, Marketing of High-Technology Products and Innovations
Mohr, Sengupta, Slater (3/e, 2010)
Test Bank
Chapter 1
1. What are the three levels at which marketing activities occur in an organization?
a. Radical, disruptive, and incremental
b. Corporate, departmental, and individual
c. Competitive, customer, and corporate
d. Strategic, functional, and tactical
e. Product, price, promotion, distribution
Answer d, pp. 5-6, easy
2. A “moment of truth” refers to:
a. the rigorous test of the viability of a new technology
b. customer reactions to a new technology
c. the point where engineers and marketers share a common perspective
d. the investment of sunk dollars into marketing a new product
e. each interaction with a customer that either strengthens or undermines the relationship
Answer e, p. 8, easy
3. Which of the following best captures the type of decisions that are made at the strategic
marketing level?
a. Identify six strong market segments and pursue all equally.
b. Develop a position statement that clearly illustrates the value proposition for the product
and identify target markets accordingly.
c. Quickly secure advertising spots in the journals with the highest readership.
d. Decide to price the product using the cost-pricing method.
e. Collect market research to identify key trade shows.
Answer b, p. 6, easy
4. A company making tactical marketing decisions would identify:
a. which segments of the market to target.
b. how to position against competitors.
c. which trade shows to attend.
d. how to coordinate the marketing department with the R&D department.
e. how to measure the success of marketing efforts.
, 5. Government definitions of “high-technology” are often based on:
a. newness of the product in a category.
b. scientific process of discovery.
c. percentage of R&D spending or number of technical workers employed in an industry.
d. capacity of informational services.
e. early adopter opinion.
Answer c; p.9; easy
6. How do input-based definitions of high-tech differ from output-based definitions?
a. Input-based definitions are based on expert’s input/opinion while output-based
definitions are based on the type of product sold.
b. Input-based definitions are post-hoc and output-based definitions omit some important
new industries.
c. Both input-based and output-based definitions provide solid ranking of high-technology
industries.
d. Input-based definitions are based on criteria such as the number of technical employees
while output-based definitions are based on whether the product embodies leading-eduge
technologies.
e. Input-based definitions tend to be preferred to output based definition.
Answer d; pp. 9-11; moderate
7. Which of the following is not considered to be a limitation of the government’s approaches
to classifying high-tech industries?
a. Some industries classified as R&D intensive do not exhibit revolutionary new products
b. Because the government’s approach is not objective or quantifiable, there is a high
margin of error.
c. Some industries that probably should be characterized as high-tech may be excluded
d. Some industries classified as R&D intensive produce standardized output in mass
quantities
e. All of the above are considered to be limitations in the government’s approach to
classifying high-tech industries.
Answer b; pp. 10-11; moderate
8. A customer considers purchasing a digital camera, but experiences ambiguity over terms
like megapixels; the customer wonders whether the camera will be compatible with her
home computer system, and in general, feels a certain amount of fear, uncertainty, and doubt
as to whether or not digital will really meet her needs. This scenario best describes:
a. technological uncertainty
b. market uncertainty
c. competitive volatility
d. competitive viability
e. technology life cycles
, 9. The ‘chasm’ in high-tech marketing is characterized by:
a. The divide between the visionaries and the pragmatists.
b. The difficulty in estimating the size of the market.
c. The downward pressure in prices arising from Moore’s Law.
d. Knowledge spillovers
e. New technologies being commercialized by new competitors
Answer a, p.14, easy
10. Which if the following is not one of the dimensions of technological uncertainty?
a. Will there be side effects of the product and service?
b. Will the new technology make ours obsolete?
c. Will the delivery timetable be met?
d. How fast will the innovation spread?
e. Will the new product function as promised?
Answer d, p. 11, Figure 1-1 and pp. 14-16; moderate
11. New innovations in agricultural products are as likely to come today from chemical and
biotechnology companies as traditional food/seed firms. This is an example of:
a. market uncertainty.
b. incremental innovation.
c. preannouncing new products.
d. competitive volatility.
e. network externalities.
Answer d, p. 16-17, moderate
12. Nokia may be surprised to realize that Apple has become its competitor because of their
introduction of the iPhone. This is an example of:
a. market uncertainty.
b. competitive volatility.
c. technological uncertainty.
d. unit one cost.
e. network externalities.
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