New Product Planning (Ch1 - Ch10)
Which of the following forms of perceptual maps are distinguished by the fact that its axes are not labeled or defined? A. AR perceptual gap maps B. Determinant gap maps C. MDS-based perceptual gap maps D. Reflective gap maps
MDS-based perceptual gap maps
Analogy is used heavily as part of the problem-solving step in problem-based methods. True or False
True
Gap analysis does not discover demand. True or False
True
The term "platform" was initially associated with the _____ industry. A. packaged food B. consumer electronic C. automobiles D. computer
automobiles
The factor analysis procedure provides a useful statistic called the _____ for each factor, which is mathematically related to the amount of variance explained. A. eigenvalue B. factorvalue C. clustervalue D. basevalue
eigenvalue
The primary purpose of the full screen is to: A. estimate the feasibility of technical and commercial accomplishments. B. finalize the overall marketing plan for the product. C. develop and test a prototype of the product. D. obtain the information required for developing the product innovation charter.
estimate the feasibility of technical and commercial accomplishments.
Conjoint analysis is an analytical tool used to assess tradeoffs much like _____ analysis is a tool to develop perceptual maps. A. factor B. block C. decision tree D. semantic feature
factor
One of the dimensions used by the bothersomeness technique for ranking and sorting problems according to their severity or importance is the _____. A. cost of resolving the problem B. frequency of the problem C. time required to resolve the problem D. complexity of the problem
frequency of the problem
A new product appears first as a(n) _____. A. prototype B. idea C. model D. code
idea
Prior to proceeding with development of a new product, a group of technical people and intended customers will review a _____ statement to assess its potential. A. product input B. product potential C. product concept D. product process
product concept
When a current product of a company has been enhanced to better serve consumer needs, the product will fall into the new product category of _____. A. new-to-the-world products B. repositionings C. line extensions D. product improvements
product improvements
In an attempt to extend the life of its brand of AquaFresh soap, Agate Inc., a soap manufacturer, makes certain enhancements to the characteristics and quality of its soaps. Agate's products would best fit into the new product category of: A. line extensions. B. new-to-the-firm products. C. new-to-the-world products. D. product improvements.
product improvements.
Most of the ideas offered by consumers in the form of crowdsourcing would be best characterized as: A. product improvements. B. inventions. C. new-to-the-world products. D. innovations.
product improvements.
In the context of the scoring model, culling factors should generally be established in the _____. A. marketing report B. product innovation charter C. firm's mission statement D. articles of incorporation
product innovation charter
The _____, a strategy for new products, ensures that the new product team develops products that are in line with firm objectives and strategies and that address marketplace opportunities. A. product prototype B. product portfolio C. product framework D. product innovation charter
product innovation charter
Ace Corporation, a software development firm, used a standard set of subcomponents for all its multimedia products. Ace is using a _____. A. brand platform B. category platform C. channel platform D. product platform
product platform
Reinforay, an aircraft manufacturer, makes passenger, cargo, short-haul, and long-haul aircraft from the same design, with many shared components. Reinforay is using a _____. A. product platform B. brand platform C. channel platform D. category platform
product platform
With reference to product development, a _____ is defined as a set of systems and interfaces that form a common structure. A. product portfolio B. product platform C. product module D. product pool
product pool
Project evaluation involves preparing a statement of what is wanted from the new product, and this statement is called the: A. product concept. B. product protocol. C. product prototype. D. product innovation charter.
product protocol
A _____ assumes a leadership role that oversees a team of people representing various functional departments. A. functional representative B. process manager C. project manager D. marketing researcher
project manager
In the context of the concept or project evaluation phase of the new products process, a _____ is a product definition that includes the intended market user, the problem perceived, the benefits the new product would have to have, plus any mandatory features. A. screening concept B. process concept C. protocol concept D. pilot concept
protocol concept
If it is simple to go from concept to full service description, then the services firm can proceed to: A. developing the product innovation charter. B. developing a concept statement. C. prototype concept testing. D. analyzing competitors' offerings.
prototype concept testing.
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 B. perceptual mapping C. fundamental analysis D. lexical analysis
surrogate questions
To cater to the constant demands of its customers, Roltez Pretzels, a manufacturer of pretzels and extruded corn snacks, introduces honey-mustard pretzels to its product line. The honey-mustard pretzels are examples of: A. new-to-the-world products. B. new-to-the-firm products. C. "flanker" brands. D. product improvements.
"flanker" brands.
According to the product-portfolio proposed by the Strategic Decision Group (SDG), white elephants represent projects with high expected commercial value. True or False
False
To avoid the bazooka effect, the idea source should be allowed to participate in the initial reaction. True or False
False
Trade-off analysis and conjoint analysis mean one and the same and therefore can be used interchangeably. True or False
False
Using the cash-to-cash metric to complement speed-to-market helps a firm manage just the moment of launch, not the whole launch phase. True or False
False
Virtual reality captures both the advantages and disadvantages of a prototype. True or False
False
When benefit segments are overlaid onto a perceptual map, it results in a cumulative expenditures curve. True or False
False
With reference to relationships analysis, utility lever indicates at what point a product affects a customer. True or False
False
With reference to the risk/payoff matrix, a "drop error" occurs when a product, that is likely to fail if marketed, is continued. True or False
False
According to the definition of goals in the Product Innovation Charter (PIC), goals are short-term, specific measures of progress/accomplishment. True or False
False
A rolling evaluation means that a project is being assessed continuously, which implies that it is dealing with risk via _____. A. avoidance or transfer B. acceptance or avoidance C. acceptance or mitigation D. mitigation or avoidance
acceptance or mitigation
Concept generation must be a(n) _____ process. A. passive B. reactive C. active D. defensive
active
First-to-market products that do not involve any changes in technology, but the use is totally new primarily involve _____. A. leveraged creativity B. state-of-the-art breakthrough C. applications engineering D. product adaptation
applications engineering
Using glue to replace metal fasteners in electronics and automotive products best exemplifies _____. A. leveraged creativity B. state-of-the-art breakthrough C. applications engineering D. product adaptation
applications engineering
Those firms that bypass the full screen: A. are generally larger in size. B. are generally involved with new product work. C. tend to have a highly technical development process. D. are more likely to do a more complete concept test.
are more likely to do a more complete concept test.
New-to-the-firm products: A. most likely require consumer learning. B. most likely involve the incorporation of a very new technology. C. tend to revolutionize existing product categories. D. are new to a company, but are not new to the world.
are new to a company, but are not new to the world.
Analytical attribute techniques: A. are used to preserve current product attributes. B. are used to create new product concepts. C. are used to enhance current product attributes but not to add new attributes. D. are used to promote groupthink in the new product development process.
are used to create new product concepts.
The concept evaluation phase of the new product process involves: A. collecting and generating new product concepts that fit an opportunity. B. preparing strategy, tactics, and launch details for the marketing plan. C. specifying the entire development process and its deliverables. D. assessing new product concepts on technical, marketing, and financial criteria.
assessing new product concepts on technical, marketing, and financia
According to Goldenberg and Mazursky, _____ is a creativity template that finds a functional dependency between two independent variable features and the interaction may suggest a creative new product. A. attribute dependency template B. displacement template C. replacement template D. component control template
attribute dependency template
In developing new products, marketers must: A. avoid using perceptual mapping. B. always distribute a few free samples of the product. C. rely only upon managerial intuition/experience. D. avoid being bound by what is now impossible.
avoid being bound by what is now impossible.
A platform procedure that uses top-down mechanisms is intended to: A. allow for less sharing of components within a platform. B. become the basis for a family of products, possibly for years into the future. C. generally increase the cost of the products as and when demand increases. D. consolidate components within an existing family of products to gain scale economies.
become the basis for a family of products, possibly for years into the future.
Track Inc. seeks to identify unsatisfied market segments in the health care insurance segment. It wants to concentrate its efforts on developing concepts ideally suited to the needs of these segments. For this purpose, the firm is most likely to employ _____. A. benefit segmentation B. a risk or payoff matrix C. calibrated heuristics D. promotion segmentation
benefit segmentation
A product protocol primarily describes: A. form. B. benefits. C. technology. D. potential.
benefits.
In an attempt to allow for more sharing of components, Designethic, redesigns its power tool groups into specific product families, allowing for more sharing of components. This best exemplifies a _____. A. multiple platform procedure B. bottom-up platform system C. global product platform D. mindshare platform procedure
bottom-up platform system
A group ideation technique put forth by Alex Osborn that involves a process where one person presents a thought, another person reacts to it, another person reacts to the reaction, and so on is called _____. A. crowdsourcing B. brainstorming C. scenario analysis D. role playing
brainstorming
The value of an established brand is called its _____. A. brand mark B. brand identity C. brand equity D. brand recognition
brand equity
Trade-off analysis is becoming increasingly valuable for industrial product innovation because: A. business buyers tend to make a more rational analysis of product features than consumers. B. businesses have more funds to spend than consumers. C. business buyers are interested in quick transactions and short-term relationships with the suppliers. D. industrial product innovation is relatively simple.
business buyers tend to make a more rational analysis of product features than consumers.
Firms with a global innovation culture: A. have a disadvantage in implementing global launches. B. are unwary of the differences in customer needs and preferences. C. can better manage the R&D tasks associated with the new products process. D. are only open to domestic markets.
can better manage the R&D tasks associated with the new products process.
Conjoint analysis: A. assumes that one cannot represent a product as a set or bundle of attributes. B. can use the output of AR gap analysis to select product attributes. C. uses virtual prototypes for determining product attributes. D. is a quantitative technique used to incorporate customer input into concept generation.
can use the output of AR gap analysis to select product attributes.
Perceptual gap mapping: A. considers nuances and shadings of consumer responses. B. cannot identify or evaluate interrelationships and synergies. C. primarily deals with "conceptual leaps" critical to developing new-to-the-world products. D. cannot be used for concept generation and new product development.
cannot identify or evaluate interrelationships and synergies.
With reference to the new product development process, an initial verbal and/or prototype expression that tells what is going to be changed and how a customer stands to gain or lose is best described as a _____. A. charter B. bond C. concept D. prototype
concept
The practice of deliberately pairing a "blue sky" creative person with a "practical" type is called: A. competitive venturing. B. creative abrasion. C. dysfunctional creativity. D. itemized response.
creative abrasion.
Star Inc. has restricted its budget for developing new products to $20,000. It automatically vetoes a proposed product if the product scores poorly on the factor of budget during the screening process. In this case, such a factor is known as a _____ factor. A. Level Four B. surrogate C. culling D. groupware
culling
The best new product ideas are based on _____, which serve as the heart of the concept generation process. A. channel desires B. manufacturing efficiencies C. profit goals D. customer problems
customer problems
A computer services firm decides to diversify in the field of cosmetics. According to the product market matrix, the innovativeness risk in this case could be _____. A. none B. low C. medium D. dangerous
dangerous
The Analytic Hierarchy Process is a form of _____ analysis. A. attribute B. factor C. decision tree D. predictive
decision tree
According to the classic five-point question format of the concept test for a product, the top-two-boxes score includes the number of people who: A. definitely would buy the product or probably would buy the product. B. probably would buy the product or might or might not buy the product. C. might or might not buy the product or probably would not buy the product. D. probably would buy the product or definitely would not buy the product.
definitely would buy the product or probably would buy the product.
