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1)Indirect network externalities exist if product sales are dependent on the number of people that have adopted it

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1)Indirect network externalities exist if product sales are dependent on the number of people that have adopted it.         True    False

 

2. Preannouncement of an upcoming product can be used to block a competitive entry.           True    False

 

3. The conditions during the beachhead phase of a launch cycle are highly conducive to good management.                

True    False

 

4. In a product launch setting, beachhead refers to the heavy expenditures necessary to overcome sales inertia.              True    False

 

5. The launch cycle of a new product typically begins with the beachhead phase.         True    False

 

6. When a new product launch involves a defensive addition, the appropriate tactics include a broad product assortment, a new brand name and distribution channels, and a higher price.          True    False

 

7. Service firms and direct-selling manufacturers usually have a very complex communications task because they involve a host of resellers.          True    False

 

8. A customer-based sales organization requires more of the hard-sell pushing that product-based sales forces can provide.       True    False

 

9. In most cases, repeat purchase is the last step toward adoption of a new product.                True    False

 

10. The trial phase in the adoption of new products is the stumbling point for most products that fail; and it is the cause of winning products not winning a great deal more.     True    False

 

11. A key requirement for a new product trial is that it must have some cost associated with it for the firm.    

True    False

 

12. For products with low relative advantage and low compatibility with buyers' experiences, promotion should aid in risk reduction by offering money-back guarantees, warranties, or tie-ins to existing products.          True    False

 

13. Selective distribution is typically used for products with low relative advantage and low compatibility with buyers' experiences.         True    False

 

14. Skim is a very low price, intended to stay that way, with no clear product differentiation.              

True    False

 

15. In a penetration price strategy, the price of a product is clearly low and is designed to buy one's way into the market.            True    False

 

16. A launch cycle is an expansion of the _____ of the product life cycle into substages.    A. maturity stage
    2. introductory stage
    3. growth stage
    4. evaluation stage

 

17. Training of sales and other promotional people, building service capability, putting out preannouncements if they are in order, and arranging for stocking of a new product at the reseller level takes place during the _____ of a launch cycle.              
    1. announcement stage
    2. prelaunch stage
    3. early growth stage
    4. late growth stage

 

18. Five Works Inc. preannounces the release of its computer software, but the product is never launched in the market. This is an example of _____.     
    1. a market rollout
    2. vaporware
    3. stocklifting
    4. a lean launch

 

19. Before the commercialization of a new product, the sales force of Seriv Corporation plans to give its suppliers a hint that a new product or an advanced version of an existing product is going to be launched by the end of the year. The firm's action can be seen as an example of _____.       
    1. signaling
    2. corporate espionage
    3. beachheading
    4. whistleblowing

 

20. If product sales are dependent on sales of complementary products, _____ exists.               
    1. virtual network externalities
    2. explicit network externalities
    3. social network externalities
    4. indirect network externalities

 

21. Direct network externalities exist if product sales are dependent on:             A. sales of complementary products.
    2. sales of competitive products.
    3. the number of people that have adopted the product.
    4. the primary demand for other older products.

 

22. How is preannouncement of a new product related to the competitiveness of an industry?              
    1. The degree of preannouncement decreases when the competitiveness in the industry is high.
    2. The degree of preannouncement increases when the competitiveness in the industry is high.
    3. The degree of preannouncement remains the same, irrespective of the level of competitiveness in the  industry.
    4. The degree of preannouncement first increases and then decreases with industry competitiveness.

 

23. When a firm plans to launch an innovative new product, the launch strategies and tactics would include:            
    1. using existing distribution channels.
    2. selling at extremely low prices.
    3. focusing on creating exit barriers.
    4. creating a broad product assortment.

 

24. Firms attempting to increase penetration in existing markets are most likely to be emphasizing:    A. defensive additions.
    2. offensive improvements.
    3. deletion of existing products.
    4. launch of new-to-the-world products.

 

25. In the context of a lean launch, which of the following best describes time postponement?             
    1. Deploy inventory as late as possible
    2. Lock in product design as late as possible
    3. Lock in product identity as late as possible
    4. Delay the announcement of a new product as late as possible

 

26. In terms of launch tactics, pharmaceutical firms are most likely to put the bulk of their money into:    A. advertising.
    2. personal selling.
    3. technical research.
    4. manufacturing process development.

 

27. _____ is the term most widely used to cover all of the information and attitude effort put into changing end-user perceptions.            
    1. Beachhead B. Vaporware

1. 3. Communications
   4. Rollout

 

28. A(n) _____ conveys information about the targeted market segment, product positioning strategy, and communications mix among many other points to an advertising person.      
    1. portfolio statement
    2. copy strategy statement
    3. expected effects matrix
    4. organization chart

 

29. Which of the following statements is true of salespeople?      
    1. In customer-based sales organizations, salespeople are required to aggressively use hard-sell pushing.
    2. For services, is apt to isolate the new product developer from the salespeople.
    3. For consumer packaged goods, salespeople are usually not involved in the new product development  early on.
    4. Salespeople are usually given reduced territories when asked to sell a new product.

