Homework answers / question archive / 1)Product development has become more challenging due to:  A

1)Product development has become more challenging due to:  A

Management

Share With

---

1)Product development has become more challenging due to: 
A. lack of feedback from superiors.
B. increased level of employee expectations.
C. reduction in the budget allocated for HR activities in several firms.
D. increased globalization.  

2. Which of the following best represents rules of thumb that firms have found work for them? 
A. Heuristics
B. Guidelines
C. Synergies
D. Product innovation charters      

3.  Products that take a firm into a category or market new to it are best described as: 
A. repositioned products.
B. new-to-the-firm products.
C. cost reductions.
D. line extensions.    

4. When a current product of a company has been enhanced to better serve consumer needs, it will fall in this new product category. 
A. New-to-the-world products
B. New category entries
C. Additions to product lines
D. Product improvements   

5. P&G‘s Ivory Soap and Tide powder laundry detergent have been revised numerous times throughout their history. Identify the product category that these products would BEST fit into. 
A. Line extensions
B. New-to-the-firm products
C. New-to-the-world products
D. Product improvements   

6. In a new product process, an evaluation task that includes conditional "Go" decisions is sometimes called a(n): 
A. heuristic.
B. fuzzy gate.
C. unconfirmed step.
D. hollow-gate.          

7. The development phase involves the development of: 
A. new product suggestions.
B. the marketing plan.
C. the product innovation charter.
D. the product financing plan. 

8. Identify the new products process where through interaction with customers, designers are inspired to probe, experiment, and improvise and as a result, may come up with a successful new-to-the-world product. 
A. Probe-and-learn
B. Consumer analysis
C. Mind sharing
D. Concept redefining          

9. Which of the following statements is true about a product innovation charter (PIC)? 
A. It is typically prepared by team leaders.
B. It is designed to provide guidance to the business units on the role of innovation.
C. It reminds us that the new product strategy is for processes and other activities.
D. It can be thought of as a kind of vision statement which is applied at macro level

10. Identify the INCORRECT statement concerning the Product Innovation Charter.

A. It is typically prepared by senior management

B. It is designed to provide guidance to the business units on the role of innovation

C. It reminds us that the new product strategy is for processes and other activities

D. It can be thought of as a kind of mission statement, but applied at a more micro level     

 

11. The product innovation charter utilizes this as an input. 
A. Employment policies
B. Articles of incorporation
C. Code of conduct
D. Corporate mission                       

12. The procedure of converting technical specifications, to product features and benefits, to market needs is called the ____. 
A. dual-drive strategy
B. just-in-time strategy
C. T-P-M linkage
D. customer franchise

13. A new product only really comes into being when: 
A. a concept is generated.
B. the technology to create the product is acquired.
C. a prototype passes scrutiny by potential users.
D. it is successful in the market.     

14. Identify the best sequence to follow during the development of a new product. 
A. Technology; form; benefit
B. Form; technology; benefit
C. Benefit; technology; form
D. Technology; benefit; form          

15. Which of the following would qualify as an outside source of ready-made new product concepts? 
A. New products people
B. Marketing teams
C. Manufacturing teams
D. Lead users            

16. The objective of _____ is for the firm to access the global R&D community, even beyond the confines of its own industry, in order to accelerate its speed of research and innovation. 
A. applications engineering
B. open innovation
C.   community management
D. leveraged creativity p-118

17. One of the complicated issues a firm must manage in an open innovation policy is: 
A. filtering the ideas.
B. intellectual property protection.
C. top management support.
D. developing a work culture suitable for open innovation policy.

18. One way to address the problem of new product failure is to begin the development process by: 
A. identifying heavy product users.
B. creating a problem-solution matrix.
C. identifying unsolved consumer problems.
D. preparing concept statements.  

19. Scenario analysis: 
A. helps us in finding out those problems that customers do not know they have at this time.
B. is primarily used to solve current problems with products already in the market.
C. focuses on problems that have already been told to competitors.
D. involves watching customers using products in their own environments.   P-136

20. According to an assessment by the Arlington Institute, in the future, human cloning will raise ethical issues as well as the possibility of extending human life thanks to organ and tissue cloning. This high-impact, low-probability event is an example of: 
A. observation.
B. lateral thinking.
C. wild cards.
D. itemized response.           P-138

21. Identify an advantage that electronic brainstorming may have as compared to traditional brainstorming. 
A. It allows only one person to talk at a time
B. Unpopular ideas would not crop up
C. It encourages "social loafing"
D. Participants can answer anonymously  p-142

