BRO

Which of the following is most likely to be used in product-use testing?

A comprehensive prototype

In recording respondents' reactions, the respondent is usually asked to compare the new product with another product, say, the leader or the one currently being used, or both. In this case, _____ score is used.

A preference

Which of the following best describes the pricing strategy "meet the market"?

A price that takes price out of the market play as much as possible.

Which of the following statements is true of a trademark?

A word string such as "just do it" is a trademark.

A(n) _____ is designed to capture the events leading up to a product launch and to try to understand the thinking behind the actions taken.

After Action Review (AAR)

Beta tests are generally preceded by _____ tests.

Alpha

In the context of cross functional interface management, what does withdrawal entail?

Avoiding the issue

Which of the following types of promotion is typically used for a product with low relative advantage and high compatibility with buyers' experiences?

Awareness-based promotion

Why is informal selling highly suitable for industrial selling?

Because industrial selling is based on clearly identifiable product features, and informal selling results in real purchasing

_____ are short-term use tests that evaluate a product at customer sites, to determine if the product works free of bugs.

Beta tests

Alton Inc. requires competitive comparisons in testing its potential product. The firm should use _____.

Blind tests

Which of the following is the final step in the process for product architecture?

Checking the interactions between chunks

In the context of product use testing, a degree of explanation called _______, includes just the information the customer will get when actually buying the product later.

Commercial

_____ is the term most widely used to cover all of the information and attitude effort put into changing end-user perceptions.

Communications

Which of the following is true of counterfeiting as a means to product piracy?

Counterfeit goods range from low price and quality to excellent quality.

Which of the following is the first step in the process for product architecture?

Creating the product schematic

Which of the following seeks to assure new product success by encouraging existing consumers to switch to the new offering?

Customer migration

In the context of a lean launch, which of the following best describes time postponement?

Deploy inventory as late as possible

Merva Cosmetics Inc. primarily sells its products by mailing catalogs to consumers. The company tests its new product lines by simply listing them in some of its catalogs and counting the orders. Identify the market testing method being used by Merva Cosmetics.

Direct marketing

Which of the following is a controlled sale market testing method that involves real purchasing under some real competitive environment?

Direct marketing

Which of the following methods of market testing fall under the category of controlled sale?

Direct marketing

Which of the following is a competency tied to radical innovation that is responsible for creating, recognizing, and articulating radical innovation opportunities?

Discovery

Macolla, a cosmetic manufacturing company, manufactures its latest brand of women's perfume, Ella, in translucent pink bottles. The design engineers believe that the elegant appearance of the perfume bottles will attract more of their target customers. Identify the factor that was most likely being considered by the company's engineers when deciding on the appropriateness of the design.

Emotional appeal

The engineers of a cellphone manufacturing company worked hard on the springs and ball bearings of their cell phones, just to get the sound of the cell phone lid closing right. They knew that a solid "thud" was more attractive to customers than a cheap "click." Identify the factor that was most likely being considered by the company's engineers when deciding on the appropriateness of the design.

Emotional appeal

Alpha tests are generally conducted amongst:

Employees of a firm

In which of the following stages of a product deletion process does a firm consider the full effects of the deletion on its overheads, expenses, and capacity utilization?

Evaluation and decision formulation stage

Which of the following user groups are likely to give more careful consideration, in use testing, than other typical users and express more accurate reactions?

Experts

A customer-based sales organization requires more of the hard-sell pushing that product-based sales forces can provide.

FALSE

A firm using a full product use test is likely to get results more quickly than a firm using constructive evaluation.

FALSE

A hair dryer lacking an overheat cutoff switch is an example of a product with inherent risk

FALSE

A new product whose raw materials are scarce or hard to get does not fall under the ambit of an environmentally unsustainable product

FALSE

A product champion's role is to maintain corporate hierarchy.

FALSE

A triangular comparison is sometimes called a staggered comparison.

FALSE

Abandonment of a product marks the end of a launch manager's job

FALSE

According to Geoffrey Moore's crossing the chasm model, people belonging to the early majority and late majority group fall under the category of the visionaries.

FALSE

An alpha test is a slow test of a very early version of a product with employees, where the product is nearly ready to release to customers.

FALSE

Dysfunctional conflict management styles such as withdrawal are better at fostering a positive environment for innovation than integrative styles such as forcing a solution.

FALSE

Ergonomics can be best defined as studying unmet customer needs with the help of perceptual gap mapping

FALSE

If product development entails only minor variations to a standard product, higher projectization is the preferred option.

FALSE

In a product liability suit, lack of privity as a defense against negligence is acceptable

FALSE

In an innovation dashboard, process effectiveness metrics include r&d spending

FALSE

In informal selling methods people are asked if they would buy a new product, but in speculative sale method people are asked to buy the product.

FALSE

InfoScan by itself is a method of market testing.

FALSE

Isolates, as a result of their exceptional technical expertise, are usually the most productive members of a new products team.

FALSE

It is an ineffective practice to contract out the production of temporary products

FALSE

It is enough for firms to follow the "selling concept" in order to stay competitive.

FALSE

Lower the projectization, the more the power leans toward the project manager.

FALSE

Market testing and test marketing are synonymous.

FALSE

Mass media marketers use tighter market segments than direct marketers and online marketers.

FALSE

Product cost is one of the common customer acceptance measures used by firms as goals for individual products.

