Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A)  project manager 
B)  technical advisor 
C)  marketing person 
D)  process manager 
A)  project manager 
B)  technical advisor 
C)  marketing person 
D)  process manager C

Question 3

What are some of the considerations to keep in mind when developing a sales forecast?

Accepted Answer

There are several considerations one must keep in mind when developing a sales forecast. First, a product's potential may be extremely high, but sales may not materialize due to insufficient marketing effort. Advertising may not adequately create awareness, or inadequate distribution may make the product unavailable to much of the market. The A-T-A-R model will help us adjust sales forecasts based on awareness and availability. Second, sales will grow through time if we successfully get customers to try the product and convert many of these customers into repeat purchasers, if they pass along favorable word of mouth to their friends, if greater demand encourages more dealers to stock the product, and so on. After this growth period, sales will eventually stabilize. Thus, we will be interested in developing projections of long-run sales or market shares. Third, we should recognize that our product's sales will depend on our competitors' strategies and programs as well as our own.

Question 4

Product innovators outside of consumer packaged goods still most often use the simple version of the A-T-A-R model.

Accepted Answer

A) True 
 B)False

Question 5

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?

Accepted Answer

A)  The cumulative expenditures curve 
B)  Skimming 
C)  Initial diffusion rate 
D)  Itemized response 
A)  The cumulative expenditures curve 
B)  Skimming 
C)  Initial diffusion rate 
D)  Itemized response

Question 6

A firm may approve many new product projects if:

Accepted Answer

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. 
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.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  Probability of technical success 
B)  Probability of commercial success 
C)  Reward 
D)  Strategic leverage 
A)  Probability of technical success 
B)  Probability of commercial success 
C)  Reward 
D)  Strategic leverage

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  opportunity identification and selection 
B)  concept generation 
C)  project evaluation 
D)  development 
A)  opportunity identification and selection 
B)  concept generation 
C)  project evaluation 
D)  development

Question 12

Summarize the problems associated with forecasting.

Accepted Answer

Forecasting is difficult for various rea

Question 13

Explain the top-down and bottom-up approaches to strategy development.

Accepted Answer

In a top-down strategic approach, the fi

Question 14

Discuss any four ways in which dependence on poor forecasts can be reduced.

Accepted Answer

Dependence on poor forecasts can be redu

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

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. 
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.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 _____.

Accepted Answer

A)  market testing rollouts 
B)  econometric modeling 
C)  life cycle analysis 
D)  diffusion modeling 
A)  market testing rollouts 
B)  econometric modeling 
C)  life cycle analysis 
D)  diffusion modeling

Question 19

Which of the following is the most straightforward kind of new product forecast to conduct?

Accepted Answer

A)  A "what-if" analysis 
B)  A market analysis 
C)  A sales analysis 
D)  A customer analysis 
A)  A "what-if" analysis 
B)  A market analysis 
C)  A sales analysis 
D)  A customer analysis

Question 20

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

Accepted Answer

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. 
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.

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

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

What are some of the considerations to keep in mind when developing a sales forecast?

Product innovators outside of consumer packaged goods still most often use the simple version of the A-T-A-R model.

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 firm may approve many new product projects if:

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

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

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

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

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

Summarize the problems associated with forecasting.

Explain the top-down and bottom-up approaches to strategy development.

Discuss any four ways in which dependence on poor forecasts can be reduced.

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

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

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

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 _____.

Which of the following is the most straightforward kind of new product forecast to conduct?

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

The Strategic Elements of Product Development

The New Products Process

Opportunity Identification and Selection: Strategic Planning for New Products

The Product Concept and Ready-Made New Product Ideas

New Product Ideas: the Problem Find-Solve Approach

New Product Ideas: Analytical Attribute Approaches

Concept Evaluation and Testing

The Full Screen

Product Protocol

Design

Development Team Management

Product Use Testing

Strategic Launch Planning

Implementation of the Strategic Plan

Market Testing

Launch Management

Public Policy Issues

Filters

Exam 9: Sales Forecasting and Financial Analysis

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

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

What are some of the considerations to keep in mind when developing a sales forecast?

Product innovators outside of consumer packaged goods still most often use the simple version of the A-T-A-R model.

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 firm may approve many new product projects if:

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

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

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

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

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

Summarize the problems associated with forecasting.

Explain the top-down and bottom-up approaches to strategy development.

Discuss any four ways in which dependence on poor forecasts can be reduced.

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

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

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

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 _____.

Which of the following is the most straightforward kind of new product forecast to conduct?

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

The Strategic Elements of Product Development

The New Products Process

Opportunity Identification and Selection: Strategic Planning for New Products

The Product Concept and Ready-Made New Product Ideas

New Product Ideas: the Problem Find-Solve Approach

New Product Ideas: Analytical Attribute Approaches

Concept Evaluation and Testing

The Full Screen

Product Protocol

Design

Development Team Management

Product Use Testing

Strategic Launch Planning

Implementation of the Strategic Plan

Market Testing

Launch Management

Public Policy Issues

Filters