22. Product attributes used in gap analysis, which differentiate between offerings and are important in consumer purchase decisions, are called _____ attributes. 
A. purchase
B. consumer
C. developmental
D. determinant          p-154

23. Marketing managers in the America-First Corporation routinely create "gap maps" representing the position of their product vis-à-vis competitive offerings. These maps, based on managerial expertise and judgment, are examples of a(n) _____ GAP map. 
A. AR perceptual
B. determinant
C. OS perceptual
D. experiential           p-153

 

24. In AR perceptual gap mapping, individual respondents can be grouped together into benefit segments based on their preferences through the use of: 
A. attribute analysis.
B. cluster analysis.
C. factor analysis.
D. function analysis.  P-155

25. Gap maps: 
A. are useful in identifying potential product concepts.
B. identify potential threats in the market.
C. identify or evaluate interrelationships and synergies.
D. accurately measure nuances and shadings of consumer responses. P-164

26. Conjoint analysis: 
A. involves listing all of the physical features of a product type.
B. can use the output of AR gap analysis to select product attributes.
C. uses virtual prototypes for determining product attributes.
D. is a qualitative technique used to incorporate customer input into concept generation    p-168

27. Identify the correct statement regarding conjoint analysis. 
A. It allows a manager to identify the best market segment for a product.
B. It is most commonly used in opportunity identification.
C. It is most useful in the case of completely new to-the-world products.
D. It cannot be carried out until determinant attributes have been identified  p-173

28. Which of the following idea-generating techniques evolved from early forms of dimensional analysis? 
A. Checklist
B. AR gap mapping
C. Choice-based conjoint analysis
D. Brainstorming       p-176

29. Which of the following reasons lets us telescope the development process into shorter periods of time? 
A. The development process proceeds in a straight-line, step-by-step fashion.
B. The development process begins after the initial prototypes are generated.
C. We evaluate the product and its marketing plan as separate and divisible pieces.
D. A cross-functional team works on the development process p-190

 

 

 

 

 

30. The primary purpose of evaluation during Phase III of the evaluation process is:

A. the development of a marketing plan.
B. the creation of a final, full-scale prototype.
C. identification of concepts, which will proceed further in the development process.
D. to eliminate all mistakes made during the launch phase.        P-192

31. The evaluation issue during the launch phase in the new product process is whether the firm has proven itself able to make and market the item on a commercial scale. This issue is usually resolved by some form of ____. 
A. market testing
B. prototype development
C. development protocol
D. iteration analysis  P-192

32. All of the following statements about the evaluation system/process are true EXCEPT: 
A. everything is tentative here.
B. form can usually be changed during the process.
C. everything should be keyed to a Go/No Go decision.
D. requires product developers to anticipate major potholes of product innovation. P-197

33. In the case of A-T-A-R model, R stands for ____. 
A. rate
B. response
C. repeat
D. region        p-199

34. The A-T-A-R concept is taken from ____. 
A. the risk/payoff matrix
B. diffusion of innovation
C. the delay curve
D. the cumulative expense curve    P-199

35. All of the following statement about the A-T-A-R model are true, EXCEPT:

A. The model is based on how we forecast sales and profit on a new item

B. The basic formula of the A-T-A-R model is take from the risk/payoff matrix

C. The A-T-A-R model gives guidance on evaluation system design

D. A-T-A-R is term that came from consumer products marketing        p-199

36. During concept testing, the firm will do all of the following EXCEPT: 
A. evaluate quality, time, and cost factors.
B. confirm the target market.
C. develop a product positioning statement.
D. perform full screening and begin development.           P-210

37. With reference to new product development, which of the following is referred to as the bazooka effect? 
A. Capturing the target market by introducing the new product at a low price
B. Quickly blasting out suggestions
C. Enhancing the image of a product by introducing it at a high price
D. Approving a concept solely based on the technical criteria    p-211

38. According to the classic five-point question format of the concept test, the top-two-boxes score is used as an indicator of group reaction and includes the number of people who: 
A. definitely would buy or probably would buy the product.
B. probably would buy or might/might not buy the product.
C. might/might not buy or probably would not buy the product.
D. probably would not buy or definitely would not buy. P-215

39. Which of the following questions appears in almost every concept test? 
A. Past experience with the organization
B. Appropriate price for the product
C. The distribution channel to be used for the product
D. Intention of buying the product p-215

40. The BASES Group is the largest supplier of _____ tests. 
A. market
B. concept
C. prototype
D. product use           p-215

41.Which of the following adopter groups are the most important for concept testing of new products and, probably, market acceptance? 
A. Early majority and late majority
B. Early majority and laggards
C. Innovators and early adopters
D. Innovators and laggards p-221

