Assessment of Skills and Knowledge(ASK) in Fundamental Marketing Concepts Practice Test

What strategy does the automobile manufacturer exemplify by creating a hidden compartment in the front passenger seat?

1. Created a new product to gain the competitive advantage

2. Changed an existing product to gain the competitive advantage

3. Developed a new product to replace an outdated product

4. Improved an existing product to solve a common problem

The correct answer is: Improved an existing product to solve a common problem

The strategy exemplified by creating a hidden compartment in the front passenger seat aligns with the concept of improving an existing product to solve a common problem. This innovation focuses on enhancing the utility and functionality of a vehicle that already exists in the market, addressing consumer needs for storage and convenience without fundamentally changing the product's overall purpose as a mode of transportation. This approach illustrates how automobile manufacturers can respond to consumer behavior and preferences by making thoughtful modifications that add value. By incorporating a hidden compartment, the manufacturer not only addresses practical concerns, such as the need for secure and discreet storage of personal items, but also enhances the overall user experience. This improvement can differentiate the vehicle from competitors, thereby providing a competitive advantage. In contrast, the other options involve different strategic approaches that don’t reflect the nuance of simply enhancing an existing product to address specific consumer needs. For example, creating a new product involves launching something entirely distinct, while changing an existing product or developing a new one to replace an outdated version implies a more significant overhaul than what is represented by the introduction of a hidden compartment.