Marketing managers in a product development firm routinely create "gap maps" representing the position of their company's product vis-à-vis competitive offerings. The marketing managers use their subject matter knowledge and make judgment calls based on prior experience and expertise. This is an example of a(n) _____ gap map. A. AR perceptual B. determinant C. OS perceptual D. experiential
determinant
Concept testing is sometimes called concept _____ to reinforce the idea of helping the item, not just killing it off. A. checking B. development C. validation D. evaluation
development
Designing and validating the production process for the best prototype takes place during the _____ phase of the new products process. A. launch B. concept generation C. project evaluation D. development
development
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
diffusion of innovation
The underlying premise for _____ is that product concept creativity is triggered by the mere listing of every physical feature of a product, because we instinctively think about how that feature could be changed. A. factor analysis B. perceptual mapping C. adaptive conjoint analysis D. dimensional analysis
dimensional analysis
With reference to the new products process, a firm adopts the ready—fire—aim approach when it: A. lacks senior management support. B. does not pay enough attention to quality. C. chases a moving target. D. does not do the required homework before beginning development.
does not do the required homework before beginning development.
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. A. drop B. decay C. launch D. development
drop
Exploring technology and market drivers separately, then seeing their value when taken in combination is often called the _____. A. primary-secondary measure B. dual-drive idea C. goals-objective metric D. supply-demand ratio
dual-drive idea
With reference to scenario analysis, in _____ studies, the focus is on what changes must be made between now and then if the leap scenario is to come about. A. dynamic leap B. exploratory C. product function D. static leap
dynamic leap
Helium Corporation is identifying the changes it must be prepared to make in order to be competitive in the year 2020. This process involves focusing on the interim period so that it can solve the future problems and have solutions ready to market when the time comes. In this case, Helium Corporation's efforts can be best described as a(n): A. focus group study. B. dynamic leap study. C. observational study. D. static leap study.
dynamic leap study.
One of the real problems with using in-house people to report on customer problems is that: A. they don't know how to interact with customers and lack experience. B. each suggestion is usually someone's perception of what the customer problem is. C. they tend to focus on finding out what new products customers are looking for instead of providing a solution with each suggestion. D. they generally lack the skills and expertise required for analyzing customer problems.
each suggestion is usually someone's perception of what the customer problem is.
Once a concept passes the first hurdle, concept testing will focus next on: A. estimating the product's sales or trial rate. B. calculating production costs. C. approximating materials costs. D. prototyping the product.
estimating the product's sales or trial rate.
Relationships analysis typically involves: A. removing one of the components of the product and replacing it with one from another environment. B. removing an intrinsic relationship and its function, in such a way as to functionally change the product. C. finding relationships among dimensions to generate new product concepts. D. identifying and creating a new relationship typically between a component internal to the product and one that is external to the product.
finding relationships among dimensions to generate new product concepts.
The use of stakeholder contacts as a methodology for gathering information useful for problem analysis involves the use of: A. quality circles. B. focus groups. C. published sources. D. internal records.
focus groups.
Early, non-functional versions of proposed new products, called ____, are often provided to allow consumers to try and comment on innovative offerings. A. product props B. focused prototypes C. product models D. batch concepts
focused prototypes
In the new products process, after evaluating an idea, various views on the idea are combined together in what is often called the: A. full screen. B. decision window. C. product protocol. D. product prototype.
full screen
A product attribute that is unlimited in variety and indicates what a product does and how it works is known as the _____ of the product. A. usability B. feature C. function D. benefit
function
A pen that sprays ink onto the paper is an example of a product: A. usage. B. function. C. feature. D. benefit.
function.
A marketing researcher is most likely to serve as a _____ in a new product development team. A. functional representative B. process manager C. scientific advisor D. project leader
functional representative
In contrast to most other qualitative analysis, relationships analysis: A. uses checklists. B. goes directly to a new product idea. C. is typically three-dimensional. D. uses determinant attributes.
goes directly to a new product idea.
Any "rules of the road" requirements imposed by a situation or by upper management form a part of the _____ section of a PIC. A. background B. focus C. goals-objectives D. guidelines
guidelines
Role playing: A. tends to stifle creativity. B. helps unwilling product users to express their views. C. is not effective in instances where product users are unable to visualize their reactions. D. is one of the most successful techniques for generating ideas for new products.
helps unwilling product users to express their views.
Rules of thumb that firms have found that work for them can be referred to as: A. heuristics. B. syntaxes. C. synergies. D. charters.
heuristics.
Conjoint analysis is used to identify _____. A. survey variations B. the optimum combination of attributes C. high-potential gaps D. the optimum price for a product
high-potential gaps
The primary purpose of evaluation during Phase III of the basic new products process is to: A. develop a marketing plan. B. create a final, full-scale prototype. C. identify concepts that will proceed further in the development process. D. eliminate all probable mistakes in the launch phase.
identify concepts that will proceed further in the development process.
The first purpose of concept testing is to: A. estimate the likely sales or trial rate. B. identify very poor concepts for early elimination. C. refine revenue estimates claimed by marketers. D. identify the technology needed for development.
identify very poor concepts for early elimination.
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. B. if a buyer wants to try a product, the effort to find it will be successful. C. a buyer will recommend a product to somebody else. D. a buyer will buy a product at least one more time.
if a buyer wants to try a product, the effort to find it will be successful.
Concept testing was essentially invented by ____. A. industrial firms B. wholesalers C. retailers D. advertising firms
industrial firms
One of the complicated issues a firm must manage in an open innovation policy is: A. complete outsourcing of a company's R&D. B. intellectual property protection. C. top management support. D. restrict the knowhow a company develops internally.
intellectual property protection.
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. B. it is possible to work on packaging before a finished product is ready. C. the development process begins after the initial prototypes are generated. D. it is possible to treat a product and its marketing plan as two separate entities.
it is possible to work on packaging before a finished product is ready.
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.
it is successful in the market.
The practice of citing the advantages of a proposed idea before addressing the shortcomings in a "positive manner" is called: A. itemized response. B. velvet-gloving. C. accentuating the positive. D. soft-soaping.
itemized response.
While preparing the product innovation charter (PIC), the earliest evaluation that a firm makes is of ____. A. its competitors B. the legal requirements it has to fulfill C. the technologies used by its competitors D. itself and its situation
itself and its situation
The benefit segments overlaid onto a perceptual map result in a ____, which allows assessment of the preferences of each benefit segment for different product concepts. A. cumulative expenditures curve B. risk or payoff matrix C. joint space map D. decay curve
joint space map
In the context of barriers to firm creativity, strong interpersonal ties between team members tend to lead to: A. information overload. B. more innovative ideas. C. weak social cohesion. D. lack of creative abrasion.
lack of creative abrasion.
Tweaking existing technology in a new way is usually called _____. A. leveraged creativity B. state-of-the-art breakthrough C. applications engineering D. product adaptation
leveraged creativity
Ace Corporation is a manufacturer of powder and liquid dishwashing detergents. Owing to popular demand, the company introduces a single-load, scented, gel detergent encased in water-soluble bags designed to fit dishwasher detergent trays. The firm's new product is best described as a(n): A. new-to-the-world product. B. line extension. C. repositioned product. D. improvised product.
line extension.
Zooky Inc. is a well-known manufacturer of bubble gums, candies, chewing gums, and edible breath strips. The company recently introduced a new range of sugar-free, antibacterial chewing gum. Zooky's new product can be best described as a(n): A. line extension. B. new-to-the-firm product. C. new-to-the-world product. D. repositioned product.
line extension.
Checklists typically consist of a _____. A. description of features B. list of questions C. list of attributes D. description of potential target markets
list of questions
A manufacturer of ice creams introduces a new mint and lime flavored ice cream. According to the product/market matrix, the amount of innovativeness risk that the firm brings with this new flavor would be _____. A. high B. low C. medium D. dangerous
low
The _____ test is a critical step which for the first time tests the feasibility and success of the marketing program and the product together. A. market B. benefits C. concept D. utility
market
In the context of the various tools for evaluating new products, _____ is the second evaluation that precedes the appearance of a concept. A. market analysis B. cumulative expenditure graphing C. concept testing D. joint space mapping
market analysis
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 _____. A. market testing B. prototype development C. market capitalization D. market segmentation
market testing
Perceptual maps are based on: A. past sales data. B. experiences and perceptions of managers. C. determinant attributes as perceived by the users. D. marketplace perceptions of reality.
marketplace perceptions of reality.
A famous fast-food joint is offering all its regular customers a product of their individual choice through the program, "Have It Your Way". This is an example of: A. mass production. B. mass customization. C. mass standardization. D. mass advertising.
mass customization.
The first step in creating AR perceptual GAP maps typically involves: A. measuring consumers attribute perceptions using a Likert-type scale. B. creating a data cube that is impressive in size. C. conducting a factor analysis to group individual respondents together based on preferences. D. conducting a cluster analysis to reduce large attributes to small factors.
measuring consumers attribute perceptions using a Likert-type scale.
According to the latest Comparative Performance Assessment Study (CPAS), in comparison to the Rest, Best companies are: A. more likely to use tradeoff analysis. B. less likely to rely on portfolio analysis for product selection. C. more likely to employ informal processes for selecting which concepts to develop. D. less likely to rely on online communities for information gathering.
more likely to use tradeoff analysis.
According to the screening model derived from the NewProd study, an acceptable risk-return ratio is an example of a _____. A. should-meet criteria B. must-meet criteria C. will-meet criteria D. ideal-meet criteria
must-meet criteria
A single best factor on which the scoring model can be based and which covers both technical and commercial accomplishments and considers all direct and indirect costs and benefits can be termed as the _____. A. net present value B. affordability factor C. internal rate of return D. capability index
net present value
One of the factors based on which a concept can be evaluated for a rough early screen is the factor of firm worth, which indicates if the: A. present brand image of the firm is suitable for launching the new product. B. company has the appropriate technology for manufacturing the new product efficiently. C. new product project would enhance the firm's competencies. D. product's advantage can be maintained against competitive retaliation.
new product project would enhance the firm's competencies.
A "me-too" product is most likely a: A. new-to-the-world product. B. new-to-the-firm product. C. repositioned product. D. reduced cost product.
new-to-the-firm product.
Conjoint analysis is least likely to be useful for _____. A. line extensions B. new-to-the-world products C. product improvements D. repositioned products
new-to-the-world products
Products that are inventions and create a whole new market are called: A. new-to-the-world products. B. new-to-the-firm products. C. "flanker" brands. D. improvised products.
new-to-the-world products.
Common complaints by end users or consumers taken as requests for new products are a direct result of _____. A. brainsketching B. reverse brainstorming C. omniscient proximity D. speedstorming
omniscient proximity
The phenomenon of _____ is the tendency of respondents to mention minor, but frequently encountered, problems first. A. reverse brainstorming B. omniscient proximity C. observational projection D. brainsketching
omniscient proximity
In the _____ phase of the new products process, opportunities are carefully and thoroughly described, then analyzed to confirm that a sales potential does, indeed, exist. A. concept generation B. opportunity identification and selection C. concept or project evaluation D. development
opportunity identification and selection
An OS perceptual gap map is made by typically using: A. attribute ratings to get data from top management. B. group ideation techniques to assess new product ideas. C. overall similarities to get data from customers. D. managerial expertise and judgment alone.
overall similarities to get data from customers.
