Q&A Hero

Q: A form of electronic transaction formats that facilitate delivery of added value is the _______ in which one firm posts an offering and other parties submit bids. a. community b. catalog c. electronic auction d. exchange

Q: With a _______ format, a firm posts detailed information about the company and its market offerings. In more advanced systems, customer firms have access to pricing information, use an "electronic shopping cart" to select items for purchase, configure more complex offerings, and are able to order products or services 24 hours a day, 7 days a week (24 _ 7). a. community b. catalog c. electronic auction d. exchange

Q: A form of electronic transaction formats that facilitate delivery of added value is the _______ which is a hosted, though unmoderated, cyber forum where users exchange information about a particular product or service, technology, or industry. a. community b. catalog c. electronic auction d. exchange

Q: In the case of indirect channels, coverage entails a choice of a _______: exclusive, where a supplier authorizes one reseller per trade area; selective, where it authorizes a limited number of resellers per trade area; or intensive, where it essentially authorizes all resellers that want to carry its line. a. exposure b. coverage c. distribution intensity strategy d. total customer experience

Q: The number of resellers authorized or direct sales persons assigned per geographic trade area is _______. By adjusting this factor, the supplier makes it more convenient for the customer to purchase an offering. a. exposure b. coverage c. distribution intensity strategy d. total customer experience

Q: The degree to which targeted customer firms are actually reached and served by the appropriate kind and number of channels is _______. A further demand is that managers match customer requirements and preferences with the capabilities of alternate channels. a. exposure b. coverage c. distribution intensity strategy d. total customer experience

Q: The goal of _______ captures the total expenditures required to deliver the intended total customer experience to targeted segments and customers. Perhaps the principal reason that supplier firms turn to indirect channels is the desire to dramatically reduce distribution costs. a. market access b. value-added c. cost-to-serve d. total customer experience

Q: The goal of _______ in the context of business channels entails the augmenting products and services channel partners contribute to the supplier firm's market offering. a. market access b. value-added c. cost-to-serve d. total customer experience

Q: The goal of _____ refers to the extent to which business channels enable a supplier firm to reach, develop, and serve targeted segments and customer firms. Ideally, supplier firms seek channels that provide coverage and exposure to as many profitable customers as possible. a. market access b. value-added c. cost-to-serve d. total customer experience

Q: The _______ enables customers to purchase a wide-variety of complementary products and services from a single source. a. efficient, low-cost transactional experience b. high-touch, consultative experience c. flexible, multi-access-point experience d. one-stop shopping experience

Q: The _______ allows the customer the ability to choose to purchase a supplier's offering intact or piecemeal from several integrated or stand-alone channels on a transaction-by-transaction basis. a. efficient, low-cost transactional experience b. high-touch, consultative experience c. flexible, multi-access-point experience d. one-stop shopping experience

Q: The _______ furnishes extensive consultation and advice, customization of offerings, frequent face-to-face encounters with supplier personnel, and a complete range of value-added services. a. efficient, low-cost transactional experience b. high-touch, consultative experience c. flexible, multi-access-point experience d. one-stop shopping experience

Q: The _______ provides inexpensive, convenient, self-service exchange relationships with minimal value-added service, often through Internet Web sites or other direct marketing media. a. efficient, low-cost transactional experience b. high-touch, consultative experience c. flexible, multi-access-point experience d. one-stop shopping experience

Q: The _______ cover a wide range of pre-sale, point-of-sale, and post-sale services that are commonly offered as "for-fee options." As these customer requirements tend to be more tangible than preferences, managers assess their worth using the tools of customer value management. a. total customer experience (TCE) b. business channel management c. immediacy of fulfillment d. value-added services

Q: Among the five essential customer requirements that encompass _______ are the breadth and depth of products and services in a supplier's market offering, the availability of those products and services at supplier warehouses and/or showrooms, timing and reliability of delivery, installation, and payment terms and conditions. a. total customer experience (TCE) b. business channel management c. immediacy of fulfillment d. value-added management

Q: The _______ entails all aspects of a customer firm's encounter with a supplier firm. Ideally, the TCE should be a positive, seamless, and memorable interaction that matches the customer firm's purchasing requirements and preferences. a. total customer experience (TCE) b. business channel management c. fulfillment management d. value-added management

Q: The process of designing a set of marketing and distribution arrangements that create superior customer value for targeted market segments and customers, and executing those arrangements directly through supplier firm sales forces and logistics systems or indirectly through resellers and third-party service providers. a. marketing channel b. business channel management c. fulfillment management d. value-added management

Q: A set of interdependent organizations involved in the process of making a product or service available for use or consumption is _______. a. marketing channel b. business channel management c. fulfillment management d. value-added management

Q: Explain lead-user customers.

Q: How can positioning statements aid in focusing a project team throughout the realization process?

Q: Explain briefly the Wheelwright and Clark general realization process model discussed in the text,

Q: Explain breakthrough projects.

