Deck 20: Introducing New Market Offerings

Question 1

________ process recognizes the value of returning to an earlier stage to make improvements before moving forward.

A) Spiral development
B) Reactive development
C) Market testing
D) Proactive development
E) Concept testing

Answer 1

A

Question 2

________ teams are cross-functional groups charged with developing a specific product or business.

A) Virtual
B) Venture
C) Fundamental
D) Elemental
E) Transitory

Answer 2

B

Question 3

Intercom, Inc. together with its subsidiaries, primarily engages in the generation, transmission, and distribution of electric power. The company observes that its growth has stagnated over a period of two years. In an attempt to promote growth, it considers adding new features to the existing products and introducing a few new products. The company forms a committee consisting of three top executives, one of the production mangers, a few operational managers, and a representative of the HR department to generate ideas. This team is called a(n) ________.

A) virtual team
B) venture team
C) fundamental team
D) elemental team
E) transitory team

Answer 3

B

Question 4

In a ____________, the project leader, working with a cross-functional team, must bring a set of known deliverables to each gate before the project can pass to the next stage.

A) reverse assumption analysis technique
B) skunkworks system
C) stage-gate system
D) spiral development process
E) new-product department technique

Question 5

A team formed at Intercom, Inc. to generate ideas for new products, conducts frequent meetings and engages in activities such as mind mapping and brainstorming. Most of the meetings are conducted at informal locations away from office. These workplaces are called ________.

A) skunkworks
B) idea funnels
C) research centers
D) stage gate systems
E) contextual bases

Question 6

After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step?

A) commercializing the product
B) performing concept testing
C) conducting beta testing with customers
D) creating a marketing strategy for the product
E) performing business analysis

Question 7

Which of the following strategies for new-product development incorporates the buyers' preferences in the final design of the product?

A) customer-driven engineering
B) market leadership
C) cost leadership
D) incremental innovation
E) disruptive technology

Question 8

During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they would try?

A) idea generation
B) idea screening
C) business analysis
D) concept development and testing
E) product development and testing

Question 9

Which of the following is the best example of a new-to-the-world product?

A) Tesco, the retail giant, opens new stores in an underdeveloped African country.
B) Pestorica, a publishing company, decides to launch a new sports magazine.
C) Tata Motors, an Indian automobile company, acquires Jaguar to extend its business.
D) An Asian company licenses a U.S. apparel brand name though the brand is not familiar in Asia.
E) Kids-Med, a company that produces childcare products, launches a non-contact thermometer.

Question 10

New-to-the-world products are ________.

A) low-cost products designed to obtain an edge in highly competitive markets
B) new product enhancements that supplement established products
C) new versions of an existing product that has been less successful
D) new products that create an entirely new market
E) existing products that are targeted to new geographical markets

Question 11

Most new-product activities are devoted to ________.

A) changing the target markets
B) developing new-to-the-world products
C) introducing backward integration
D) improving existing products
E) changing the existing market dynamics

Question 12

It has been observed that most new products have shorter product life cycles. What is the reason for this?

A) Most new products do not use technology.
B) Most new products are not backed by a marketable idea.
C) New products do not get adequate management support.
D) Social and governmental constraints lead to this failure.
E) Rivals quickly copy products that are successful.

Question 13

________ are informal workplaces, sometimes garages, where intrapreneurial teams attempt to develop new products.

A) Stage-gate systems
B) Skunkworks
C) Funnels
D) Opportunity spaces
E) Research centers

Question 14

The ________ uses observational, anthropological, and ethnographic methods or consumer self-reports to map consumer needs, wants, and even beyond.

A) business analysis
B) demand landscape
C) opportunity space
D) strategic blueprint
E) internal design analysis

Question 15

Which of the following firms is most likely to seek radical innovation?

A) a traditional publishing company
B) a small scale FMCG company
C) a firm that procures and markets wheat
D) a high-tech firm in telecommunications
E) a firm that sells mineral water

Question 16

Most established companies focus on ________ innovation when they aim to enter new markets by tweaking existing products, or they want to stay one step ahead in the market by using variations on a core product.

A) incremental
B) continuous
C) spontaneous
D) radical
E) competitive

Question 17

The ________ used by companies divides the innovation process into stages, with a checkpoint at the end of each stage.