To identify a customer's underlying value system, conjoint analysis uses rank orderings to estimate the utilities of each level of each attribute for each customer and these utilities are called _____. A. fractional values B. fractals C. part-worths D. contribution margins
part-worths
The MBTI Creativity Index uses an individual's _____ to assess his or her creativity. A. personality scores B. general knowledge C. numerical ability D. intelligence quotient
personality scores
After finding the important attributes on which the available products differ, gap analysis: A. describes the product category being considered. B. plots the findings on maps. C. determines the geographical segmentation of the product market. D. uses the findings to create a matrix.
plots the findings on maps.
The very first evaluation in the product development process usually: A. occurs after a product idea has been developed. B. precedes the product concept. C. follows the development of a prototype. D. follows the product launch.
precedes the product concept.
The optimum proportion of attributes desired by a market can be identified with the help of ____. A. attribute calibration B. preference regression C. progression vectors D. factor analysis
preference regression
Concept testing is a part of the _____ process. A. development B. prescreening C. launch D. full screening
prescreening
The A-T-A-R model is most akin to a _____. A. morphological matrix B. pro forma income statement C. risk/payoff matrix D. decay curve
pro forma income statement
The job of a _____ in the field of new product management is to help project managers develop and use good new product processes. A. team executive B. process manager C. functional representative D. technical specialist
process manager
In order to generate quick revenue, Helium Corp., an electronics manufacturing firm makes a technical improvement to one of its competitor's ERP offerings. This is an example of _____. A. leveraged creativity B. state-of-the-art breakthrough C. applications engineering D. product adaptation
product adaptation
Lia Hwang was asked to attend a new product scoring session in order to explain the special considerations and the intangible benefits unique to the concept she helped develop. Lia's role was to push past normal resistance to change and to see that the concept gets a fair hearing at all turns. Lia is best described as a _____. A. virtual scorer B. product champion C. knowledge manager D. process facilitator
product champion
An example of an internal mandate is the ____, which tends to increase the discrepancy between a firm's current sales and the target sales established during long-range planning. A. product innovation gap B. quality gap C. assessment gap D. performance gap
product innovation gap
Conjoint analysis has been shown to provide a valid early indication of ultimate product success for _____. A. product line extensions B. new-to-the-world products C. product inventions D. major innovations
product line extensions
New-to-the-firm products are: A. inventions that create a whole new market. B. products that take a firm into a category new to it. C. products that are new to the world, but are not new to the firm. D. products that are retargeted for a new use or application.
products that take a firm into a category new to it.
A _____ is an evaluation technique that tells one whether he or she is ready to develop a product for serious field testing. A. speculative sale B. protocol check C. scoring model D. full screen test
protocol check
In the context of the development phase of the new products process, a _____ is best described as a tentative physical product or system procedure. A. prototype concept B. tested concept C. fully screened concept D. stated concept
prototype concept
The first use of evaluation is focused upon: A. the development of a marketing plan. B. the likely success of the product concept that has been selected for development. C. mistakes made during the launch of the new product. D. providing direction for the selection of potential product concepts.
providing direction for the selection of potential product concepts.
Practitioners urge that a concept statement should: A. not claim determinant attributes. B. always be presented to potential buyers in a verbal format. C. be as descriptive and lengthy as possible. D. relate in some way to things familiar to the customer.
relate in some way to things familiar to the customer.
The two-dimensional matrix and the morphological matrix are examples of types of _____ analysis. A. conjoint B. dimensional C. gap D. relationships
relationships
In the case of the A-T-A-R model, R stands for _____. A. rate B. response C. repeat D. region
repeat
People who solve problems in ways that have worked for them in the past are characterized by _____ thinking. A. innovative B. regressive C. reproductive D. stereotyped
reproductive
OS techniques: A. run on perceptions of overall similarities between pairs of brands. B. require customers to rate choices on individual attributes. C. do not consider phantom attributes. D. typically result in formidable data cubes.
run on perceptions of overall similarities between pairs of brands.
In the new products process, a cross-functional team: A. only includes members of the top management. B. seeks to eliminate "over-the-wall" product development. C. discounts parallel processing. D. starts working on the project only in the later phases of the process.
seeks to eliminate "over-the-wall" product development.
Since factor weightings are of great importance, many firms evaluate the impact of assigned weights through _____. A. sensitivity testing B. factor analysis C. specificity testing D. profile analysis
sensitivity testing
Information acceleration: A. typically involves using a two-dimensional matrix for studying consumer preferences of product attributes. B. simulates the information typically available in a realistic purchase situation. C. is very inexpensive and has a number of extensions. D. is ineffective in enabling customers to make a realistic purchase decision.
simulates the information typically available in a realistic purchase situation.
In AR perceptual gap mapping, once the Likert-scale attribute scores are obtained, average ratings of each brand on each attribute are presented in the: A. cubical plot. B. cluster plot. C. spherical plot. D. snake plot.
snake plot.
A commercialized concept statement: A. sounds more like how a product would actually be promoted or advertised to customers. B. does not produce realistic customer evaluations. C. is also known as a "stripped description." D. just presents facts in the form of bullet points.
sounds more like how a product would actually be promoted or advertised to customers.
A concept statement developed during the new product development process: A. describes the technology to be used for manufacturing the product. B. discusses the results of prototype testing. C. states a difference and how that difference benefits the customer. D. lists the guidelines for developing the new product.
states a difference and how that difference benefits the customer.
In the absence of accurate present value data, the scoring model relies upon _____. A. opinions B. factor analysis C. market testing D. surrogates
surrogates
With reference to the three inputs required by the creation process, _____ is the source by which the form is attained. A. design B. potential C. technology D. benefit
technology
Creative persons: A. tend to benefit from training. B. tend to be more judging and less perceiving than other individuals. C. tend to be less extraverted than other individuals. D. tend to mostly think reproductively.
tend to benefit from training.
With regard to the concept or project evaluation phase of the new product process, a prototype concept is best described as a: A. company skill or resource, or a customer problem. B. form or a technology, plus a clear statement of benefit. C. tentative physical product or system procedure, including features and benefits. D. product definition that includes the intended market user, the problem perceived, and the benefits that the new product would have to have.
tentative physical product or system procedure, including features and benefits.
Well-known business writer, Gary Hamel, has described _____ as "the most important business issue of our time. A. product distribution B. the creation of radical innovation C. advertising and marketing of services D. product line extensions
the creation of radical innovation
The problem of scope creep faced by a new product team in an organization is most likely to occur when: A. employees in the organization are not aware of the PIC. B. the PIC is not given to all the members of the new product team in the form of a written document. C. the definition of the project constantly keeps changing. D. the senior management is not involved in the implementation of the PIC.
the definition of the project constantly keeps changing
The final step of the problem-based ideation process involves: A. a detailed situation analysis. B. the selection of one or more problem identification techniques. C. the development of concept statements for further evaluation. D. a rank-ordered list of potential problems.
the development of concept statements for further evaluation.
When combining the individual team member's ratings, if the factors being scored have all-or-nothing, yes-or-no answers, then these factors should be handled by using: A. benefit segmentation for the given factors. B. the end points on the semantic differential scale, with no gradations. C. the Olympic method of dropping the highest and lowest ratings. D. the risk-payoff model of factor screening.
the end points on the semantic differential scale, with no gradations.
If a concept passes the full screen, _____. A. it enters the concept development stage B. the next phase in the new products process is development C. the product innovation charter for the concept is developed D. it undergoes concept testing
the next phase in the new products process is development
The full screen should generally be carried out just prior to: A. developing the product innovation charter. B. the onset of technical development. C. concept testing. D. launching the product.
the onset of technical development.
Brainstorming and the group creativity techniques it spawned, tend to rely heavily upon: A. watching customers using products in their own environments. B. leaping into the future to pick a period that is then described. C. the presenting or reacting sequence that gives group creativity its meaning. D. the study of wild cards, which are high-impact and low-probability events.
the presenting or reacting sequence that gives group creativity its meaning.
The development phase of the new product process involves the development of: A. new product suggestions. B. the marketing plan. C. the product innovation charter. D. the product financing plan.
the product financing plan.
In a determinant gap map, _____. A. a manager uses customer attribute ratings to get data B. the scoring may seem arbitrary C. a manager uses overall similarities to get data from users D. the accuracy of the scoring system is not subject to managerial error
the scoring may seem arbitrary
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. B. the tougher it is to stop the product. C. the easier it is to wave aside the hurdles. D. the lesser support it receives from R&D workers.
the tougher it is to stop the product.
One of the reasons why technology-driven scientists, in most cases, actually put benefit before form and technology in the creation process is that: A. it makes finding customer problems very easy. B. they have some idea of need that is leading them in their efforts. C. an idea developed into a concept using this sequence is always successful. D. the production cycle using this sequence is much shorter.
they have some idea of need that is leading them in their efforts.
Prior to the development phase of the new products process, product managers undertake up-front evaluation activities because: A. they are under continual pressure to increase time to market. B. they don't want to spend time in gathering information and making decisions. C. they want a rising cumulative expenditure curve. D. they want to avoid incurring cost overruns.
they want to avoid incurring cost overruns.
The most productive methodology to use for gathering a list of consumer problems is: A. to consult experts. B. to review published sources. C. to brainstorm with members of consulting firms. D. to directly contact stakeholders.
to directly contact stakeholders.
The reason it is important to use determinant attributes in making market maps is: A. to group individual respondents together into benefit segments based on their preferences. B. to identify market segmentation techniques for potential markets. C. to find a spot on the map where a gap offers potential as a new item. D. to reduce a large number of attributes to a small number of underlying factors.
to find a spot on the map where a gap offers potential as a new item.
The objective of a firm using open innovation is to: A. completely outsource its R&D. B. to reach out beyond its familiar research partners and to access R&D carried out globally. C. allow for inputs purely from external sources by keeping the internal sources on hold for a later point in time. D. get tolerant to some aberrations and thereby allow innovation at the cost of rule violations.
to reach out beyond its familiar research partners and to access R&D carried out globally.
The analysis of the process by which customers compare and evaluate brands based on their attributes or features is best described by the term _____ analysis. A. trade-off B. dimensional C. relational D. lexical
trade-off
Gourmetz, a fast food joint, seeks to launch a new range of organic pizzas. The determinant attributes for the new product range of pizzas are identified as spiciness, flavor, and thickness. The range for each of these attributes is also selected. Cards representing each variant that combines specific levels of determinant attributes are prepared and given to consumers. Then, the best level of each attribute is combined into an overall favorite product. This is an example of _____. A. cost-benefit analysis B. VRIO framework C. SWOT analysis D. trade-off analysis
trade-off analysis
The use of subcontractors or joint ventures is most likely to be closely associated with the _____ risk strategy. A. mitigation B. avoidance C. acceptance D. transfer
transfer
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. A. recommended trial B. vicarious trial C. adoption trial D. virtual trial
vicarious trial
The use of weights in scoring models is subject to serious criticism because: A. weightings are necessarily judgmental. B. the effect of weightings cannot be measured using sensitivity analysis. C. they use all-or-nothing, yes-or-no answers as factors. D. they can be used only for open-ended questions.
weightings are necessarily judgmental.
A new product: A. when launched is still in a tentative form. B. if successful can be termed a concept. C. comes into being the moment its prototype is ready. D. comes into being the moment its potential benefits are identified.
when launched is still in a tentative form.
The likelihood of commercial accomplishment on Level Two of the scoring model assesses: A. whether the firm can create something that will do what its customers want. B. whether the firm has the resources to develop the product. C. whether product prototypes can be used to judge real-time market expenses. D. whether a product can be sold profitably.
whether a product can be sold profitably.
