies focus on continuous innovation
D)the new-service development process is often easy for the service customer to observe

Accepted Answer

This option highlights that for labour-intensive, interactive services (such as those offered by hotels, restaurants, and hospitals), the service delivery staff are part of the customer experience and thus are integral to the innovation process. This is not generally the case with tangible products, which tend to be designed and manufactured separately from the people who sell or service them.

B, C, and D are incorrect because they either make generic statements (B and C) that do not capture the differences between service and product innovation, or they are not accurate (D) because the new-service development process is often complex and invisible to customers.

Quiz 10: Developing New Products and Services

IBM's ViaVoice speech recognition software,which enabled users to speak into a computer and have the computer translate their speech to the computer screen meant that people had to learn totally new behaviours to produce word processed documents.This is an example of:

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous,dynamically continuous,and discontinuous innovation continuum for physical products.This hierarchy consists of ______ categories.

Heinz launched its EZ Squirt Ketchup in an array of unlikely hues-from green and orange to pink and teal-with kid-friendly squeeze bottles and nozzles.When it was introduced,it would have been an example of a:

Napster software allowed an individual to easily search and swap MP3 (a technique for compressing files into a size that moves faster on the Internet) musical files with other individuals.When it was introduced,it would have been an example of a:

In the early 1900s,your great-grandfather probably purchased his first automobile.After years of driving horses and buggies,your great-grandfather got in his new car and drove it into his new garage.Great-grandfather's new automobile was an example of a:

According to Figure 10-2,column "B" represents a

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways.Which of the following best illustrates these differences?

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways.Which of the following best illustrates these differences?

The emphasis of a marketing strategy for a discontinuous innovation would most likely be to:

According to Figure 10-2,column "A" represents a

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways.Which of the following best illustrates these differences?

According to Figure 10-2,column "C" represents a

Each of the following statements illustrates a reason why creating and delivering new services is much more difficult than creating new tangible products EXCEPT:

E-book devices such as Kindle by Amazon changed the way we read! For example,the Kindle is a software and hardware platform that requires you to learn how to use this technology,whether you buy the Kindle reader device or have the content sent to your iPhone.The Kindle would be considered a(n) :

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways.Which of the following best illustrates these differences?