51) What is one of the extraneous variables that affects the rate of diffusion of an object?
A) the absolute marginal value of the innovation relative to the old
B) the actual attributes of the innovation
C) the climatic conditions in which the market is located
D) the method used to communicate the idea
E) the degree of actual novelty of the innovation
52) Phineas is comparing the innovation characteristics of his company’s water filters with those
that are already being marketed in the local market. He believes there is lot of potential for his
filters as they are functionally more advanced, have a longer life, and can also be marketed at a
more competitive price than those of other sellers in the local market. The innovation
characteristic of Phineas’s product that will help in wide acceptance of his product in the local
market is its
A) compatibility.
B) complexity.
C) trialability.
D) relative advantage
E) observability.
53) In terms of innovation characteristics, a product is said to be compatible if
A) it provides greater value to the manufacturers than to the consumers.
B) the degree of social repercussions associated with it is high.
C) its benefits can be communicated easily.
D) it has a higher degree of complexity compared with its counterparts’.
E) it complies with the accepted behavior, values, and norms of the local market.
54) Karyn, who is interested in marketing her company’s diet products in Asia, studies the
acceptable behavior, norms, and values in Asian markets as they relate to her product. In other
words, Karyn is studying her product’s ________ in the Asian markets.
A) observability
B) compatibility
C) dissidence
D) trialability
E) complexity
55) A company focusing its efforts on making its new innovation more user-friendly than before
is working on the _______ of the product.
A) compatibility
B) trialability
C) complexity
D) discordancy
E) observability
56) Maya was happy that she did not have to read the instruction manual to determine how to
turn on her new camera, snap a digital picture, and export the picture to her computer. The signs
(symbols) on the camera body made it very clear what she was to do to achieve digital
photography success. What characteristic of Maya’s “new product” makes it easy for her to begin
her digital experience?
A) high partibility
B) low susceptibility
C) low complexity
D) high trialability
E) low compatibility
57) An American company wants to launch a new product in Madrid. Freda asks her product
manager to distribute some samples to potential customers there so that she can gauge the
consumer preferences there before introducing the product. Freda is attempting to reduce the
degree of economic and/or social risk, also known as ________, associated with product use.
A) compatibility
B) relative advantage
C) complexity
D) trialability
E) observability
58) A product’s ________ refers to the ease with which its benefits can be communicated to the
customers.
A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
59) AllClean develops promotional materials and product demonstrations to clearly and easily
communicate the benefits of its cleaning products. In this scenario, AllClean is attempting to
enhance the ________ of its products.
A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability
60) In general, the rate of acceptance or resistance of the market to a product is negatively related
to
A) relative advantage.
B) compatibility.
C) trialability.
D) complexity.
E) observability.
61) What factor is mainly responsible for a perceptual bias when interpreting the characteristics
of a product?
A) too much product information
B) a shorter distribution channel
C) a market analyst’s self-reference criterion
D) a low number of product competitors
E) authoritative product information of the market analyst
62) The success achieved by firms when they take their inventions to market is referred to as
A) conversion-ability.
B) liquidation.
C) formation-ability.
D) homologation.
E) consultation.
63) The product platform, design features, and functional features are all found in the ________
component of the physical product according to the Product Component Model.
A) core
B) support
C) packaging
D) supplementary
E) auxiliary
64) Sarj, a specialist in product design, is responsible for a product’s functional design. With
respect to the Product Component Model, in which component category would Sarj’s talents
most likely be used?
A) core
B) support services
C) packaging
D) invisible
E) auxiliary
65) If a company wished to alter a product’s platform so that the product could be manufactured
in a variety of forms to meet local differences in five different foreign markets, the component of
the Product Component Model that is most likely to be under consideration is
A) support services.
B) packaging.
C) delivery.
D) ancillary.
E) core.
66) Appliances-a-Rama, an Indian company that manufactures kitchen appliances, alters the
design of its ranges to suit the needs of its Japanese consumers. The Japanese prefer compact and
efficient appliances to fit their small kitchens. According to the Product Component Model,
which product component is being addressed?
A) packaging
B) invisible
C) core
D) ancillary
E) support services
67) When a company alters the price of its product to compete with local companies in the
international market, it is focusing on the ________ component of the product, according to the
Product Component Model.
A) core
B) support
C) design
D) maintenance
E) packaging
68) A Canadian computer company had difficulties when it first entered the Japanese market.
Some of its computers were returned unused after customers found the wrapping on the
instruction manual damaged. Though this would probably be an insignificant problem in Canada,
it was certainly a cause of concern in quality-conscious Japan. Which component of the Product
Component Model should the company concentrate on to fix this problem?
A) core
B) support services
C) packaging
D) functional
E) design
69) A Brazilian food company had to change the labeling on its products to meet the
specifications regarding vegetarian and nonvegetarian foods set by the government in the Taiwan
market. It also had to mention the ingredients in Taiwanese to provide clarity to local customers.
The component of the product that is affected is the ________ component.
A) support services
B) packaging
C) functional
D) design
E) core
70) Eugene bought a new watch in January, and by March it stopped keeping time accurately.
The warranty was still valid, so he sent it back to the manufacturer for repair. According to the
Product Component Model, this demonstrates the ________ component of the product.
A) core
B) support services
C) packaging
D) functional
E) styling
71) Since the consumer is automatically angry with the manufacturer when something goes
wrong with the vehicle, repair and maintenance has become a concern of the various automobile
manufacturers. In which component of the Product Component Model would the management
need to make improvements if problems such as this are to be solved?
A) core
B) functional
C) packaging
D) support services
E) price
72) A South Korean electronics company had to add detailed instructions about the repair and
replacement of its product to make it easier for the local consumers to maintain it. Which
element of the Product Component Model relates to this issue?
A) support services
B) design
C) core
D) packaging
E) functional
73) The washing machines marketed by Talcho failed in Asian markets as those countries lacked
the skills necessary to repair and maintain Talcho’s products. Also, the washing machine parts
available in local markets were not compatible with these machines. This product failure is most
likely to be a result of lack of attention by the company to the ________ component of the
product.
A) marketing
B) price
C) packaging
D) support services
E) style
74) Dry cleaning, hair styling, and hotel accommodations have intrinsic value resulting from a
process, a performance, or an occurrence that only exists while it is being created. Which
characteristic of services is being referred to here?
A) intangibility
B) separability
C) liquidity
D) homogeneity
E) durability