Q: Explain derivative projects.

Q: A volume discount is a pricing tactic that is an invoice reduction used to encourage prospective customers to try an offering that is new to them. The offering's actual price is listed on the invoice, then reduced by the incentive to change, with the notation "initial use discount."

Q: Wheelwright and Clark provide a model which emphasizes cross-functional integration and provides the primary activities of engineering, marketing, and manufacturing for each development phase.

Q: A firm can use alpha testing, where individuals within the firm simulate the target customer's use of a nearly realized product. After making any necessary adjustments or refinements, the firm proceeds with beta testing, where the firm provides select customers with the new offering and gains feedback on it from the customers' experiences.

Q: Prototypes are a research tool that allows selected customers to experience in a rough form the functionality or performance of a new offering and give feedback to the project team.

Q: Sequential engineering is where firms work on the process for making a product while they are still in the process of designing it.

Q: The _______ are current or prospective customers who are experiencing problems or needs that will become widespread in the market in the foreseeable future. They would derive significant value immediately from an innovative solution. a. lead-users b. leap-froggers c. alpha-testers d. prototypes

Q: Cooper has proposed a next-generation product development process that is different from stage-gate models of the realization process because of ________. that is, it features conditional Go decisions (rather than absolute ones), which are dependent on the situation. a. fluidity b. fuzzy gates c. focused d. flexible

Q: Cooper has proposed a next-generation product development process that is different from stage-gate models of the realization process because of ________. that is, it is fluid and adaptable, with overlapping and fluid stages for greater speed. a. fluidity b. fuzzy gates c. focused d. flexible

Q: _______ are those done in conjunction with one or more outside firms. a. Alliances and partnership projects b. Derivative projects c. Breakthrough projects d. Platform projects

Q: _______ aim at inventing new science or capturing new know-how so that required knowledge will be available for application in specific development projects. a. Alliances and partnership projects b. Research and advanced development projects c. Breakthrough projects d. Platform projects

Q: _______ represent the natural starting point for the core product part of flexible market offerings. They are the naked solution for the product component for the target market segments and customers. a. Aggregate project plans b. Derivative projects c. Breakthrough projects d. Platform projects

Q: _______ are initiatives that realize small advances in the firm's current offerings or production processes, such as making cost reductions in existing products, providing product line extensions by adding or subtracting secondary features, and devising incremental improvements for an existing production process. a. Aggregate project plans b. Derivative projects c. Breakthrough projects d. Platform projects

Q: _______ generate new core products and processes that are fundamentally different from previous generations. a. Aggregate project plans b. Derivative projects c. Breakthrough projects d. Platform projects

Q: _______ is a mechanism to ensure that the collective set of projects will accomplish the development goals and objectives and build the organizational capabilities needed for ongoing development success. a. Aggregate project plan b. Derivative project c. Breakthrough project d. Platform project

Q: _______ is when a new offering takes a portion of its sales from an existing offering of the firm. a. Cannibalization b. Newness map c. Newness of project d. Newness of market

Q: The key objective in managing individual development projects, _______, consists of all the one-time development costs a specific project incurs development speed. a. development speed b. product cost c. product performance d. development program expense

Q: The key objective in managing individual development projects, _______, is how well the product meets the requirements and preferences that target customers have specified development speed. a. development speed b. product cost c. product performance d. development program expense

Q: The key objective in managing individual development projects, _______, is the total cost of the product to the supplier, including all costs it incurs in marketing, sales, and support services (which are part of the purchase price customers pay). a. development speed b. product cost c. product performance d. development program expense

Q: The key objective in managing individual development projects, _______, is the time between the first instant someone could have started working on a development program and the instant the final product was available to the customer. a. development speed b. product cost c. product performance d. development program expense

Q: The firm's _______ refers to the time it takes to complete a development cycle. a. speed-to-market b. market strategy c. learning d. efficiency

Q: The firm's _______ concerns getting the most out of available resources. a. technology strategy b. market strategy c. learning d. efficiency

Q: The firm's _______ refers to gains in design and process knowledge and know-how and is paramount for organizational enhancement and renewal to occur. a. technology strategy b. market strategy c. learning d. project strategy

Q: The firm's _______, defines the target market segments and customers and a course of action that the firm will pursue to deliver superior value to them. a. technology strategy b. market strategy c. learning strategy d. project strategy

Q: The firm's _______ defines what knowledge and know-how resources the firm requires, how it will attain them, and how they will translate into market advantages for the firm. a. technology strategy b. market strategy c. learning strategy d. project strategy

Q: ________ is the process of developing new core products or services, augmenting them to construct market offerings, and bringing them to market. a. New offering realization b. Market-oriented development c. Aggregate project planning d. Incentive to change

Q: Identify and describe the 'AAA Triangle' where the three A's stand for three distinct types of global strategy.

