NPP Ch11 - Ch20

Marketers may describe functions in a product protocol as _____. A. performance parameters B. accrued benefits C. embedded features D. product features

performance parameters

Protocols for services are most likely to be stated in _____. A. design terms B. terms of features C. performance terms D. terms of functions

performance terms

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 or False

True

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

True

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

True

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

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 uses. True or False

True

A good product protocol can help cut development time and accelerate the time to market by providing better product definition. True or False

True

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

True

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

True

An early field use test with a prototype will not assure success, but it can say intended users like what they see. True or False

True

Even if a product's potential is extremely high, its sales may not materialize due to insufficient marketing effort. True or False

True

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

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 or False

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 or False

True

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

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 or False

True

If done right, a product protocol gives requirements in words that can usually be measured and thus permits a development process to be managed. True or False

True

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

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 or False

True

In addition to the considerations of time and cost, one should also consider product and market newness when selecting the most appropriate forecasting model. True or False

True

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

True

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

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 or False

True

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

True

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

True

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

True

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

True

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

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 or False

True

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

True

Most common forecasting methods are extrapolations and work well on established products. True or False

True

Most innovative firms generally follow a dual ladder system. True or False

True

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

True

New product projects need to be considered on how well they fit the firm's strategy for innovation. True or False

True

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

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 or False

True

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

True

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

True

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

True

Quality function deployment (QFD) has been called "matrix hell" as a result of its massive data requirements, its complexity, and its tendency to raise conflicts that are difficult, if not impossible, to solve. True or False

True

Quality function deployment (QFD) was invented in the Japanese automobile industry years ago as a tool of project control. True or False

True

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

True

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

True

The General Agreement on Tariffs and Trade (GATT) allows a nation to restrain imports from countries where piracy is a problem. True or False

True

The protocol process is an aid to management, not a substitute for thinking. True or False

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 or False

True

Which of the following is most likely to be used in product-use testing? A. A focused prototype B. A comprehensive prototype C. A conceptual prototype D. An ideational prototype

A comprehensive prototype

Which of the following is a difference between function and feature? A. A function refers to how an item will work, while a feature refers to what an item is. B. A function is linked to a product, while a feature is linked to a service. C. A function is a product attribute, while a feature is not. D. A function adds value to a product, while a feature does not.

A function refers to how an item will work, while a feature refers to what an item is.

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. A. After Action Review (AAR) B. A-T-A-R model C. expected effects matrix D. hierarchy of events matrix

After Action Review (AAR)

Identify the correct statement about the political arena phase of the life cycle of a public concern. A. At this stage, the opportunity for defusing the public issue has already passed. B. At this stage, a champion decides to take on the public issue as a cause. C. It is characterized by a period of jockeying by the adversaries. D. It is characterized by tentative expressions of concern by knowledgeable authorities.

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

In the context of cross functional interface management, what does withdrawal entail? A. Collaborative problem solving to reach a mutually agreeable solution B. Reaching an acceptable compromise solution C. Seeking a superficial solution D. Avoiding the issue

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? A. Risk-based promotion B. Awareness-based promotion C. Reseller-based promotion D. Usage-based promotion

Awareness-based promotion

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

Benefit segment

_____ are the most desirable form of product attributes for a protocol to use. A. Features B. Traits C. Benefits D. Functions

Benefits

_____ are short-term use tests that evaluate a product at customer sites, to determine if the product works free of bugs. A. Beta tests B. Pre-use sense reactions C. Early use experiences D. Laboratory simulations

Beta tests

Which of the following is the final step in the process for product architecture? A. Creating the geometric layout B. Checking the interactions between chunks C. Creating the product schematic D. Clustering the schematic elements

Checking the interactions between chunks

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? A. Chief competitor has the same new product feature for which the firm has no patent. B. Buyers make trial purchases but do not place quantity orders. C. Potential customers are not making trial purchases of the new product. D. Salespeople fail to contact general-purpose market at prescribed rate.

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

According to the U.S. Trade Representation lists, the countries with the biggest piracy problem are currently: A. Germany and Korea. B. Britain and Canada. C. Mexico and Japan. D. China and Taiwan.

China and Taiwan.

Which of the following is the primary task of a recall program coordinator for defective products? A. Fighting strict liability claims on the firm's behalf B. Communicating with the media and regulatory bodies C. Writing complaint letters to political representatives D. Making financial arrangements to sustain the loss

Communicating with the media and regulatory bodies

_____ is the term most widely used to cover all of the information and attitude effort put into changing end-user perceptions. A. Beachhead B. Vaporware C. Communications D. Rollout

Communications

Which of the following is true of a surrogate product use test? A. It requires considerable amount of money. B. It requires a large amount of time. C. It gives most accurate results among all product use tests. D. Constructive evaluation is a surrogate product use test.

Constructive evaluation is a surrogate product use test.

Which of the following is true of counterfeiting as a means to product piracy? A. Counterfeit goods range from low price and quality to excellent quality. B. It involves making defamatory statements about established product brands. C. It refers to a ban on copyrighted or patented goods or brands. D. Counterfeited products have the manufacturer's original warranty.

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? A. Clustering the schematic elements B. Creating the product schematic C. Creating the geometric layout D. Checking interactions between chunks

Creating the product schematic

Which of the following seeks to assure new product success by encouraging existing consumers to switch to the new offering? A. Bait marketing B. Market Skimming C. Customer migration D. Consumer movement

Customer migration

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? A. Failure to provide adequate instructions B. Defects in manufacture C. Inherent risks D. Design defects

Defects in manufacture

In the context of a lean launch, which of the following best describes time postponement? A. Deploy inventory as late as possible B. Lock in product design as late as possible C. Lock in product identity as late as possible D. Delay the announcement of a new product as late as possible

Deploy inventory as late as possible

_____ are technical people who convert styling into product dimensions or specifications. A. Design engineers B. Industrial designers C. Marketing personnel D. Process engineers

Design engineers

_____ are technical people who convert styling into product dimensions or specifications. A. Industrial mechanists B. Risk incorporators C. Design engineers D. System analysts

Design engineers

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. A. Minimarketing B. Rollout by influence C. Direct marketing D. Speculative sale

Direct marketing

Which of the following is a controlled sale market testing method that involves real purchasing under some real competitive environment? A. Concept testing B. Direct marketing C. Speculative sale D. Simulated test market

Direct marketing

Which of the following methods of market testing fall under the category of controlled sale? A. Test marketing B. Speculative sale C. Direct marketing D. Simulated test market

Direct marketing

Which of the following is a competency tied to radical innovation that is responsible for creating, recognizing, and articulating radical innovation opportunities? A. Discovery B. Incubation C. Acceleration D. Projectization

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. A. Quality of the user interface B. Maintenance and repair C. Appropriate use of resources D. Emotional appeal

Emotional appeal

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? A. Lab personnel B. Stakeholders C. Employees D. Experts

Experts

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

False

Factor analysis can be used to estimate the net present value of a new product when it is still in the concept stage. True or False

False

Features are the most desirable form of product attributes for a protocol to use. True or False

False

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

False

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

False

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

False

In an innovation dashboard, process effectiveness metrics include R&D spending. True or False

False

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

False

In the house of quality (HOQ) approach, customer's needs are converted to the price of the product. True or False

False

In the product development process, sales forecasting is typically the responsibility of the process manager on the new product team. True or False

False

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

False

InfoScan by itself is a method of market testing. True or False

False

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

False

Laggards refer to those users who will be among the first to try the product. True or False

False

Lower the projectization, the more the power leans toward the project manager. True or False

False

Many of the mathematical sales forecasting models were initially developed for use on durable goods. True or False

False

Product innovators, including consumer packaged goods innovators, still most often use a simple version of the A-T-A-R model. True or False

False

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

False

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

False

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

False

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

False

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

False

The development of a new product ends when the item arrives at the shipping dock. True or False

False

The final step in the product deletion process involves determining whether the deletion would leave a major hole in the firm's product line. True or False

False

The first step in a launch management system is to develop a contingency plan. True or False

False

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

False

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

False

_____ prototypes are used in probe-and-learn ("lickety-stick") product development in the development of new-to-the-world products. A. Focused B. Comprehensive C. Conceptual D. Ideational

Focused

Identify the method of market testing which is most likely to make use of a rollout. A. Controlled sale B. Pseudo sale C. Full sale D. Trial sale

Full sale

Merrill-Dow's advertisement, "The new bulk laxative will dissolve completely in a four-ounce glass of water in 10 seconds," refers to which of the following product attributes? A. Feature B. Price C. Benefit D. Function

Function

Which of the following statements is true regarding team compensation and motivation? A. For comparatively long projects, it is preferable to reward the team's processes during product development. B. Very few firms use a combination of monetary and nonmonetary rewards to motivate their teams. C. Outcome-based rewards for risky projects may be viewed as the best way for rewarding the team. D. If the project is relatively less complex, rewards tied to the project's profit outcome tend to enhance performance.

