Podcast
Questions and Answers
The dominant choice attribute for a consumer in buying convenience item is:
The dominant choice attribute for a consumer in buying convenience item is:
Cannibalization refers to a situation when:
Cannibalization refers to a situation when:
In the introduction stage of the product life cycle, the major concern for the organization is:
In the introduction stage of the product life cycle, the major concern for the organization is:
In a skimming price strategy, the organization tends to:
In a skimming price strategy, the organization tends to:
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One of the key advantages of a skimming strategy for services is that:
One of the key advantages of a skimming strategy for services is that:
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The major disadvantage of a skimming strategy is that it:
The major disadvantage of a skimming strategy is that it:
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To implement a penetration strategy, an organization must have a good understanding of:
To implement a penetration strategy, an organization must have a good understanding of:
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Generating primary demand is the major objective in which stage of the product life cycle?
Generating primary demand is the major objective in which stage of the product life cycle?
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A manufacturer of proton beam therapy publishes a magazine showing articles and stories of patients whose diseases have been treated with great results using this technology. This is an example of a strategy to create:
A manufacturer of proton beam therapy publishes a magazine showing articles and stories of patients whose diseases have been treated with great results using this technology. This is an example of a strategy to create:
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When competitors enter the market, the organization should recognize that it has entered which stage of the product life cycle?
When competitors enter the market, the organization should recognize that it has entered which stage of the product life cycle?
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Intuitive Surgical has entered the market with a robotics surgical device. Because it is in the growth stage of the life cycle, it has decided to:
Intuitive Surgical has entered the market with a robotics surgical device. Because it is in the growth stage of the life cycle, it has decided to:
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The first proton beam therapy center has now closed, and in some markets two competing centers have decided to merge. These trends indicate that the market for such facilities has entered which stage of the product life cycle?
The first proton beam therapy center has now closed, and in some markets two competing centers have decided to merge. These trends indicate that the market for such facilities has entered which stage of the product life cycle?
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Generating selective demand is the key promotional objective of which stage of the product life cycle?
Generating selective demand is the key promotional objective of which stage of the product life cycle?
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In the growth stage of the life cycle, the focus on the middleman becomes one of:
In the growth stage of the life cycle, the focus on the middleman becomes one of:
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In the early phase of the mature life cycle, growth in sales/revenues continues to occur due to:
In the early phase of the mature life cycle, growth in sales/revenues continues to occur due to:
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In the mature stage of the product life cycle, a key objective becomes one of:
In the mature stage of the product life cycle, a key objective becomes one of:
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Developing new product or service lines to reposition the organization to enjoy future revenue streams should occur during which stage of the product life cycle?
Developing new product or service lines to reposition the organization to enjoy future revenue streams should occur during which stage of the product life cycle?
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Aggressive price discounting is most common during which stage of the product life cycle?
Aggressive price discounting is most common during which stage of the product life cycle?
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In the decline stage of the product life cycle, many organizations struggle with dropping an unprofitable service or product because:
In the decline stage of the product life cycle, many organizations struggle with dropping an unprofitable service or product because:
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In the life cycle of a high-learning product, the key strategic challenge is to:
In the life cycle of a high-learning product, the key strategic challenge is to:
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Competition enters rapidly in a ______ product life cycle.
Competition enters rapidly in a ______ product life cycle.
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Which product life cycle has only two stages: introduction and decline?
Which product life cycle has only two stages: introduction and decline?
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In health care, a major factor that affects life cycles is:
In health care, a major factor that affects life cycles is:
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Hospital-based sleep centers and many outpatient sleep centers were dramatically affected by externalities in the environment. The result was that many outpatient centers closed. What two factors affected the changes in these institutions' life cycles?
Hospital-based sleep centers and many outpatient sleep centers were dramatically affected by externalities in the environment. The result was that many outpatient centers closed. What two factors affected the changes in these institutions' life cycles?
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A major criticism of the product life cycle concept has been that:
A major criticism of the product life cycle concept has been that:
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In recent years, the greatest change in hospital revenues has been the increase occurring in revenue from:
In recent years, the greatest change in hospital revenues has been the increase occurring in revenue from:
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Which of the following is not a way to stretch the product life cycle?
Which of the following is not a way to stretch the product life cycle?
