Q1. The 3 Cs of pricing (making up the three-legged stool) are:

a. costs, competition, creativity
b. cannibalization, costs, competition
c. cannibalization, competition, customers
d. costs, competition, customers
e. costs, company, customers

Q2. A ____________ channel is ideally suited for crossing the chasm.

a. mass merchant, because it helps develop the whole product
b. distributor channel, because it reaches various segments
c. retail, because it creates demand
d. direct sales, because it creates demand
e. retail, because it helps develop the whole product

Q3. ____________ is the primary tool in viral marketing.

a. search engine
b. Web page
c. email
d. shopping cart
e. hot link

Q4. The advantage of cobranding for a small OEM is that:

a. it enhances its ability to differentiate its products from competitors
b. it lends credibility to its product
c. it is expensive
d. it avoids conflict with large OEMs
e. it is not advantageous for small OEMs to cobrand

Q5. The technology paradox is characterized by:

a. increase in high technology companies despite stagnant demand
b. the capability of businesses to thrive despite the rapid pace of price decline
c. increase in technology jobs despite the decrease in wages
d. increasing volumes accompanied by increasing prices
e. the recent decline in tech stocks despite increased interest in technology sector

Q6. All of the following approaches are appropriate for reducing the commitment to poorly performing new products except:

a. give a bonus to the manager in charge of the new product development
b. include naysayers or skeptics on the product review committee
c. decouple the withdrawal decision from previous investments
d. use a stopping rule developed early on
e. provide negative feedback to the manager in charge of that new product development

Q7. What was the basis of the U.S. government's finding against Microsoft (abuse of monopoly-like economic power)?

a. Microsoft was found guilty of tying its Web browser to its operating system, which unfairly limited competition and consumer choice
b. Microsoft engaged in abusive pricing by charges high prices that competitors couldn't match
c. Microsoft relied on exclusive dealing arrangements with retailers that restricted network externalities and new innovation
d. Microsoft was too innovative, and other firms could not keep up with the pace of change
e. Microsoft stole other company's intellectual property

Q8. Which of the following is not one of the benefits of the framework for addressing ethical dilemmas?

a. it makes explicit the issues underlying the ethical dilemma
b. it highlights the various stakeholders' perspectives
c. it aids in communicating the decision to others
d. it avoids the classic Catch-22 that companies can find themselves caught in when resolving ethical dilemmas ("damned if you do and damned if you don't")
e. it allows a company to justify its decision regarding people versus profits

Q9. Which of the following is not descriptive of the advertising and promotion pyramid?

a. the base of the pyramid has tools with a wider coverage of the target audience
b. the tools at the top of the pyramid have lower cost per contact than tools at the bottom
c. the pyramid implies a trade-off between coverage and cost per contact
d. the Internet can be used at all levels in the pyramid
e. the Internet as a communication tool in the pyramid is scalable and cost-efficient

Q10. Modularity is:

a. using models to build a complex product
b. inviting models to participate in an ad campaign
c. building a complex product from smaller subsystems that can be designed independently
d. building a complex product from smaller subsystems that function together as a whole
e. c and d