FALSE

Pseudo sale is a more vigorous method of market testing than the controlled sale, and much more revealing.

FALSE

Selective distribution is typically used for products with low relative advantage and low compatibility with buyers' experiences.

FALSE

Service firms and direct-selling manufacturers usually have a very complex communications task because they involve a host of resellers.

FALSE

Skim is a very low price, intended to stay that way, with no clear product differentiation.

FALSE

The final step in the product deletion process involves determining whether the deletion would leave a hole in the firm's product line

FALSE

The first step in a launch management system is to develop a contingency plan

FALSE

The launch cycle of a new product typically begins with the beachhead phase.

FALSE

The launch plan for a new-to-the-world product is expected to stimulate replacement demand rather than primary demand.

FALSE

The longer we wait to test a product, the lesser we will know about the product and its marketing program.

FALSE

The products based on the same platform as an existing product, but modified incrementally in terms of technology or customer need fulfillment are known as breakthrough products.

FALSE

The role of design in market-driven innovation is to modify the product so that it can accommodate the performance characteristics.

FALSE

The simulated test market (STM) method for market testing can be effectively used for products that are sold predominantly by personal selling or point-of-purchase promotion.

FALSE

The speculative sale method for market testing involves using each retail store as a mini-city or mini-market to speculate revenue and sales.

FALSE

The speculative sale method is best used for conducting market testing for consumer packaged goods.

FALSE

The toughest part of a product's launch management is developing a situation analysis

FALSE

The unauthorized production of goods that are protected by trademark, copyright, or patent is known as near brand usage

FALSE

Typically, courts permit private brands absolute rights to copy a well-known brand's trade dress.

FALSE

A method for testing the end users' experience with a new item is called _____.

Field testing

_____ prototypes are used in probe-and-learn ("lickety-stick") product development in the development of new-to-the-world products.

Focused

Which of the following statements is true of salespeople?

For consumer packaged goods, salespeople are usually not involved in the new product development early on.

Identify the method of market testing which is most likely to make use of a rollout.

Full sale

Which of the following organizational options offers the least project focus?

Functional option

Which of the following key specifics indicate that a product is likely to work in the market?

High levels of ease of use

Which of the following statements is true regarding team compensation and motivation?

If the project is relatively less complex, rewards tied to the project's profit outcome tend to enhance performance.

Which of the following causes for new product failure does concept testing cover?

If there is a lack of need for the product

Which of the following is true of the balanced matrix option?

In the balanced matrix option, both functional and project views are critical.

Identify the advantage of using personal contacts to reach user groups instead of mail.

Increased depth of questioning

Which of the following contradicts the concept of an umbrella brand strategy?

Individual brand strategy

The first stage of case-based research is _____ during which the developer interviews users to learn their expectations and how they will likely use the product.

Investigation

Which of the following is the strongest argument for conducting market testing as late as possible?

It is more useful and more reliable.

Which of the following statements is true regarding the venture approach to organizational structure?

It is most useful for new-to-the-firm products.

The hierarchy of effects is one of the methods used for identifying potential problems in the launch management of a new product. Which of the following statements is true regarding this method?

It starts with a satisfied customer and works back from that satisfaction to identify the effects necessary to produce it.

_____ in a network indicate how people who are important to the project are contacted and motivated to cooperate in the project.

Operating relationships

In a _____ test, use of the new test product is interspersed with that of a competitive product.

Paired comparison

Which of the following pricing strategies for products involves a very high price, intended to stay that way, with clear product differentiation?

Premium pricing

Who amongst the following has the role of "pushing" product projects past obstacles or roadblocks?

Product champion

Which of the following statements is true regarding the launch management for temporary products?

Production is contracted out if possible.

Identify the new products organization option where there is recognition of the occasional need for stronger project push, projectization is high, and team people are project people first and functional people second.

Project matrix option

Which of the following types of market testing relies upon asking potential customers if they would buy the product if the product were actually available, but does not require them to spend money or take a risk?

Pseudo sale

Which of the following would help a firm keep a trademark forever, even if another firm later displays proof of prior use?

Registration

Which of the following new product characteristics probably has the greatest influence on trial rates?

Relative advantage

A user reviewing videos of conventional product using testing previously done is an example of _____.

Retrospective testing

Which of the following market testing methods is sometimes called tiered marketing?

Rollout

Which of the following promotional launch tactics is most likely to be used by a firm if product advantages must be learned through usage and experience?

Sampling

A batch product should be used for testing alone only if the production process is prohibitively expensive.

TRUE

A continuous innovation requires little learning by customers, as compatibility with prior experiences and values is high.

TRUE

A dominant brand in a product category is known as a flagship brand.

TRUE

A feature of use testing is that the prototype being tested is evaluated under normal operating conditions.

TRUE

A firm may produce an acceptable product but may still get into trouble if it fails to provide adequate instructions for use or warnings against particular use

TRUE

A key requirement for a new product trial is that it must have some cost associated with it for the firm.

TRUE

In launch management of new products, a tracking variable is relevant if it identifies the key problem

TRUE

In most cases, repeat purchase is the last step toward adoption of a new product.

TRUE

In principle, launch management plans of large and small firms are exactly the same--problem, tracking variable, trigger point, and remedial plan ready to go

TRUE

In recording respondents' reactions, a five- or seven-point verbal rating scale is generally used to record basic like/dislike data.

TRUE

Initial reactions of product users are important, especially on service products.

