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Marketing of High Technology Products and Innovations 3rd Edition by Jakki J. Mohr -Test Bank

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Chapter 2: Strategic Market Planning in High-Tech Firms
Mohr, Sengupta, Slater (3/e, 2010)

Test Bank

 

 

• Which of the following are examples of firm resources that may be a source of competitive advantage?

1. Distribution channels
2. Market learning competency
3. Brand names
4. Patents
5. All of the above

 

Answer: E                  Page:  48                     easy

 

2-2.______________ are the set of skills at which a company excels.

1. Managerial experiences
2. Innovative strategies
3. Core competencies
4. Intangibles
5. Technologies

 

Answer: C                  Page: 49                      easy

 

2-3._______________ is the difference between the benefits that a customer realizes from using a product and the total life-cycle costs that the customer incurs in finding, acquiring, using, maintaining, and disposing of the product.

1. Customer value
2. Competitive advantage
3. Effectiveness
4. Efficiency
5. a and b above

 

Answer: A                  Page: 51                      easy

 

• To be a source of competitive advantage, a resource must:

1. provide superior benefits to customers.
2. give the firm a cost advantage.
3. be rare.
4. be transparent.
5. a and c above

 

Answer: E                  Page: 51                      moderate

Note:  Superior benefits are not sufficient.  The resources must create value superiority.

 

 

• In ___________________ technology is a rapidly depreciating resource.

1. Base-of-the-pyramid markets
2. slow-cycle industries
3. fast-cycle industries
4. B-to-B markets
5. B-to-C markets

 

Answer: C                  Page: 52                      easy

 

• Common resources such as managerial talent are not generally:

2. a source of competitive advantage.
5. core competencies.

 

Answer: B                  Page: 52                      easy

 

• Sustainability of competitive advantage requires

1. core competencies.
2. superior customer benefits.
3. unique resources.
4. difficult to imitate resources.

 

Answer: D                  Page: 53                      moderate

 

• Imitation is made more difficult when the foundation for competitive advantage is

2. based on complex organizational routines.
4. obtainable in the market.
5. based on a tangible asset.

 

Answer:  B                 Page: 53                      moderate

 

• Which of the following is not a key strategy question?

1. Who are our target customers?
2. What value do we offer them?
3. How can we create and deliver that value effectively and efficiently?
4. Will this strategy capture a dominant share of the market?
5. All are key strategy questions.

 

Answer: D                  Page:  54                     moderate

 

• Answering the “who are our customers?” question by focusing on current customers is referred to as

1. marketing myopia.
2. the tyranny of the served market.
3. customer intimacy.
4. bifocal vision.
5. blue ocean strategy.

 

Answer: B                  Page: 55                      easy

 

• The synergistic intersection of the three strategy decisions – which customers to serve; what value to offer customers (the company’s value proposition), and how to create and deliver that value – to achieve a position of sustainable, superior competitive advantage is

1. the strategy sweet spot
2. a core competency.
3. difficult to imitate.
4. The framework for the strategic market planning process.
5. Assessed with the marketing dashboard.

 

Answer: A                  Page: 55                      easy

 

• New market space is best described as

1. markets that are new to the company.
2. markets and products that are new to the company.
3. customers who are underserved by current offerings in the market or previously unidentified market segments.
4. a critical source of competitive advantage
5. an opportunity that is best left to established companies.

 

Answer: C                  Page: 56                      moderate

 

2-13     Base of the pyramid markets

1. represent new market space for most high-tech firms.
2. are generally unattractive.
3. are characterized by high competitive intensity.
4. have high profit margin potential.
5. are relatively small in terms of dollar volume.

 

Answer:  A                 Page: 56                      moderate

 

2-14     This value proposition contrasts the advantages of the seller’s product with that of its competition.

1. Superior customer value.
2. All Benefits.
3. Favorable Points of Difference.
4. Product Leader
5. Resonating Focus

 

Answer: C.                 Page: 58                      moderate

 

2-15     Which of the strategic archetypes has a primary focus on developing and maintaining long-term customer relationships?

1. Product Leader/Prospector
2. Fast Follower/Analyzer
3. Operationally Excellent/Low Cost Defender
4. Customer Intimate/Differentiated Defender
5. Both c and d.

 

Answer: D                  Page: 62                      easy

 

2-16     The most successful Fast Follower/Analyzers target the

1. innovator and early adopter segments.
2. early adopter segment.
3. early adopter and early majority segments.
4. early and late majority segments.
5. late majority and laggard segments.

 

Answer:  C                 Page: 62                                  moderate

 

2-17     Which of the following is not a benefit to being a Product Leader?

1. Can influence how attributes are valued by customers.
2. Lower risk due to few competitors.
3. Able to “skim off” early adopters.
4. Can establish barriers to entry by followers.
5. All are benefits.