 

30. A(n) _____ is the workhorse of most new product introductions.      
    1. salesperson
    2. internal auditor
    3. creditor
    4. advertising person

 

31. When technical departments in firms form ties with universities, government units, private research centers, and even competitors to access what they need, it is referred to as _____.    A. strategic alliances
    2. cartel arrangements
    3. usury agreements
    4. portfolio networks

 

32. In most cases, the first step toward adoption of a new product is _____.    A. availability
    2. testing
    3. trial
    4. awareness

 

33. Which of the following is true of a reseller?                
    1. They help firms in pulling a new product up the distribution channel.
    2. They do a small volume of business in a standardized way with a large margin.
    3. They should ideally be isolated from the product development process.
    4. They are required to prepare for promotion by training salespeople and service people.

 

34. Resellers' views are represented in the product development process by experienced salespeople like sales managers and _____.       
    1. trade creditors
    2. category captains
    3. internal auditors
    4. trade relations directors

 

35. Large, powerful retailers often sell their scarce shelf space by charging manufacturers _____.    A. slotting allowances
    2. opportunity costs
    3. octroi fees
    4. social costs

 

36. The trial phase in the adoption of a new product:       A. involves large scale usage of the product.
    2. occurs before the awareness phase.
    3. permits customers to verify claims about the product.
    4. involves no cost for both the firm and the customers.

 

37. A buyer gathering the trial experience of others for a new product, but without the use of electronic setups is an example of a _____.         
    1. personal trial
    2. vicarious trial
    3. firsthand trial
    4. direct trial

 

38. Which of the following new product characteristics probably has the greatest influence on trial rates?    A. Relative advantage
    2. Complexity
    3. Divisibility
    4. Communicability

 

39. Under which of the following categories do novelty products and service products fall?     
    1. Low relative advantage and low compatibility with buyers' experiences
    2. High relative advantage and high compatibility with buyers' experiences
    3. High relative advantage and low compatibility with buyers' experiences
    4. Low relative advantage and high compatibility with buyers' experiences

 

40. For products with high relative advantage and low compatibility with buyers' experiences:             A. narrow product assortments may be useful.
    2. risk-based promotions will be necessary.
    3. preannouncements before entry may be necessary to warn prospects.
    4. intensive product distribution makes sense.

 

41. While launching a product with low relative advantage and low compatibility with buyers' experiences, the:    
    1. older product should not be deleted from the market quickly.
    2. product promotion should be information based.
    3. price of the product should be above the market.
    4. distribution of the product should be highly selective.

 

42. For products with low relative advantage and high compatibility with buyers' experiences:             A. risk-based promotions work well.
    2. broad product assortments are suitable.
    3. intensive distribution makes sense.
    4. preannouncements before entry are necessary.

 

43. Which of the following promotional launch tactics is most likely to be used by a firm if product advantages must be learned through usage and experience?               
    1. Advertising
    2. Sampling
    3. Skimming pricing
    4. Publicity

 

44. Skimming pricing is best recommended for products having:             
    1. low relative advantage and low compatibility with buyers' experiences.
    2. high relative advantage and high compatibility with buyers' experiences.
    3. high relative advantage and low compatibility with buyers' experiences.
    4. low relative advantage and high compatibility with buyers' experiences.

 

45. Which of the following types of promotion is typically used for a product with low relative advantage and high compatibility with buyers' experiences?       
    1. Risk-based promotion
    2. Awareness-based promotion
    3. Reseller-based promotion
    4. Usage-based promotion

 

46. Products that are clearly superior on attributes that buyers consider important have:            A. low relative advantage and low compatibility with buyers' experiences.
    2. high relative advantage and low compatibility with buyers' experiences.
    3. high relative advantage and high compatibility with buyers' experiences.
    4. low relative advantage and high compatibility with buyers' experiences.

 

47. Which of the following pricing strategies for products involves a very high price, intended to stay that way, with clear product differentiation?         
    1. Premium pricing
    2. Predatory pricing
    3. Penetration pricing
    4. Meet the market pricing

 

48. _____ refers to a price clearly above the market, but appropriate to a differentiated product, nonthreatening to competition, and with room for some price manipulations.           
    1. Premium
    2. Penetration
    3. Skim
    4. Meet the market

 

49. Which of the following best describes the pricing strategy "meet the market"?         A. A very high price, intended to stay that way, with clear product differentiation.
    2. A price that is clearly low and designed to buy one's way into the market.
    3. A price that takes price out of the market play as much as possible.
    4. A price clearly above the market that is appropriate to a differentiated product.

 

50. If a firm's target market customers do a serious trial on a new product, and if the firm has previously been assured from the product use test that people would like it, _____ is virtually assured.    A. market leadership
    2. repeat buying
    3. high customer switching
    4. low incremental advantage

 

51. Describe three common patterns for new product launch strategies and tactics.       

        

        

        

 

52. What does a lean launch system mean? What are its advantages?      

        

        

        

 

53. What consequences will a firm face if the timing of a new product's launch is wrong?         

        

        

        

 

54. Discuss the tactics used for launching a product with low relative advantage and low compatibility with buyers' experiences.         

        

        

        

 

55. What are the various new product price strategies available to a firm?