TRUE

Knowing a new item's brand introduces halo-image effects, and may distort user reactions.

TRUE

Managements today demand tough standards, rigorous auditing at all points, good record keeping, and training of new product employees

TRUE

Market testing can be skipped if a company knows a business well and has been successful there.

TRUE

Most innovative firms generally follow a dual ladder system.

TRUE

Preannouncement of an upcoming product can be used to block a competitive entry.

TRUE

Product architecture has been described as the process by which a customer need is developed into a product design.

TRUE

Product designers often use design for manufacturability (DFM) techniques to find ways to minimize manufacturing costs.

TRUE

Regarding the process of product architecture, if rapid changes are expected in some part of the product, that part should most certainly be made into a chunk.

TRUE

Sample size is primarily a function of what is being tested.

TRUE

Speculative sale method for market testing can be used in situations where industrial firms have very close downstream relationships with key buyers.

TRUE

The GATT allows a nation to restrain imports from countries where piracy is a problem

TRUE

The advantages of using direct marketing as a market testing method include secrecy, quick feedback, low cost, and database support.

TRUE

The best parts of each ideation are combined into a single design in a step called design consolidation.

TRUE

The marketplace may not be good for market testing, especially in the case of global launches.

TRUE

Virtual product testing is an extension of mass customization.

TRUE

Virtual teams can meet in synchronous or asynchronous mode.

TRUE

Which of the following is an example of use testing?

Technicians putting notebook computers in the hands of warehouse personnel

To test its new product, Reliway Inc. choose three cities to sell the product and three cities very similar to the first group where the product was not sold. All six cities were watched closely, and the stocking and sales of the new product were audited using the InfoScan system. This method helped the company fine-tune its sales plans. Identify the market testing method illustrated in this scenario.

Test marketing

Which of the following tests all market variables, including competition and the trade?

Test marketing

Which of the following statements is NOT true of market testing?

Test marketing is replacing scanner-based methods of market testing.

How is preannouncement of a new product related to the competitiveness of an industry?

The degree of preannouncement decreases when the competitiveness in the industry is high.

Which of the following is true of market-driven innovation?

The main purpose of design in market-driven innovation is to modify the product so that it meets customer expectations.

How is continuity of innovation for new products related to learning by customers?

The more continuous the innovation, the less learning is required.

Which of the following statements is true of informal selling as a method of market testing?

The presentations in the informal selling method are for real, and cash sales take place.

Which of the following is a disadvantage associated with use testing?

The risk of a competitor obtaining the firm's product and entering the market first

Which of the following organizational options exhibits the highest degree of projectization?

The venture option

Which of the following is a disadvantage of mail methods over personal contacts?

They are limited in terms of depth of questioning.

Which of the following is true of a reseller?

They are required to prepare for promotion by training salespeople and service people

Which of the following is the biggest complaint against the laws governing product liability?

They have a negative impact upon a manufacturer's willingness to innovate.

Which of the following is NOT true of occasional products?

They have greater need for launch management than other regular products.

Which of the following is the first thing managers should decide in a product use test?

They should decide on what needs to be learnt.

Which of the following is a product level performance measure used for individual products?

Time to launch

Which of the following is true of a gamma test?

To pass this test, the new item must solve the customer problems completely.

_____ design is the term sometimes used to mean the design of products to be usable by anyone regardless of age or ability.

Universal

Makers of a building-block set for children puts kids in a focus group room and observes how the kids play with the set. This act is an example of _____ testing.

Use

_____ is a virtual market testing technique, in which a respondent is brought into a virtual retail store environment and encouraged to look around, take products off the shelf and read the label, and make purchases.

Visionary shopper

Which of the following best describes broaden the market fallacy?

What makes a product appealing for one customer segment may not be the same for another.

Under which of the following situations will market testing be quick, if at all it takes place?

When competitors can take retaliatory action that will hurt a company launching a new product

Globally dispersed teams or GDTs have increased in prominence because:

accelerated product life cycles require that expertise should be gathered from wherever it resides.

A rollout when compared to test marketing:

allows the testing firm to minimize losses in case of failure.

identify the correct statement about the political arena phase of the life cycle of a public concern

at this stage, the opportunity for defusing the public issue has already passed

In most cases, the first step toward adoption of a new product is _____.

awareness

Those people who are involved in managing functional clusters comprise the _____ team.

core

with which of the following injury sources are inadequate quality techniques that may result in faulty product units, even if a product is well designed, most closely associated?

defects in manufacture

Firms attempting to increase penetration in existing markets are most likely to be emphasizing:

defensive additions.

Artwork Corps' new product team is preparing decorative graphics, a brand name, and a logo for its latest potential product. The team is most likely to be in the _____ stage of new product development.

design consolidation

Many firms use _____ to achieve the effects of colocation without actual physical proximity of team members.

digital colocation

In _____, a manufacturer assumes all responsibility and is expected to pass along the costs somehow.

no fault approach

While launching a product with low relative advantage and low compatibility with buyers' experiences, the:

older product should not be deleted from the market quickly.

In an innovation dashboard, return on investment in innovation is a(n):

performance metric

The trial phase in the adoption of a new product:

permits customers to verify claims about the product.

If a firm decides to be very aggressive at the time of launching a new product, it is an example of a(n) _____.

platform decision

In launch management, tracking variables should be relevant, measurable, and _____.

predictable

Training of sales and other promotional people, building service capability, putting out preannouncements if they are in order, and arranging for stocking of a new product at the reseller level takes place during the _____ of a launch cycle.

prelaunch stage

In the context of innovation dashboard, number of patents filed by a firm is a metric for:

process effectiveness

The most heavyweight of the three matrix structures is the:

project matrix structure.

The primary role of simulated test marketing in A-T-A-R forecasting is to:

provide estimates of trial and repeat purchasing for a new product.

The concept of _____ holds that a seller is responsible for keeping defective products off the market.

strict liability

In terms of launch tactics, pharmaceutical firms are most likely to put the bulk of their money into:

technical research.

Direct network externalities exist if product sales are dependent on:

the number of people that have adopted the product.

Batch product should be used alone only if:

the production process is prohibitively expensive.

DarkBerry Inc., a cellphone manufacturer, manufactures products that share common design features that make them unique, yet at the same time familiar. All of DarkBerry's cellphones have a sleek appearance and an elegant design. DarkBerry's products can be best described as being designed:

to build or support corporate identity.

Even when a particular situation seems to have a clear-cut guiding principle, one often finds a contrary principle of equal merit and this is referred to as a(n) _____.

trade off problem

A buyer gathering the trial experience of others for a new product, but without the use of electronic setups is an example of a _____.

vicarious trial

Under _____, customers build the desired product, get an assessment of the resulting price, and state their likelihood of making a purchase.

virtual product testing

A certain industrial firm found that users were making a particular change to aid a product's function. In the context of special problems associated with a product use test, this illustrates the act of _____.

Being alert to changed conditions

_____ information in combination with brand perceptions can be very helpful in developing a product positioning strategy.

Benefit segment

One of the methods to position a product in the marketplace is to use attributes. In this context, which of the following is an attribute?

Benefits

Which of the following problems in launch management is most likely to be untrackable and requires a firm's management to inquire among suppliers and media?

Chief competitor has the same new product feature for which the firm has no patent.

Chunks (or modules) are defined during which of the following steps of the product architecture process?

Clustering the schematic elements

In the context of integrative conflict management styles, what does confrontation entail?

Collaborative problem solving to reach a mutually agreeable solution

Which of the following is true of colocation?

Colocation helps integrate departments.

When a respondent uses an item, describes activities, and explains problems encountered, it is known as:

Constructive evaluation

Which of the following is true of a surrogate product use test?

Constructive evaluation is a surrogate product use test.

Which of the following statements is true of product design?

Design can be best described as the synthesis of technology and human needs into manufacturable products.

_____ are technical people who convert styling into product dimensions or specifications.

Design engineers

Which of the following is a computer-based technology that allows for very efficient product design and development?

Design for manufacturability (DFM)

The _____ stage of a case based research is followed by a preliminary beta test with end users in a real work environment.

Development

A product design which is developed in collaboration with end users and which captures the voice of the customer is known as a universal design.

FALSE

A sponsor is lower up in the corporate ladder and is supported by a product champion.

FALSE

An implied warranty is any statement of fact made by the manufacturer about a product, whether made by salespeople, retailers, or others

FALSE

Beta tests are designed to tell firms about meeting customer needs and solving problems.

FALSE

Beta tests are primarily designed to tell if original customer needs have been met.

FALSE

Bulk packaging that holds a product's secondary packages for shipment is referred to as primary packaging.

FALSE

Business firms deal with public policy issues that are restricted to just new products

FALSE

By definition, a focused prototype is a fully functioning, full-size product that is essentially complete and ready for examination by potential customers.

FALSE

Design for ergonomics is the technique by which products can be taken apart after use for separate recycling of metal, glass, and plastic parts.

FALSE

Even though beta testing is the ideal test, firms anxious to save time and money or to leapfrog competitors nevertheless opt to go with gamma testing.

FALSE

Every new product must be identified, and the accurate term for what identifies products is copyright.

FALSE

Excellence in design does not benefit the bottom line of a firm.

FALSE

Firms that simply copy innovative products gain high profits due to price competition.

FALSE

For risky projects, rewards tied to the project's profit outcome tend to enhance performance

FALSE

Full sale market testing methods fail to test the realities of new products' national introduction.

FALSE

Functional areas tend to focus more on company goals than their own goals.

FALSE

Generally, the easiest products to shut down are new-to-the-world product projects

FALSE

In many foreign markets, especially developing economies, the laws governing intellectual property protection and product piracy are very stringent

FALSE

In the context of building a team, the term "empowerment" is synonymous with delegation.

FALSE

Indirect network externalities exist if product sales are dependent on the number of people that have adopted it.

FALSE

New regulatory legislation is often precise and made exclusively to prevent a period of jockeying among adversaries

FALSE

Nodes refer to how people important to a project are reached and what important ties they have to others in the network.

FALSE

Once a product or product line is discontinued, it holds no revenue opportunities for the firm

FALSE

Product design is used to pretty up a product that is about ready to be manufactured.

FALSE

Strategic givens are more easily modified as compared to tactical decisions.

FALSE

The concept of strict liability requires proof that a direct sale from the manufacturer to the injured user took place

FALSE

The conditions during the beachhead phase of a launch cycle are highly conducive to good management

FALSE

The development of a new product ends when the item arrives at the shipping dock

FALSE

Unexpected low sales for a new product typically triggers automatic, corrective contingency plans

FALSE

When a new product launch involves a defensive addition, the appropriate tactics include a broad product assortment, a new brand name and distribution channels, and a higher price

FALSE

With reference to the expected effects matrix, noticeable events with moderate likelihood of occurrence must be dealt with immediately

FALSE

Which of the following is least likely to need a launch management plan?

Fad products

If a firm plans to use only one type of use testing, products selected for testing should preferably be drawn from _____.

Final production

In which of the following organizational options does the project manager have the least amount of power?

Functional option

The ideal product use test in which the item is put through its paces and thoroughly evaluated by the end user is called a(n) _____.

Gamma test

_____ are deep specialists in their field and really want nothing to do with people from other functions.

Isolates

Which of the following statements is true of the speculative sale method of market testing?

It does not involve advertising.

Which of the following is an advantage of the pseudo sale market testing method?

It is cheap and quick.

Which of the following statements is NOT true about an After Action Review (AAR)?

It is limited to the top management as they are the only ones who have direct experience with the entire product development cycle.

Which of the following statements is true of test marketing?

It is too expensive to be used as a final exam.

Which of the following statements is true about an After Action Review (AAR)?

It need not be terribly formal, in some cases a couple of individuals meeting briefly after a customer visit might suffice.

Which of the following is an advantage of using test marketing?

It provides the best sales forecast and the best evaluation of alternative marketing strategies.

Under which of the following categories do novelty products and service products fall?

Low relative advantage and low compatibility with buyers' experiences

Product use testing is also known as _____ testing.

Market acceptance

Which of the following is a customer acceptance measure used during the strategic launch planning of a new product?

Market share

As a method of market testing, which of the following is an advantage minimarket testing provides over test marketing?

Minimarket testing allows for greater flexibility in changing price and other variables of a new product when compared to test marketing.

Before launching its new breakfast cereal, Wish Foods Inc., decided to test the product in the market. The new products team decided to sell the cereal on a small scale in two major outlets of FourMart Inc., a retail departmental store. This technique of market testing would help create an actual buying situation and allow for flexibility in changing the product's price and other variables. Which of the following market testing methods does this scenario best illustrate?

Minimarketing

Identify the controlled sale market testing method that involves distributors and retailers or dealers in the process.

Minimarketing

In a _____ test, which is especially common for services, a respondent tests a single new product for a period of time.

Monadic

Identify the use test that provides knowledge from initial reactions of users to color, speed, durability, mechanical suitability, etc., of a new product.

Pre-use sense reaction

Leo Burnett advertising agency uses scanner data to cluster food buyers into six groups. Which of these groups consists of people who buy all major brands, always on deals?

Price-driven

Which of the following methods of market testing was a spinout from concept testing and comes very early in the new product development process?

Simulated test marketing

Which of the following tests is the most sensitive?

Simultaneous form of paired comparison test

_____ refers to a price clearly above the market, but appropriate to a differentiated product, nonthreatening to competition, and with room for some price manipulations.

Skim

May Safe Solutions (MSS) Inc. is on the verge of launching a new security alarm systems for homes. Before the commercialization of the product, the marketing team of the company contacts a few customers, describes the product to them, answers queries on its functioning, negotiates price, and then asks the customers if they would actually buy the product if it was available in the market. Which of the following methods of market testing is MSS Inc. applying in this scenario?

Speculative sale

A launch management system must have an effective tracking system with trigger points to activate contingency plans

TRUE

A network consists of nodes, links, and operating relationships.

TRUE

Collaboration is an intense and complex form of integration that will produce synergy among functional areas.

TRUE

Colocation allows team members to identify and resolve product development problems faster.

TRUE

Distributors and retailers/dealers are essentially avoided in informal selling.

TRUE

Firms today manage the marketing and distribution process of products with the same vigor they manage design and manufacturing

TRUE

For products with low relative advantage and low compatibility with buyers' experiences, promotion should aid in risk reduction by offering money-back guarantees, warranties, or tie-ins to existing products.

TRUE

GDTs use e-mail and phone to discuss design changes, but these tools are limited in that team members cannot work easily with three-dimensional models.

TRUE

Historically, product liability is applied to goods, not services, and there have been many lost attempts to extend the law to cover services

TRUE

If a product's market window of profitability is shorter than expected, this may indicate a turning point in the life cycle and may require strategic thinking for the next product put into development

TRUE

In a monadic test, the respondent tests a single product for a period of time.

TRUE

In a penetration price strategy, the price of a product is clearly low and is designed to buy one's way into the market.

TRUE

In a product launch setting, beachhead refers to the heavy expenditures necessary to overcome sales inertia.

TRUE

Market testing for a new product should begin as soon as a technique can be found that will tell us what we need to know.

TRUE

Markets today are so complex that one product cannot come close to meeting all needs and desires of the customers.

TRUE

Most of the problems surrounding design have to do with concurrency, or over-lapping the steps in development.

TRUE

On average, up to 80 percent of a product's cost is determined by the time it is designed.

TRUE

One of the key defenses available to a manufacturer in the case of a product liability suit is assumption of risk by a product user

TRUE

Tactical launch decisions are marketing mix decisions such as communication and promotion, distribution, and pricing of a new product.

TRUE

The cash-to-cash metric shows the time between the initial cash investment and the time of payment for a finished product.

TRUE

The role of a new product is usually to build gross margin dollars, dollars that come primarily from the values it has over its price.

TRUE

The trial phase in the adoption of new products is the stumbling point for most products that fail; and it is the cause of winning products not winning a great deal more.

TRUE

Which of the following is a drawback of test marketing?

Test marketing results are not really projectable.

Which of the following is true of product testing?

Testing should be continued till a firm is satisfied that it has solved the problems expressed in the original protocol.

Identify the situation that most likely requires a company to conduct market testing on its new product.

The company's capital investments in the new product are high.

Which of the following statements is true regarding the functional matrix organizational structure?

The functional matrix structure involves the lowest degree of projectization.

Which of the following statements is true regarding rollout?

Today rollout is increasingly replacing test marketing.

Team members from important departments, such as packaging, legal, and logistics, whose importance is brief in time, are typically _____.

ad hoc team members

The best success in green product development occurs when a firm:

aligns its business objectives with its environmental initiatives

according to the expected effects matrix, devastating events have a low likelihood of occurence

are alert variables that must be watched closely.

Derivative products:

are products based on the same platform as an existing product, but modified in terms of technology or customer need fulfillment.

In the new products process, market testing should typically be carried out:

as soon as techniques that will tell us what we need to know are found.

Janet uses the Atlas brand of lawnmowers despite being aware of its potential defects. She neglects the defects and continues to use the product regardless of its dangers. In this case, the manufacturer of Atlas lawnmowers can use _____ as a defense against any strict liability claims.

assumption of risk

In the _____, both functional and project views are critical—neither ongoing business nor the new product should be the driver.

balanced matrix option

Markets segmented based on variables like values, activities, and lifestyles can be best described as using _____.

behavioral and psychographic segmentation

Brand names are important assets that provide value to both a firm and its customers, as they communicate quality, build positive brand images, and encourage customer loyalty. This value is known as _____.

brand equity

_____ is best described as the unauthorized use of copyrighted or patented goods or brands.

brand piracy

Zircon Motors Inc. destroyed its prior branding as a manufacturer of economy automobiles when it planned to introduce Zircon Mova, a premium car, targeted at the high-income customer group. This is an example of a(n) _____ of market replacement.

butt-on strategy

According to the U.S. Trade Representation lists, the countries with the biggest piracy problem are currently:

china and taiwan

A culture of _____ will help firms harness creativity, share information among departments, encourage growth of intellectual capital, and get more efficient in new product development.

collaboration

With reference to the design process, the practice of putting the various individuals or functional areas in close proximity so as to shorten communication lines and increase team cohesion is called _____.

colocation

In the context of the product characteristics suggested by Everett Rogers, _____ refers to how easy it is for a user to see the benefits of using a product.

communicability

which of the following is the primary task of recall program coordinator for defective products

communicating with the media and regulatory bodies

In the first step of a product deletion process, a firm must:

compare the performance of the product against certain criteria and guideposts.

A fully functional, full-size product prototype that is essentially ready for examination by potential customers would be best described as a _____ prototype.

comprehensive

In the new products process, _____ often leads firms to explore the minds of customers to find something they want or will want when they hear about it.

concept generation

Controlled-distribution scanner markets are based on scanner technology and have received much attention in the _____ field.

consumer packaged goods

Minimarket testing is a _____ method.

controlled sale

A(n) _____ conveys information about the targeted market segment, product positioning strategy, and communications mix among many other points to an advertising person.

copy strategy statement

In recent years, the _____ team has increasingly assumed the role of "champion" since all should have strong concept commitment.

core

When a firm plans to launch an innovative new product, the launch strategies and tactics would include:

creating a broad product assortment.

With reference to the product architecture process, the product is arranged in a variety of configurations through simulations, computer-sided designing, or other techniques in order to find the "best" solutions during the process of:

creating geometric layouts.

Flyto Co., a Japanese automobile manufacturing company, recently introduced two new car models in America. These models were developed using the same platform as one of Flyto's existing models, but were modified incrementally in terms of technology. Flyto's latest products are examples of:

derivative products.

with reference to product liabilities, injuries caused as a result of inadequate materials and absence of safety devices would fall under the category of _____

design defects

In both technology-driven and market-driven innovation, _____.

design plays a secondary role

In the launch management of a new product, once the identified problems are reduced to a size a firm can handle, the next step would be:

developing contingency plans

Firms that are concerned with, or seek to promote environmental concerns are most likely to employ design for _____.

disassembly

A new product is said to harm the environment if its:

disposal problem cannot be handled by recycling.

With reference to the classic diffusion theory of Everett Rogers, the _____ of a product indicates how easy it is for a customer to purchase and use the trial portions of the product.

divisibility

When pharmaceutical firms are reluctant to develop new products because of major risks of trouble, it is referred to as _____.

drug lag

In launch management, firms may best select problems for control by using the:

expected effects matrix

Which of the following methods can be used to reduce the list of problems, identified in the first step of launch management, based on the potential damage and the likelihood of occurrence?

expected effects matrix

the degree of puffing a court will allow in business is the most closely related to

express warranties

A(n) _____ is best described as any statement of fact made by a manufacturer about a product, whether made by salespeople, retailers, or others.

express warranty

A package design strategy that uses key designs or some other packaging elements to integrate the packaging of several individual items is best known as _____.

family packaging

A dog food is positioned as "the one with as much protein as 10 pounds of sirloin." This is an example of a(n) _____.

feature

which of the following statements is true of product recall

final customers as well as intermediaries should be informed of the potential risk

Automobile companies often create full-size clay models in order to extract consumer reactions to proposed styling alternatives. Such models would be best described as _____ prototypes.

focused

A(n) _____ is a prototype that examines a limited number of performance attributes or features.

focused prototype

A certain watch manufacturing company manufactures watches that have about a third of the moving parts of a traditional Swiss watch: a plastic casing without a removable back, a plastic strap incorporated into the casing, and many other similar design features. The company retails its watches at a small fraction of the price of traditional Swiss watches. In this scenario, the company's watches are most likely designed:

for ease of manufacture.