 

Answer:  B                 Page: 63                      moderate

 

2-18.    Which of the following is an advantage to being a market follower?

1. Reputational effects
2. Switching costs
3. Opportunity for skimming
4. Lower development costs
5. Experience effects

 

Answer: D                  Page: 64                      moderate

 

2-19     Which of the following are not ways that the Fast Follower/Analyzer can overcome the Product Leader’s advantage?

1. Innovate superior products.
2. Undercut the leader on prices.
3. Be first-to-market.
4. Out advertise/out distribute the leader, thereby beating it at its own game.
5. Innovate strategies that change the rules of the game.

 

Answer: C                              Page: 64                      easy

 

2-22.    The most successful companies

1. execute a dominant strategy but demonstrate characteristics of one or two supporting types.
2. recognize that they can effectively execute only one archetype and pay little attention to developing competencies required by another archetype.
3. focus on revenue growth even if it means sacrificing profitability.
4. try to blend the best characteristics of the four strategic archetypes.
5. pursue operational excellence because most buyers seek low cost and convenience above all other sources of customer value.

 

Answer: A                  Page: 66                      moderate

 

• Strategy innovation is primarily concerned with:

1. the strategic market planning process.
2. bringing a unique perspective to customer value creation.
3. developing innovative products.
4. entering new markets.
5. bringing new voices into the strategy formation process.

 

Answer: B                  Page: 67                      moderate

 

2-24.    The starting point in the strategic market planning process is:

1. 1. identification of opportunities.
   2. definition of mission and goals.
   3. identification of markets in which the firm will compete.
   4. definition of the profit dynamic.
   5. SWOT analysis.

 

Answer: B                  Page:  69                     moderate

 

2-25     The most effective innovative firms

1. have a product focus.
2. make extensive use of formal procedures to insure conformity.
3. utilize centralized decision making to generate more product concepts.
4. are led by Transactional Leaders
5. organize around customer groups.

 

Answer:  E                 Page: 69                      easy

 

 

2-26     A marketing dashboard

1. is a collection of financial metrics.
2. is a collection of non-financial metrics.
3. should reflect leading and lagging indicators of the success of the firm’s marketing strategy.
4. should have a very extensive set of indicators.
5. Both b & c

 

Answer:  C                 Page: 70                      moderate

 

Chapter 4:  Market Orientation and Cross-Functional (Marketing-R&D) Interaction, Mohr, Sengupta, Slater (3/e, 2010)

Test Bank

 

 

• In a market oriented firm,

1. there is no consistently dominant function.
2. marketing typically plays the lead role.
3. radical innovation is the norm.
4. engineering and R&D are typically in the back seat.
5. being at the forefront of technology is vital.

 

Answer: A                              Page:  104                               moderate

 

• Critical activities in market oriented firms include all of the following except

1. gathering market intelligence.
2. disseminating intelligence throughout the firm.
3. coordinated decision making.
4. bottoms-up decision making.
5. all are critical activities.

 

Answer: D                              Page:  104                               moderate

 

• A market orientation is important for firms competing in high-tech industries for all of the following reasons except:

1. Market oriented behaviors are generally more important in highly dynamic markets.
2. The behaviors implicit in a market orientation are a fertile source of ideas for innovation.
3. Market oriented behaviors facilitate the commercialization of innovations.
4. Pinpoints areas for cost reduction efforts.
5. All of the above are important reasons for firms competing in high-tech industries to adopt a market orientation.

 

Answer: D                              Page:  105                               easy

 

• Market- oriented firms generategather a wide array of intelligence about all except

1. current and future customer needs.
2. competitors’ capabilities and strategies.
3. emerging technologies both inside and outside of the industry.
4. cost-reduction practices.
5. all are the focus of market intelligence generation efforts.

 

Answer: D                              Page:  106                               easy

 

 

 

 

• Proactive market-oriented firms tend to

1. focus on customers expressed needs or existing competitive threats.
2. experience “marketing myopia.”
3. develop and introduce incremental innovations.
4. suffer from “the innovator’s dilemma.”
5. focus on customers latent and future need

 

Answer: E                              Page:  107                               easy.

 

• Responding to customers’ expressed needs is most likely to lead to

1. sustainable competitive advantage.
2. incremental innovations.
3. discovery of new market segments.
4. radical innovations.
5. increased employee retention.

 

Answer: B                              Page:  107                               easy

 

• Market driving firms may

1. seek to redefine the structure of the market.
2. introduce an innovative value proposition that enables the firm to reduce, or even avoid, competition.
3. be quite risk tolerant.
4. try to develop anticipatory intelligence.
5. All of the above.

 

Answer: E                              Page:  110                               easy

 

• Which of the following approaches is useful for gathering anticipatory intelligence?

