Exam 7: Concept Evaluation and Testing

The benefit segments overlaid onto a perceptual map result in a ____, which allows assessment of the preferences of each benefit segment for different product concepts.

In new product work, financial analysis should be done by firms as early as possible to avoid wasting money on poor projects.

The product innovation charter (PIC) directing new product development eliminates more product ideas than all the other evaluations combined.

The evaluation issue during the launch phase in the new product development process that seeks to find out if a firm has proven itself able to make and market an item on a commercial scale is usually carried out by the evaluation task called _____.

Concept testing will work best for:

The earliest evaluation that a firm makes is of itself and its situation, which yields a priori conclusions about new product proposals.

A-T-A-R is a term that came from consumer products marketing.

Which of the following industries is most likely to be represented by a late expenditures curve?

A firm that develops a contingency plan prior to launching a new product is adopting an active acceptance risk strategy.

In which of the following risk strategies is risk reduced to an acceptable, threshold level, perhaps through redesigning a product to include more backup systems or increasing product reliability?

Which of the following outcomes of a risk/payoff matrix, used for evaluating a new product process, is most likely to be the costliest for a firm?

Which of the following risk strategies is most likely to incur opportunity costs?

Concept testing is different from concept development as it undermines the idea of helping an item and kills it off.

Practitioners urge that a concept statement should:

When benefit segments are overlaid onto a perceptual map, it results in a cumulative expenditures curve.

The farther a new product idea is allowed to proceed through the development process:

A "go error" and a "drop error" have the same cost and probability dimensions.

Which of the following is true of a decay curve?

Which of the following formats of concept testing produces more realistic evaluations but also risks the bias of good or poor advertising copy writing?

Which of the following statements is true of the cumulative expenditure curve?