42. Which of the following is an immediate and critical question in concept testing which should be answered prior to all other questions? 
A. How likely is it that the respondents would buy?
B. How much do the respondents like the concept?
C. Does the respondent understand the concept?
D. What are the respondents' reactions to price? P-222

43. Benefit segments are most likely to be identified/described using the ____. 
A. risk/payoff matrix
B. cluster analysis
C. trial averages
D. cumulative expenditures curve  p-224

44. If a concept passes the full screen: 
A. it enters the concept development stage.
B. it will require a serious increase in commitment of financial and human resources.
C. the product innovation charter for the concept is developed.
D. it undergoes concept testing.      P-238

45. Which of the following techniques is most likely to be used for product project screening and evaluation? 
A. Perceptual gap mapping
B. Scenario analysis
C. Factor analysis
D. Analytic Hierarchy Process         p-248

46. Anne Cassidy was asked to attend a new product scoring session in order to explain "special considerations" and "intangible benefits" unique to the concept she helped develop. Anne's role was to push past normal resistance to change and to see that the concept gets a fair hearing at all turns. Anne is BEST described as a ____. 
A. virtual scorer
B. product champion
C. human database
D. process facilitator p-344

47. Which of the following tools is most likely to be the basis of many of the simulated test markets? 
A. The cumulative expenditures curve
B. The risk/payoff matrix
C. The A-T-A-R model
D. The decay curve   p-259

48, _____ refers to the process by which an innovation is spread within a market, over time and over categories of adopters. 
A. Diffusion of innovation
B. Adoption of innovation
C. Adaptation of innovation
D. Simulation of innovation p-261

49. . Which of the following forecasting tools is commonly used for durable goods and is based on the diffusion curve of new products through a population? 
A. The A-T-A-R model
B. Econometric analysis
C. Multiple regression analysis
D. The Bass model    p-261

50. In the new product development process, the product use test is conducted during the _____ phase of the process. 
A. opportunity identification and selection
B. concept generation
C. concept/project evaluation
D. development         p-266

51. Generally, "hurdle rates" for return on investment will be highest for products whose strategic role or purpose is to: 
A. combat competitive entry.
B. establish a foothold in a new market.
C. capitalize on existing markets.
D. introduce line extensions. P-272

52. Ergonomics can be best defined as studying: 
A. human characteristics in order to develop appropriate designs.
B. unmet customer needs with the help of perceptual gap mapping.
C. potential target markets to identify the most profitable market segment.
D. the life cycle of a product to develop suitable marketing strategies for each phase            p-316

53. BMW has designed disassembly and recycling into its cars. Used plastic parts are sorted, recycled, and made into new parts. Other components are either recycled or rebuilt, while unusable parts are incinerated to create energy. Here, BMW's cars can be best described as being designed: 
A. for the environment.
B. for ease of manufacture.
C. to build or support corporate identity.
D. for price promotion.        P-317

54. A fully functional, full-size product prototype that is essentially ready for examination by potential customers would be best described as a _____ prototype. 
A. comprehensive
B. focused
C. limited
D. modified    p-322

55. Which of the following is most likely to be used in product-use testing? 
A. Focused prototype
B. Comprehensive prototype
C. Conceptual prototype
D. Ideational prototype p-323

56. The "release" of a comprehensive prototype to potential users for testing in a real usage situation that may support further product improvement and/or refinement is called _____ testing. 
A. opportunity
B. concept
C. product-use
D. pre-purchase        p-323 

57. The most important DFM process is _____, which is concerned with checking ease of assembly and manufacturing and encouraging product simplification. 
A. computer-aided design
B. design for assembly
C. design for maintainability
D. computer-aided manufacturing  p-328

58. The creation of a solid object directly from a three-dimensional computer model is called _____. 
A. visualization
B. rapid prototyping
C. technological ideation
D. assembly design   p-329

59. The primary goal of use testing is to: 
A. speed the product to market.
B. determine if the product solves user problems.
C. avoid competition from entering the market.
D. identify more new product concepts     p-371

60. Which of the following is the main disadvantage commonly associated with use testing? 
A. The risk of a competitor obtaining the firm's product and entering the market first
B. The high cost of testing
C. The drain on the firm's resources in terms of time and money
D. The loss of management faith in the new products team        p-371

61. The _____ is a short-term use test that evaluates the product at customer sites, to determine if the product works free of bugs. 
A. beta test
B. pre-use sense reaction
C. early use experience
D. laboratory simulation      p-375