In a _____, one assesses the likelihoods of occurrence of high-impact, low-probability events and investigates the threats or new product opportunities they suggest. A. static leap study B. focus group study C. dynamic leap study D. wild card study
wild card study
Which of the following techniques should be followed to make a brainstorming session more effective? A. Generate a small number of ideas and avoid numbering them. B. Stop the brainstorming session when the group hits a plateau. C. Build models and prototypes of ideas using odds and ends. D. Judge ideas as soon as they are put forth.
Build models and prototypes of ideas using odds and ends.
Which of the following statements about the new product evaluation process is untrue? A. The assumption that a product development plan is mostly tentative. B. Form and positioning can usually be changed during the process. C. Everything in new product work should be keyed to a Go/No Go decision. D. Customer attitudes usually tend to change along the entire process.
Everything in new product work should be keyed to a Go/No Go decision.
A full-screen discourages cross-functional communication. True False
False
Which of the following statements is true of surrogate questions? A. 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.
Their response has little value except to help answer a critical question that cannot be answered directly.
Which of the following statements is true of creative people? A. They usually follow reproductive thinking rather than productive thinking. B. They tend to be creative throughout their lives and never become uncreative. C. Their creativity cannot be measured. D. They typically cannot benefit from training.
They tend to be creative throughout their lives and never become uncreative.
A complete new product concept is a statement about anticipated product features that will yield problem solutions relative to other products already available. True or False
True
Checklists produce a multitude of potential new product concepts, most of them worthless. True or False
True
Conjoint results are a valid early indicator of ultimate product success. True or False
True
New products can be tangible goods or services. True or False
True
One of the benefits of accelerating time to market is that the product will be on the market for a longer period of time before becoming obsolete. True or False
True
Which of the following actions can prevent the bazooka effect? A. Allowing an idea source to participate in the initial reaction B. Giving the authority of rejecting an idea to a single person C. Encouraging the participants to give an initial reaction based on pure intuition D. Using trained and experienced evaluators for evaluating an idea
Using trained and experienced evaluators for evaluating an idea
The problem-based ideation process begins with: A. the selection of one or more problem identification techniques. B. a study of the situation. C. the development of concept statements for further evaluation. D. the creation of a list of potential problems.
a study of the situation.
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. an observation. B. lateral thinking. C. a wild card. D. an itemized response.
a wild card.
After identifying an important user problem, most problem solving should: A. not be done intuitively without a quantifiable method. B. be done by the new product group members involved in the concept generation work. C. exempt marketing people from the process as their primary task is to generate sales. D. be done on a generic scale instead of focusing on the specifics of each problem.
be done by the new product group members involved in the concept generation work.
Combinations of several attributes to which a respondent states likelihood of purchase using a number between 0 and 100 are known as _____. A. calibration concepts B. part-worths C. fragments D. feature groups
calibration concepts
A single overall plan for a product industry is typically known as a _____ platform. A. brand B. line C. channel D. category
category
A product concept is a: A. core competency. B. product feature. C. physical prototype. D. claim of proposed satisfactions.
claim of proposed satisfactions.
Benefit segments are most likely to be identified or described using ____. A. the risk or payoff matrix B. cluster analysis C. trial averages D. the cumulative expenditures curve
cluster analysis
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.
cluster analysis.
When evaluating a new product proposal, a(n) _____ is used to see what potential consumers think about the idea. A. utility test B. feasibility analysis C. concept test D. construct validity analysis
concept test
Concept testing will work best for: A. concepts related to consumer packaged goods. B. concepts embodying new art and entertainment. C. concepts embodying some new technology that users cannot visualize. D. concepts related to a product whose prime benefit is a personal sense.
concepts related to consumer packaged goods.
By definition, new product teams are _____, which means a greater variety of perspectives but also potential difficulties in reaching a solution acceptable to all. A. cross-functional B. monopolistic C. highly bureaucratic D. iconoclastic
cross-functional
In the context of obtaining product ideas, open idea solicitation is known as: A. crowdsourcing. B. skimming. C. market penetration. D. shoulder surfing.
crowdsourcing.
During the concept generation phase of the basic new products process, the goal of product evaluation is to: A. chart out the PIC. B. cull out the big/sure losers. C. conduct protocol checks and prototype tests. D. speculate sale in retrospect.
cull out the big/sure losers.
Trade-off analysis is unsuitable for major innovations because: A. respondents can conceptualize the innovation and its uses too well in advance. B. customers tend to give inconsistent reviews about the products. C. customers without a high level of expertise in the product category may be unable to assess the innovation's benefits. D. customers without a high level of expertise in the product category mostly provide only data regarding detrimental attributes.
customers without a high level of expertise in the product category may be unable to assess the innovation's benefits.
Conjoint analysis uses monotone analysis of variance (MONANOVA) to identify the: A. appropriate pricing tool for a new product. B. best market for a new product. C. strengths and weaknesses of a competitor. D. customers' underlying value system within the rank order data.
customers' underlying value system within the rank order data.
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
determinant
According to the MBTI Creativity Index, creative people tend to be more: A. egocentric. B. intuitive. C. judging. D. introverted.
intuitive.
Putting benefit last is very risky, since: A. it is the power to do work. B. it comprises the sequence of steps by which a service is created. C. it comprises a solution trying to find a problem. D. it requires an itemized response.
it comprises a solution trying to find a problem.
Both market value and clarity are lowest for a(n): A. protocol concept. B. idea concept. C. opportunity concept. D. stated concept.
opportunity concept.
In order to be useful, a factor that has been identified during factor analysis should have an eigenvalue greater than: A. 0.4. B. 0.5. C. 1.0. D. 0.3.
1.0.
Which of the following, if implemented, will most likely ensure that the product innovation charter (PIC) is effective? A. A PIC strategized toward processes rather than products B. A PIC prepared by senior management to define the role and scope of innovation C. A PIC developed exclusively by specific teams rather than cross-functional teams D. A PIC that is relatively different from a mission statement
A PIC prepared by senior management to define the role and scope of innovation
Which of the following internal records serves as a psychological projective technique that may reveal the products or services sought by consumers? A. A warranty file B. A sales file C. A complaint file D. A sales call report
A complaint file
Which of the following firms is most likely to employ a formal full screening of product concepts? A. A small firm that is not involved in much new product work B. A packaged goods firm whose development process is rather nontechnical C. A firm that has the ability to market its product and is aware of the technical feasibility of its products D. A firm that is facing major issues of technical feasibility in the new product development process
A firm that is facing major issues of technical feasibility in the new product development process
Which of the following statements is true of a focus group? A. A focus group is designed to yield an exploratory and depth-probing type of discussion. B. A focus group is often very difficult to set up and is the most expensive method of gathering information. C. A focus group makes it difficult for a person to talk about his or her problems when others in the group have already admitted they have problems too. D. A focus group, unlike the traditional survey, depends on the power of numbers rather than in-depth discussions.
A focus group is designed to yield an exploratory and depth-probing type of discussion.
In the context of opportunity identification and selection, DuPont's discovery of Surlyn, a material with hundreds of potential uses, would fall under which of the following categories? A. An underutilized resource B. A new resource C. An external mandate D. An internal mandate
A new resource
Which of the following is the reason that one can telescope the product development process into shorter periods of time? A. The development process always proceeds in a step by step manner. B. The development process begins after the initial prototypes are generated. C. A product and its marketing plan are evaluated as separate and divisible pieces. D. A cross-functional team works on the development process.
A product and its marketing plan are evaluated as separate and divisible pieces.
In the context of the sources for the needs and problems of stakeholders, which of the following is an example of an internal record? A. Competitor's marketing collaterals B. A government report C. A warranty file D. Direct inputs of technical team members
A warranty file
Customer attribute ratings are primarily used to produce _____ gap maps. A. determinant B. OS perceptual C. AR perceptual D. projective
AR perceptual
Which of the following risk strategies typically involves developing a contingency plan to accompany new product development? A. Passive avoidance B. Active acceptance C. Mitigation D. Transfer
Active acceptance
_____ analysis, developed by Sawtooth Software, shows only a few attributes at a time to the respondent and adapts to the respondent as the conjoint exercise goes on. A. Information acceleration B. Choice-based conjoint C. Adaptive conjoint D. Dimensional
Adaptive conjoint
Which of the following statements is true of new product categories? A. New product categories do not differ with regard to their associated risks and uncertainties. B. All new product categories are not necessarily innovations. C. Additions or revisions to existing product lines do not fall under the domain of new product categories. D. The least innovative category of new products is product repositionings.
All new product categories are not necessarily innovations.
Teltos Inc. is seeking ways to motivate its "creative types." Which of the following ways can be considered by the firm to encourage creativity among the creatives? A. Avoiding training programs as creatives cannot benefit from training B. Being less tolerant of aberrations C. Allowing free time for innovation D. Encouraging reproductive thinking
Allowing free time for innovation
Which of the following techniques of encouraging creativity is followed by the 3M? A. Allowing creatives to break general rules at will B. Giving group rewards for innovation C. Allowing reproductive thinking D. Allowing free time for innovation
Allowing free time for innovation
Which of the following is true of focus groups? A. A focus group is often very difficult to set up and is the most expensive method of gathering information. B. A focus group, unlike the traditional survey, depends on the power of numbers rather than in-depth discussions. C. A focus group makes it difficult for a person to talk about his or her problems when others in the group have already admitted they have problems too. D. Although the focus group technique is common, the outcome is not always, or even usually, successful.
Although the focus group technique is common, the outcome is not always, or even usually, successful.
Which of the following can is an example of crowdsourcing? A. A multimedia company releases a game in the market for the first time. B. An eco-friendly apparel store, invites users to submit designs for its new range of ethnic wear on its online platform. C. A retail firm removes most of its channel partners from its supply chain to deal directly with customers. D. A toy making firm outsources its research and development to an external vendor to gain competitive advantage.
An eco-friendly apparel store, invites users to submit designs for its new range of ethnic wear on its online platform.
George, the marketing manager of Axil Bicycles, discovers that the company's current market is becoming stagnant and the product life cycle is far past the dynamic growth stage. George also learns that Axil's competitor, Kinetixyles, is developing an innovative new bicycle with novel features. George thus proposes that Axil Bicycles should also come up with a new product, equipped with superior features. Which of the following types of opportunities is identified here? A. An underutilized resource B. A new resource C. An external mandate D. An internal mandate
An external mandate
Which of the following statements is true regarding invention? A. An invention is usually patentable. B. To managers, invention is a dimension of complexity. C. There are far more innovations than inventions. D. An invention refers to the overall process whereby an innovation is transformed into a commercial product.
An invention is usually patentable.
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
Analytic Hierarchy Process
Which of the following risk strategies is most likely to incur opportunity costs? A. Avoidance B. Mitigation C. Transfer D. Acceptance
Avoidance
Identify the section of the product innovation charter (PIC) which recaps the analysis behind the preparation of the charter. A. Background B. Focus C. Goals-objectives D. Guidelines
Background
Which of the following attributes of a product indicates how a product provides satisfaction to the user? A. Usability B. Feature C. Function D. Benefit
Benefit
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
Benefit; technology; form
_____ is a technique that uses the extent of the problem and the frequency of its occurrence for sorting and ranking problems according to their severity. A. Brainsketching B. Brainstorming C. Crowdsourcing D. Bothersomeness
Bothersomeness
Which of the following techniques encourages the use of "art" through drawing to facilitate finding connections between ideas? A. Brainsketching B. Speedstorming C. Role playing D. Interviewing
Brainsketching
Which of the following is true of the problem-solving technique of brainsketching? A. In brainsketching, participants express their ideas in words instead of drawings. B. Brainsketching helps participants draw more connections with earlier ideas when coming up with new ideas. C. In brainsketching, participants pair off and discuss a topic for a three- to five-minute round. D. The technique of brainsketching cannot be used to generate new ideas.
Brainsketching helps participants draw more connections with earlier ideas when coming up with new ideas.
_____ are widely used and tend to be billion-dollar assets personally driven by CEOs. A. Channel platforms B. Category platforms C. Product platforms D. Brand platforms
Brand platforms
Which of the following techniques can be used by a product champion to ensure that the concept gets a fair hearing at all turns? A. By deciding the weights for the factors included in a scoring model B. By selecting an appropriate scoring model C. By establishing culling factors D. By providing all favorable information
By providing all favorable information
Which of the following is the most common means of combining the ratings of individual team members in a full screening project? A. Calculating averages or mean B. Factor analysis C. Conjoint analysis D. Perceptual maps
Calculating averages or mean
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? A. Does it meet a specific customer need? B. Does the firm have the capability to develop and launch the idea? C. Can the firm become more efficient in production as volume increases? D. Is there a good match corporate strategy and culture?
Can the firm become more efficient in production as volume increases?
Which of the following is a reason for product failure in a firm? A. Resorting to radical innovation with the new products process B. Avoiding the use of the ready—fire—aim approach in the product development process C. Chasing a moving target D. Paying too much attention to customer needs
Chasing a moving target
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. Product matrix
Checklist
Which of the following is one of today's most widely used idea-generating techniques? A. SWOT analysis B. Bayesian analysis C. Checklists D. VRIO frameworks
Checklists
In which of the following types of conjoint analysis is the respondent shown several alternative products and asked which one he/she would prefer? A. Discrete choice analysis B. Adaptive conjoint analysis C. Choice-based conjoint analysis D. Bayesian analysis
Choice-based conjoint analysis
Which of the following formats of concept testing produces more realistic evaluations but also risks the bias of good or poor advertising copy writing? A. Narrative format B. Stripped description C. Commercialized format D. Virtual reality
Commercialized format
Which of the following creativity templates presented by Goldenberg and Mazursky seeks to identify and create a new connection between a constituent internal to the product and one that is external to the product? A. Attribute dependency template B. Displacement component template C. Replaced component template D. Component control template
Component control template
Which of the following phases of the new products process involves selecting a high potential opportunity and beginning customer involvement? A. Product launch B. Product development C. Concept evaluation D. Concept generation
Concept generation
In which of the following phases of the new products process is the first formal type of assessment done on new product concepts with regard to financial, technical, and marketing criteria? A. Concept or project evaluation phase B. Product development phase C. Product launch phase D. Concept generation phase
Concept or project evaluation phase
Which of the following is an evaluation task in the concept generation phase of the new products process? A. Deciding which direction to take B. Preparing progress reports C. Reviewing market testing D. Conducting an initial review
Conducting an initial review
_____ analysis is the name of one of the most common analytical tools used to assess tradeoffs. A. Technical B. Leaps C. Conjoint D. Relational
Conjoint
Which of the following is true of conjoint analysis in concept testing? A. Conjoint analysis cannot feasibly test attributes and levels using a reduced set of cards. B. Conjoint analysis ranks the possible combinations of attributes from the least preferred to the most preferred. C. Conjoint analysis cannot be used to identify those concepts that are the "real losers," which should not be considered for further development. D. Conjoint analysis is extremely useful in concept testing because of its ability to uncover relationships between attributes and customer preferences.
Conjoint analysis is extremely useful in concept testing because of its ability to uncover relationships between attributes and customer preferences.
Which of the following industries is most likely to be represented by a late expenditures curve? A. Consumer packaged goods B. Pharmaceuticals C. Optics D. Computers
Consumer packaged goods
Which of the following is true of a decay curve? A. It is primarily a plan rather than a result. B. It depicts the entire life cycle of product. C. 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.
Decisions on the risk matrix lead to the idea of a decay curve.
Identify the question that can act as a substitute for the real question, "Will customers prefer the product introduced?" in the product development process. A. Does the product match the company's manufacturing skills? B. Will cost of the product be competitive? C. Did the customers keep the prototype product that was given to them? D. Will competition leap in once the product is introduced to customers?
Did the customers keep the prototype product that was given to them?
Identify the creativity template, presented by Goldenberg and Mazursky, which removes an intrinsic component and its function so as to functionally change the product. A. Attribute dependency template B. Displacement template C. Replacement template D. Component control template
Displacement template
Which of the following is an immediate and critical question in concept testing that should be answered prior to all other questions? A. How likely is it that the respondents would buy the product? B. How much do the respondents like the concept? C. Does the respondent understand the concept? D. What are the respondents' reactions to price?
Does the respondent understand the concept?
Which of the following has to be usually supplemented by a narrative statement of the concept in a concept statement? A. Prototypes B. Drawings C. Virtual reality images D. Models
Drawings
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. B. Late in the product development cycle, hurdles are usually easy to wave aside. C. Early in the life of a new product, the product idea may have little support outside of R&D. D. Late in the product development cycle, fewer people are likely to support the product idea.
Early in the life of a new product, the product idea may have little support outside of R&D.
In the context of new product arena, focus is generally achieved by the use of four types of strengths or leverage capabilities. Which of the following is one of those strengths? A. End-use experience B. Employee skills C. Market capitalization of the organization D. Ownership of a scarce resource
End-use experience
Identify the activity that takes place during the phase of "preparing a firm for ideation." A. Collecting concepts from internal sources B. Establishing a nucleus for the screening stages C. Offering possible solutions D. Conducting an in-depth analysis of markets
Establishing a nucleus for the screening stages
_____ is a commercially available software that makes the Analytic Hierarchy Process (AHP) very easy to use. A. Expert Choice B. Lotus Notes C. Cryptix D. Groupshare
Expert Choice
Which of the following is a statistical technique available in computer packages that is typically used to reduce the large number of attributes to a small number of underlying dimensions? A. Factor analysis B. SWOT analysis C. Cluster analysis D. Projective analysis
Factor analysis
A "go error" and a "drop error" have the same cost and probability dimensions. True or False
False
A batch concept is generated during the concept evaluation phase of the new products process. True or False
False
A disadvantage of preference regression is that it can be done only on factor scores and not on attribute ratings. True or False
False
A focus group makes it difficult for a person to talk about his or her problems when others in the group have already admitted they have problems too. True or False
False
A new product only really comes into being during generation of its concept statement, irrespective of its success or failure in the market. True or False
False
A recommended way to cope when facing a high-turbulence environment is to encourage inflexibility by freezing a product concept until the last possible moment. True or False
False
A strength of the full-profile conjoint analysis approach is that it measures interactions among attributes. True or False
False
According to the MBTI Creativity Index, creative people tend to be less intuitive and more introverted than other individuals. True or False
False
According to the screening model developed by Robert Cooper, must-meet criteria include market attractiveness. True False
False
An example of an internal mandate of a firm is the introduction of new regulatory restrictions from regulatory bodies. True or False
False
An ideal new products team is essentially self-directed with limited or no cross-functionality. True or False
False
Analytical attribute techniques are felt to be more useful in Eastern culture than in Western. True or False
False
As opposed to goods, services are mass produced. True or False
False
Benefits are product attributes that can be broken down into a limited set—uses and users. True or False
False
By definition, new products are limited to significant technological innovations. True or False
False
Concept testing is different from concept development as it undermines the idea of helping an item and kills it off. True or False
False
Conjoint analysis fails in generating high-potential concepts for future evaluation. True or False
False
Determinant gap maps rely less on managerial judgment and more on tangible sales data. True or False
False
Dimensional analysis involves listing only the measurements of dimensions of a product type such as spatial length and width. True or False
False
Discovery-driven planning is typically seen in less-uncertain markets, where past results cannot be used to build predictable forecasts of the future. True or False
False
Due to rapid market turbulence and the number of product varieties demanded by customers, many firms find that it is efficient to develop a single consistent product. True or False
False
Government reports and investigations by social critics are examples of stakeholder contacts that are used to seek out the voice of the customer. True or False
False
Groups, in general, are much better than individuals in handling really new ideas and finding radical solutions to problems. True or False
False
If a concept passes the full screen, the next phase in the new products process is the product launch phase. True False
False
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 or False
False
If one wants to design the best way to go about product innovation, then, in general, the best way is to have first the technology, then the finished firm, and then the benefit. True or False
False
In new product work, financial analysis should be done by firms as early as possible to avoid wasting money on poor projects. True or False
False
In order to be useful, a factor which has been identified during factor analysis should have an eigenvalue that is less than zero. True or False
False
In order to move promising radical innovation projects forward, senior management at some firms establishes a self-directed management team charged with moving an R&D innovation project to business operating status. True or False
False
In speed storming, participants draw their ideas instead of expressing them in words. True or False
False
In static leap studies, the focus is on what changes must be made between now and then if the leap scenario is to come about—the interim time period is the meaningful focus. True or False
False
In the basic new products process, market analysis activities and the formulation of a product innovation charter occur immediately after an idea appears. True or False
False
In the context of relationships analysis, a buyer's experience cycle dimension refers to how a product affects a customer's life. True or False
False
In the project evaluation phase of the new products process, a full screen uses a scoring model of some type and results in a decision to undertake development, but never to quit. True or False
False
In the research conducted by Social Technologies, it was found that the more people become accustomed to virtual spaces, the boundary between these and the real world will become increasingly pronounced. True or False
False
In using conjoint analysis, one assumes that a product cannot be represented as a set or bundle of attributes. True or False
False
Letting customers' stated wants drive product innovation is most likely to fail when in a market with enormous unmet needs and very slow-reacting competitors. True or False
False
Market analysis precedes the preparation of the product innovation charter and provides "a priori" conclusions about new product proposals. True or False
False
Most marketing effort today is conducted at individual product platform levels. True or False
False
New-to-the-firm products revolutionize existing product categories or define wholly new ones. True or False
False
New-to-the-world products are less likely to require consumer learning. True or False
False
One important principle, firms, involved in a product development process, should follow is to ask customers what product improvements they want rather than asking them for outcomes. True or False
False
Platforms are not a possibility in service industries as they are for manufactured goods. True or False
False
Problem analysis is primarily concerned with building an inventory of user problems. True or False
False
Product innovation is possible even in the absence of one of the three inputs of the new products process. True or False
False
Product portfolio management refers to the procedure that takes a new product idea through concept evaluation, product development, launch, and post-launch. True or False
False
Prototypes are the least expensive form of concept statements because very few decisions have to be made about the new product to get it into a prototype. True or False
False
Raw materials or components supply is one of the technical success factors included in the Industrial Research Institute Scoring Model. True False
False
Research has shown that at least 40 percent of firms assign a marketing manager whose job it is to manage the phased new products process. True or False
False
Role playing is the best means of generating ideas for new products. True or False
False
Scoring models are advantageous because of their use of weights as the weightings are not judgmental. True False
False
Since creative people believe that group contributions are valuable, they are often quite impressed with group rewards. True or False
False
Techniques used for creating perceptual gap maps based on overall similarities require customers to rate choices on individual attributes. True or False
False
The "data cube" produced by AR perceptual gap maps are typically small in terms of size and are of practical value to managers. True or False
False
The A-T-A-R concept is based on the diffusion of risk model. True or False
False
The Analytic Hierarchy Process (AHP) is a purely statistical technique used to identify the correlation of specified factors with past successes and failures. True False
False
The awareness and availability components of the A-T-A-R model are usually assessed using customer feedback. True or False
False
The closed innovation model allows for inputs to come exclusively from internal sources but not from external ones. True or False
False
The data obtained from users through the customer attribute ratings system is primarily used for creating an OS perceptual gap map. True or False
False
The decay curve primarily indicates the cumulative expenditure incurred at various stages of developing a new product. True or False
False
The development and launch phase of the new products process comprise what is popularly called the "fuzzy front end". True or False
False
The displacement template, presented by Goldenberg and Mazursky, involves retaining the intrinsic components of a product. True or False
False
The evaluation process begins with the creation of a prototype. True or False
False
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 or False
False
The first purpose of a concept test is to generate the sales or trial rate that a product would enjoy. True or False
False
The first step of reverse brainstorming involves identifying a group of "heavy product users" or activity participants within that category. True or False
False
The full screen should generally be carried out just prior to the product launch phase of the basic new products process. True False
False
The late expenditures curve is representative of product development in technical fields such as optics. True or False
False
The new products process essentially turns a profit flow into an opportunity. True or False
False
The quick second entry option is the last timing alternative and is usually a price entry keyed to manufacturing skills. True or False
False
The term "product innovation" usually applies to functions, especially those of manufacturing or distribution. True or False
False
The terms "product idea," "product concept," and "product prototype" are interchangeable and they are all about the same thing. True or False
False
Theoretically, the three basic types of attributes occur in the sequence of a benefit permits a certain feature, which in turn leads to its function. True or False
False
With reference to the source of scoring model factors, "margins on sales" is a surrogate factor considered in Level Two. True False
False
With reference to product attributes, which of the following does the dimensional analysis approach use? A. Features B. Functions C. Benefits D. Economic gains
Features
Which of the following firms will have the most effective worldwide new product programs? A. Firms that have implemented total quality management B. Firms that use quality circles C. Firms that follow a global innovation culture D. Firms that are leaders in their respective industries
Firms that follow a global innovation culture
Which of the following inputs, in the case of a service, required by the creation process can be best described as the sequence of steps by which the service will be created? A. Form B. Technology C. Benefit D. Conceptualization
Form
Which of the following techniques is used to estimate the relative preferences of all possible products using only a small subset of "attribute/level" cards? A. Fractional factorial design B. Path quality analysis C. Part-worth's design D. Finite element analysis
Fractional factorial design
Which of the following is associated with the concept or project evaluation phase of the new products process? A. Idea concept B. Prototype concept C. Fully screened concept D. Stated concept
Fully screened concept
_____ is a statistical technique that uses maps of the market to determine how various products are perceived by how they are positioned on the market map. A. SWOT analysis B. Gap analysis C. Risk analysis D. Trend analysis
Gap analysis
Who among the following is less likely to be a member of the scoring team for a full screening process in an organization? A. Marketing manager B. Operations head C. Technical head D. General manager
General manager
According to the screening model derived from the NewProd study, which of the following falls under "must-meet" criteria? A. Strategic importance B. Good strategic alignment between project and strategy C. Product advantage to the customer D. Market attractiveness
Good strategic alignment between project and strategy
Which of the following is true of new product categories? A. If a product is new-to-the-world, the risks and uncertainties faced by the firm are higher. B. If a product is new-to-the-firm, the associated costs of development and launch tend to be lower. C. Generally, all the new product categories are innovations. D. New product categories have to be managed in a similar fashion.
If a product is new-to-the-world, the risks and uncertainties faced by the firm are higher.
Which of the following is true of product planning? A. If customers differ in their preferences, firms will often resort to a platform strategy. B. Firms that take a domestic approach to new products, on average, do better than those that develop products for multinational markets. C. If customer needs are very different; one way is to sell a global product that does not scale economies. D. Firms adopt a "global" strategy to use several platforms to provide a single product across multinational markets.
If customers differ in their preferences, firms will often resort to a platform strategy.
_____ is a concept testing method in which respondents are brought into a virtual buying environment that simulates the information typically available in a realistic purchase situation. A. Information replication B. Information acceleration C. Information generation D. Information visualization
Information acceleration
_____ refers to the overall process whereby an invention is transformed into a commercial product that can be sold profitably. A. Innovation B. Attribution C. Brainstorming D. Pricing
Innovation
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
Innovators and early adopters
Which of the following is the most common source for the needs and problems of stakeholders? A. Internal records B. Problem analysis C. Scenario analysis D. Direct inputs from marketing departments
Internal records
Which of the following is the most common method used to directly contact business or household customers? A. Observation B. Role playing C. Focus group D. Interviewing
Interviewing
Which of the following is an advantage that electronic brainstorming has over traditional brainstorming? A. It allows only one person to talk at a time. B. It prevents participants from all answering at once. C. It encourages "social loafing". D. It allows participants to answer anonymously.
It allows participants to answer anonymously.
Which of the following is true of information acceleration? A. It will become more expensive as video technology improves. B. It allows testing of many virtual variations of the same basic concept. C. It provides simple concept pictures that does not provide enough information. D. It is ineffective in enabling customers to make a realistic purchase decision.
It allows testing of many virtual variations of the same basic concept.
Identify the correct statement regarding conjoint analysis. A. It assumes that one cannot represent a product as a set or bundle of attributes. B. It considers variety-seeking behavior among consumers. C. It includes purchase occasion as an important factor in the procedure. D. It cannot be carried out until discrete determinant attributes have been identified.
It cannot be carried out until discrete determinant attributes have been identified.
Which of the following statements is true of a perceptual gap map based on attribute rating similarities? A. It does not require customers to rate choices on individual attributes. B. It uses attributes that cannot be otherwise normally identified. C. It does not show up phantom attributes. D. It generates a perceptual map whose axes are clearly labeled with determinant attributes.
It does not show up phantom attributes.
Which of the following statements is true regarding the method of user toolkits? A. It is particularly useful when very few customers require customized products. B. It increases the number of iterations required to fully satisfy customers. C. It increases time required to respond to customer needs. D. It formally turns the innovation task over, to some extent, to the users themselves.
It formally turns the innovation task over, to some extent, to the users themselves.
Which of the following statements is true of a determinant gap map? A. It is based on data obtained from consumers using attribute rating. B. It has the tendency of being driven by only managerial judgment. C. It takes into consideration those attributes which are static and quantifiable. D. It is slow and not cost-efficient.
It has the tendency of being driven by only managerial judgment.
Which of the following is true of scenario analysis? A. It helps in formulating a solution for a future problem. B. It is primarily used to solve current problems with existing products in the market. C. It focuses on the problems that competitors are aware of. D. It primarily involves watching customers using products in their own environments.
It helps in formulating a solution for a future problem.
Which of the following statements is true of conjoint analysis? A. It primarily considers variety-seeking behavior among consumers. B. It assumes that one cannot represent a product as a set or bundle of attributes. C. It is similar to multidimensional scaling as it considers overall similarities rather than specific attributes. D. It identifies which sets of attributes would be most preferred by customers.
It identifies which sets of attributes would be most preferred by customers.
Which of the following is a disadvantage of perceptual gap mapping? A. It ignores the nuances and shadings of consumer responses. B. It relies only on managerial intuition/experience. C. It deals only with "conceptual leaps" critical to developing new-to-the-world products. D. It cannot be used for concept generation and new product development.
It ignores the nuances and shadings of consumer responses.
Which of the following best describes the process of modularization? A. It involves identifying similar platforms that share similar features. B. It involves pooling in several functional areas into a single unit. C. It involves decomposing complex systems into subsystems. D. It involves generating complex systems from simpler systems.
It involves decomposing complex systems into subsystems.
Which of the following statements is true of a product innovation charter (PIC)? A. It is typically prepared by middle-level managers. 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 primarily for processes and other activities. D. It can be thought of as a kind of vision statement that is applied at macro level.
It is designed to provide guidance to the business units on the role of innovation.
Which of the following is true of the batch concept? A. It is the first full test-of-fit with manufacturing. B. It is a form or a technology, plus a clear statement of benefit. C. It is a tentative physical product. D. It is a concept that passes the test of fit with a company's situation.
It is the first full test-of-fit with manufacturing.
Which of the following is most likely to be an advantage of a product platform? A. It increases brand awareness. B. It increases the market capitalization of the organization. C. It offers cost efficiencies. D. It improves the quality of the product.
It offers cost efficiencies.
In the context of the new products process, which of the following best defines a full screen? A. It refers to unsolicited ideas for concept generation that pour in through spam mails. B. It refers to the formal type of evaluation where all views are evaluated using a scoring model. C. It refers to a set of ideation tools that can be used to generate new concepts. D. It refers to a comprehensive business analysis that is conducted before idea generation.
It refers to the formal type of evaluation where all views are evaluated using a scoring model.
Which of the following characteristics is unique to a morphological matrix? A. It is restricted to the two-dimensional platform. B. It considers only the determinant attributes of a product. C. It simultaneously combines more than two dimensions. D. It may result in new product ideas that do not emerge in any other way.
It simultaneously combines more than two dimensions.
Which of the following is true of market analysis? A. It follows the appearance of a concept. B. It eliminates more product ideas than all the other evaluations combined. C. It takes place immediately after the product innovation charter is approved. D. It is the earliest evaluation that a firm makes of itself.
It takes place immediately after the product innovation charter is approved.
Which of the following statements is true of an attribute rating perceptual gap mapping method? A. It takes into consideration the "phantom" attributes. B. It primarily uses determinant attributes. C. It typically uses Likert-type scales to gather data from customers. D. It is developed from the past sales data.
It typically uses Likert-type scales to gather data from customers.
Which of the following is true of role playing as a research technique? A. There is substantial evidence of its successful use in generating ideas for new products. B. This technique tends to undermine creativity. C. It would be valuable in instances where product users are unable to verbalize their reactions. D. It would not be suitable in instances where consumers are emotionally unwilling to express their views.
It would be valuable in instances where product users are unable to verbalize their reactions.
Rex is the general manager of the New Way Hotel. Whenever an employee comes up to Rex with a new idea, he listens patiently, cites all of the advantages of the new idea and then addresses the negatives, but only in a constructive mode. Identify the technique being used by Rex to encourage creativity. A. Accentuating the positive B. Itemized response C. Creative abrasion D. Social cohesion
Itemized response
Many futurists advocate studying the emerging trends in society and deriving product opportunities from them. A team of experts from the consulting firm Social Technologies identified six important and provocative modern trends. Which of these trends is most likely to influence consumers to make spur-of-the-moment decisions? A. Co-creation B. Just-in-Time Life C. Sensing Consumers D. The Transparent Self
Just-in-Time Life
_____ systems are computerized scoring systems with the factors developed on the basis of expert experience. A. Knowledge-based B. Factor testing C. Virtual concept D. Auto-scoring
Knowledge-based
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
Lead users
_____ are those customers that are sought by a firm for eliciting new product ideas, since they have been associated with a significant current trend. A. Resellers B. Vendors C. Inventors D. Lead users
Lead users
The factors at _____ have answers or at least answers that can be estimated better than the factors at higher levels. A. Level One B. Level Two C. Level Three D. Level Four
Level Four
Which of the following is the most common way to execute a first-to-market strategy? A. State-of-the-art breakthrough B. Applications engineering C. Leveraged creativity D. Adaptive applications
Leveraged creativity
Identify the term used to describe the iterative process where the developing team develops prototypes from dozens of different new product ideas, eventually settling on a prototype that customers like. A. Focused prototype method B. Prototype analysis C. Lickety-stick D. Concept improvisation
Lickety-stick
With reference to the source of scoring model factors, which of the following factors will be considered at Level Two? A. Net present value B. Sales C. Internal rate of return D. Likelihood of technical accomplishment
Likelihood of technical accomplishment
_____ are also known as "flanker" brands. A. Line extensions B. New-to-the-world products C. Improvised products D. Repositionings
Line extensions
Which of the following is an example of a groupware that can be used to aid the process of combining team members' ratings of new product concepts in a full screening project? A. MSSQL B. Lotus Notes C. Outlook D. Citrix
Lotus Notes
Which of the following is most likely to help managers in screening hundreds or even thousands of new product concepts in a year? A. Reinventing the wheel when a concept similar to one that has been rejected comes up again later B. Bypassing the full screen to begin technical development C. Maintaining a record of rejected concepts D. Cancelling concepts that are unacceptable, but possibly worthwhile
Maintaining a record of rejected concepts
Identify the situation associated with the greatest amount of innovativeness risk. A. Moderate changes in operations/marketing and major changes in consumer use behavior B. Major changes in both operations/marketing and consumer use behavior C. Major changes in consumer use behavior and moderate changes in operations/marketing D. No change in operations/marketing and major changes in consumer use behavior
Major changes in both operations/marketing and consumer use behavior
Regarding the various tools for evaluating new products, which of the following evaluations occurs prior to the appearance of an idea? A. Initial reaction B. Concept testing C. Full screening D. Market analysis
Market analysis
According to the screening model derived from the NewProd study, which of the following can be categorized under "should-meet" criteria? A. Good strategic alignment between project and strategy B. Market attractiveness C. Availability of distribution channels D. Acceptable risk-return ratio
Market attractiveness
Which of the following can provide the data needed for the A-T-A-R model? A. The cumulative expenditure curve B. Income statement of the firm C. Market test D. The decay curve
Market test
Which of the following is a variation on the single-customer focus where each customer is offered a product of his or her individual choice? A. Mass customization B. Mass production C. Mass standardization D. Mass advertising
Mass customization
_____ is a way of executing a first-to-market strategy. A. State-of-the-art breakthrough B. Mass production C. Mass customization D. Adaptive applications
Mass customization
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 B. Avoidance C. Passive acceptance D. Transfer
Mitigation
_____ is a data analysis technique used by conjoint analysis to find a customer's underlying value system patterns within rank order data. A. Dimensional analysis B. Fraction analysis C. Semantic analysis D. Monotone analysis of variance
Monotone analysis of variance
Which of the following is a perceptual mapping technique? A. Multidimensional scaling B. Risk analysis C. Dynamic leaps D. SWOT analysis
Multidimensional scaling
Which of the following techniques is used in OS perceptual gap mapping to convert the customer similarity data into a perceptual map? A. Multidimensional scaling B. Factor analysis C. Cluster analysis D. Scree test
Multidimensional scaling
Designethic Co. is known for selling cards, gift-wrapping materials, and collectibles. In a bid to compete with its counterparts, Designethic added fresh-cut flower arrangements to its range of product offerings in the year 2015. Into which of the following new product categories would the floral arrangements fall? A. New-to-the-world products B. New-to-the-firm products C. Line extensions D. Repositionings
New-to-the-firm products
Luminos Co., a popular manufacturer of kitchen appliances, decides to enter the manufacturing sector of crockery and dinnerware. It markets a line of dinnerware, Illuminia, for the first time in its history. Its dinnerware will most likely fall into which of the following new product categories? A. New-to-the-world products B. New-to-the-firm products C. Line extensions D. Product improvements
New-to-the-firm products
Which of the following categories of new products would present higher risks and uncertainties as well as associated costs of development and launch? A. Line extensions B. New-to-the-world products C. Improvised products D. Repositionings
New-to-the-world products
Which of the following is considered to be the most innovative category of new products? A. Cost-reduced products B. New-to-the-firm products C. New-to-the-world products D. Line extensions
New-to-the-world products
Which of the following products define wholly new product categories and are most likely to require consumer learning or incorporate a very new technology? A. Improvised products B. New-to-the-world products C. New-to-the-firm products D. Repositionings
New-to-the-world products
Jonathan, a marketing manager, is involved in a gap analysis procedure to seek customer perceptions of his company's new product. He obtains useful data from users using overall similarities of his customer preferences. This data is particularly useful in generating _____ gap maps. A. OS perceptual B. AR perceptual C. reflective D. determinant
OS perceptual
Which of the following gap maps was developed to deal with the fact that users may make purchase decisions based on "phantom" attributes that they cannot identify or verbalize? A. AR perceptual GAP maps B. OS perceptual GAP maps C. Snake plot maps D. Determinant maps
OS perceptual GAP maps
Which of the following methods of combining an individual team member's ratings involves dropping the highest and lowest ratings before averaging? A. Sensitivity testing B. Factor analysis C. Olympic method D. Profiling method
Olympic method
With reference to the source of scoring model factor, the net present value will be a factor on Level _____. A. One B. Two C. Three D. Four
One
Brew & More, a popular beverage manufacturer, produces and sells a popular mint flavored drink called Mintz. A new competitor enters the market and offers a similar mint-based drink that's suited for consumers on diet. This company offers its products at a much lower price. Brew & More calls for a line extension to meet the encroachment of its new competitor in its annual marketing plan. Identify the stream of activity that feeds strategic planning for new products in this scenario. A. Special opportunity analysis B. Ongoing corporate planning C. Ongoing marketing planning D. Distribution channel planning
Ongoing marketing planning
_____ is defined as the process a company employs to externally search for and source research, new technologies, and products. A. T-P-M linkage B. Open innovation C. Creative abrasion D. Leveraged creativity
Open innovation
Which of the following is the first phase in the basic new products process? A. Concept ideation and generation B. Opportunity identification and selection C. Project evaluation D. Product development
Opportunity identification and selection
Which of the following statements is true of a new product development project that is evaluated with the help of rolling evaluation? A. The project is assessed at predefined intervals. B. This evaluation generally leads to the premature closure of a project. C. Everything in the project is keyed to a single Go/No Go decision. D. Participants avoid mindsets of good and bad about the project.
Participants avoid mindsets of good and bad about the project.
Services and goods are often arrayed on a scale which ranges from pure service to pure good. Where does an insurance policy stand on this scale? A. Pure service B. Primarily service and partly a good C. Primarily a good and partly service D. Pure good
Primarily service and partly a good
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
Probe-and-learn
The _____ comes into play once an opportunity is approved, and managers turn to various techniques to guide new product people in exploiting it. A. Concept Novelty Copyright (CNC) B. Product Development Mandate (PMC) C. Product Innovation Charter (PIC) D. Concept Ideation Rule (CIR)
Product Innovation Charter (PIC)
Which of the following techniques can suggest new product functions by creating as many verb- object combinations as possible? A. Reverse brainstorming B. Omniscient proximity C. Product function analysis D. Scenario analysis
Product function analysis
_____ helps a firm assess which new products would be the best additions to existing product lines, given both financial and strategic objectives. A. A product finances charter B. Product portfolio management C. A product assessment matrix D. Product value-add assessment
Product portfolio management
Valclick Inc., during the full screen phase of its new product process, uses an approach that graphically arranges five-point scorings on different factors. Which of the following approaches is Valclick using in this scenario? A. Sensitivity analysis B. Factor analysis C. Profile sheets D. Specificity testing
Profile sheets
Which of the following is a technical success factor of the Industrial Research Institute Scoring Model? A. Proprietary position B. Raw materials or components supply C. Market need D. Customer strength
Proprietary position
Which timing strategy is very demanding, because a firm following this strategy has to make the decision to enter the market before the innovator is successful or has even come to market? A. Slower entry B. Quick second C. First entry D. Late entry
Quick second
With reference to new product development, which of the following best describes the bazooka effect? A. Capturing the target market by introducing the new product at a low price B. Quickly blasting out suggestions in the initial reaction C. Enhancing the perceived image of a product by introducing it at a high price D. Approving a concept solely based on the technical criteria
Quickly blasting out suggestions in the initial reaction
Which of the following is considered to be a commercial success factor by the Industrial Research Institute Scoring Model? A. Competencies or skills B. Raw materials or components supply C. Manufacturing capability D. Proprietary position
Raw materials or components supply
Which of the following methods of concept testing combines the best features of focus groups and surveys and has proved useful in screening new consumer product concepts? A. Group interviews B. Real-time response surveys C. Mail surveys D. Telephone surveys
Real-time response surveys
Which of the following is the least innovative new product category? A. Cost reductions B. Product improvements C. Line extensions D. Repositionings
Repositionings
_____ refer to those products that are retargeted for a new use or application. A. "Flanker" brands B. Line extensions C. Repositionings D. New-to-the-world products
Repositionings
Identify the process in which participants generate a list of key problems with the product currently in use, then group and prioritize these such that product development can focus on addressing the most important problems. A. Psychological projection B. Skimming C. Crowdsourcing D. Reverse brainstorming
Reverse brainstorming
Which of the following techniques can be used to identify those problems that customers or end users do not know they have at present? A. The use of focus groups B. Scenario analysis C. Role playing D. Product function analysis
Scenario analysis
Crunchie Cereals Inc., in order to better anticipate customer needs, sent its product and marketing teams to visit the homes of those U.S. families that regularly used its products. Based on the data gathered from analyzing consumer behavior, the product managers concluded that office-going customers would like to have their cereal on the go. Keeping this in mind, Crunchie Cereals came up with a new "Crunch-on-the-go" portable package. Identify the methodology used to gather information regarding customer needs in this scenario. A. Focus groups B. Observation C. Interviewing D. Screening
Screening
Which of the following is associated with the concept generation phase of the new products process? A. Protocol concept B. Batch concept C. Fully screened concept D. Stated concept
Stated concept
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 B. Continuing a product that is likely to fail C. Stopping a product that is likely to succeed D. Continuing a product that is likely to succeed
Stopping a product that is likely to fail
Among the product attributes, which of the following is a feature? A. Uses B. Structures C. Sensory enjoyments D. Savings
Structures
Once the product innovation charter has selected a market area for focus, which of the following should be done prior to the appearance of the concept? A. Eliminate other existing product concepts. B. Withdraw all other products of the firm from the market. C. Study the market that has been selected. D. Decide the budget allocation for the new product.
Study the market that has been selected.
Which of the following guidelines is recommended for conducting a good scenario analysis? A. Determine scenarios by just using one factor. B. Avoid selecting group members with complimentary viewpoints. C. Summarize progress periodically to avoid contradictions. D. Avoid reusing groups for scenario analysis.
Summarize progress periodically to avoid contradictions.
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
T-P-M linkage
_____ is defined in product innovation as the power to do work. A. Benefit B. Form C. Technology D. Potential
Technology
Which of the following is the largest supplier of concept tests? A. The AE federation B. The BASES group C. The AMA group D. The APA association
The BASES group
Which of the following is true of the product innovation charter (PIC) of a firm? A. The PIC is formulated at the end of the new products process. B. The formulation of the PIC follows the phase of opportunity identification and concept generation. C. The PIC precludes the practice of having unwanted proposals eat up valuable development funds before they are detected. D. The PIC tends to eliminate less product ideas than any of the other evaluation techniques.
