Exam 8: New Product Development

________ is used to get an initial notion of the commercial prospects of a concept.

Which of the following best describes a category of new product that already exists but the firm is just entering it?

In the target costing approach to the product development process,the selling price is determined at the end of the process.

The strength of focus groups is their diagnostic power in that they can be used to get detailed discussions of various aspects of the concept.

Which of the following approaches to new product development starts with estimated price that the customers in the target segment are willing to pay?

When we refer to "democratizing" of innovation,we mean that:

In the classic linear approach,identify the stage of the new product development process in which the company determines the markets it wants to enter.

Rolaids and Tums,antacids normally used as antidotes for heartburn,are now promoted as calcium supplements for women.Which of the following categories of new product development best describes this announcement?

________ are used to predict sales and profits from the prospective new product launch and to make certain that marketing,distribution,and production skills are developed before full-scale operations begin.

R&D and marketing personnel are often rewarded differently.In many companies,marketing managers are rewarded for patents,improvements in technology,and the number of new products developed.R&D personnel are rewarded on the basis of their brands' market shares..

Which of the following describes the main disadvantage of a focus group ?

In the classic linear approach to new product development,the first step of the new product development process is idea generation.

________ are new versions of existing products already marketed by the firm.

When the customers become active participants in the innovation process,it is known as:

A market orientation helps to ensure that the product or service ultimately introduced has a unique value proposition.

In the case of a rugby process,the new product development team consists of:

Most successful companies generate ________ of their sales from new products introduced within the last two years.

Which of the following is an internal source of new product ideas?

In monitoring sales in market tests,it is important to recognize that a large percentage of first-year factory sales represents:

Market tests are diagnostic and are directed toward eliminating serious problems with the product.