Exam 11: Developing and Managing Products

Mandeep felt pressured in to buying a cellphone because most her friends already had one. What would Mandeep be classified as?

Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game. This firm is engaged in a new-product business analysis.

Top managers at a company that publishes regional magazines considered making maps, but then decided maps were not within the company's corporate mission. Which stage of the new-product development process did its new-product development process reach?

Now that the design of a new smart-fridge has been finalized, Igloo must now estimate preliminary demand, cost, sales, and profitability. What stage of the new product development process is this?

Razor scooters gained instant popularity because walkers and runners frequently saw people on the scooters zipping by them and having fun. This information suggests the adoption rate of the Razor scooter was most affected by which product characteristic?

A U.K. based drink called Lucozade was originally targeted toward people who were suffering from a cold as a "pick me up". It has since been sold as an energy drink to those who love to play sports. By essentially selling the same product to a new target segment, Lucozade used which strategy?

Mosaic Labs has developed a chemical compound that prevents mildew in even the most humid climates. The week after the compound was invented, a group of the firm's employees got together and listed ways the product might be used. What is this an example of?

The makers of Jameson Irish whiskey believe its product has reached market saturation. This would imply that Irish whiskey is in the maturity stage of its product life cycle.

As the marketing vice-president for Oakley's protective eyewear for the sports enthusiast, you must come up with new-product ideas. What are five important sources of new-product ideas? What are some techniques you could use to stimulate creative thinking for new-product ideas?

After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created, the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers. The consumer group was asked to evaluate the three product ideas in terms of their marketability. What is this stage of new-product development called?

Pam has just purchased her first cell phone. Although cell phones have been available for a long time, cell phones are new to Pam. Which of the following best described Pam?

Increasing globalization of markets and of competition provides a reason for multinational firms to consider new-product development from a worldwide perspective.

Scenario 11-2 After years of development and testing, Jabra Corporation unveiled the Jabra 1000 earbud phone. The entire device fits in your ear. It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well. It picks up your voice by amplifying sound vibrations in your bones. Therefore, there's no microphone boom to jut out in front of your face. Because the bone vibrations must be amplified, a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds. This anti-noise chip generates a mirror image of outside noises, and the colliding sound waves erase each other. The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak. This tech-talk isn't cheap: the earbud phone lists for $329. -Refer to the scenario. The Jabra 1000 is similar to the earbud system in an iPod, which may increase adoption rates. This suggests that the rate of diffusion might be affected by which of the following?

Describe the screening stage of the new-product development process. Describe a common test used during the screening stage.

New-product ideas that survive the initial screening process move to the business analysis stage. List six questions that are commonly asked during the business analysis stage.

Walker Zanger Inc. is about to introduce a new type of ceramic tile that is scratch-resistant and unbreakable. As with other products of this type, Walker Zanger can expect sales of this new type of flooring to follow a bell-shaped curve over the next 10 to 15 years as it follows the product life cycle.

Scenario 11-4 When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon.com for $5.95. -Refer to the scenario. In terms of the new-product development process, Richardson's several unsuccessful attempts to put his thoughts on paper are an example of which of the following?

Surj has just completed his trial of the Microsoft suite of programs. He is now happy to fully purchase the product. What would he be classified as?

There are two types of communication to aid the diffusion process. What are they?

The multiple-step new-product development process is an essential ingredient in new-product development. List the seven steps of this process.