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? A. If there is a lack of need for the product B. If the product does not meet the consumer needs C. If the product is marketed poorly D. If existing infrastructure cannot be used to produce the product

If there is a lack of need for the product

Which of the following is true of the balanced matrix option? A. The balanced matrix option is the most lightweight of the different types of matrix structures. B. The balanced matrix option extends projectization to its ultimate and is most useful for new-to-the-world products. C. In the balanced matrix option, both functional and project views are critical. D. In the balanced matrix option, team members are totally oriented to their functions or departments, and not to the project.

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. A. More flexibility B. Increased depth of questioning C. Higher speed D. Lower costs

Increased depth of questioning

Which of the following contradicts the concept of an umbrella brand strategy? A. Mass brand strategy B. Generic brand strategy C. Corporate brand strategy D. Individual brand strategy

Individual brand strategy

With reference to the Bass diffusion model, which of the following best represents the growth in the total number of purchases that is typically based on adoption by innovators? A. The cumulative expenditures curve B. Skimming C. Initial diffusion rate D. Itemized response

Initial diffusion rate

_____ are deep specialists in their field and really want nothing to do with people from other functions. A. Leaders B. Receptors C. Isolates D. Integrators

Isolates

During which of the following stages of the new products process are problem experts involved as players in the communications program? A. Development B. Concept generation C. Project evaluation D. Launch

Launch

Which of the following is a customer acceptance measure used during the strategic launch planning of a new product? A. Profitability B. Market share C. Product cost D. Time to launch

Market share

As a method of market testing, which of the following is an advantage minimarket testing provides over test marketing? A. Minimarket testing allows for greater flexibility in changing price and other variables of a new product when compared to test marketing. B. Minimarket testing is free from retailer/distributor stocking problem, whereas test marketing is not. C. Minimarket testing can be used for industrial goods and services, whereas test marketing cannot. D. Minimarket testing involves laboratory experiments that do not require customers to make cash purchases, whereas test marketing results in a risk to customers.

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

According to the Hoechst-U.S. scoring model, which of the following is a full-screen feasibility factor? A. Probability of technical success B. Business-strategy fit C. Strategic leverage D. Reward

Probability of technical success

____ is a tool of project control invented by the Japanese automobile industry that can lead to reduced design time and costs, and more efficient communication between project team members from functional areas. A. Voice of the customer B. Critical path method C. Business Process Modeling D. Quality function deployment

Quality function deployment

_____ analysis may be used to estimate the net present value of a new product when it is still in the concept stage. A. Real-options B. Progressive regression C. Factor D. Conjoint

Real-options

Which of the following would help a firm keep a trademark forever, even if another firm later displays proof of prior use? A. Bona fide intent B. Registration C. Service mark D. Private branding

Registration

According to the Hoechst-U.S. scoring model, which of the following factors is based on financial criterion? A. Probability of technical success B. Business-strategy fit C. Strategic leverage D. Reward

Reward

Which of the following is true of sales forecasting for new products? A. If a product's potential is high, sales will materialize in spite of insufficient marketing efforts. B. Sales forecasting is the final step in a financial analysis. C. Sales forecasting is conducted only after calculating key financial benchmarks such as net present value or internal rate of return. D. Sales forecasting is typically the responsibility of the marketing personnel on the new products team.

Sales forecasting is typically the responsibility of the marketing personnel on the new products team.

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? A. Advertising B. Sampling C. Skimming pricing D. Publicity

Sampling

Which of the following methods of market testing was a spinout from concept testing and comes very early in the new product development process? A. Speculative sale B. Rollout by trade channel C. Direct marketing D. Simulated test marketing

Simulated test marketing

According to the Hoechst-U.S. scoring model, which of the following is a factor related to the firm's product innovation charter (PIC)? A. Probability of technical success B. Probability of commercial success C. Reward D. Strategic leverage

Strategic leverage

Which of the following is a problem associated with sales forecasting? A. Sales managers tend to make promises a year ahead about sales time and support. B. New product managers spend a lot of time in conducting field tests on their new products. C. Most common forecasting methods work well only on new products, and not on established products. D. Target users don't always know what the new product will actually be or what it will do for them.

Target users don't always know what the new product will actually be or what it will do for them.

Which of the following is an example of use testing? A. Analyzing the expected return of a new product by the finance team B. Technicians putting notebook computers in the hands of warehouse personnel C. Copy testing the effectiveness of a product ad copy for baby diapers within an organization D. Studying the attitude of consumers toward a new product idea before its launch

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. A. Test marketing B. Informal selling C. Simulated test market D. Speculative sale

Test marketing

Which of the following tests all market variables, including competition and the trade? A. Test marketing B. Concept testing C. Speculative sales D. Visionary shopper

Test marketing

Which of the following is the most commonly used approach to sales forecasting outside of the consumer packaged goods industry? A. The A-T-A-R model B. Progressive regression C. Conjoint analysis D. Perceptual gap mapping

The A-T-A-R model

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

The Bass model

Which of the following best defines a product? A. The target market of the product B. The positioning of the product C. The marketing plan of the product D. The attributes of the product

The attributes of the product

Which of the following is true of market-driven innovation? A. The main purpose of design in market-driven innovation is to modify the product so that it meets customer expectations. B. In market-driven innovation, new meanings and new technologies are pushed forth. C. In market-driven innovation, design is of primary importance, and it takes on the leadership role. D. The main role of design in market-driven innovation is to modify the product so that it can accommodate the performance characteristics.

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

Which of the following is a disadvantage associated with use testing? A. The risk of a competitor obtaining the firm's product and entering the market first B. The higher costs involved as compared to the loss of the earnings flow from a successful product C. The high likelihood of choosing the wrong target group for the test D. The inability of the test to follow a schematic system

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? A. The functional option B. The functional matrix option C. The balanced matrix option D. The venture option

The venture option

Which of the following is a disadvantage of mail methods over personal contacts? A. They are less flexible. B. They are costlier. C. They take a longer period of time. D. They are limited in terms of depth of questioning.

They are limited in terms of depth of questioning.

Which of the following is the biggest complaint against the laws governing product liability? A. They do not provide any defenses against product liability claims for manufacturers. B. They are based on assumption of risk. C. They always require buyers to prove that there was direct sale from the manufacturer. D. They have a negative impact upon a manufacturer's willingness to innovate.

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

Which of the following is NOT true of occasional products? A. They require advertising and personal selling expenditures to build immediate sales. B. Production is contracted out if possible for such products. C. Prices are held steady for such products. D. They have greater need for launch management than other regular 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? A. They should find out the target group. B. They should analyze the product's marketing strategy. C. They should decide on what needs to be learnt. D. They should do a potential problem analysis.

They should decide on what needs to be learnt.

Which of the following statements is true regarding rollout? A. Rollout is sometimes called speculative sale. B. The knowledge obtained from rollout is significantly less than that obtained from test marketing. C. The rollout method for market testing falls under the pseudo sale technique. D. Today rollout is increasingly replacing test marketing.

Today rollout is increasingly replacing test marketing.

. The A-T-A-R model is the basis of many simulated test markets. True or False

True

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

True

A network consists of nodes, links, and operating relationships. True or False

True

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

True

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

True

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

True

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

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 or False

True

Sample size is primarily a function of what is being tested. True or False

True

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

True

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

True

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

True

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

True

The product protocol communicates essentials to all of the players, helps lead them into integrated actions, helps direct outcomes that are consistent with the full screen and financials, and gives all players their targets to shoot for. True or False

True

Virtual product testing is an extension of mass customization. True or False

True

Virtual teams can meet in synchronous or asynchronous mode. True or False

True

n practice, the first step of quality function deployment (QFD) is the house of quality (HOQ). True or False

True

_____ design is the term sometimes used to mean the design of products to be usable by anyone regardless of age or ability. A. Universal B. Exclusive C. Individualistic D. Unique

Universal

_____ 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. A. Minimarketing B. Visionary shopper C. Rollout by application D. Direct marketing

Visionary shopper

Which of the following sources of product liability stems from a seller's promise that is unfulfilled? A. Misrepresentation B. Warranty C. Negligence D. Strict liability

Warranty

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. descriptive information B. a standard C. a preference D. like/dislike data

a preference

Derivative products: A. always cost about the same to manufacture as the products they're derived from. B. offer lesser value to users, incur higher costs during development, and put a strain on a company's resources. C. are products based on the same platform as an existing product, but modified in terms of technology or customer need fulfillment. D. are completely original and share no similarities with any of the other products in a firm.

