Deck 3: New Product Development

Question 1

New products often fail because of poor market research for the new product.

Answer 1

True

Question 2

The characteristics of a product,its demand,competitive pressures,and costs change as it goes through its life cycle.

Answer 2

True

Question 3

New products often provide the opportunity for enhanced sales as the demand for older products decreases over time.

Answer 3

True

Question 4

The four stages of the product life cycle are research,development,manufacturing,and completion.

Question 5

Innovative firms often identify better approaches for producing products.

Question 6

A new product often faces less competition than a product in a mature market,sometimes resulting in higher profitability.

Question 7

An effective new product development process can generally optimize delivery time,manufacturing costs,and quality.

Question 8

Firms often undertake systematic new product development efforts to attempt to gain market share.

Question 9

At the operational level,differences between manufacturing and services are very few and seldom need to be considered.

Question 10

Personnel training generally occurs in the development stage of new service developments.

Question 11

Having a systematic process development plan in place can allow a company to react quickly and introduce a new product after a competitor's product is launched.

Question 12

A company should never evaluate whether an idea should be dropped until the new product development process is complete.

Question 13

At the strategic level,the concepts,tools,and techniques used in the development of new goods and services have few similarities.

Question 14

Profit management is a common initial driver for a new product development process for tangible goods.

Question 15

A new and creative product seldom enhances a company's corporate image.

Question 16

From the point of view of a specific firm,a new product is defined as an offering that has never been produced before by the firm or the competition.

Question 17

A successful new product development process generally requires participation and input from multifunctional teams including members from marketing,engineering,and operations.

Question 18

New products seldom fail because of issues related to the offering firm's supply chain.

Question 19

In the new product development process,the generation of innovative new ideas is very difficult.

Question 20

As technology,globalization,and industry interdependence increase,the differences between goods and services are becoming more pronounced.

Question 21

With time-based competition,the objective is to significantly compress the time required to propose,develop,produce,market,and deliver products.

Question 22

Which of the following terms describes a new product development process?

A)Customer requests,order receipt,order shipment
B)Opportunity identification,design,testing,introduction,profit management
C)Identify needs,identify possible solutions,market segmentation,capitalize on product
D)Market research,market identification,market introduction,market penetration
E)Pure research,product creation,marketing blitz,product refinement

Question 23

Which of the following is not a reason firms innovate and develop new products?

A)To obey government mandates
B)To achieve a competitive advantage
C)To gain market share
D)To take advantage of higher profitability on a new product
E)To enhance a brand name

Question 24

Major trends related to product development for manufacturing and service industries include all the following except

A)Continuous innovation
B)Disruptive innovation
C)Concurrent engineering
D)Mass customization
E)Quality enhancement

Question 25

From a strategic perspective,mass customization is a differentiation strategy.

Question 26

As the product design stabilizes during the growth stage,the unit costs will decrease because of standardized production processes and economies of scale.

Question 27

Differences between goods and services are disappearing because of all the following except

A)Product defects
B)Inferior design
C)Poor timing of introduction
D)Cost overruns
E)Lack of need for new products

Question 28

During the introduction stage,a product is still being refined and its design is undergoing revisions based on evolving customer feedback and preferences.

Question 29

Competitive pressures generally are reduced as additional companies start offering competing products.

Question 30

Which of the following is not a common reason new product introductions fail?

A)Product defects
B)Inferior design
C)Poor timing of introduction
D)Cost overruns
E)Lack of need for new products

Question 31

Mass customization allows customers to codesign products and services that meet their specific needs with regard to the product features.

Question 32

Generally,a new product is considered as a good,service,or good/service bundle that

A)Is similar to the competition
B)Was previously not available to customers
C)Was modified from similar products
D)Is customized specifically for an individual customer
E)Is requested by the firm's supply chain members

Question 33

A blue ocean is an untapped and uncontested market with little or no competition.

Question 34

The stages of the product life cycle are generally presented in the following order:

A)Introduction,growth,decline,maturity
B)Growth,maturity,decline,introduction
C)Introduction,decline,maturity,growth
D)Introduction,growth,maturity,decline
E)Decline,introduction,maturity,growth

Question 35

In a low-clock-speed industry,like the chemical industry,a generation of products may last as long as 5 to 10 years.

Question 36

The new product development process needs to primarily consider trade-offs among which of the following?

A)Reliability,durability,cost
B)Time,cost,quality
C)Design,marketing,finance
D)Competition,environment,customer needs
E)Color,size,packaging

Question 37

In terms of life cycle,landline phones would fit best in which life cycle stage?

A)Introduction
B)Growth
C)Maturity
D)Decline
E)More than one category

Question 38

Which product life cycle stage normally finds the most competitors in a market?

A)Introduction
B)Growth
C)Maturity
D)Decline
E)More than one category

Question 39

Radical innovation refers to a product modification that allows improved performance and benefits without changing either consumption patterns or behavior.

Question 40

Because of strong competition during a product's decline stage,the price of the product often falls.

Question 41

An example of this term is when Kellogg's introduces Frosted Flakes Gold and Frosted Flakes low sugar to the Frosted Flakes line.

A)Radical innovation
B)Continuous innovation
C)Disruptive innovation
D)Mandatory innovation
E)Strategic innovation

Question 42

Which of the following is not one of the four realms of an experience?

A)Entertainment
B)Education
C)Aesthetics
D)Escapism
E)Employment

Question 43

Which of the following is not a disruptive product?

A)Mobile phones in the communication industry
B)Internet-based phones in the communication industry
C)Boutique hotels
D)MP3 music format in the music industry
E)Mainframe computers in the computer industry

Question 44

Customizing M&Ms with your own message is an example of what?

