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Ohio University, Athens
MKT 4630
True/False Questions
Chapter 13-Developing New Products
1)Sustaining innovations improve products and processes on existing performance dimensions
Ohio University, Athens
MKT 4630
True/False Questions
Chapter 13-Developing New Products
1)Sustaining innovations improve products and processes on existing performance dimensions
Marketing
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Ohio University, Athens
MKT 4630
True/False Questions
Chapter 13-Developing New Products
1)Sustaining innovations improve products and processes on existing performance dimensions.
- Leading firms often invest in disruptive versus sustaining innovations.
- Disruptive innovations offer different value propositions.
- In new product development, the firm must manage two types of errors: Type I and Type II.
- Type II errors accept only the safest alternatives.
- Type I errors are more difficult to identify than Type II errors.
- Product testing is the stage of the new-product development process that is typically the longest in calendar time.
- According to the text, alpha tests are the most developed market-factor testing.
- At the commercialization stage of the new-product development process, significant facilities investment is often required to scale up pilot plant product to commercial levels.
- Venturing, accepting risk, and not typically being emulated are characteristics of the early majority adopter group.
- Bound by tradition and suspicious of change are characteristics of the laggards adopter group.
- According to the text, complexity is that factor of the adoption process that describes the relationship with past experience and current lifestyle.
- In B2C markets, early adopters tend to be better educated, younger, and socio-economically advantaged.
- Divisibility is the factor affecting speed of adoption that is described as the ability to try on a limited basis.
- Communicability is the factor affecting speed of adoption that is described by the ability to communicate the benefits easily.
Multiple Choice Questions
- innovations improve products and processes on existing performance dimensions.
a.) Sustaining
b.) Disruptive c.) Virtual
d.) Selective
- Which of the following types of innovations offers different value propositions?
a.) Sustaining
b.) Disruptive
c.) Virtual
d.) Selective
- Which of the following is NOT a stage of the new-product development process? a.) idea generation
b.) concept definition
c.) extrapolation
d.) business-case analysis
- According to the text, all of the following are approaches to new-product development EXCEPT: a.) basic technology research
b.) applied technology research c.) market-focused development
d.) perceptual mapping
- Which of the following approaches to new-product development is aimed at disruptive innovations rather than immediate new products?
a.) basic technology research
b.) applied technology research c.) market-focused development d.) perceptual mapping
- DNA mapping, finding new chemical entities for pharmaceuticals, and electrical super-conductivity are examples of which of the following approaches to new product development?
a.) basic technology research
b.) applied technology research c.) market-focused development d.) perceptual mapping
- is the new-product development approach that focuses on marketable products, often by improving ease of use or developing complementary products.
a.) Basic technology research b.) Applied technology research
c.) Market-focused development
d.) Perceptual mapping
- is the new product development approach that uses basic technology to development new products.
a.) Basic technology research
b.) Applied technology research
c.) Market-focused development d.) Perceptual mapping
- Pharmaceutical research that adapts new chemical entities to treat specific medical conditions is an example of .
a.) basic technology research
b.) applied technology research
c.) market-focused development d.) perceptual mapping
- is the new product development approach that focuses on marketable products, often by improving each of use of developing complementary products.
a.) Basic technology research
b.) Applied technology research
c.) Market-focused development
d.) Market tinkering
- Pharmaceutical firms developing new delivery methods like pills, patches, or injections is an example of which of the following approaches to new product development?
e.) Basic technology research
f.) Applied technology research
g.) Market-focused development
h.) Market tinkering
- makes minor modifications to current products, like a new dessert flavor or a different scent for a floor cleaner.
a.) Basic technology research b.) Applied technology research c.) Market-focused development
d.) Market tinkering
- An example of a is investing in a project that fails.
a.) Type I error
b.) Type II error c.) Type III error d.) Type IV error
- An example of a is rejecting projects that would have succeeded. a.) Type I error
b.) Type II error
c.) Type III error d.) Type IV error
- Which of the following is NOT an example of a Type II error? a.) The telephone—rejected by Western Union
b.) The Beatles—rejected by Decca Recording Company
c.) The personal computer—initially rejected by Atari and HP
d.) Well-known dotcom failures
- Product testing performed in-company is commonly referred to as which of the following?