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

In most cases, the first step toward adoption of a new product is _____. A. availability B. testing C. trial D. awareness

awareness

In the _____, both functional and project views are critical—neither ongoing business nor the new product should be the driver. A. functional option B. balanced matrix option C. venture option D. project matrix option

balanced matrix option

Markets segmented based on variables like values, activities, and lifestyles can be best described as using _____. A. end-use segmentation B. geographic and demographic segmentation C. behavioral and psychographic segmentation D. benefit segmentation

behavioral and psychographic segmentation

An advantage of specifying the protocol in terms of _____ is that it places no constraints on the R&D staff: They are given free rein to figure out how best to design the product so that it provides the desired advantage. A. benefits B. features C. price D. functions

benefits

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. A. functional discipline B. secrecy C. collaboration D. departmental loyalty

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 _____. A. relocation B. approximation C. resettlement D. colocation

colocation

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. A. commercial B. identity disclosure C. tagline D. full explanation

commercial

A _____ system is one in which all of the players begin working, doing as much as they can at any time as the project rolls along. A. linear B. sequential C. concurrent D. non repetitive

concurrent

Minimarket testing is a _____ method. A. pseudo sale B. controlled sale C. full sale D. speculative sale

controlled sale

n recent years, the _____ team has increasingly assumed the role of "champion" since all should have strong concept commitment. A. core B. extended C. ad hoc D. supply

core

In order to calculate the net present value, that might be associated with a proposed product, it is necessary to: A. create a sales forecast. B. calculate the internal rate of return, IRR. C. define the payback period. D. assess costs.

create a sales forecast.

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: A. analyzing interactions between chunks. B. creating the product schematics. C. creating geometric layouts. D. clustering the schematic elements.

creating geometric layouts.

Firms attempting to increase penetration in existing markets are most likely to be emphasizing: A. defensive additions. B. offensive improvements. C. deletion of existing products. D. launch of new-to-the-world products.

defensive additions.

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: A. breakthrough products. B. derivative products. C. counterfeit products. D. innovative products.

derivative products.

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. A. product launching B. prototyping C. design consolidation D. concept testing

design consolidation

When an automobile manufacturer makes a statement, "The car, using the new German 11-Z4 engine, must accelerate from 0 to 60 miles per hour in 8 seconds," he is expressing a product function in terms of a(n) _____. A. design parameter B. embedded feature C. cost benefit D. tangible feature

design parameter

Firms that are concerned with, or seek to promote environmental concerns are most likely to employ design for _____. A. disassembly B. ergonomics C. visual equity D. ease of manufacture

disassembly

A new product is said to harm the environment if its: A. raw materials are available in abundance. B. design is not compatible with breakthrough technology. C. production requires human capital. D. disposal problem cannot be handled by recycling.

disposal problem cannot be handled by recycling.

Those users who will be among the first to try a product are called: A. early adopters. B. the early majority. C. the late majority. D. laggards.

early adopters.

Alpha tests are generally conducted amongst: A. regular customers outside the organization B. employees of a firm C. irregular customers outside the organization D. employees of a competing firm

employees of a firm

In launch management, firms may best select problems for control by using the: A. hierarchy of effects model. B. Boston matrix. C. expected effects matrix. D. perceptual mapping model.

expected effects matrix.

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 _____. A. uniform packaging B. family packaging C. customized packaging D. retail packaging

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) _____. A. opinion B. feature C. function D. benefit

feature

Technical people often come up with _____ for a new product first, based on technologies they have. A. prices B. features C. functions D. benefits

features

A method for testing the end users' experience with a new item is called _____. A. concept testing B. prototype testing C. field testing D. copy testing

field testing

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: A. for differentiation. B. for ease of manufacture. C. to build corporate identity. D. for the environment.

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: A. for the environment. B. for ease of manufacture. C. to build or support corporate identity. D. for differentiation.

for the environment.

Consumers and end-users tend to purchase: A. only product protocols. B. only core benefits. C. formal products. D. fully augmented products.

fully augmented products.

erformance specs or performance parameters are often used by marketers to define products and relate to the product attribute of _____. A. feature B. function C. benefit D. tangibility

function

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

human characteristics in order to develop appropriate designs.

Simply offering a product for a given use is sufficient to create a(n): A. proof of negligence. B. misrepresentation liability. C. explicit warranty. D. implied warranty.

implied warranty.

Courts are more likely to be understanding to manufacturers if a product injury was the result of a(n) _____. A. design defect B. manufacturing defect C. inadequate material D. inherent risk

inherent risk

A(n) _____ establishes performance metrics for innovation inputs, process effectiveness, and performance outcomes. A. outcome development matrix B. expected progress matrix C. performance power grid D. innovation dashboard

innovation dashboard

The first 5 to 10 percent of customers who adopt a new product are referred to as the _____. A. innovators B. early majority C. early adopters D. laggards

innovators

People who naturally give and get respect and who love to relate to people from other departments or other firms are called _____. A. champions B. isolates C. receptors D. integrators

integrators

A launch cycle is an expansion of the _____ of the product life cycle into substages. A. maturity stage B. introductory stage C. growth stage D. evaluation stage

introductory stage

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. A. alpha testing B. pre-use sense testing C. investigation D. beta testing

investigation

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) _____. A. investment B. expense C. liability D. tariff

investment

During innovation diffusion, the _____ are the last customers in the market to try an innovation. A. light users B. laggards C. late majority D. rotators

laggards

BlueBeak Corp. deliberately seeks out very small targets markets with unique purchase patterns. The firm targets _____. A. macromarkets B. capital markets C. micromarkets D. commodity markets

micromarkets

When a firm chooses an aggressive entry to launch a new product: A. most of the promotional dollars are spent early. B. most of the resources go to stimulating repeat purchases. C. the firm's spending strategy is too stingy. D. the firm maybe uncertain about the capability of its sales force.

most of the promotional dollars are spent early.

Protocols created by _____ are most likely to be accepted and successful. A. marketing specialists B. multifunctional new products teams C. the top management D. technical teams

multifunctional new products teams

In _____, a manufacturer assumes all responsibility and is expected to pass along the costs somehow. A. monopolistic approach B. no-fault approach C. trade-off approach D. zero defects approach

no-fault approach

If use testing would result in the product being second (or even third) to market, most firms would: A. rush through a user acceptability test. B. accept the later entry in return for a guaranteed success. C. opt for immediate marketing. D. abandon the product as infeasible.

opt for immediate marketing.

In a _____ test, use of the new test product is interspersed with that of a competitive product. A. monadic B. paired comparison C. sequential monadic D. triangular comparison

paired comparison

In an innovation dashboard, return on investment in innovation is a(n): A. procedural efficiency metric. B. process metric. C. innovation input metric. D. performance metric.

performance metric

A product protocol: A. is more than what will exist when the first prototype appears. B. is the final step in the evolution of a concept. C. remains consistent from market segment to market segment. D. permits a development process to be managed.

permits a development process to be managed.

The trial phase in the adoption of a new product: A. involves large scale usage of the product. B. occurs before the awareness phase. C. permits customers to verify claims about the product. D. involves no cost for both the firm and the customers.

permits customers to verify claims about the product.

For products with high relative advantage and low compatibility with buyers' experiences: A. narrow product assortments may be useful. B. risk-based promotions will be necessary. C. preannouncements before entry may be necessary to warn prospects. D. intensive product distribution makes sense.

preannouncements before entry may be necessary to warn prospects.

In launch management, tracking variables should be relevant, measurable, and _____. A. endogenous B. controllable C. predictable D. continuous

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. A. announcement stage B. prelaunch stage C. early growth stage D. late growth stage

prelaunch stage

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: A. primary demand for the product category. B. joint demand for the product category. C. selective demand for the product category. D. replacement demand for the product category.

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. A. profitability B. portability C. privity D. possession

privity

In the context of innovation dashboard, number of patents filed by a firm is a metric for: A. innovation inputs. B. process effectiveness. C. performance outcomes. D. research efficiency.

process effectiveness

Leah Hubert senses that her "favorite" product concept might be dismissed due to "inappropriate and unreasonable" financial analysis tools that cannot accurately reflect its potential. Leah has attempted to use her influence to push the concept past such obstacles. In this scenario, Leah is functioning as a _____. A. product architect B. financial forecaster C. product champion D. financial analyst

product champion

The most expensive and risky stage of the new product development process is often _____. A. product prototyping B. product use testing C. product ideation D. product commercialization

product commercialization

The most heavyweight of the three matrix structures is the: A. project matrix structure. B. functional matrix structure. C. balanced matrix structure. D. departmental matrix structure.

project matrix structure.

In firms that have adopted a venture approach to organizational structure, _____. A. team members think like functional specialists, and their bosses back in the departments win most of the face-offs B. projectization is low, and team members are functional people first and project people second C. both functional and project views are critical—neither ongoing business nor the new product should be the driver D. projectization is the highest, and team members are pulled out of their departments and put to work full time on the project

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

The primary role of simulated test marketing in A-T-A-R forecasting is to: A. help assess the competition in an industry. B. create brand awareness for an existing product in a new market. C. help evaluate if there is a customer gap created from using a product. D. provide estimates of trial and repeat purchasing for a new product.

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

The second step in a launch management system for a new product involves: A. reducing the list of potential problems to a controllable number. B. designing an effective tracking system. C. developing contingency plans. D. identifying potential problems using situation analysis.

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. A. trial support phase B. regulatory adjustment phase C. political arena phase D. stirring phase

regulatory adjustment phase

When designing a tracking system in launch management, a tracking variable is considered _____ if it identifies the key problem. A. measurable B. continuous C. relevant D. controllable

relevant

Managements educate company personnel about new products most likely through: A. implied warranties. B. corporate espionage. C. instructional advertising. D. scientific advisory panels.

scientific advisory panels.

The final step in the launch management system is: A. selecting potential problems to control. B. selecting the trigger points. C. developing contingency plans. D. ranking and controlling potential problems.

selecting the trigger points.

According to the "selling concept," the role of marketing was restricted to: A. assisting in selling negotiations between a firm and a buyer. B. customizing products as per the retail sellers' requirements. C. conducting concept development. D. selling the products that a firm makes.

selling the products that a firm makes.

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 _____. A. signaling B. corporate espionage C. beachheading D. whistleblowing

signaling

Large, powerful retailers often sell their scarce shelf space by charging manufacturers _____. A. slotting allowances B. opportunity costs C. octroi fees 90-0-0D. social costs

slotting allowances

In the context of cross functional interface management, seeking a superficial solution is known as _____. A. withdrawal B. smoothing C. give-and-take D. confrontation

smoothing

Higher projectization is preferred when: A. not much innovation is required. B. product improvements are to be made. C. speed to market is critical. D. the work involves the present line of products.

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. A. innovator B. isolate C. receptor D. sponsor

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. A. trial support phase B. stirring phase C. political arena phase D. regulatory adjustment phase

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 _____. A. strategic alliances B. cartel arrangements C. usury agreements D. portfolio networks

strategic alliances

The concept of _____ holds that a seller is responsible for keeping defective products off the market. A. inherent risk B. assumption of risk C. strict liability D. express warranty

strict liability

Direct network externalities exist if product sales are dependent on: A. sales of complementary products. B. sales of competitive products. C. the number of people that have adopted the product. D. the primary demand for other older products.

the number of people that have adopted the product.

Batch product should be used alone only if: A. information about a pilot plant is not available. B. the production process is prohibitively expensive. C. testers prefer comparative figures. D. testers prefer absolute figures.

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: A. for the environment. B. to build or support corporate identity. C. for ease of manufacture. D. for price promotion.

to build or support corporate identity.

If a firm is already involved in plenty of quick-hit projects, strategic portfolio considerations would indicate that new funding would be better routed to a long-term, major technology development. The firm, as per the example, follows a(n) _____. A. top-down strategic approach B. bottom-up strategic approach C. portfolio approach D. inductive approach

top-down strategic approach

Under the _____, the firm or SBU lays out a strategy, and then allocates funds across different kinds of projects. A. top-down strategic approach B. top-two-boxes approach C. market testing approach D. bottom-up strategic approach

top-down strategic approach

Resellers' views are represented in the product development process by experienced salespeople like sales managers and _____. A. trade creditors B. category captains C. internal auditors D. trade relations directors

trade relations directors

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) _____. A. trade-off problem B. legal recourse C. ethical lapse D. no-fault situation

trade-off problem

To have ownership, _____ helps assure that no one will take ownership without the skills and knowledge required by the task. A. empowerment B. motivation C. training D. commitment

training

For a new product entry or line addition in an established market, the emphasis is on stimulation of: A. trial purchase, which is a precursor to adoption. B. joint demand for the new product as well as an existing product. C. repeat purchases for an existing product. D. derived demand for the new product as well as an existing product.

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. A. stirring B. political arena C. regulatory adjustment D. trial support

trial support

According to the A-T-A-R model, long-run market share can be expressed as MS= T × R × AW × AV. In this equation, "R" is the: A. ultimate long-run trial rate. B. ultimate long-run repeat purchase rate. C. percent availability. D. percent awareness.

ultimate long-run repeat purchase rate.

Businesses are using a(n) _____ when they put their corporate name on every product they make. A. customized brand strategy B. umbrella brand strategy C. flagship brand strategy D. individual brand strategy

umbrella brand strategy

firm charged with strict liability in an injury case may seek to defend on the basis of: A. misrepresentation of product. B. unforeseeable misuse. C. specialized legislation. D. inadequate materials.

unforeseeable misuse.

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. A. use B. opportunity C. concept D. market

use

Firms that copy innovative products: A. usually commit the innovator's mistakes as well. B. tend to be the industry leaders. C. typically have no imitators to worry about. D. gain higher profits than the innovators due to price competition.

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 _____. A. a market rollout B. vaporware C. stocklifting D. a lean launch

vaporware

think-tank environment, designed to identify new ideas or solutions to new product-related problems, is an example of a _____. A. project matrix option B. balanced matrix option C. functional option D. venture option

venture option

buyer gathering the trial experience of others for a new product, but without the use of electronic setups is an example of a _____. A. personal trial B. vicarious trial C. firsthand trial D. direct trial

vicarious trial

Under _____, customers build the desired product, get an assessment of the resulting price, and state their likelihood of making a purchase. A. virtual product testing B. wildcat operation C. benchmarking D. situation analysis

virtual product testing

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 _____. A. existing distribution channels B. visual equity C. past design platforms D. existing manufacturing infrastructure

visual equity

In launch management, it is important to select relevant, measurable, and predictable tracking variables essentially because they: A. make contingency plans foolproof. B. warn that a problem is coming about. C. help track the new product in its supply chain. D. help measure the success of contingency plans.

warn that a problem is coming about.

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: A. watch sales. B. withdraw the product permanently from the market. C. limit the involvement of salespeople and distributors during post-launch. D. apply an expected effects matrix to find a solution.

watch sales.

Today, in new products management, development ends: A. with the creation and testing of a final prototype. B. with the launch of the new product. C. when a product has performed satisfactorily in the hands of the end user. D. when the product arrives at the shipping dock.

when a product has performed satisfactorily 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) _____. A. wildcat operation B. rollout strategy C. enhancement strategy D. butt-on operation

wildcat operation

New product projects that bet on a technology that has not yet been shown to work or just bet on a scientist with a good track record for coming up with saleable new products are said to be _____. A. prospecting B. probing C. wildcatting D. researching

wildcatting

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

False

Since product protocols are marketing tools, they should not include production or regulatory requirements. True or False

False

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

False

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

False

The leading product innovators follow the relay race model. True or False

False

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

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. True or False

False

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

False

It is an ineffective practice to contract out the production of temporary products. True or False

False

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

False

Market testing and test marketing are synonymous. True or False

False

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

False

New product projects that use well-known and well-established technologies for product improvements are said to be "wildcatting." True or False

False

Which of the following best describes the pricing strategy "meet the market"? A. A very high price, intended to stay that way, with clear product differentiation. B. A price that is clearly low and designed to buy one's way into the market. C. A price that takes price out of the market play as much as possible. D. A price clearly above the market that is appropriate to a differentiated product.

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

In the context of forecasting sales using an A-T-A-R model, which of the following methods can be used if the data availability is inaccurate? A. A what-if analysis B. A diffusion analysis C. A regression analysis D. A correlation analysis

A what-if analysis

Which of the following statements is true of a trademark? A. A word string such as "just do it" is a trademark. B. The last user of a trademark has exclusive rights over the trademark. C. Technically speaking, services have trademarks. D. Trademark is a description of product attributes in detail.

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

New products managers should focus only on the formal product. True or False

False

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

False

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

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. True or False

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. True or False

False

Why is informal selling highly suitable for industrial selling? A. Because informal selling involves retailers or distributors in the process of testing a new product B. Because informal selling involves no risk for industrial customers, as sales takes place without actually laying out money C. Because industrial selling is based on clearly identifiable product features, and informal selling results in real purchasing D. Because informal selling creates a false buying situation and observes what industrial customers do

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

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? A. Benefits B. Surrogates C. Expert opinions D. Metaphors

Benefits

_____ is best described as the unauthorized use of copyrighted or patented goods or brands. A. Defalcation B. Brand piracy C. Brand cannibalization D. Embezzlement

Brand piracy

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

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. True or False

False

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

False

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

False

Chunks (or modules) are defined during which of the following steps of the product architecture process? A. Analyzing interactions between chunks B. Creating the product schematics C. Creating geometric layouts D. Clustering the schematic elements

Clustering the schematic elements

In the context of integrative conflict management styles, what does confrontation entail? A. Avoiding the issue B. Reaching an acceptable compromise solution C. Collaborative problem solving to reach a mutually agreeable solution D. Seeking a superficial solution

Collaborative problem solving to reach a mutually agreeable solution

Which of the following is true of colocation? A. Colocation tends to inhibit the flow of information. B. Colocation helps integrate departments. C. The effects of colocation can only be achieved when team members are in close physical proximity to each other. D. Too-distant colocation enables team members to resolve their problems faster than face-to-face colocation.

Colocation helps integrate departments.

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

False

Generally, the easiest products to shut down are new-to-the-world product projects. True or False

False

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

False

In a bottom-up strategic approach, the firm lays out its strategy first, and then allocates funds across different kinds of projects. True or False

False

In a new product development process, the financial analysis generally begins with the calculation of the net present value, NPV. True or False

False

In a product liability suit, lack of privity as a defense against negligence is acceptable. True or False

False

Business firms deal with public policy issues that are restricted to just new products. True or False

False

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

False

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

False

Which of the following statements is true of product design? A. The design of a product should be considered only after the product is about ready to be manufactured. B. In practice, design as a term holds the same meaning for different companies in different industries. C. Firms that are judged to be higher in design effectiveness tend to report lower profits due to R&D expenditure. D. Design can be best described as the synthesis of technology and human needs into manufacturable products.

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

Which of the following is a computer-based technology that allows for very efficient product design and development? A. WebEx B. Lotus Notes C. Extensible Markup Language (XML) D. Design for manufacturability (DFM)

Design for manufacturability (DFM)

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

Diffusion of innovation

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. A. Appropriate use of resources B. Emotional appeal C. Maintenance and repair D. Quality of the user interface

Emotional appeal

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? A. Product recognition stage B. Implementation stage C. Evaluation and decision formulation stage D. Analysis and revitalization stage

Evaluation and decision formulation stage

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? A. Expected effects matrix B. Situation analysis C. Cumulative expenditures curve D. Hierarchy of effects model

Expected effects matrix

Which of the following is least likely to need a launch management plan? A. Industrial commodities B. Fad products C. Agricultural commodities D. Health care services

Fad products

A company's success is assured if a product is developed in response to consumer's demands for specific features. True or False

False

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

False

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

False

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

False

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

False

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

False

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. True or False

False

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

False

A triangular comparison is sometimes called a staggered comparison. True or False

False

Abandonment of a product marks the end of a launch manager's job. True or False

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. True or False

False

Adoption of innovation refers to the process by which an innovation is spread within a market, over time and over categories of adopters. True or False

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. True or False

False

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

False

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

False

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

False

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

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. True or False

False

The purpose of a protocol remains constant irrespective of the market segment and time. True or False

False

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

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. True or False

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. True or False

False

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

False

The toughest part of a product's launch management is developing a situation analysis. True or False

False

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

False

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

False

Unexpected low sales for a new product typically triggers automatic, corrective contingency plans. True or False

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. True or False

False

With reference to new product development, the top performing firms tend to rely only on financial criteria. True or False

False

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

False

Which of the following statements is true of product recall? A. Safety risks and corrective action are avoided during the recall stage. B. Recall program coordinators should be cross-functional teams rather than individual members. C. Recall notices mailed to consumers should resemble junk mail to enable risk assessment. D. Final customers as well as intermediaries should be informed of the potential risks.

Final customers as well as intermediaries should be informed of the potential risks.

Which of the following statements is true of salespeople? A. In customer-based sales organizations, salespeople are required to aggressively use hard-sell pushing. B. For services, is apt to isolate the new product developer from the salespeople. C. For consumer packaged goods, salespeople are usually not involved in the new product development early on. D. Salespeople are usually given reduced territories when asked to sell a new product.

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

Lasol Co., a manufacturer of instant foods, publishes an advertisement in the newspaper that reads, "Just add hot water and have your Lasol Curry Noodles ready in minutes!" Which of the following product attributes is Lasol focusing on in its advertisement? A. Feature B. Price C. Function D. Benefit

Function

In which of the following organizational options does the project manager have the least amount of power? A. Project matrix option B. Venture option C. Functional matrix option D. Functional option

Functional option

Which of the following organizational options offers the least project focus? A. Functional option B. Functional matrix option C. Balanced matrix option D. Venture option

Functional option

Engineering characteristics and customer attributes are part of the _____. A. VOC grid B. HOQ grid C. PLC grid D. TQM grid

HOQ grid

With reference to the expected effects matrix, which of the following problems represents control variables that require contingency planning and tracking, if possible? A. Noticeable events with low likelihood of occurrence B. Harmful events with low likelihood of occurrence C. Noticeable events with moderate likelihood of occurrence D. Harmful events with high likelihood of occurrence

Harmful events with high likelihood of occurrence

Which of the following methods can be used to spot potential problems during the launch management of a new product? A. Hierarchy of effects model B. After Action Review C. Product life cycle analysis D. Cumulative expenditures curve

Hierarchy of effects model

Which of the following key specifics indicate that a product is likely to work in the market? A. High levels of ease of use B. Presence of bugs C. High complexities of customer needs D. Presence of target costing

High levels of ease of use

Which of the following is true of product liability? A. Products with inherent risks are excluded from product liability. B. Historically, it applied to goods and not to services. C. It is applicable in cases where there is an assumption of risk. D. It is particularly applied in cases of unforeseeable misuse.

Historically, it applied to goods and not to services.

Which of the following is true of a product protocol? A. In a product protocol, the negotiating parties are the functions—marketing, technical, operations, and others. B. A product protocol is a completely informal agreement that is based on negotiations that are adversarial in nature. C. Only a few members of the multifunctional team involved in a project are responsible for writing the product protocol. D. A product protocol includes a set of guidelines that deals with tax payments and other formalities.

In a product protocol, the negotiating parties are the functions—marketing, technical, operations, and others.

Which of the following types of firms are most likely to question the need of utilizing quality function deployment (QFD)? A. Consumer-goods firms B. Industrial product developers C. Home appliances firms D. Firms in the packaged food industry

Industrial product developers

Which of the following is a way of putting risk back into product innovation while managing it well? A. Isolating or neutralizing the in-house critics B. Demanding precise financial analysis at the time of screening C. Implementing a product idea on a large scale when the financial analysis is weak D. Avoiding the use of market testing rollouts 38.

Isolating or neutralizing the in-house critics

Which of the following statements is true of the speculative sale method of market testing? A. It does not involve advertising. B. It does not fit in a situation where a completely new product type has to be tested. C. It is best used for projects with very high risk. D. It creates an actual buying situation and observes what the consumers do.

It does not involve advertising.

Which of the following is true of a product protocol? A. It diversifies the actions of all the players involved. B. It is associated with the finance department of a firm. C. It gives all the players their target to shoot for. D. It is more than what will exist when the first prototype appears.

It gives all the players their target to shoot for.

Which of the following is an advantage of the pseudo sale market testing method? A. It results in actual cash sales. B. It is cheap and quick. C. It is intended to test a product in a real competitive environment. D. It provides the best sales forecast when compared to other test methods.

It is cheap and quick.

Which of the following is true of the stirring phase of the life cycle of a public concern? A. It is characterized by a would-be leader and a muted cause seeking a political base. B. It typically occurs when the opportunity for defusing the public concern has usually passed. C. It is easy to identify this period, although most people ignore it. D. It is characterized by a period of jockeying by adversaries.

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

Which of the following statements is NOT true about an After Action Review (AAR)? A. Its goal is to identify what went right and what went wrong in product development. B. It includes statements of planned objectives and actual results. C. It is limited to the top management as they are the only ones who have direct experience with the entire product development cycle. D. It includes a statement of what has been learned in a product launch, and an outline for the next steps.

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 is the strongest argument for conducting market testing as late as possible? A. It has least risk from competitors. B. It is more useful and more reliable. C. It minimizes costs. D. It speeds up the market entry.

It is more useful and more reliable.

Which of the following statements is true regarding the venture approach to organizational structure? A. It involves the lowest degree of projectization. B. Functional area managers are strong and can dominate the project leader. C. The venture is typically kept in the regular organization. D. It is most useful for new-to-the-firm products.

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

Which of the following statements is true of test marketing? A. It is drastically replacing rollouts as a popular testing method. B. It is a type of pseudo sale market testing method. C. It is intended to offer simulated, controlled market conditions. D. It is too expensive to be used as a final exam.

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

Which of the following statements is true about an After Action Review (AAR)? A. It essentially involves managers moving around the market to find if problems are coming about, and then planning what will be done if they are. B. It is limited to the top management as they are the only ones who have direct experience with the entire product development cycle. C. It need not be terribly formal, in some cases a couple of individuals meeting briefly after a customer visit might suffice. D. It fails to identify weak areas in a firm's product development processes that need to be fixed.

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? A. It is the most economical market testing method for a new product. B. It provides the best sales forecast and the best evaluation of alternative marketing strategies. C. It reduces the risk for test marketers because its forecasts are highly projectable. D. It is the most reliable method because it helps maintain confidentiality more than any other test methods.

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

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? A. It tries to predict competitors' reactions after they have heard of the new product. B. It involves going through all the data accumulated in the new product's file. C. It starts with a satisfied customer and works back from that satisfaction to identify the effects necessary to produce it. D. It involves asking channel partners to predict the potential problems and their effects on the launch of the new product.

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

Under which of the following categories do novelty products and service products fall? A. Low relative advantage and low compatibility with buyers' experiences B. High relative advantage and high compatibility with buyers' experiences C. High relative advantage and low compatibility with buyers' experiences D. Low relative advantage and high compatibility with buyers' experiences

Low relative advantage and low compatibility with buyers' experiences

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? A. Direct marketing B. Speculative sale C. Minimarketing D. Visionary shopper

Minimarketing

Identify the controlled sale market testing method that involves distributors and retailers or dealers in the process. A. Direct marketing B. Simulated test marketing C. Informal selling D. Minimarketing

Minimarketing

_____ in a network indicate how people who are important to the project are contacted and motivated to cooperate in the project. A. Nodes B. Links C. Associations D. Operating relationships

Operating relationships

Strategic criteria for new product development are best analyzed through the use of _____. A. financial modeling B. sales forecasting C. PIC evaluation D. NPV calculation

PIC evaluation

Which of the following is an input metric in an innovation dashboard? A. Percent of projects that result in a launch B. Percent of new product ideas sourced from outside the firm C. Number of patents filed and commercialized D. Return on investment in innovation

Percent of new product ideas sourced from outside the firm

Which of the following statements is true of metrics for innovation? A. It is not an effective practice to get external validation for performance metrics. B. Performance metrics need to be adjusted and fine-tuned through time, so that they are aligned with business goals. C. In the recent times, there has been a drastic decline in the use of social media metrics in launch management. D. The fewer the performance metrics, the greater the conflict between themselves.

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

Identify the use test that provides knowledge from initial reactions of users to color, speed, durability, mechanical suitability, etc., of a new product. A. Reactive beta test B. Alpha test C. Gamma test D. Pre-use sense reaction

Pre-use sense reaction

Which of the following pricing strategies for products involves a very high price, intended to stay that way, with clear product differentiation? A. Premium pricing B. Predatory pricing C. Penetration pricing D. Meet the market pricing

Premium pricing

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? A. Loyalists B. Price-driven C. Light users D. Rotators

Price-driven

Who amongst the following has the role of "pushing" product projects past obstacles or roadblocks? A. Ad hoc team member B. Product champion C. Isolate D. Extended team member

Product champion

Esqua Inc., a manufacturer of soaps and shampoos, claims that its latest brand of soaps, Esqua Plus, is superior to the average soap brand because, unlike other soaps, Esqua Plus combines both antibacterial and moisturizing properties and offers longer-lasting deodorant protection. In this scenario, which of the following concepts is Esqua using to encourage its customers to try its products? A. Product positioning B. Product testing C. Product diversification D. Product innovation

Product positioning

Plants to be built and quality to be achieved is associated with which of the following components of a product protocol? A. Production B. Financials C. Regulatory requirements D. Corporate strategy requirements

Production

Which of the following statements is true regarding the launch management for temporary products? A. Production is contracted out if possible. B. Follow-on products need to be scheduled. C. Long-term service facilities need to be built. D. Prices are gradually increased.

Production is contracted out if possible.

Which of the following metrics is used to assess the financial performance of individual products? A. Customer satisfaction B. Competitive effect C. Profitability D. Market share

Profitability

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. A. Departmental matrix option B. Balanced matrix option C. Functional matrix option D. Project matrix option

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? A. Pseudo sale B. Direct marketing C. Full sale D. Minimarketing

Pseudo sale

Which of the following new product characteristics probably has the greatest influence on trial rates? A. Relative advantage B. Complexity C. Divisibility D. Communicability

Relative advantage

Which of the following market testing methods is sometimes called tiered marketing? A. Rollout B. Speculative sale C. Simulated test marketing D. Informal selling

Rollout

In a new product development process, which of the following is most likely to be determined first while analyzing the financial aspects of a product? A. Net present value B. Sales forecast C. Internal rate of return D. Payback period

Sales forecast

Which of the following tests is the most sensitive? A. Simultaneous form of paired comparison test B. Sequential monadic test C. Singular test D. Side by side monadic test

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. A. Premium B. Penetration C. Skim D. Meet the market

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? A. Minimarketing B. Controlled sale C. Test marketing D. Speculative sale

Speculative sale

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

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

Which of the following is a drawback of test marketing? A. Test marketing cannot be applied to test industrial goods and services. B. Test marketing results are not really projectable. C. Test marketing does not permit for verifying production. D. Test marketing involves mathematical complexities.

Test marketing results are not really projectable.

Which of the following is true of product testing? A. Testing should be continued till a firm is satisfied that it has solved the problems expressed in the original protocol. B. Use testing means testing a prototype under normal artificial conditions using control groups and focus groups. C. Testing should be stopped once a firm creates a prototype of a product. D. The risks and costs of use testing are usually high compared to the loss of the earnings flow from a successful product.

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

Which of the following serves as the basis of many simulated test markets? A. The cumulative expenditures curve B. The risk or payoff matrix C. The A-T-A-R model D. The decay curve

The A-T-A-R model

_____ is one of the pseudo sale market testing methods used later in the new product process, typically when the physical product is available for the consumer to take home and try. A. The Delphi probe model B. The A-T-A-R model C. Scenario writing D. Regression analysis

The A-T-A-R model

_____ is a technique used by Toyota to get cooperation across functional areas, to speed up integration, and to focus the team. A. Wildcatting B. The Oobeya Room C. Preference mapping D. The Kaizen technique

The Oobeya Room

Which of the following is true of the Oobeya Room technique? A. The Oobeya Room technique is conceptually very different from the idea of the product protocol. B. The Oobeya Room technique isolates functional areas and compels them to function autonomously. C. The Oobeya Room technique is ineffective in overcoming challenges and doesn't give team members the choice of working together. D. The Oobeya Room technique is used to get cooperation across functional areas and to focus the team.

The Oobeya Room technique is used to get cooperation across functional areas and to focus the team.

Identify the situation that most likely requires a company to conduct market testing on its new product. A. The company's sales promotion plan does not depend on perfect execution. B. The company's capital investments in the new product are high. C. The company knows the business well and has been successful there. D. The sales and revenue forecasts for the new product are conservative.

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

How is preannouncement of a new product related to the competitiveness of an industry? A. The degree of preannouncement decreases when the competitiveness in the industry is high. B. The degree of preannouncement increases when the competitiveness in the industry is high. C. The degree of preannouncement remains the same, irrespective of the level of competitiveness in the industry. D. The degree of preannouncement first increases and then decreases with industry competitiveness.

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

Which of the following statements is true regarding the functional matrix organizational structure? A. In the functional matrix structure, team people are project people first and functional people second. B. In the functional matrix structure, both functional and project views are critical. C. The functional matrix structure involves the lowest degree of projectization. D. The functional matrix structure is the most useful for new-to-the-world products.

The functional matrix structure involves the lowest degree of projectization.

How is continuity of innovation for new products related to learning by customers? A. The more continuous the innovation, the more learning is required. B. The more continuous the innovation, the less learning is required. C. The degree of customer learning remains constant, irrespective of the level of continuity. D. The degree of customer learning first decreases and then increases as the continuity of innovation increases.

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? A. The presentations in the informal selling method are for real, and cash sales take place. B. The method involves asking customers if they would buy the product rather than directly asking them to buy the product. C. The method is ineffective for products sold primarily by salespeople directly to end users. D. The techniques used in the informal selling method are not feasible for industrial selling.

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

Which of the following is true of a product protocol? A. The product protocol is less than what will exist when the first prototype appears. B. The product protocol is the final step in the evolution of a concept. C. The product protocol remains consistent from market segment to market segment. D. The departments of a company do not have to depend on a product protocol to begin their work.

The product protocol is less than what will exist when the first prototype appears.

Which of the following is true of a reseller? A. They help firms in pulling a new product up the distribution channel. B. They do a small volume of business in a standardized way with a large margin. C. They should ideally be isolated from the product development process. D. They are required to prepare for promotion by training salespeople and service people.

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

Which of the following is true of top-performing firms? A. They only use the bottom-up approach for strategy development. B. They only use the top-down approach for strategy development. C. They use a combination of both top-down and bottom-up approaches for strategy development. D. They tend to rely only on financial criteria when selecting projects.

They use a combination of both top-down and bottom-up approaches for strategy development.

Which of the following is a product level performance measure used for individual products? A. Market share B. Unit volume C. Product use D. Time to launch

Time to launch

Which of the following is true of a gamma test? A. It works best for firms which want to leapfrog competitors. B. To pass this test, the new item must solve the customer problems completely. C. The test happens in a series of quick steps spanning over a period of one week. D. Firms which need to save time, like car makers, typically go for gamma testing.