A) reverse assumption analysis technique
B) skunkworks system
C) stage-gate system
D) spiral development process
E) new-product department technique

Question 18

Pager, a simple personal device for short messages, became famous in the 1990s. Troveron Communications launched a pager in the early twenty-first century. Due to the introduction of mobile phones and text messaging, the pager industry was on a decline. The company's innovations were not well received by the market and the product became a failure. Which of the following is the most likely reason for the product's failure in this case?

A) poor launch timing of the product
B) a small and fragmented target market
C) high cost of development
D) social and economic constraints
E) hasty product development

Question 19

Which of the following is most closely related with the organic growth of an organization?

A) acquiring a product or service brand
B) entering new market places
C) increasing the operational profitability
D) increasing productivity of employees
E) developing new products from within

Question 20

Identify a shortcoming of giving the responsibility of new product development to the product managers of a company.

A) They would not be familiar with the industry standards.
B) Product managers would not have an operational focus.
C) Product managers are often busy managing existing lines.
D) They will find it difficult to gain support from employees.
E) Product managers are less likely to use participative management.

Question 21

Which of the following uses conceptual lens and structured innovative-thinking tools to achieve market perspectives from different angles?

A) business analysis
B) strategic blueprint
C) internal design analysis
D) demand landscape
E) opportunity space

Question 22

The ________ creativity technique begins in a thought that is written down, then proceeds to develop other thoughts that are linked to the first thought, and finally materializes a new idea by associating all the thoughts.

A) mind mapping
B) contextual analysis
C) attribute listing
D) reverse assumption analysis
E) morphological analysis

Question 23

In an attempt to improve the product, a company that manufactures screwdrivers discusses the modification of each attribute, such as replacing the wooden handle with plastic, providing torque power, adding different screw heads, and so on. This creativity technique is called ________.

A) attribute listing
B) mind mapping
C) morphological analysis
D) lateral analysis
E) reverse analysis

Question 24

A ________ error occurs when the company dismisses a good idea.

A) probability
B) performance
C) double counting
D) DROP
E) GO

Question 25

________ means presenting the product concept to target consumers, symbolically of physically, and getting their reactions.

A) Perceptual mapping
B) Brand-positioning mapping
C) Brand attribute mapping
D) Concept development
E) Concept testing

Question 26

A(n) ________ is an elaborated version of a product idea expressed in consumer terms.

A) test brand
B) alpha product
C) beta product
D) business schedule
E) product concept

Question 27

Encouraged by the _______________ movement, many firms are increasingly going outside the company to tap external sources of new ideas, including customers, scientists, competitors, employees, channel members, and top management.

A) stage-gating
B) cocreation
C) microstocking
D) buzzing
E) open innovation

Question 28

Increasingly, new-product ideas arise from ________ that combines two product concepts or ideas to create a new offering.

A) reverse assumption analysis
B) lateral marketing
C) attribute listing
D) forced relationships
E) morphological analysis

Question 29

Electro Locomotors (EL), Inc. engages in the manufacture, distribution, and marketing of custom vehicles in Asia. Bono, a hybrid car brand that the company produces, is a market leader in the hybrid vehicles segment. With the increased global focus on nature friendly vehicles and governmental subsidies for companies that manufacture hybrid vehicles, competition has increased for flex-fuel cars like Bono. The heads of the R&D team at EL is in a creative session to generate ideas for improvements to Bono. They consider each part of the car and discuss the possibilities of improvements in each of them. Identify the creativity technique used here.

A) attribute listing
B) forced relationship analysis
C) morphological analysis
D) reverse assumption analysis
E) mind mapping

Question 30

The ________ technique for stimulating creativity lists all the characteristics of an object and then modifies each to try to arrive at a new idea.

A) reverse assumption analysis
B) lateral marketing
C) attribute listing
D) forced relationship
E) morphological analysis

Question 31

The ________ technique used for stimulating creativity identifies a problem and then considers the dimension, the medium, and the power source.

A) attribute listing
B) reverse assumption analysis
C) mind mapping
D) lateral marketing
E) morphological analysis

Question 32

A group of college graduates decide to start a business. Though they are knowledgeable in various business domains, they are unable to arrive at a valuable business idea. They decide to search for ideas in a structured manner. They meet together and start discussing everyone's ideas. