New Product Planning -Ch.11

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 what-if analysis

The _____ tool includes several ways to assess strategic fit and market attractiveness, and also considers financial performance.

Concept evaluation

In order to calculate the net present value, that might be associated with a proposed product, it is necessary to:

Create a sales forecast

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

Diffusion of innovation

Those users who will be among the first to try a product are called:

Early adopters

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

False

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

False

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

False

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

False

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

False

Laggards refer to those users who will be among the first to try the product

False

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

False

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

False

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

False

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?

Initial diffusion rate

Sales forecasting is typically the responsibility of a _____ on the new product team.

Marketing person

Strategic criteria for new product development are best analyzed through the use of _____.

PIC evaluation

According to the Hoechst-U.S. scoring model, which of the following is a full-screen feasibility factor?

Probability of technical success

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 _____.

Product champion

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 _____.

Purchase intentions

_____ analysis may be used to estimate the net present value of a new product when it is still in the concept stage.

Real-options

According to the Hoechst-U.S. scoring model, which of the following factors is based on financial criterion?

Reward

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?

Sales forecast

Which of the following is true of sales forecasting for new products?

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

According to the Hoechst-U.S. scoring model, which of the following is a factor related to the firm's product innovation charter (PIC)?

Strategic leverage

Which of the following is a problem associated with sales forecasting?

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 the most commonly used approach to sales forecasting outside of the consumer packaged goods industry?

The A-T-A-R model

Which of the following serves as the basis of many simulated test markets?

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.

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 is true of top-performing firms?

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

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) _____.

Top-down strategic approach

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

True

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

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

Most common forecasting methods are extrapolations and work well on established products

True

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

True

The A-T-A-R model is the basis of many simulated test markets

True

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:

Ultimate long-run repeat purchase rate

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?

Ultimate long-run trial rate

Firms that build strategic criteria into their project selection tools are using a _____ strategic approach.

bottom-up

In the new product development process, the product use test is conducted during the _____ phase of the process.

development

Managers who feel business is suffering from "paralysis by analysis" are most likely to:

go ahead with sound forecasts but prepare to handle the risks

Which of the following is a way of putting risk back into product innovation while managing it well?

isolating or neutralizing the in-house critics

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 _____.

low-cost development and marketing

A firm may approve many new product projects if:

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

The management's primary task in sales forecasting is to:

make necessary estimates as solid as possible

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 _____.

market testing rollouts

It is difficult to forecast success for _____.

new-to-the-world products

Under the _____, the firm or SBU lays out a strategy, and then allocates funds across different kinds of projects.

top-down strategic approach