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1. Indirect network externalities exist if product sales are dependent on the number of
people that have adopted it.
2. Preannouncement of an upcoming product can be used to block a competitive entry.
3. The conditions during the beachhead phase of a launch cycle are highly conducive to
good management.
4. In a product launch setting, beachhead refers to the heavy expenditures necessary to
overcome sales inertia.
5. The launch cycle of a new product typically begins with the beachhead phase.
6. When a new product launch involves a defensive addition, the appropriate tactics include
a broad product assortment, a new brand name and distribution channels, and a higher price.
7. Service firms and direct-selling manufacturers usually have a very complex
communications task because they involve a host of resellers.
8. A customer-based sales organization requires more of the hard-sell pushing that
product-based sales forces can provide.
9. In most cases, repeat purchase is the last step toward adoption of a new product.
10. The trial phase in the adoption of new products is the stumbling point for most products
that fail; and it is the cause of winning products not winning a great deal more.
11. A key requirement for a new product trial is that it must have some cost associated with
it for the firm.
12. For products with low relative advantage and low compatibility with buyers' experiences,
promotion should aid in risk reduction by offering money-back guarantees, warranties, or tie-ins
to existing products.
13. Selective distribution is typically used for products with low relative advantage and low
compatibility with buyers' experiences.
14. Skim is a very low price, intended to stay that way, with no clear product differentiation.
15. In a penetration price strategy, the price of a product is clearly low and is designed to buy
one's way into the market.
16. A launch cycle is an expansion of the _____ of the product life cycle into substages.
17. Training of sales and other promotional people, building service capability, putting out
preannouncements if they are in order, and arranging for stocking of a new product at the reseller
level takes place during the _____ of a launch cycle.
18. Five Works Inc. preannounces the release of its computer software, but the product is
never launched in the market. This is an example of _____.
19. Before the commercialization of a new product, the sales force of Seriv Corporation plans
to give its suppliers a hint that a new product or an advanced version of an existing product is
going to be launched by the end of the year. The firm's action can be seen as an example of
_____.
20. If product sales are dependent on sales of complementary products, _____ exists.
21. Direct network externalities exist if product sales are dependent on:
22. How is preannouncement of a new product related to the competitiveness of an
industry?
23. When a firm plans to launch an innovative new product, the launch strategies and tactics
would include:
24. Firms attempting to increase penetration in existing markets are most likely to be
emphasizing:
25. In the context of a lean launch, which of the following best describes time
postponement?
26. In terms of launch tactics, pharmaceutical firms are most likely to put the bulk of their
money into:
27. _____ is the term most widely used to cover all of the information and attitude effort put
into changing end-user perceptions.
28. A(n) _____ conveys information about the targeted market segment, product positioning
strategy, and communications mix among many other points to an advertising person.