62. Which of the following statements is NOT true regarding beta tests? 
A. These are short-term use tests at selected customer sites.
B. They are designed to tell if original customer needs have been met.
C. They are sometimes preceded by internal alpha tests with employees.
D. They are designed to tell whether the product works and if it is free of bugs.        P-375

63. Alpha tests are: 
A. designed to tell if original customer needs have been met.
B. quick tests of a very early version of the product with employees.
C. short-term use tests, at selected external customer sites.
D. often preceded by external beta tests with customers.           P-376

64. To pass which of the following tests must the new item solve whatever problem the customer had, no matter how long it takes? 
A. Alpha test
B. Gamma test
C. Beta test
D. Pre-use sense test            p-377

65. Which of the following would involve higher costs in terms of time and money? 
A. Alpha testing
B. Beta testing
C. Gamma testing
D. Pre-use sense testing       p-380

66. . In a _____ test, which is especially common for services, a respondent tests a single new product for a period of time. 
A. monadic
B. sequential monadic
C. paired comparison
D. triangular comparison     p-381

67. In this type of test, use of the test product is interspersed with two competitive products. 
A. Monadic test
B. Paired comparison test
C. Triangular comparison test
D. Sequential monadic test   p-382

68. The initial, quick test predicts the early reactions of _____; failure here, even if perceptions are unjustified, often dooms a good product. 
A. early adopters
B. innovators
C. early majority
D. laggards     p-383

69. _____ define how the strategic decisions will be implemented. 
A. Strategic action decisions
B. Tactical launch decisions
C. Strategic platform decisions
D. Competitive strategies     p-394

70. . If a firm decides to be very aggressive at the time of launching a new product, it is an example of a(n) _____ decision. 
A. platform
B. action
C. marketing mix
D. corporate mission            p-394

71. Which of the following statements is NOT true regarding strategic "givens"? 
A. They may be very expensive to change during strategic launch planning.
B. They include certain established operation decisions.
C. They are more easily modified as compared to tactical decisions.
D. They comprise a "resistance to change" that new products people often dislike.    P-395

72. The America-First Corporation is preparing to introduce a new-to-the-world product. The firm must attempt to: 
A. stimulate primary demand for the product category.
B. create a need for the product.
C. stimulate selective demand for the product category.
D. stimulate replacement demand for the product category.      P-397

73. Zircon Inc., generally drops the "old" product as soon as the new product intended to replace it has been announced. The firm is using which of the following product replacement strategies? 
A. Downgrading
B. Splitting channels
C. Butt-on product replacement
D. Roll-in, roll-out      p-400

74. Markets segmented according to variables such as values, activities, and lifestyles can be best described as using _____ segmentation. 
A. end-use
B. geographic and demographic
C. behavioral and psychographic
D. benefit        p-402

75. . _____ segment information in combination with brand perceptions can be very helpful in developing a positioning strategy. 
A. End-use
B. Geographic
C. Demographic
D. Benefit       p-402

76. Ralph Corp., deliberately seeks out very small targets (neighborhoods or industrial subsets) with unique purchase patterns. The firm is targeting _____. 
A. macromarkets
B. elite markets
C. micromarkets
D. primary markets   p-403

77. Tailoring a good or service to the unique specifications of individual customers is known as _____. 
A. mass production
B. target marketing
C. customer service
D. mass customization          p-404

78. According to the theory of innovation diffusion, if a firm could just market its new product to _____ and _____, it could then sit back and let them spread the word to the others. 
A. innovators; early adopters
B. the early majority; late majority
C. the early majority; laggards
D. innovators; the late majority       p-407

79. Carrion Corp., a manufacturer of industrial tools, often uses its reputation to position its new products for success. Carrion Corp. is positioning these products on the basis of _____ attributes. 
A. feature
B. surrogate
C. benefit
D. function     p-409

80. Brand names are important assets that provide value to both the firm and its customers, as they communicate quality, build positive brand images, and encourage customer loyalty. This value is known as _____. 
A. service mark
B. brand mark
C. brand equity
D. trade asset p-416

81. Training of sales and other promotional people, building service capability, and arranging for stocking of the product at the reseller level takes place during the _____ stage. 
A. beachhead
B. prelaunch
C. early growth
D. late growth            p-429

82. . Launch tactics planning includes all of the following EXCEPT: 
A. selecting the new product idea.
B. selecting distribution channels.
C. training salespeople.
D. setting price.          P-433

83 Which of the following promotional approaches is best suited for cases where awareness will stimulate trial? 
A. Publicity
B. Sampling
C. Couponing
D. Advertising            p-434