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When it is touted to “brush after every meal,” this is an example of:
When it is touted to “brush after every meal,” this is an example of:
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Off-label use of a pharmaceutical product is an example of:
Off-label use of a pharmaceutical product is an example of:
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In terms of off-label use, Food and Drug Administration regulations:
In terms of off-label use, Food and Drug Administration regulations:
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The Louisiana Heart Hospital focuses only on the care of heart-related diseases. This is an example of a:
The Louisiana Heart Hospital focuses only on the care of heart-related diseases. This is an example of a:
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Focusing on a very narrow segment of the market is a definition of a:
Focusing on a very narrow segment of the market is a definition of a:
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In order for a brand or service mark to have legal protection, it must have which of the following?
In order for a brand or service mark to have legal protection, it must have which of the following?
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Brand equity is the:
Brand equity is the:
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Which of the following is not one of the many advantages that have been cited of having a strong brand?
Which of the following is not one of the many advantages that have been cited of having a strong brand?
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In following a house of brands strategy, it is of paramount importance to ensure that:
In following a house of brands strategy, it is of paramount importance to ensure that:
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The principal/agent notion is a central concept in health care because:
The principal/agent notion is a central concept in health care because:
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A multispecialty clinic has established a surgical center, a rehab group, and a durable medical equipment company. All of these entities are under the name of the multispecialty practice. This branding strategy would be considered:
A multispecialty clinic has established a surgical center, a rehab group, and a durable medical equipment company. All of these entities are under the name of the multispecialty practice. This branding strategy would be considered:
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A hospital has decided to acquire practices throughout its primary and secondary service area. As it acquires each practice, it allows each group to retain the name of the group. However, under the practice’s name, it places the name of the health system. This is an example of:
A hospital has decided to acquire practices throughout its primary and secondary service area. As it acquires each practice, it allows each group to retain the name of the group. However, under the practice’s name, it places the name of the health system. This is an example of:
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Using the same brand name across all the products or services in the organization's line is an example of which type of branding strategy?
Using the same brand name across all the products or services in the organization's line is an example of which type of branding strategy?
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A major tertiary center has decided to generate significant revenue by staffing the laboratories of smaller hospitals in the region on a contractual basis. The tertiary center has hired a large number of pathologists. However, as they place the pathologists in these local hospitals, there will be no identification with the major tertiary center. The pathologists and their support staff will wear the lab coats of the local facility. This approach is an example of which branding strategy?
A major tertiary center has decided to generate significant revenue by staffing the laboratories of smaller hospitals in the region on a contractual basis. The tertiary center has hired a large number of pathologists. However, as they place the pathologists in these local hospitals, there will be no identification with the major tertiary center. The pathologists and their support staff will wear the lab coats of the local facility. This approach is an example of which branding strategy?
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The diffusion of innovation refers to:
The diffusion of innovation refers to:
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The major difference between innovators, early adopters, early majority, late majority, and laggards is:
The major difference between innovators, early adopters, early majority, late majority, and laggards is:
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Which of the following is not a factor affecting adoption?
Which of the following is not a factor affecting adoption?
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Giving free samples to physicians as part of the diffusion of innovation is trying to affect which factor of adoption?
Giving free samples to physicians as part of the diffusion of innovation is trying to affect which factor of adoption?
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Adoption increases when the group of people considering the new technology is more similar. This is referred to as the dimension of:
Adoption increases when the group of people considering the new technology is more similar. This is referred to as the dimension of:
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A surgeon hesitates to use Google glasses in the operating room. What criterion does this demonstrate with regard to the adoption of new products?
A surgeon hesitates to use Google glasses in the operating room. What criterion does this demonstrate with regard to the adoption of new products?
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In the adoption of digital technology, two key barriers are:
In the adoption of digital technology, two key barriers are:
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The entire range of products or services offered by an organization is referred to as its product mix.
The entire range of products or services offered by an organization is referred to as its product mix.
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A hospital has a comprehensive cancer center that has surgery, interventional radiology, counseling, gynecological surgery, breast reconstructive surgery, and many other related aspects pertaining to the treatment of adult cancer. This would be referred to as its product line.
