MKTG 336 Exam 2 - FLASHCARDS - Chapter 8

Question 1

What type of strategic behavior is based on a firm’s knowledge and resources that are the sources of the firm’s innovation?

Answer 1

Autonomous strategic behavior

Question 2

What type of strategic behavior is a top-down process whereby the firm’s current strategy and structure foster product innovations?

Answer 2

Induced strategic behavior

Question 3

With what type of strategic behavior are a firm’s technological capabilities and competencies its basis for new products and processes?

Answer 3

Autonomous strategic behavior

Question 4

With what type of strategic behavior is the strategy in place filtered through a matching structural hierarchy?

Answer 4

Induced strategic behavior

Question 5

What type of strategic behavior takes place in relationship to its familiar external environment?

Answer 5

Induced strategic behavior

Question 6

What type of strategic behavior is employed by large resource-rich companies?

Answer 6

Autonomous strategic behavior

Question 7

What type of strategic behavior is conceptually equivalent to entrepreneurial activity?

Answer 7

Autonomous strategic behavior

Question 8

What type of strategic behavior introduces new categories of opportunity into the firm’s planning process?

Answer 8

Autonomous strategic behavior

Question 9

What is an organization member who creates, defines, or adopts an idea for an innovation?

Answer 9

Product champion

Question 10

Who is willing to assume significant risk to successfully implement the innovation?

Answer 10

Product champion

Question 11

What type of innovation is the usual case for innovation in organizations?

Answer 11

Incremental innovation

Question 12

What type of innovation is rare because of difficulty and risk?

Answer 12

Novel innovation

Question 13

What type of innovation provides small increments in current product lines?

Answer 13

Incremental innovation

Question 14

What type of innovation improves existing knowledge and processes?

Answer 14

Incremental innovation

Question 15

What type of innovation creates new knowledge and processes?

Answer 15

Novel innovation

Question 16

What type of innovation can create value?

Answer 16

Both incremental and novel innovation

Question 17

How are roles defined in induced strategic behavior?

Answer 17

Roles and responsibilities for participants in the strategy formulation process are well defined

Question 18

How are roles defined in autonomous strategic behavior?

Answer 18

Roles and responsibilities of participants are poorly defined in the initial phases but become more formalized as the strategy formulation process evolves

Question 19

True or false: Availability of rewards encourage a manager’s participation in entrepreneurial activity?

Answer 19

TRUE

Question 20

True or false: Resource availability provides entrepreneurs with some degree of freedom to explore new possibilities?

Answer 20

TRUE

Question 21

What is intrinsic motivation?

Answer 21

Drive originating within oneself

Question 22

What type of development project centers on incremental product enhancements and process improvements, or incremental changes on both dimensions?

Answer 22

Derivative projects

Question 23

What type of development project creates the design and components shared by a set of products?

Answer 23

Platform projects

Question 24

What type of development project establishes new core products and new core processes?

Answer 24

Breakthrough projects

Question 25

What creates knowledge concerning new materials and technologies?

Answer 25

Research and development

Question 26

What are products that share a common platform but have different specific features and enhancements required for different sets of consumers?

Answer 26

Product families

Question 27

Product families may be formed by expanding on what?

Answer 27

Technical skills Market knowledge Manufacturing competencies

Question 28

What type of innovation targets demanding, high-end customers with better performance?

Answer 28

Sustaining innovation

Question 29

What type of innovation represents a product or service that is not as good as currently available alternatives?

Answer 29

Disruptive innovation

Question 30

What occurs once innovation passes the tests that apply to low-end or new-market disruptions?

Answer 30

Disruptive Innovation Litmus Test

Question 31

True or false: innovation winners have the skill to innovate continually to keep firm’s offerings aligned with the market?

Answer 31

TRUE

Question 32

True or false: innovation winners have the ability to cope with change in a high-velocity industry?

Answer 32

TRUE

Question 33

True or false: innovation winners are responsive by being on schedule, on time to the market, and on target in addressing customers?

Answer 33

TRUE

Question 34

What is the design and execution of actions that approach convergence with each other in time?

Answer 34

Improvisation

Question 35

What are elements of a successful new development process?

Answer 35

1. Emphasis on upfront market and technical assessments 2. Presentation of complete descriptions of the product concept, product benefits, positioning, and target markets 3. Inclusion of tough project go/kill decision points 4. Flexibility of new product process

Question 36

What centers on development efforts on clearly defined arenas to direct the new product program?

Answer 36

New product strategy

Question 37

What is it called when a new product strategist develops detailed scenarios that provide a guide for countering different competitive responses?

Answer 37

Competitor orientation

Question 38

When might competitors react?

Answer 38

1. New product represents a major threat to their market 2. Market is experiencing a high rate of growth 3. Extensive marketing communications by the innovating firm enhance the visibility of the new product

Question 39

What is a small number of highly influential buying organizations that are consistent early adopters of new technologies?

Answer 39

Lead user

Question 40

True or false: lead users face general needs in the marketplace, but they confront these needs well ahead of most of that marketplace encounters them?

Answer 40

TRUE

Question 41

What give customers an array of features that can be configured to create their own customized products?

Answer 41

Innovative toolkits

Question 42

What is aggregating a number of diverse contributions from consumers into a value-creating whole?

Answer 42

Crowdsourcing

Question 43

What is the fit between the needs of the project and the firm’s resources and skills in marketing?

Answer 43

Marketing synergy

Question 44

What are perceptions of product superiority with respect to quality, cost–performance ratio, or function relative to competitors?

Answer 44

Product advantage

Question 45

What is the fit between the needs of the project and the firm’s R&D resources and competencies?

Answer 45

Technical synergy

Question 46

What provides the foundation for a successful product?

Answer 46

Predevelopment proficiency

Question 47

What does predevelopment proficiency include?

Answer 47

Initial screening Preliminary market and technical assessment Detailed market research study Preliminary business/financial analysis

Question 48

What does market knowledge include a solid understanding of?

Answer 48

Customer’s needs, wants, and preferences Customer’s buying behavior and price sensitivity Size and trends of the market Competitive situation

Question 49

What is having a strong base of knowledge about the technical aspects of a potential new product?

Answer 49

Technical proficiency

Question 50

What views product development as a predictable series of steps that can be compressed?

Answer 50

Compression strategy