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

As per the A-T-A-R model, long-run market share can be expressed as MS = T × R × AW × AV. What does "T" stand for in the equation? A. Ultimate long-run trial rate B. Ultimate long-run repeat purchase rate C. Percent awareness D. Percent availability

Ultimate long-run trial rate

_____ has been defined as a complete set of customer wants and needs, expressed in the customer's own language, organized the way the customer thinks about, uses, and interacts with the product, and prioritized by the customer in terms of both importance and performance. A. Target market B. Voice of the customer C. Product positioning D. Product protocol

Voice of the customer

Which of the following best describes broaden the market fallacy? A. Within the same market segment, there exists customers who have varying purchasing power. B. What makes a product appealing for one customer segment may not be the same for another. C. A product that does not come in attractive packaging is initially rejected by its target market. D. A promotional strategy is highly successful when it is targeted to diverse groups of customers.

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? A. When competitors can take retaliatory action that will hurt a company launching a new product B. When a new product requires huge capital investments C. When a company is planning to enter into an entirely new industry by launching a new product D. When the success of a company's sales promotion plan relies heavily on perfect execution

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: A. accelerated product life cycles require that expertise should be gathered from wherever it resides. B. interpreting very complex problems using e-mails or a company intranet is easier than by meeting in person. C. creativity seems to be much higher in these teams than in in-person teams. D. so far, they have, in general performed better than domestic teams.

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

Team members from important departments, such as packaging, legal, and logistics, whose importance is brief in time, are typically _____. A. core team members B. ad hoc team members C. extended team members D. product champions

ad hoc team members

The best success in green product development occurs when a firm: A. aligns its business objectives with its environmental initiatives. B. uses raw materials that are scarce or hard to get. C. makes only incremental green improvements to its products. D. isolates environmentally-responsible business practices from achieving revenue objectives.

aligns its business objectives with its environmental initiatives.

A rollout when compared to test marketing: A. fails to provide as much market-related data. B. gives competitors more time to beat the testing firm to national market. C. allows the testing firm to minimize losses in case of failure. D. requires more time to go national.

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

Beta tests are generally preceded by _____ tests. A. gamma B. alpha C. pilot D. copy

alpha

According to the expected effects matrix, devastating events having a low likelihood of occurrence: A. must be dealt with immediately. B. are alert variables that must be watched closely. C. can be safely ignored. D. are control variables that require contingency planning and tracking.

are alert variables that must be watched closely.

In the new products process, market testing should typically be carried out: A. in the concept stage as the idea needs to be tested for practicality. B. before the project evaluation stage begins. C. as soon as techniques that will tell us what we need to know are found. D. once the ideation phase begins.

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. A. assumption of risk B. misrepresentation C. warranty D. inherent risk

assumption of risk

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 _____. A. being alert to changed conditions B. sticking to faulty data C. utilizing good use testing D. using retrospective testing

being alert to changed conditions

Alton Inc. requires competitive comparisons in testing its potential product. The firm should use _____. A. blind tests B. beta tests C. copy tests D. gamma tests

blind tests

Firms that build strategic criteria into their project selection tools are using a _____ strategic approach. A. top-down B. top-two-boxes C. market testing D. bottom-up

bottom-up

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 _____. A. liquid asset B. brand mark C. brand equity D. capital gain

brand equity

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. A. bait-and-switch strategy B. aggressive strategy C. butt-on strategy D. rollout strategy

butt-on strategy

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. A. divisibility B. trialability C. communicability D. adaptive complexity

communicability

In the first step of a product deletion process, a firm must: A. explores ways by which the viability of the product might be restored through quality or price adjustments. B. compare the performance of the product against certain criteria and guideposts. C. evaluate the full effect of the deletion on overheads, expenses, and capacity utilization. D. decide whether the product is to be deleted immediately, milked, or sold out.

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. A. comprehensive B. focused C. limited D. modified

comprehensive

The _____ tool includes several ways to assess strategic fit and market attractiveness, and also considers financial performance. A. opportunity identification and selection B. concept generation C. concept evaluation D. development

concept evaluation

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. A. reverse engineering B. expected effects analysis C. concept generation D. prototyping

concept generation

Product positioning can be facilitated to a large extent by _____, which provides key information on desirable positioning options for products. A. the decay curve B. concept testing activities C. R&D activities D. the risk or payoff matrix

concept testing activities

Leading product innovators use a type of ____ system instead of following the relay race model. A. non-repetitive B. sequential C. concurrent D. linear

concurrent

When a respondent uses an item, describes activities, and explains problems encountered, it is known as: A. retrospective testing. B. the introspection method. C. the think aloud method. D. constructive evaluation.

constructive evaluation.

Controlled-distribution scanner markets are based on scanner technology and have received much attention in the _____ field. A. industrial services B. consumer packaged goods C. consumer services D. industrial goods

consumer packaged goods

A(n) _____ conveys information about the targeted market segment, product positioning strategy, and communications mix among many other points to an advertising person. A. portfolio statement B. copy strategy statement C. expected effects matrix D. organization chart

copy strategy statement

Those people who are involved in managing functional clusters comprise the _____ team. A. core B. ad hoc C. product champions D. extended

core

When a firm plans to launch an innovative new product, the launch strategies and tactics would include: A. using existing distribution channels. B. selling at extremely low prices. C. focusing on creating exit barriers. D. creating a broad product assortment.

creating a broad product assortment.

With reference to product liabilities, injuries caused as a result of inadequate materials and absence of safety devices would fall under the category of _____. A. design defects B. inherent risks C. customer misuse D. dangers after use

design defects

In both technology-driven and market-driven innovation, _____. A. design plays a secondary role B. design plays a miniscule role C. design plays a primary role D. design takes up minimum cost

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: A. developing contingency plans. B. designing a tracking system. C. conducting situation analysis. D. recording competitors' reactions.

developing contingency plans.

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

development

The _____ stage of a case based research is followed by a preliminary beta test with end users in a real work environment. A. commencement B. investigation C. development D. initialization

development

Many firms use _____ to achieve the effects of colocation without actual physical proximity of team members. A. digital colocation B. face-to-face colocation C. mechanical colocation D. too-distant colocation

digital colocation

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. A. complexity B. compatibility C. observability D. divisibility

divisibility

When pharmaceutical firms are reluctant to develop new products because of major risks of trouble, it is referred to as _____. A. causal ambiguity B. nonstandard risk C. drug lag D. medical eclipse

drug lag

The degree of puffing a court will allow in business is most closely related to: A. express warranties. B. quasi contracts. C. negligent torts. D. strict liabilities.

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. A. implied warranty B. express warranty C. oblique warranty D. assumed warranty

express warranty

If a firm plans to use only one type of use testing, products selected for testing should preferably be drawn from _____. A. a batch B. a laboratory C. a pilot plant D. final production

final production

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. A. across-the-board B. all-inclusive C. comprehensive D. focused

focused

A(n) _____ is a prototype that examines a limited number of performance attributes or features. A. focused prototype B. consolidated prototype C. comprehensive prototype D. ambivalent prototype

focused prototype

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) _____. A. pre-use sense reaction B. beta test C. gamma test D. alpha test

gamma test

Leaders must be _____; they must be able to spot the need for change and convince others of this need. A. general managers B. receptors C. isolates D. integrators

general managers

Managers who feel business is suffering from "paralysis by analysis" are most likely to: A. commit to a strategy of low-cost development and marketing. B. approve situations, not numbers. C. forecast what is known. D. go ahead with sound forecasts but prepare to handle the risks.

go ahead with sound forecasts but prepare to handle the risks.

Products that are clearly superior on attributes that buyers consider important have: A. low relative advantage and low compatibility with buyers' experiences. B. high relative advantage and low compatibility with buyers' experiences. C. high relative advantage and high compatibility with buyers' experiences. D. low relative advantage and high compatibility with buyers' experiences.

high relative advantage and high compatibility with buyers' experiences.

Skimming pricing is best recommended for products having: A. low relative advantage and low compatibility with buyers' experiences. B. high relative advantage and high compatibility with buyers' experiences. C. high relative advantage and low compatibility with buyers' experiences. D. low relative advantage and high compatibility with buyers' experiences.

high relative advantage and high compatibility with buyers' experiences.

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: A. pull out the product permanently from the market. B. increase all promotion and personal selling. C. hold the market in a freeze until a solution is found. D. increase production to flood markets for greater visibility.

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

Today, companies primarily use test marketing to: A. simulate real competitive environment using laboratory experiments. B. improve and make adjustments in their marketing plans. C. help decide whether to go national. D. test a product idea by asking customers if they would buy the actual product.

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. A. incubation B. acceleration C. discovery D. projectization

incubation

f product sales are dependent on sales of complementary products, _____ exists. A. virtual network externalities B. explicit network externalities C. social network externalities D. indirect network externalities

indirect network externalities

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: A. inquiring among the firm's suppliers and media. B. withdrawing the product from the market. C. watching the moves of a chief competitor closely and imitating the same strategy to firm's benefit. D. instituting a series of follow-up telephone calls to prospects who have received sales presentations.