A hospital has a comprehensive cancer center that has surgery, interventional radiology, counseling, gynecological surgery, breast reconstructive surgery, and many other related aspects pertaining to the treatment of adult cancer. This would be referred to as its product line.
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Product lines tend to be less standardized.
Product lines tend to be less standardized.
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Specialty heart hospitals represent depth rather than breadth in terms of a product line perspective.
Specialty heart hospitals represent depth rather than breadth in terms of a product line perspective.
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Cross-subsidization of the business unit is when a company steals sales from itself.
Cross-subsidization of the business unit is when a company steals sales from itself.
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When a multispecialty group that has primary care satellites establishes a telemedicine division that provides primary care access, there is a risk of cannibalization.
When a multispecialty group that has primary care satellites establishes a telemedicine division that provides primary care access, there is a risk of cannibalization.
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The stage a product goes through from introduction to its final withdrawal is referred to as the product life cycle.
The stage a product goes through from introduction to its final withdrawal is referred to as the product life cycle.
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In the introduction stage, setting a high initial price is possible because buyers always want a new product and it encourages people to buy the item.
In the introduction stage, setting a high initial price is possible because buyers always want a new product and it encourages people to buy the item.
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A skimming strategy tends to encourage competitors to enter the market.
A skimming strategy tends to encourage competitors to enter the market.
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The less sure an organization is of demand relative to capacity, the more likely it is to use a penetration pricing approach in the introduction stage of the product life cycle.
The less sure an organization is of demand relative to capacity, the more likely it is to use a penetration pricing approach in the introduction stage of the product life cycle.
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Over the course of the product life cycle, prices for a product or service tend to stabilize as competition enters.
Over the course of the product life cycle, prices for a product or service tend to stabilize as competition enters.
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The focus of primary demand is to generate demand for an entire product class.
The focus of primary demand is to generate demand for an entire product class.
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A key goal in the introduction stage of the life cycle is to generate selective demand for the new product.
A key goal in the introduction stage of the life cycle is to generate selective demand for the new product.
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The key sign that a product has entered the growth stage of the life cycle is that a competitor has entered the market.
The key sign that a product has entered the growth stage of the life cycle is that a competitor has entered the market.
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Loyalty of the middleman in the channel of distribution must be obtained in the introduction stage of the life cycle before competitors enter the market.
Loyalty of the middleman in the channel of distribution must be obtained in the introduction stage of the life cycle before competitors enter the market.
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When no new competitors enter the market, this is a key sign that the product life cycle is now in the mature phase.
When no new competitors enter the market, this is a key sign that the product life cycle is now in the mature phase.
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The goal in the mature stage of the product life cycle is to retain customers through promotion.
The goal in the mature stage of the product life cycle is to retain customers through promotion.
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Many hospitals have begun to drop inpatient pediatric beds as a harvesting strategy, which indicates the decline stage of the life cycle of this service.
Many hospitals have begun to drop inpatient pediatric beds as a harvesting strategy, which indicates the decline stage of the life cycle of this service.
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Products that have a very protracted introductory period before reaching the growth phase are referred to as extended learning products.
Products that have a very protracted introductory period before reaching the growth phase are referred to as extended learning products.
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Google glasses for surgical use are most likely a case of a fad product.
Google glasses for surgical use are most likely a case of a fad product.
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Fads have three stages: introduction, quick acceptance, and demise.
Fads have three stages: introduction, quick acceptance, and demise.
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When a new product enters the market and consumers immediately see the benefit, such as with walk-in urgent care centers, and competitors then quickly enter, it is an considered a low- learning product or service.
When a new product enters the market and consumers immediately see the benefit, such as with walk-in urgent care centers, and competitors then quickly enter, it is an considered a low- learning product or service.
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A major externality that can affect the life cycle of any service in health care is reimbursement changes.
A major externality that can affect the life cycle of any service in health care is reimbursement changes.
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Services can move to the decline stage as a function of technological changes.
Services can move to the decline stage as a function of technological changes.
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The major advantage of the product life cycle concept is that there is a standard life cycle by which all strategies can be formulated and developed.
The major advantage of the product life cycle concept is that there is a standard life cycle by which all strategies can be formulated and developed.
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A hospital has decided to add more services to its health and wellness program. In this case it has undertaken a market modification program.