84. When a firm removes competitors' products from customer shelves to fill them with its own products, it is known as _____. 
A. illegal distribution
B. stocklifting
C. slotting
D. stocking     p-439

85. Large, important retailers often sell their scarce shelf space by charging manufacturers _____ allowances. 
A. slotting
B. brand
C. inventory
D. promotional          p-440

86. If target market buyers do a serious trial on a new item, and if there is previous assurance from the product use test that people would like it, _____ is virtually assured. 
A. increased competition
B. repeat buying
C. premium pricing
D. market leadership            p-444

87. Which of the following statements is NOT true regarding market testing? 
A. There is a growing trend toward quicker, less costly market testing methods.
B. Test marketing is now a relatively minor market testing technique.
C. Test marketing, being more accurate is replacing scanner based methods.
D. Many firms have replaced the traditional test market with a product rollout.         P-452

88. Which of the following is a method of market testing falling under the category of ‘full sale'? 
A. Direct marketing
B. Minimarketing
C. Test marketing
D. Stealth marketing             p-459

89. Which of the following types of market testing relies upon asking potential customers if they would buy the product if the product were available, but does not require them to spend money or take a risk? 
A. Pseudo sale
B. Controlled sale
C. Full salee
D. Informal sale         p-459

90. . Identify the method of market testing which is most likely to make use of rollouts. 
A. Controlled sale
B. Pseudo sale
C. Full sale
D. Temporary sale    p-460

91. The role of simulated test marketing in A-T-A-R forecasting is to provide estimates of _____. 
A. market units
B. availability
C. costs and prices
D. trial and repeat purchasing         p-461

92. Radiant Corp., a manufacturer of consumer products, primarily sells its products to the consuming unit by means of catalogs and mail. It tests its new product lines, simply by listing them in some of its catalogs and counting the orders. Identify the market testing method being used by Radiant. 
A. Minimarkets
B. Simulated test markets
C. Direct marketing
D. Speculative sale    p-466

93. Which of the following statements is true regarding test marketing? 
A. Test market results are projectable.
B. We can control all environmental factors.
C. It offers the most abundant supply of information.
D. Test marketing is cheap and quick         p-470

94. Today test marketing has been largely replaced by _____. 
A. simulated test marketing
B. rollouts
C. informal sales
D. minimarkets          p-472

95. Launch management ends: 
A. at the prototype stage.
B. after the new product has achieved its objectives.
C. as soon as a new product fails.
D. at the introduction stage of the PLC.      P-482

96.  Selecting problems needing control can be based on all of the following EXCEPT: 
A. the fact that a firm cannot control all problems.
B. the potential damage.
C. the likelihood of occurrence.
D. the fact that once tracked, they will assure success.

97. The most common type of company failure is _____, particularly at the retail or dealer level. 
A. inappropriate pricing
B. inadequate distribution
C. inappropriate advertising
D. poor packaging

98. A tracking variable is _____ if it identifies the problem. 
A. measurable
B. continuous
C. relevant
D. predictable

99. Which of the following statements is NOT true about an After Action Review (AAR)? 
A. Its goal is to identify what went right and what went wrong.
B. It includes statements of planned objectives and actual results.
C. It should include only top management as they are the only ones who have direct experience with the entire development cycle.
D. It is designed to capture the events leading up to the product launch and to try to understand the thinking behind the actions taken.

100. A(n) _____ is designed to capture the events leading up to the product launch and to try to understand the thinking behind the actions taken. 
A. After Action Review
B. A-T-A-R model
C. expected effects matrix model
D. hierarchy of effects matrix

Short Question Section

1.Discuss the concept/project evaluation phase of the new products process.  (Page 32 & 37):

2. Explain reverse brainstorming. (Page 130-131)
3. Many people and some firms, assume that the new product development process occurs – or should occur – in a “logical, step-by-step, sequence of steps”. Is this true? Defend your answer.  (197)
4. Why is benefit segmentation, arguably, the most logical method of developing – and marketing – new products? (223-224)
5. Summarize the problems associated with forecasting. (265)
6. What is a prototype? What types of prototypes may be used, and for what purposes? 
7. What is product use testing? Should all firms undertake use testing? Justify your answer. (368-374)
8. Describe alpha, beta, and gamma testing (375-371)
9. Briefly describe the major means of segmenting a market (402-403)
10. Briefly describe “Trial”. What barriers to trial must be overcome? What tools may be brought to this effort? (440-443)
11. Why has the rollout approach to market testing become more popular in recent years? What are its disadvantages? (472-477)

 

 

 

 

 

 

 

 

12. How are control events selected? What is the primary tool employed for this purpose? (488-489)