The PIC precludes the practice of having unwanted proposals eat up valuable development funds before they are detected.
Identify the phase in the new product development process during which the item first acquires finite form. A. The concept generation phase B. The development phase C. The launch phase D. The concept or project evaluation phase
The development phase
In which of the following phases of the new products process are prototypes typically created? A. The concept generation phase B. The concept or project evaluation phase C. The opportunity identification and selection phase D. The development phase
The development phase
In which of the following phases of the new products process is the first full test-of-fit with manufacturing made? A. The launch phase B. The opportunity identification phase C. The concept generation phase D. The development phase
The development phase
Digicon Inc. is a firm with mindshare in the category of digital cameras. With reference to this information, which of the following statements is true regarding the firm? A. The digital cameras manufactured by the firm are the cheapest in the market. B. The firm offers the widest range of digital cameras. C. The marketing plan employed by the firm is the best in the industry. D. The digital cameras manufactured by the firm are seen as the standard for competitors to match.
The digital cameras manufactured by the firm are seen as the standard for competitors to match.
Which of the following statements is true of the cumulative expenditure curve? A. The early expenditures curve initially slopes downward and then starts sloping upward. B. The late expenditures curve is representative of product development in technical fields such as optics. C. The late expenditures curve initially slopes upward and then starts sloping downward. D. The early expenditures curve is representative of product development in technical fields.
The early expenditures curve is representative of product development in technical fields.
In which of the following phases of the new products process does market testing take place? A. The opportunity identification and selection phase B. The concept generation phase C. The launch phase D. The concept or project evaluation phase
The launch phase
Which of the following statements is true of the importance of new products? A. The failure rate for new products is estimated to be around 90 percent. B. The new products process is exceedingly difficult. C. Radical innovation is detrimental to the survival of a firm. D. All the individuals involved in the creation of a new product generally belong to the same department.
The new products process is exceedingly difficult.
Which of the following is true of up-front evaluations? A. Up-front evaluations are conducted after the development phase in the new products process. B. Up-front evaluations increase the likelihood of incurring cost overruns. C. During this phase of the process, not much attention is given to finalizing the positional statement. D. The practice of up-front evaluations is spreading because of the growing pressure to reduce time to market.
The practice of up-front evaluations is spreading because of the growing pressure to reduce time to market.
Once a factor analysis is done, which of the following is used to determine how many underlying factors should be retained for further analysis in the AR perceptual gap mapping model? A. The factor test and scree rule B. The scree test and eigenvalue rule C. The cluster test and factor rule D. The level test and eigenvalue rule
The scree test and eigenvalue rule
Many futurists advocate studying the emerging trends in society and deriving product opportunities from them. A team of experts from the consulting firm Social Technologies identified six important and provocative modern trends. One of these trends is "The transparent self." Which of the following observations is primarily associated with this trend? A. There is more information about consumers available to product managers now than ever before. B. People like making spur-of-the-moment decisions based on real-time information. C. People can sense their environment better now than ever before; what might be "too much information" for some might be essential information for others. D. As more people become accustomed to virtual spaces, the boundary between these and the real world will become increasingly blurred.
There is more information about consumers available to product managers now than ever before.
Identify the correct statement with regard to end users as a source of ready-made new product concepts. A. They are most likely to generate modest product improvements rather than new-to-the-world products. B. A typical end-user is more likely to come up with ideas that are easily developed into real products. C. The role of an end user is independent of the industry and does not vary across industries. D. A customer-designed product cannot be directly transferred to manufacturing or production.
They are most likely to generate modest product improvements rather than new-to-the-world products.
With reference to gap maps, which of the following statements is true regarding data cubes? A. They are extremely small in size. B. They are of little value to managers. C. They are generated using past sales data. D. They are a part of the determinant gap map method.
They are of little value to managers.
Which of the following statements is true of analytical attribute techniques? A. They are seen to be more useful in Eastern cultures than in Western cultures. B. They are meant to be used exclusively in the concept generation phase, but not in the concept evaluation phase. C. They are focused only on product features. D. They are useful for commodity-type products.
They are useful for commodity-type products.
Which of the following statements about the observation method of gathering information is true? A. This method does not involve the use of video cameras or photos to record observational data. B. This method excludes non customers from its subject of observation. C. There is little evidence of the successful use of this method in generating ideas for new products. D. This method is rooted in sociological studies.
This method is rooted in sociological studies.
According to the classic five-point question format for purchase intentions, which of the following is true of the top-two-boxes score? A. This score represents the number or percentage of people who definitely would not buy a product. B. This score is used as an indicator of group reaction. C. Researchers who calibrate this score believe that it reflects real figures. D, This score is used to indicate the number or percentage of people who might or might not buy a product.
This score is used as an indicator of group reaction.
Which of the following is an objective of full screening? A. To add the thoughts of potential users to the set of market data collected B. To provide data for the product innovation charter C. To generate pro-forma financials D. To encourage cross-functional communication
To encourage cross-functional communication
_____, often called conjoint analysis, is a technique that is commonly used in concept evaluation. A. AR gap analysis B. Attribute analysis C. OS gap analysis D. Trade-off analysis
Trade-off analysis
A firm that develops a contingency plan prior to launching a new product is adopting an active acceptance risk strategy. True or False
True
A firm's global presence is no guarantee that it will automatically know how to efficiently manage its global operations. True or False
True
A full-profile conjoint analysis is one for which one obtains information on all possible levels of all the product's attributes. True or False
True
A fully screened product passes the test of fit with a company's situation. True or False
True
A key role for the product innovation charter is to point out exclusions that are sometimes called culling factors. True False
True
A product can be expressed in two words, a verb and an object. True or False
True
A product is really nothing but attributes. True or False
True
A variation on market drivers is the "distributor" when a producer develops new products to meet the needs of, or capitalize on the franchise of, resellers. True or False
True
A-T-A-R is a term that came from consumer products marketing. True or False
True
According to the screening model developed by Robert Cooper, the must-meet criteria are designed to weed out the bad projects and function as high hurdles for the new product project. True False
True
Benefit segmentation is used to identify unsatisfied market segments and concentrate a firm's efforts on developing concepts ideally suited to the needs of those segments. True or False
True
Business firms expect, and get, a high percentage of their sales and profits from new products. True or False
True
Checklists are one of today's most widely used idea-generating techniques. True or False
True
Concept testing can be used for developing an idea, not just for testing it. True or False
True
Concepts that pass the full screen are "rank-ordered" by attractiveness so that the firm has some options on standby when an ongoing project stalls or is canceled. True False
True
Conducting a good scenario analysis requires one to keep it simple as participants will likely have difficulty understanding really complex scenarios. True or False
True
Conjoint analysis puts all of the determinant attributes together in new sets and identifies which sets of attributes would be most liked or preferred by customers. True or False
True
Creative abrasion is a technique of encouraging creativity through conflict. True or False
True
Creativity can be measured. True or False
True
Cross-functional diversity often leads to information overload and can act as a barrier to firm creativity. True or False
True
Customer strength is one of the commercial success factors in the Industrial Research Institute Scoring Model. True or False
True
Determinant gap maps are speedy and cost-efficient. True or False
True
Discovery-driven planning requires that managers make assumptions about the future in order to build their forecasts and targets, recognizing that these assumptions may be quite wrong. True or False
True
Factor analysis can be used to reduce an "overwhelming" number of attributes to a manageable number of underlying dimensions/factors that can serve as the axes of the perceptual maps. True or False
True
Firms that launch new-to-the-world products into the market incur a significantly lower long-term survival rate than those that enter the market later. True or False
True
Firms that strive for mindshare think not about the speed of an individual product's development and launch, but rather about creating a dominant position in the mind of the customer. True or False
True
Firms with a global innovation culture have the most effective global new product programs. True or False
True
Google's Gmail service was one innovative product that sprang from a freetime project. True or False
True
If the number of determinant attributes is very less, identifying benefit segments on an importance map can be very complex. True or False
True
In a new product process, an evaluation task that includes conditional "Go" decisions is sometimes called a fuzzy gate. True or False
True
In the context of gap maps, attributes that both differentiate and are important are called determinant attributes. True or False
True
In the context of perceptual maps, multidimensional scaling attempts to plot the user choices on a map such that the similarities are best preserved. True or False
True
Lead users are especially helpful in giving new product ideas because their work is of the problem- find-solve type. True or False
True
Mass customization is an activity where all customers of a product are offered products of their individual choices. True or False
True
Product attributes include features, functions, and benefits. True or False
True
Radical innovation that displaces or obsoletes current products and creates totally new product categories is critical to the future growth and survival of a firm. True or False
True
Surrogate questions help when the timing of factual information does not often match one's need for it. True or False
True
Technology-driven innovation doesn't really solve a customer problem, and therefore there is no application that can be brought to market. True or False
True
The A-T-A-R model is applicable to services as well as industrial products. True or False
True
The bothersomeness index method of sorting and ranking problems according to their severity or importance uses the extent of the problem and the frequency of its occurrence. True or False
True
The core competencies of a firm are an excellent place to start the search for charter arena definitions. True or False
True
The development phase of a product is naturally iterative. True or False
True
The fourth general source of stakeholder needs, scenario analysis, comes into play when there is a need to anticipate future problems that end users don't know they have at this time. True or False
True
The full screen conducted for a concept identifies the feasibility of technical accomplishment and feasibility of commercial accomplishment of the concept. True False
True
The group of people who lead the development of a new product act as "a company within a company." True or False
True
The list of factors used in the scoring model for the full screen should be reduced as much as possible and always kept fluid. True False
True
The longer an online community is in operation, the more difficult it becomes to organize the content and make it easy for participants to find their way around. True or False
True
The morphological matrix of studying relationships simultaneously combines more than two dimensions. True or False
True
The most common source of needs and problems comes from an organization's routine contacts with customers and others in the marketplace. True or False
True
The number one reason for new product success is a unique superior product. True or False
True
The product innovation charter (PIC) directing new product development eliminates more product ideas than all the other evaluations combined. True or False
True
The product innovation charter can be thought of as a kind of mission statement, but applied at a more micro level within the firm. True or False
True
The product innovation process can start with any one of the three dimensions of technology, form, and benefits and can vary in what happens second. True or False
True
The real-time response survey combines the best features of focus groups and surveys and has proved useful in screening new consumer product concepts. True or False
True
The value of an established brand is called its brand equity. True or False
True
There is increasing evidence that electronic brainstorming outperforms traditional brainstorming in terms of productivity and output of unique ideas. True or False
True
Under an open innovation policy, firms make a strategic commitment to use available knowledge in the external environment to improve innovation performance. True or False
True
When launched, a new product is a concept still in tentative form. True or False
True
When used as a full screen technique, the Analytic Hierarchy Process (AHP) gathers managerial judgment and expertise to identify the key criteria in the screening decision. True False
True
Which of the following actions causes backtracking? A. When the product development process is carried out step by step B. When the costs of incomplete product development are higher than the costs of delayed introduction C. 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
When the steps in the product development process are skipped
The assumption behind the use of conjoint analysis is that: A. a product is considered as a whole rather than in discrete attributes. B. a product can be represented as a set or bundle of attributes. C. the number of items per purchase is a constant to scale market share. D. preferences can be observed by testing of many virtual variations of the same basic concept.
a product can be represented as a set or bundle of attributes.