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

or products with low relative advantage and high compatibility with buyers' experiences: A. risk-based promotions work well. B. broad product assortments are suitable. C. intensive distribution makes sense. D. preannouncements before entry are necessary.

intensive distribution makes sense.

Case-based research used by some software manufacturers: A. is a very comprehensive form of product use testing that runs parallel to the software's development process. B. begins with the investigation stage where users are encouraged to try early prototypes of the new software. C. involves preliminary beta tests where developers interview users to learn their expectations. D. provides knowledge from initial reactions of users to color, speed, durability, mechanical suitability, etc.

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

The protocol process is difficult because: A. it is remarkably simple and therefore vague. B. all the key individuals involved are the same. C. the management does not exert the pressure necessary for important projects. D. it is fraught with politics.

it is fraught with politics.

Integrators refer to those people in a firm who: A. are deep specialists in their field and prefer to be left alone. B. rarely play a role in new product team operations. C. love to relate to people from other departments or other firms and naturally give and get respect. D. respect others and welcome information from them but do not desire personal relationships.

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

Firms that develop a stream of new items that differ very little from those now on the market, insert them into the market without great fanfare, watch which ones end users rebuy, and drop those that do not find favor are using the policy of _____. A. low-cost development and marketing B. forecasting and risk management C. approving situations, not numbers D. forecasting what is known

low-cost development and marketing

A firm may approve many new product projects if: A. simple financial hurdles are not the only criterion. B. resource constraints are included in the NPV calculations. C. the management ignores small, quick-hit projects to focus on developing new product technologies. D. low-quality work reduces the quality of information used for decision making.

low-quality work reduces the quality of information used for decision making.

The management's primary task in sales forecasting is to: A. purchase state-of-the-art forecasting models. B. make necessary estimates as solid as possible. C. ensure that all past sales records are accurately archived. D. conduct training on sales forecasting.

make necessary estimates as solid as possible.

Product use testing is also known as _____ testing. A. prototype viability B. concept C. market acceptance D. copy

market acceptance

When faced with weak financial estimates, NewPro Inc. sometimes implements its new product ideas on a small scale to see where the solution might lie. Based on this information, we can say that NewPro Inc. is employing _____. A. market testing rollouts B. econometric modeling C. life cycle analysis D. diffusion modeling

market testing rollouts

Sales forecasting is typically the responsibility of a _____ on the new product team. A. project manager B. technical advisor C. marketing person D. process manager

marketing person

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 _____. A. mass production B. product differentiation C. lean production D. mass customization

mass customization

A manufacturer is most likely to be held liable for injuries caused by a "perfect" product if the injury was the result of: A. misrepresentation. B. unforeseeable misuse. C. assumed risk. D. unintended use.

misrepresentation.

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

monadic

In the context of launch management, eyeball control refers to: A. starting with a satisfied customer and working back from that satisfaction to determine the hierarchy of effects necessary to produce it. B. externally validating the performance metrics that are used to evaluate a firm's new products process. C. capturing the events leading up to the product launch and then trying to understand the thinking behind the actions taken. D. moving around the market to find if problems are coming about, and then planning what will be done if they are.

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 _____. A. embezzlement B. brand cannibalization C. near brand usage D. defalcation

near brand usage

Nodes, links, and operating relationships come together to form a(n) _____. A. network B. association C. product champion group D. core team

network

It is difficult to forecast success for _____. A. product improvements B. line extensions C. new-to-the-world products D. flanker brands

new-to-the-world products

While launching a product with low relative advantage and low compatibility with buyers' experiences, the: A. older product should not be deleted from the market quickly. B. product promotion should be information based. C. price of the product should be above the market. D. distribution of the product should be highly selective.

older product should not be deleted from the market quickly.

Microdata Corp. wants all the members of its new product team to "buy-in" to the project. The firm is hoping to encourage _____. A. product championship B. synergy C. empowerment D. ownership

ownership

In an innovation dashboard, process metrics includes: A. percent of projects that result in a launch. B. number of new product ideas in pipeline. C. percent of new product ideas sourced from outside the firm. D. number of employees devoted to innovation.

percent of projects that result in a launch.

In an innovation dashboard, metrics for performance outcomes includes: A. average time taken to market new products. B. number of employees devoted to innovation. C. percentage of sales derived from new products. D. number of patents filed by a firm.

percentage of sales derived from new products.

If a firm decides to be very aggressive at the time of launching a new product, it is an example of a(n) _____. A. platform decision B. action decision C. tactical decision D. operational decision

platform decision

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) _____. A. produceability engineer B. technocrat C. arbitrator D. negotiator

produceability engineer

The process by which a customer's need is developed into a product design is called _____. A. product differentiation B. product architecture C. product positioning D. product validation

product architecture

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 _____. A. reverse engineering B. product differentiation C. product liability D. mass customization

product liability

The attempt to explain to a consumer why a specific product is the best choice for the solution to a specified problem is known as _____. A. product validation B. product positioning C. product diversification D. product testing

product positioning

A product concept that originated in the advertising world that essentially says, "Product X is better for your use than other products because...." is known as: A. product positioning. B. product innovation. C. wildcatting. D. product testing.

product positioning.

With regard to the process of product architecture, the _____ shows the components and functional elements of the product and how they are interconnected. A. prototype B. product schematic C. geometric layout D. product protocol

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. A. opportunity B. concept C. product-use D. pre-purchase

product-use

When compared to other test methods, test marketing: A. provides results that are highly projectable. B. allows marketers to have greater control over all environmental factors. C. provides the most abundant supply of information. D. requires lower costs and is time saving.

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. A. pseudo sale B. controlled sale C. trial sale D. full sale

pseudo sale

Ancon Inc., typically forecasts potential product sales based on the number of customers who say they would either definitely or probably buy the product, on a five-point scale. The firm's sales forecast is based upon _____. A. regression analysis B. the A-T-A-R model C. purchase intentions D. test market results

purchase intentions

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

rapid prototyping

f 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. A. market leadership B. repeat buying C. high customer switching D. low incremental advantage

repeat buying

A user reviewing videos of conventional product using testing previously done is an example of _____. A. retrospective testing B. the introspection method C. the think aloud method D. constructive evaluation

retrospective testing

A(n) _____ is the workhorse of most new product introductions. A. salesperson B. internal auditor C. creditor D. advertising person

salesperson

Under the concept of strict liability, the: A. buyer is unjustified to depend on the seller being right. B. seller of an item is required to make an implied warranty rather than an express warranty. C. seller of an item has the responsibility for not putting a defective product on the market. D. buyer needs to prove that there was direct sale from the manufacturer.

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

In the expected effects matrix, those problems placed in the bottom/right cell: A. should be taken care of immediately. B. are alert variables that must be watched closely. C. can be safely ignored. D. are control variables that require contingency planning and tracking, if possible.

should be taken care of immediately.

Under the _____ of market replacement, a continuous positive image is created for the new item being upgraded. A. butt-on strategy B. side-by-side strategy C. rollout strategy D. aggressive strategy

side-by-side strategy

The first general purpose of a product protocol is to: A. identify the target audience and the benefits offered to them. B. specify whether the offering is a tangible product or an intangible service. C. ensure that all tax payments with regard to the product are paid on time. D. specify what each department will deliver to the final product that the customer buys.

specify what each department will deliver to the final product that the customer buys.

The cash-to-cash metric was first used by _____. A. supply chain managers B. product launch managers C. advertisers D. creditors

supply chain managers

Ideally, collaboration between functional areas results in _____. A. competition B. synergy C. dysfunctional conflict D. functional loyalty

synergy

In product commercialization, _____ define how the strategic decisions will be implemented. A. strategic action decisions B. tactical launch decisions C. strategic platform decisions D. competitive strategies

tactical launch decisions

The protocol statement clearly defines a firm's _____, which is a specific group of consumers having specific problems the firm hopes to solve at a profit for itself. A. focus group B. target market C. core group D. augmented market

target market

In a functional organization structure, _____. A. team members are informed about key issues, and communication is comparatively easy B. the work is high risk and mainly involves the development of new-to-the-world products C. most of the power leans toward the project manager D. team people are project people first and functional people second

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

In terms of launch tactics, pharmaceutical firms are most likely to put the bulk of their money into: A. advertising. B. personal selling. C. technical research. D. manufacturing process development.

technical research.

In the House of Quality (HOQ) approach, customers' needs are converted into _____. A. product functions B. process operations C. technical specifications D. product prices

technical specifications

In the launch management of a new product, a tracking system is designed to: A. tell the firm when to implement the contingency plans. B. identify potential problems. C. reduce the problem list to a size the firm can handle and control. D. track the movement of the product from the manufacturing unit to the shipping dock.

tell the firm when to implement the contingency plans.