Q: When formulating flexible market offerings for each market segment, business market managers can choose from three strategic alternatives for each service element. Identify the three strategic alternatives.

Q: Explain the three key capabilities of mass-customization.

Q: Briefly explain residual variation in the product and service requirements of a market segment.

Q: Contrast the two views about thinking of the core product as a tangible item or a service, as discussed in the text.

Q: Because business markets are predominately about aesthetics and taste, they are inherently more global in nature than consumer markets, which are predominately about functionality and performance.

Q: A skimming pricing strategy, is used when the firm intends to make its overall profits through selling fewer units at a higher profit per unit.

Q: A brand is a shorthand descriptor of the promised value that a market offering delivers to targeted customers and a means of differentiating this value from that of other market offerings.

Q: Flexible market offerings are composed of a few well-chosen naked solutions, each of which is wrapped with well-chosen options, where the supplier makes these choices prior to offering them to customers.

Q: The core product must be a concrete, palpable "thing" not a service.

Q: The difference between value of the product and price of the product represents the _______. In business markets, the value provided will likely exceed the price or else the customer will be indifferent. a. cost-plus pricing b. competition-based pricing c. value-based pricing d. customer incentive to purchase

Q: In _______, price should be set in relation to a market offering's value. a. cost-plus pricing b. competition-based pricing c. value-based pricing d. skimming pricing

Q: With _______, supplier managers simply set their price in relation to what the competitors' prices are. The price may be set exactly the same as the predominant competitors, signaling commodity, or it may be slightly higher or lower because of perceived minor reputation, quality, or service differences. a. cost-plus pricing b. competition-based pricing c. value-based pricing d. skimming pricing

Q: In _______, based upon knowledge of their own costs, supplier managers add some percentage onto those costs to arrive at the market offering price. a. cost-plus pricing b. competition-based pricing c. value-based pricing d. skimming pricing

Q: Offerings that enable customers to tailor the offering to their own requirements and preferences to a greater degree are considered _______. a. naked solutions b. flexible market c. mass customization d. options

Q: The idea of ________ is the capability to offer individually specified products or services on a large scale. a. naked solutions b. residual variation c. mass customization d. options

Q: The bare minimum of products and services that all segment members uniformly value are wrapped in _______ that some, but not all, segment members value and are offered separately for those segment members that do value them. a. naked solutions b. residual variation c. mass customization d. options

Q: Firms construct _______ for each market segmentthe bare minimum of products and services that all segment members uniformly value. a. naked solutions b. residual variation c. mass customization d. options

Q: 'Because of their greater dependence on the provider, services have the potential for high variance in their performance' describes the _______ characteristic of services. a. intangibility b. inseparability of production and consumption c. perishability d. heterogeneity

Q: 'Services cannot be saved or stored for later use' describes the _______ characteristic of services. a. intangibility b. inseparability of production and consumption c. perishability d. heterogeneity

Q: 'Services are consumed as they are produced' describes the _______ characteristic of services. a. intangibility b. inseparability of production and consumption c. perishability d. heterogeneity

Q: 'Services can"t be touched but rather are experienced' describes the _______ characteristic of services. a. intangibility b. inseparability of production and consumption c. perishability d. heterogeneity

Q: As products mature and customers gain experience with them, there appears to be a routine narrowing of perceived differences among offerings in customers' minds and a corresponding unwillingness to pay anything different for them. In other words, the offerings over time tend to become undifferentiated in the minds of customers, with price becoming the sole basis for deciding among them. This is the definition of a _______. a. commodity b. minimally augmented product c. core product d. potential product

Q: Information & design assistance intranet and asset management are systems of a(n) _______. a. brand b. minimally augmented product c. core product d. augmented product

Q: Deals, terms, conditions, and allowances are economic programs of a(n) _______. a. brand b. minimally augmented product c. core product d. augmented product

Q: Specification, problem-solving, and trouble-shooting are technical services of a(n) _______. a. brand b. minimally augmented product c. core product d. augmented product

Q: The _______ goes beyond the augmented product to encompass any imaginable product change or service, program, or system a supplier might create to add value or reduce cost in ways that set itself apart from others. a. brand b. minimally augmented product c. core product d. potential product

Q: The _______ adds to the core product the those services, programs, and systems a supplier offers to meet a broader set of customer requirements and preferences, or to exceed the customer's expectations in ways that add value or reduce cost for the customer of any supplier. a. brand b. minimally augmented product c. augmented product d. potential product

Q: The _______ adds to the core product the least amount or number of services, programs, or systems that customers consider absolutely essential for doing business with any supplier. a. brand b. minimally augmented product c. augmented product d. potential product

Q: The _______ is simply the fundamental, functional performance a generic product provides that solves a customer's basic problem. a. core product b. minimally augmented product c. augmented product d. potential product

Q: Identify the five guidelines for business markets that apply to brand-building initiatives which are discussed in the text.

Q: Identify and describe the differences among the three value propositions discussed in the text.