MANAGEMENT TLI 315 - Chapter 3. Questions and Answers

MANAGEMENT TLI 315 - Chapter 3. Questions and Answers 1. The group of people who lead the development of a new product act as "a company within a company." True False 2. Due to rapid market turbulence and the number of product varieties demanded by customers, many firms find that it is efficient to develop a single consistent product. True False 3. Platforms are not a possibility in service industries as they are for manufactured goods. True False 4. The value of an established brand is called its brand equity. True False 5. Most marketing effort today is conducted at individual product platform levels. True False 6. An example of an internal mandate of a firm is the introduction of new regulatory restrictions from regulatory bodies. True False 7. In the research conducted by Social Technologies, it was found that the more people become accustomed to virtual spaces, the boundary between these and the real world will become increasingly pronounced. True False 8. The product innovation charter can be thought of as a kind of mission statement, but applied at a more micro level within the firm. True False 9. The core competencies of a firm are an excellent place to start the search for charter arena definitions. True False 10. Letting customers' stated wants drive product innovation is most likely to fail when in a market with enormous unmet needs and very slow-reacting competitors. True False 11. Mass customization is an activity where all customers of a product are offered products of their individual choices. True False 12. A variation on market drivers is the "distributor" when a producer develops new products to meet the needs of, or capitalize on the franchise of, resellers. True False 13. According to the definition of goals in the Product Innovation Charter (PIC), goals are short-term, specific measures of progress/accomplishment. True False 14. The quick second entry option is the last timing alternative and is usually a price entry keyed to manufacturing skills. True False 15. According to the product-portfolio proposed by the Strategic Decision Group (SDG), white elephants represent projects with high expected commercial value. True False 16. With reference to product development, a _____ is defined as a set of systems and interfaces that form a common structure. A. product portfolio B. product platform C. product module D. product pool 17. The term "platform" was initially associated with the _____ industry. A. packaged food B. consumer electronic C. automobiles D. computer 18. Reinforay, an aircraft manufacturer, makes passenger, cargo, short-haul, and long-haul aircraft from the same design, with many shared components. Reinforay is using a _____. A. product platform B. brand platform C. channel platform D. category platform 19. Which of the following best describes the process of modularization? A. It involves identifying similar platforms that share similar features. B. It involves pooling in several functional areas into a single unit. C. It involves decomposing complex systems into subsystems. D. It involves generating complex systems from simpler systems. 20. Which of the following is true of product planning? A. If customers differ in their preferences, firms will often resort to a platform strategy. B . Firms that take a domestic approach to new products, on average, do better than those that develop products for multinational markets. C. If customer needs are very different; one way is to sell a global product that does not scale economies. D. Firms adopt a "global" strategy to use several platforms to provide a single product across multinational markets. 21. Ace Corporation, a software development firm, used a standard set of subcomponents for all its multimedia products. Ace is using a _____. A. brand platform B. category platform C. channel platform D. product platform 22. In an attempt to allow for more sharing of components, Designethic, redesigns its power tool groups into specific product families, allowing for more sharing of components. This best exemplifies a _____. A. multiple platform procedure B. bottom-up platform system C. global product platform D. mindshare platform procedure 23. A platform procedure that uses top-down mechanisms is intended to: A. allow for less sharing of components within a platform. B. become the basis for a family of products, possibly for years into the future. C. generally increase the cost of the products as and when demand increases. D. consolidate components within an existing family of products to gain scale economies.