Velvo Inc., an automobile manufacturing company, designs its products in such a way that they can be easily dismantled after use for recycling. The used plastic parts are sorted and recycled to make new parts. Other components are either recycled or rebuilt, while unusable parts are incinerated to create energy. In this scenario, Velvo's cars can be best described as being designed:

for the environment.

Leaders must be _____; they must be able to spot the need for change and convince others of this need.

general managers

With reference to the expected effects matrix, which of the following problems represents control variables that require contingency planning and tracking, if possible?

harmful events with high likelihood of occurence

which of the following methods can be used to spot potential problems during the launch management of a new product

hierarchy of effects model

Products that are clearly superior on attributes that buyers consider important have:

high relative advantage and high compatibility with buyers' experiences.

Skimming pricing is best recommended for products having:

high relative advantage and high compatibility with buyers' experiences.

which of the following is true of product liability?

historically, it applied to goods and not to services

If the market situation for a product in decline is particularly difficult and solutions lie only in longer-time product changes, the most appropriate thing will be to:

hold the market in a freeze until a solution is found.

Ergonomics can be best defined as studying:

human characteristics in order to develop appropriate designs.

simply offering a product for a given use is sufficient to create a

implied warranty

Today, companies primarily use test marketing to:

improve and make adjustments in their marketing plans.

In the context of the competencies tied to radical innovation, _____ refer to the process of transitioning the radical opportunity into a business proposal.

incubation

If product sales are dependent on sales of complementary products, _____ exists.

indirect network externalities

courts are more likely to be understanding to manufacturers if a product injury was the results of a _____

inherent risk

A(n) _____ establishes performance metrics for innovation inputs, process effectiveness, and performance outcomes.

innovation dashboard

The first 5 to 10 percent of customers who adopt a new product are referred to as the _____.

innovators

In launch management, when the potential customers of a new product are not making trial purchases of the product, then tracking is most likely to be done by:

instituting a series of follow-up telephone calls to prospects who have received sales presentations.

People who naturally give and get respect and who love to relate to people from other departments or other firms are called _____.

integrators

For products with low relative advantage and high compatibility with buyers' experiences:

intensive distribution makes sense.

A launch cycle is an expansion of the _____ of the product life cycle into substages

introductory stage

Gloria, a marketing manager at Big Three Inc., is preparing for the launch of a new product. The company's top management wants to keep its spending strategy low key. To convince the top management that the new product needs an aggressive entry, Gloria should promote the marketing cost associated with the launch as a(n) _____.

investment

Case-based research used by some software manufacturers:

is a very comprehensive form of product use testing that runs parallel to the software's development process.

Which of the following is true of the stirring phase of the life cycle of a public concern?

it is easy to identify this period, although most people ignore it

During innovation diffusion, the _____ are the last customers in the market to try an innovation.

laggards

During which of the following stages of the new products process are problem experts involved as players in the communications program?

launch

Integrators refer to those people in a firm who:

love to relate to people from other departments or other firms and naturally give and get respect.

Planters sell the same peanuts to all final customers, but modify the packaging depending on the size of the distributor. This is an example of _____.

mass customization

BlueBeak Corp. deliberately seeks out very small targets markets with unique purchase patterns. The firm targets _____.

micromarkets

A manufacturer is most likely to be held liable for injuries caused by a "perfect" product if the injury was the result of:

misrepresentation

When a firm chooses an aggressive entry to launch a new product:

most of the promotional dollars are spent early

In the context of launch management, eyeball control refers to:

moving around the market to find if problems are coming about, and then planning what will be done if they are.

Panaroma is a patented apparel brand. A manufacturer sells low quality apparel under a slightly different brand name "panoroma" that can cause confusion among customers. This scenario best illustrates _____.

near brand usage

Nodes, links, and operating relationships come together to form a(n) _____.

network

If use testing would result in the product being second (or even third) to market, most firms would:

opt for immediate marketing.

Microdata Corp. wants all the members of its new product team to "buy-in" to the project. The firm is hoping to encourage _____.

ownership

Which of the following is an input metric in an innovation dashboard?

percent of new product ideas sourced from outside the firm

in an innovation dashboard, process metrics includes

percent of projects that result in a launch

In an innovation dashboard, metrics for performance outcomes includes:

percentage of sales derived from new products

Which of the following statements is true of metrics for innovation?

performance metrics need to be adjusted and fine-tuned through time, so that they aligned with business goals

For products with high relative advantage and low compatibility with buyers' experiences:

preannouncements before entry may be necessary to warn prospects.

America First Electronics Inc. (AFE) is preparing to launch a set of new-to-the-world medical devices that are based on the same technology. These devices promise to revolutionize the healthcare industry. AFE must ideally attempt to stimulate:

primary demand for the product category.

