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1)The evaluation process begins with the creation of a prototype

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1)The evaluation process begins with the creation of a prototype.     True    False

 

2. The fact that a product and its marketing plan is viewed as a single unit is what lets one to telescope the development process into shorter periods of time.          True    False

 

3. The development phase of a product is naturally iterative.               True    False

 

4. If a firm makes products with very long cycle times, it is required to control the number of products it has in the process queue at any given time so that products receive development funds in a timely manner.           True    False

 

5. The late expenditures curve is representative of product development in technical fields such as optics.               True    False

 

6. With reference to the risk/payoff matrix, a "drop error" occurs when a product, that is likely to fail if marketed, is continued.           True    False

 

7. A "go error" and a "drop error" have the same cost and probability dimensions.     True    False

 

8. A firm that develops a contingency plan prior to launching a new product is adopting an active acceptance risk strategy.         True    False

 

9. The decay curve primarily indicates the cumulative expenditure incurred at various stages of developing a new product.      True    False

 

10. In new product work, financial analysis should be done by firms as early as possible to avoid wasting money on poor projects.          True    False

 

11. Concept testing is different from concept development as it undermines the idea of helping an item and kills it off.              True    False

 

12. Surrogate questions help when the timing of factual information does not often match one's need for it.    

True    False

 

13. The A-T-A-R concept is based on the diffusion of risk model.            True    False

 

14. The A-T-A-R model is applicable to services as well as industrial products.              True    False

 

15. A-T-A-R is a term that came from consumer products marketing.                True    False

 

16. A new product appears first as a(n) _____.                
    1. prototype
    2. idea
    3. model
    4. code

 

17. Which of the following is the reason that one can telescope the product development process into shorter periods of time?    
    1. The development process always proceeds in a step by step manner.
    2. The development process begins after the initial prototypes are generated.
    3. A product and its marketing plan are evaluated as separate and divisible pieces.
    4. A cross-functional team works on the development process.

 

18. The current process of developing a new product is different from the earlier processes in that now:               A. one needs to follow a linear step by step approach.
    2. it is possible to work on packaging before a finished product is ready.
    3. the development process begins after the initial prototypes are generated.
    4. it is possible to treat a product and its marketing plan as two separate entities.

 

19. Which of the following actions causes backtracking?             
    1. When the product development process is carried out step by step
    2. When the costs of incomplete product development are higher than the costs of delayed introduction
    3. When an idea or concept cannot be implemented until after a prototype has been created D. When the steps in the product development process are skipped

 

20. The very first evaluation in the product development process usually:         A. occurs after a product idea has been developed.
    2. precedes the product concept.
    3. follows the development of a prototype.
    4. follows the product launch.

 

21. The first use of evaluation is focused upon:                A. the development of a marketing plan.
    2. the likely success of the product concept that has been selected for development.
    3. mistakes made during the launch of the new product.
    4. providing direction for the selection of potential product concepts.

 

22. During the concept generation phase of the basic new products process, the goal of product evaluation is to:    
    1. chart out the PIC.
    2. cull out the big/sure losers.
    3. conduct protocol checks and prototype tests.
    4. speculate sale in retrospect.

 

23. With reference to the purpose of evaluation, which of the following questions that a firm asks, tests the aspect of scalability of assessing ideas in the concept generation phase of the basic new products process?

       

1. 1. Does it meet a specific customer need?
   2. Does the firm have the capability to develop and launch the idea?
   3. Can the firm become more efficient in production as volume increases?
   4. Is there a good match corporate strategy and culture?

 

24. The primary purpose of evaluation during Phase III of the basic new products process is to:          A. develop a marketing plan.
    2. create a final, full-scale prototype.
    3. identify concepts that will proceed further in the development process.
    4. eliminate all probable mistakes in the launch phase.

 

25. A _____ is an evaluation technique that tells one whether he or she is ready to develop a product for serious field testing.     
    1. speculative sale
    2. protocol check
    3. scoring model
    4. full screen test

 

26. The evaluation issue during the launch phase in the new product development process that seeks to find out if a firm has proven itself able to make and market an item on a commercial scale is usually carried out by the evaluation task called _____.        
    1. market testing
    2. prototype development
    3. market capitalization
    4. market segmentation

 

27. Which of the following statements is true of the cumulative expenditure curve?     
    1. The early expenditures curve initially slopes downward and then starts sloping upward.
    2. The late expenditures curve is representative of product development in technical fields such as optics.
    3. The late expenditures curve initially slopes upward and then starts sloping downward.
    4. The early expenditures curve is representative of product development in technical fields.