A)Experience marketing
B)Mass customization
C)Computer-aided design
D)Virtual reality
E)Rapid prototyping

Question 45

When parts have a similar shape or similar manufacturing process,which term describes the approach that might be appropriate?

A)Computer-aided manufacturing
B)Batch manufacturing
C)Group technology
D)Reverse engineering
E)Concurrent engineering

Question 46

A broad-based competitive strategy that emphasizes time as the major factor for achieving and maintaining a sustainable competitive advantage is known as

A)Product life cycle
B)Time-based competition
C)Clock speed
D)Radical innovation
E)Fierce competition

Question 47

Which of the following does not describe a successful experience?

A)A customer finds it unique.
B)A customer finds it memorable.
C)A customer would want to repeat it.
D)It cannot be recreated.
E)The customer tells friends about it.

Question 48

Which of the following statements most accurately describes the design process?

A)Having design and operations personnel working independently speeds up the design process.
B)Concurrent engineering is generally a more effective design method than other techniques.
C)Following a set design process will ensure success.
D)Concurrent engineering is the traditional method for product design.
E)Technology is not very useful in speeding up the design process.

Question 49

Which of the following is a "low-clock-speed" industry?

A)Electronics
B)Computers
C)Cell phones
D)Chemicals
E)Motion pictures

Question 50

Which of the following terms is the use of cross-functional teams in the product design process most closely associated with?

A)Concurrent engineering
B)Mass customization
C)Synergy design methods
D)Product families
E)Strategic design process

Question 51

Green production generally considers all the following activities except

A)Reducing waste
B)Reducing emissions during production
C)Accessing the total impact of a good on the environment
D)Taking into account every activity associated with production
E)Following ISO guidelines

Question 52

This may be calculated to help the company determine if an additional feature would be valued by the customer and should be added.

A)Willingness to pay
B)Robustness
C)Environmental ratio
D)Quality function deployment
E)Customization quotient

Question 53

Which of the following describes the dismantling of a competitor's product to improve a company's products?

A)Concurrent engineering
B)Product platforms
C)Cellular manufacturing
D)Reverse engineering
E)Product expansion marketing

Question 54

When a company decides to sell a basic printing station and then allows the customer to add desired functions like a hole punch,stapler,collator,and a folding station,they are using

A)Concurrent engineering
B)Modular design
C)Green production
D)Rapid prototyping
E)CAD

Question 55

Using a popular product like Tylenol to provide a basis for introducing additional products,like Tylenol for Children or Extra-Strength Tylenol,is described by which of the following terms?

A)Concurrent engineering
B)Product platforms
C)Cellular manufacturing
D)Reverse engineering
E)Product expansion marketing

Question 56

Which of the following is not an element of a Blue Ocean strategy?

A)Create an uncontested market place.
B)Make the competition irrelevant
C)Create and capture new demand
D)Break the value-cost tradeoff
E)Use all resources to compete in the market place

Question 57

This phrase describes when computer-aided design,virtual reality,and computer-aided manufacturing are used together.

A)Design for manufacturing
B)Design for cost
C)Design for recycling
D)Design for quality
E)Design for reliability

Question 58

Being able to shop for products on the Internet or book a hotel room online is an example of

A)Radical innovation
B)Continuous innovation
C)Disruptive innovation
D)Mandatory innovation
E)Strategic innovation

Question 59

Competing in the existing market place,beating the competition,and exploiting existing demand are elements of

A)Operations strategy
B)Marketing strategy
C)Red Ocean strategy
D)Blue Ocean strategy
E)Optimistic strategy

Question 60

Many times when an established company ignores disruptive innovation,the result is

A)The innovation goes away.
B)The innovation is adopted by a small niche.
C)The established company suffers loss of market share.
D)The government supports innovation.
E)The established company eventually creates a substitute.

Question 61

Provide three reasons for new product failure.

Question 62

Describe customer choice analysis.

Question 63

Describe four individual modules that are used in the design of a computer.

Question 64

What is an example of redundancy in your automobile?

A)Having left and right fenders
B)Having front and back seats
C)Having a battery and a starter
D)Having a break and an emergency break
E)Having a lug wrench and a jack

Question 65

Which of the following is the primary driver for the QFD process?

A)Design implementation and continuous improvement
B)Linking component characteristics and process operations
C)Linking engineering design and component characteristics
D)Completing a competitive evaluation of competing products
E)Identifying customer needs and preferences

Question 66

Which of the following describes the use of backup components to enhance the reliability of a product?

A)Robust design
B)Redundancy
C)Reliability
D)Desirability
E)Complexity

Question 67

Identify five major trends in product development.

Question 68

Identify two high-clock-speed industries and two low-clock-speed industries.

Question 69

Which term describes a structured approach for integrating the voice of the customer into the product design process?

A)Quality function deployment
B)The pareto principle
C)Cross-functional designing
D)Robust design
E)Focus groups

Question 70

What are the four stages of the product life cycle?

Question 71

Describe a reliability analysis.

Question 72

Give three reasons why firms undertake systematic new product development efforts.

Question 73

Give examples of a product and a new disruptive product that is displacing it in the computer industry,in transportation,in the communication industry,and in the music industry.

Question 74

Which of the following is an example of a decision resulting from a product reliability analysis?

A)Offering a car in several colors
B)Offering a TV bundled with additional services like a maintenance agreement
C)Using three engines on an airplane instead of the minimum two
D)Allowing the customer to add additional modules to the basic computer
E)Allowing the customer to add a personal message to an M&M

Question 75

Briefly describe rapid prototyping.