Under the doctrine of _____, injury claimants had to prove that there was direct sale of a defective product from the manufacturer to the injured.

privity

In order to reduce "turf wars" between production and design specialists, Trident Corp. has added a third independent person to the team who understands the importance of both. In this scenario, Trident Corp. is utilizing a(n) _____.

produceability engineer

The process by which a customer's need is developed into a product design is called _____.

product architecture

The most expensive and risky stage of the new product development process is often _____.

product commercialization

in terms of the seriousness of the potential suits and the costs of error, the most complex and frustrating problem that new product managers currently face is ______

product liability

With regard to the process of product architecture, the _____ shows the components and functional elements of the product and how they are interconnected.

product schematic

The "release" of a comprehensive prototype to potential users for testing in a real usage situation that may support further product improvement is called _____ testing.

product-use

Which of the following metrics is used to assess the financial performance of individual products?

profitability

In firms that have adopted a venture approach to organizational structure, _____.

projectization is the highest, and team members are pulled out of their departments and put to work full time on the project

When compared to other test methods, test marketing:

provides the most abundant supply of information.

A firm desiring to use two or more market testing techniques for a new product is most likely to begin with a _____ method.

pseudo sale

The creation of a solid object directly from a three-dimensional computer model is called _____.

rapid prototyping

The second step in a launch management system for a new product involves:

reducing the list of potential problems to a controllable number

the ___ is typically the last stage in the life cycle of a public concern that often lasts for years, and where general shifts in a country's political thinking may cause various issues to move into or out of the idle state

regulatory adjustment phase

When designing a tracking system in launch management, a tracking variable is considered _____ if it identifies the key problem.

relevant

If a firm's target market customers do a serious trial on a new product, and if the firm has previously been assured from the product use test that people would like it, _____ is virtually assured.

repeat buying

A(n) _____ is the workhorse of most new product introductions.

salesperson

Managements educate company personnel about new products most likely through:

scientific advisory panels

the final step in the launch management system is

selecting the trigger points

Under the concept of strict liability, the:

seller of an item has the responsibility for not putting a defective product on the market

According to the "selling concept," the role of marketing was restricted to:

selling the products that a firm makes.

In the expected effects matrix, those problems placed in the bottom/right cell:

should be taken care of immediately

Under the _____ of market replacement, a continuous positive image is created for the new item being upgraded.

side-by-side strategy

Before the commercialization of a new product, the sales force of Seriv Corporation plans to give its suppliers a hint that a new product or an advanced version of an existing product is going to be launched by the end of the year. The firm's action can be seen as an example of _____.

signaling

Large, powerful retailers often sell their scarce shelf space by charging manufacturers _____.

slotting allowances

In the context of cross functional interface management, seeking a superficial solution is known as _____.

smoothing

Higher projectization is preferred when:

speed to market is critical.

A person who plays the role of a(n) _____ does not drive anything but is higher up in the firm, is supportive, and lends encouragement and endorsement to the champion.

sponsor

In the __ of the life cycle of a public concern, individuals begin to sound off long before enough people have been injured or irritated to cause a general reaction

stirring phase

When technical departments in firms form ties with universities, government units, private research centers, and even competitors to access what they need, it is referred to as _____.

strategic alliances

The cash-to-cash metric was first used by _____.

supply chain managers

Ideally, collaboration between functional areas results in _____.

synergy

In product commercialization, _____ define how the strategic decisions will be implemented.

tactical launch decisions

In a functional organization structure, _____.

team members are informed about key issues, and communication is comparatively easy

In the launch management of a new product, a tracking system is designed to:

tell the firm when to implement the contingency plans.

Resellers' views are represented in the product development process by experienced salespeople like sales managers and _____.

trade relations directors

To have ownership, _____ helps assure that no one will take ownership without the skills and knowledge required by the task.

training

For a new product entry or line addition in an established market, the emphasis is on stimulation of:

trial purchase, which is a precursor to adoption.

With reference to the life cycle of a public concern as public agitations over an issue increase, a champion may decide to take it on as a cause in the ____ phase of the cycle

trial support

Businesses are using a(n) _____ when they put their corporate name on every product they make.

umbrella brand strategy

A firm charged with strict liability in an injury case may seek to defend on the basis of:

unforseeable misuse

Firms that copy innovative products

usually commit the innovator's mistakes as well.

Five Works Inc. preannounces the release of its computer software, but the product is never launched in the market. This is an example of _____.

vaporware

A think-tank environment, designed to identify new ideas or solutions to new product-related problems, is an example of a _____.

venture option

Silhouette Inc. has established a recognizable look or feel that it uses consistently across the products it sells. This supports the public perception of the firm and ultimately, its corporate identity. Based on this information, we can say that Silhouette Inc. is trying to capitalize on its _____.

visual equity

In launch management, it is important to select relevant, measurable, and predictable tracking variables essentially because they:

warn that a problem is coming about.

Which of the following sources of product liability stems from a seller's promise that is unfulfilled?

warranty

In a new product launch, when there is a problem that cannot be tracked because the firm cannot find a variable for it, typically the management should:

watch sales

Today, in new products management, development ends:

when a product has performed satisfactory in the hands of the end user

Some firms capitalize on the end-user penchant by just launching a product and following up to see who the buyers are, then focusing their promotions accordingly. This is an example of a(n) _____.

wildcat operation