A hospital has decided to add more services to its health and wellness program. In this case it has undertaken a market modification program.
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When a company tries to create new uses for its product, it is undertaking a market modification program.
When a company tries to create new uses for its product, it is undertaking a market modification program.
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Off-label uses of pharmacological products are an example of market modification programs.
Off-label uses of pharmacological products are an example of market modification programs.
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In an undifferentiated positioning approach, a service is positioned to appeal to the broadest possible market.
In an undifferentiated positioning approach, a service is positioned to appeal to the broadest possible market.
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Shouldice Hospital in Canada did hernia repairs at its hospital and attracted patients from all of North America. This was an example of a mass market strategy.
Shouldice Hospital in Canada did hernia repairs at its hospital and attracted patients from all of North America. This was an example of a mass market strategy.
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MedCath Hospitals develops and establishes heart hospitals across the country. This approach is an example of a niche strategy.
MedCath Hospitals develops and establishes heart hospitals across the country. This approach is an example of a niche strategy.
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Multidimensional scaling provides a perceptual map of the actual competitive position of brands relative to each other in terms of consumer ratings that are stable over time.
Multidimensional scaling provides a perceptual map of the actual competitive position of brands relative to each other in terms of consumer ratings that are stable over time.
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The name under which a company does business is referred to as its trademark.
The name under which a company does business is referred to as its trademark.
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The value a brand gives a company through associations made by a consumer is referred to as its brand equity.
The value a brand gives a company through associations made by a consumer is referred to as its brand equity.
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A strong brand has been found to create a barrier to entry, but it has no relationship to customer satisfaction.
A strong brand has been found to create a barrier to entry, but it has no relationship to customer satisfaction.
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A hospital owns clinics, a freestanding laboratory, a surgical center, and an ambulance company. All of these are under one name of the health system. This hospital follows a multiproduct branding strategy.
A hospital owns clinics, a freestanding laboratory, a surgical center, and an ambulance company. All of these are under one name of the health system. This hospital follows a multiproduct branding strategy.
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A health system buys physician practices in many different regions and several smaller hospitals. It lets each entity retain its own name. This organization is following a reseller strategy.
A health system buys physician practices in many different regions and several smaller hospitals. It lets each entity retain its own name. This organization is following a reseller strategy.
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A large health system decides to provide pathology services for some small rural hospitals. Some of these hospitals have actually wanted it known that there is a relationship. The larger institution has their physicians wear lab coats that identify both organizations’ names. This approach is an example of a reseller branding strategy.
A large health system decides to provide pathology services for some small rural hospitals. Some of these hospitals have actually wanted it known that there is a relationship. The larger institution has their physicians wear lab coats that identify both organizations’ names. This approach is an example of a reseller branding strategy.
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A medical group and a hospital have decided to partner in a health promotion program in the community. They market this program with both organizations’ names prominently mentioned in all materials. This is an example of co-branding.
A medical group and a hospital have decided to partner in a health promotion program in the community. They market this program with both organizations’ names prominently mentioned in all materials. This is an example of co-branding.
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The time when a person adopts a new product or technology is the concept behind the diffusion of innovation.
The time when a person adopts a new product or technology is the concept behind the diffusion of innovation.
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Early adopters are those who are willing to endure technical difficulties in order to gain a competitive advantage in terms of the diffusion of innovation curve.
Early adopters are those who are willing to endure technical difficulties in order to gain a competitive advantage in terms of the diffusion of innovation curve.
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The adoption of robotic surgery has been slow because it is not compatible with healthcare values.
The adoption of robotic surgery has been slow because it is not compatible with healthcare values.
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Two components of risk affect adoption: financial risk and organizational risk.
Two components of risk affect adoption: financial risk and organizational risk.
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Innovation spreads more quickly as a function the homophilous nature of groups.
Innovation spreads more quickly as a function the homophilous nature of groups.
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Individuals who are more socially connected are more likely to adopt innovations.
Individuals who are more socially connected are more likely to adopt innovations.
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Study Notes
Additional Quiz Questions
- Question 1: The dominant consumer choice for convenience items is situation-specific.
- Question 2: Cannibalization occurs when one product's sales decrease due to another product from the same company.