1. Working closely with lead users.
2. Standard market research approaches.
3. Purchasing market research reports.
4. Conducting surveys of customer satisfaction.
5. Both a and b above.

 

Answer: A                              Page:  110                               moderate

 

4-9       A boundaryless organization is most often associated with

1. market driving.
2. a proactive market orientation.
3. a responsive market orientation.
4. intelligence integration.
5. intelligence dissemination.

 

Answer: E                              Page:  110                               moderate.

 

4-10.    Responsiveness to market intelligence involves all of the following except

1. selection of target markets.
2. development of products/services that address customer needs.
3. positioning products in a way that produces both customer satisfaction and customer loyalty.
4. commitment to execution.
5. providing feedback to customers.

 

Answer: E                              Page:  112                               moderate

 

4-11     The type of knowledge that is most difficult for competitors to imitate is

1. market knowledge.
2. technical knowledge.
3. explicit knowledge.
4. tacit knowledge.
5. often stored in databases.

 

Answer: D                              Page:  112                               moderate.

 

4-12     Coordinated action is

1. facilitated when one function, usually engineering, plays a dominant role in the organization.
2. rarely hampered by organizational politics.
3. key to successful execution of decisions.
4. impeded by constructive conflict between different functions.
5. both c and d above

 

Answer:    C                           Page:  112                               difficult

 

4-13     The scanning focus priority for Fast Followers (Analyzers) is on

1. customer intelligence.
2. competitor intelligence.
3. technological intelligence.
4. a and b above
5. all of the above.

 

Answer:    D                           Page:  116                               moderate.

 

4-14     The organizational factor that research indicates has the greatest impact on creating a market orientation is

1. a market-based reward system.
2. top management advocacy.
3. decentralized decision making.
4. interfunctional coordination.
5. informal communication processes.

 

Answer: A                              Page:  117                               moderate

 

4-15.   Firms that focus too narrowly on their established customers may be constrained in the strategies and technologies they choose to pursue.  When this happens, they are said to suffer from:

1. marketing myopia.
2. core rigidities.
3. tyranny of the served market.
4. a competency trap.
5. market misery.

 

Answer: C                              Page:  107                               easy

 

• Team-based reward systems

1. are most effective when all team members are rewarded equally.
2. are most effective when team members are rewarded based on their position in the organization.
3. should tie rewards to the completion of specific activities.
4. should motivate organizational members to work cooperatively toward common goals.
5. are de-motivators.

 

Answer: D                              Page:  120                                                       moderate.

 

4-17.    At Kodak, a marketing executive observed a lack of collaboration between marketing and R&D departments.  An analysis of this communication gap would include:

1. evaluation of spatial dynamics.
2. evaluation of corporate culture.
3. evaluation of communication frequency between departments.
4. evaluation of formal and informal processes by which the departments communicate.
5. all of the above

 

Answer: E                              Pages: 121-124                                   easy

 

4-18.    Cooperation between marketing and R&D is most important in

1. turbulent markets.
2. stable markets.
3. the early stage of a product development project.
4. the early growth stage of the product life cycle.
5. the maturity stage of the product life cycle.

 

Answer: C                              Page:  121                               challenging

 

 

4-19.    Greater R&D–marketing integration in technical activities is required for

1. breakthrough innovations.
2. incremental innovations.
3. technology-oriented firms.
4. market-oriented firms.
5. all of the above

 

Answer: A                              Page:  121                               moderate

 

4-20.    Corporate culture in high tech firms

1. is often an impediment to marketing-R&D collaboration.
2. often favors engineering relative to marketing.
3. is often shaped by executives who come from engineering.
4. often manifests itself in engineering taking on many tasks traditionally thought of as marketing tasks.
5. all of the above

 

Answer: E                              Page:  123                               easy

 

4-21.   The strategy of merging the interests of R&D and marketing is

2. co-optation.

 

Answer: B                              Page:  125                               moderate

 

4-22.    To gain credibility with engineers, marketers should

1. ask a lot of questions.
2. push marketing research results.
3. clearly explain the value and process of marketing.
4. develop more than a superficial understanding of products and technologies.
5. all of the above

 

Answer: D                              Page:  125                               moderate

 

4-23.    Which of the following is not an effective strategy for increasing communication quality?

1. Maximizing the frequency of interaction between marketing and R&D
2. Use of formal channels of communication
3. Developing clear organizational expectations about the exchange of information between functions
4. Developing organizational goals that are superordinate to the goals of individual functions
5. all are effective strategies

 

Answer: A                              Page:  125                               challenging

 

4-24.    Conflict between marketing and R&D

1. should always be minimized.
2. will lead to counterproductive relationships.
3. is a sign of lack of respect.
4. may reduce “groupthink”.
5. is inevitable.

 

Answer: D                              Page:  126                               moderate