 

28. Which of the following industries is most likely to be represented by a late expenditures curve?               A. Consumer packaged goods
    2. Pharmaceuticals
    3. Optics
    4. Computers

 

29. Which of the following outcomes of a risk/payoff matrix, used for evaluating a new product process, is most likely to be the costliest for a firm?                A. Stopping a product that is likely to fail
    2. Continuing a product that is likely to fail
    3. Stopping a product that is likely to succeed
    4. Continuing a product that is likely to succeed

 

30. According to the risk/payoff matrix, during the phase of concept/project evaluation of the new products process, a _____ error occurs when a winning product is discarded.         
    1. drop
    2. decay
    3. launch
    4. development

 

31. Which of the following risk strategies is most likely to incur opportunity costs?    A. Avoidance
    2. Mitigation
    3. Transfer
    4. Acceptance

 

32. In which of the following risk strategies is risk reduced to an acceptable, threshold level, perhaps through redesigning a product to include more backup systems or increasing product reliability?    A. Mitigation
    2. Avoidance
    3. Passive acceptance
    4. Transfer

 

33. The use of subcontractors or joint ventures is most likely to be closely associated with the _____ risk strategy.    A. mitigation
    2. avoidance
    3. acceptance
    4. transfer

 

34. Which of the following risk strategies typically involves developing a contingency plan to accompany new product development?     
    1. Passive avoidance
    2. Active acceptance
    3. Mitigation
    4. Transfer

 

35. Which of the following is true of a decay curve?        A. It is primarily a plan rather than a result.
    2. It depicts the entire life cycle of product.
    3. Decisions on the risk matrix lead to the idea of a decay curve.

D.Synchronization of the two aspects in a decay curve, plan and result, reduces its value as a managerial  concept.

 

36. Which of the following statements about the new product evaluation process is untrue?               A. The assumption that a product development plan is mostly tentative.
    2. Form and positioning can usually be changed during the process.
    3. Everything in new product work should be keyed to a Go/No Go decision.
    4. Customer attitudes usually tend to change along the entire process.

 

37. A rolling evaluation means that a project is being assessed continuously, which implies that it is dealing with risk via _____.     A. avoidance or transfer
    2. acceptance or avoidance
    3. acceptance or mitigation
    4. mitigation or avoidance

 

38. Which of the following statements is true of a new product development project that is evaluated with the help of rolling evaluation?     
    1. The project is assessed at predefined intervals.
    2. This evaluation generally leads to the premature closure of a project.
    3. Everything in the project is keyed to a single Go/No Go decision.
    4. Participants avoid mindsets of good and bad about the project.

 

39. The farther a new product idea is allowed to proceed through the development process:              A. lesser the number of people who believe in the concept.
    2. the tougher it is to stop the product.
    3. the easier it is to wave aside the hurdles.
    4. the lesser support it receives from R&D workers.

 

40. Concept testing is sometimes called concept _____ to reinforce the idea of helping the item, not just killing it off.      
    1. checking
    2. development
    3. validation
    4. evaluation

 

41. Which of the following statements is true regarding the people dimension of the evaluation system?               A.It is difficult to kill an idea in the early stage of product development as most of the people are yet to       evaluate the idea.
    2. Late in the product development cycle, hurdles are usually easy to wave aside.
    3. Early in the life of a new product, the product idea may have little support outside of R&D.
    4. Late in the product development cycle, fewer people are likely to support the product idea.

 

42. Which of the following statements is true of surrogate questions?               
    1. Typically they remain constant at different times in the evaluation process.

B.They are less useful when one wants to gauge customer reactions early on, even before the product is  developed.

C.They are based on the fact that the timing of factual information often matches a product developer's  need for it.

D. Their response has little value except to help answer a critical question that cannot be answered       directly.

 

43. Lexus Inc. is interested in determining whether a potential new product will be preferred by customers, even before it is launched. Since customer reactions cannot be gauged at this stage, the firm can make use of _____ to gather pieces of information that can substitute for what it wants to learn.    A. surrogate questions
    2. perceptual mapping
    3. fundamental analysis
    4. lexical analysis

 

44. Identify the question that can act as a substitute for the real question, "Will customers prefer the product introduced?" in the product development process.               
    1. Does the product match the company's manufacturing skills?
    2. Will cost of the product be competitive?
    3. Did the customers keep the prototype product that was given to them?
    4. Will competition leap in once the product is introduced to customers?

 

45. The A-T-A-R model is most akin to a _____.               
    1. morphological matrix
    2. pro forma income statement
    3. risk/payoff matrix
    4. decay curve

 

46. In the case of the A-T-A-R model, R stands for _____.           
    1. rate
    2. response
    3. repeat
    4. region

 

47. The A-T-A-R concept is taken from _____.     
    1. the risk/payoff matrix
    2. diffusion of innovation
    3. the delay curve
    4. the cumulative expense curve

 

48. When a person or firm who try something, shares results with a person or firm who cannot try it, it is known as a(n) _____ trial.               
    1. recommended trial
    2. vicarious trial
    3. adoption trial
    4. virtual trial

 

49. According to the terms in the A-T-A-R model, availability means the percentage chance that:      A. a potential buyer will purchase a product if it is within his or her budget.
    2. if a buyer wants to try a product, the effort to find it will be successful.
    3. a buyer will recommend a product to somebody else.
    4. a buyer will buy a product at least one more time.

 

50. Which of the following can provide the data needed for the A-T-A-R model?          
    1. The cumulative expenditure curve
    2. Income statement of the firm
    3. Market test
    4. The decay curve

 

51. What are the important reasons for new product failure?     

        

        

        

 

52. Briefly describe how the purpose of evaluation varies through each stage of the new product development process.    

        

        

        

 

53. Describe the cumulative expenditures curve.             

        

        

        

 

54. Explain "go error" and "drop error" with relevance to the risk/payoff matrix.         

        

        

        

 

55. Discuss the uses and significance of the A-T-A-R model as an evaluation system.