- Question 3: In the introductory phase of a product lifecycle, the primary concern is ensuring quality.
- Question 4: Skimming price strategy involves setting high initial prices for products or services.
- Question 5: Advantages of a skimming strategy include leveraging negotiation power with consumers and managing service costs.
- Question 6: A skimming strategy's disadvantage is encouraging competitor entry into the market.
- Question 7: A penetration strategy necessitates understanding the market.
- Question 8: Generating initial demand is the primary objective during the product's introductory phase.
- Question 9: A manufacturer's magazine focusing on patient stories is a secondary demand strategy aimed at creating positive associations.
- Question 10: Competitor entry signifies the maturation stage of the product life cycle.
- Question 11: In the growth stage, the organization focuses on targeting different segments.
- Question 12: Merging of similar facilities indicates the product's maturation phase.
- Question 13: Selective demand generation is a key promotional objective in the growth stage of a product life cycle.
- Question 14: In the product growth stage, focus with middlemen is on securing market presence and customer loyalty rather than price negotiation.
- Question 15: In the early mature stage, continued revenue growth stems from existing customers recognizing/preferring the brand.
- Question 16: In the mature stage, a key objective is maintaining the existing customer base.
- Question 17: Repositioning is best implemented during the mature stage of the product life cycle.
- Question 18: Aggressive price discounting is most prevalent during the maturity stage of the product life cycle.
- Question 19: In the decline stage, there are challenges related to dropping an unprofitable service due to potential complications.
- Question 20: Strategic decisions of organizations in the life cycle of a high-learning product are focused on educating the consumers regarding the benefits.
- Question 21: The competition enters the market at a rapid pace in the low-learning lifecycle.
- Question 22: The factors affecting the adoption of a product include relative advantage, compatibility, complexity, divisibility, and communicability.
- Question 23: Major factors affecting healthcare life cycle include demographics, technology, and reimbursement.
- Question 24: Factors impacting hospital life cycles are reimbursement and technology changes.
- Question 25: A valid criticism of the Product Life Cycle concept is that it is not standardized.
- Question 26: The major revenue source change in hospitals has been the increased revenue coming from outpatient services.
- Question 27: One method for expanding a product's life cycle does not involve market modification.
- Question 28: "Brush after every meal" is an example of market modification, attracting new users.
- Question 29: Off-label use of pharmaceuticals is a form of market-stretching strategy.
- Question 30: FDA regulations on off-label use of drugs prohibit promoting such benefits unless specific to the condition.
- Question 31: The Louisiana Heart Hospital is an example of a specific niche approach in caring for heart-related illnesses.
- Question 32: Focusing on a very narrow segment of the market describes a niche strategy.
- Question 33: A legal brand needs a registered trade or service mark that is distinct from others.
- Question 34: Brand equity represents the consumer’s perception of the brand in the marketplace.
- Question 35: Brand strength creates barriers and is related to consumer satisfaction.
- Question 36: A house of brands strategy prioritizes distinct branding for each product line.
- Question 37: The principal-agent notion is central to healthcare because patients often relegate decisions to healthcare professionals.
- Question 38: A multispecialty clinic utilizing its name for various related services involves a multiproduct branding strategy.
- Question 39: The hospital strategy of adopting the group's name and adding the health system's name is example of co-branding.
- Question 40: Utilizing the same brand name across multiple services reflects a multi-product approach.
- Question 41: The tertiary center’s local lab branding approach using the local facility's lab coats illustrates a mixed branding approach.
- Question 42: The diffusion of innovation concerns the timing of adoption of a new service or product.
- Question 43: The difference between adopter categories revolves around the timing of adoption.
- Question 44: Communicability is considered a factor impacting adoption.
- Question 45: Sample distribution to doctors relates to the compatibility factor of product adoption.
- Question 46: Adoption is influenced by increased homogeneity among the potential target group.
- Question 47: Hesitation about using Google Glass in surgery illustrates the complexity factor in product adoption.
- Question 48: Organizations face financial and organizational risks during product adoption.
- Question 49: Homophily, or social connectedness, speeds up innovation adoption rates.
- Question 50: More socially connected individuals are more likely to adopt innovations, in line with the principle of homophily.
- Question 1 - 50 (True/False): See the true/false responses in the text as bullet points.
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