a.) alpha tests
b.) beta tests c.) sigma tests d.) theta tests
- A major distinction in the types of product tests is between
, typically conducted in that order. a.) beta tests and alpha tests
b.) alpha tests and beta tests
and
c.) beta tests and sigma tests d.) sigma tests and beta tests
- All of the following are examples of structured thinking in generating new product ideas EXCEPT: a.) Attribute listing
b.) Brainstorming
c.) Morphological analysis d.) Idea generation
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a.) Sigma testing b.) Theta testing
c.) Virtual testing
d.) Concept testing
- At which of the following stages of the new-product development process would significant facilities investment be required to scale up pilot plant production to commercial levels?
a.) Concept development b.) Market testing
c.) Development
d.) Commercialization
- are the first to adopt an innovation and are considered to be risk takers. They take price in being first, are considered experts, and proactively seek opportunities to try new things.
a.) Innovators
b.) Early adopters c.) Early majority d.) Late majority
- Innovators represent 2.5 percent of the population and are also called .
a.) Explorers
b.) Visionaries c.) Pragmatists d.) Conservatives
- seek understanding on future possibilities and are willing to take risks and break with the past. They are more respected in their communities and are opinion leaders for others.
a.) Innovators
b.) Early adopters
c.) Early majority
d.) Late majority
- Early adopters represent 13.5 percent of the population and are also called .
a.) Explorers
b.) Visionaries c.) Pragmatists
d.) Conservatives
- are motivated by current problems and make decisions deliberately, based in part on the experience of early adopters. They look for proven track records and prefer to buy recognized brands and from market leaders.
a.) Innovators b.) Laggards
c.) Early majority
d.) Late majority
- Early majority represent 34 percent of the population and are also called .
a.) Explorers
b.) Visionaries
c.) Pragmatists d.) Conservatives
- are a skeptical group that adopts only when half the population has adopted. They tend to be price sensitive.
a.) Innovators b.) Laggards
c.) Early majority
d.) Late majority
- Bound by tradition and suspicious of change are characteristics of which of the following adopter groups?
a.) Early adopters b.) Early majority c.) Late majority
d.) Laggards
- Laggards represent 16 percent of the population and are also called . a.) Explorers
b.) Visionaries
c.) Critics
d.) Conservatives
- According to the text, all of the following are considerations underlying a forecast of the firm’s financial performance EXCEPT:
a.) Interest and taxes
b.) Sales revenues
c.) Cost of goods sold d.) Discounting
- In the new product development process, successful business-case analysis sets the stage for
.
a.) development
b.) idea generation
c.) commercialization d.) test marketing
- According to the text, is the factor in the adoption process that describes the relationship with past experience and current life style.
a.) relative advantage
b.) compatibility
c.) complexity d.) divisibility
- Which factor affects the speed of adoption in the following example? “The driver’s behavior at the toll booth is essentially unchanged; setting up the account is similar to common direct marketing transactions.”
a.) Relative advantage
b.) Compatibility
c.) Complexity d.) Divisibility
- Which of the following speed-of-adoption factors implies greater learning requirements? a.) Relative advantage
b.) Compatibility
c.) Complexity
d.) Divisibility
- “Learning requirements are minimal, and the driver attaches the device and drives through the toll- booth” is an example of which speed-of-adoption factor?
a.) Relative advantage b.) Compatibility
c.) Complexity
d.) Divisibility
- Which speed-of-adoption factor is described as the ability to try on a limited basis? a.) Relative advantage
b.) Compatibility c.) Complexity
d.) Divisibility
- “If drivers do not like to use the device, they can easily switch back to paying cash” is an example of which speed-of-adoption factor?
a.) Relative advantage b.) Compatibility
c.) Complexity
d.) Divisibility
- The extent to which the benefits can be communicated describes which speed-of-adoption factor? a.) Compatibility
b.) Complexity c.) Divisibility
d.) Communicability
- “The benefits are easy to understand and communicate” is an example of which speed-of-adoption factor?
a.) Compatibility b.) Complexity c.) Divisibility
d.) Communicability
- The extent of benefits offered compared to existing alternatives is described by which speed-of- adoption factor?
a.) Advantage
b.) Compatibility c.) Complexity d.) Divisibility
Essay Questions
- In a short essay, list and discuss the four goals that are important in a firm’s new product development portfolio.
- In a short essay, list the seven stages of the new-product development process. Then specify the types of criteria required for each stage to move from one stage to the other.
- In a short essay, list and discuss the four basic approaches to new product development
- In a short essay, list and discuss the five categories of the customer adoption process.
- In a short essay, list and discuss five factors that affect the speed of the product adoption process. Include a specific example of each factor using the EZ Pass system on toll roads and bridges.
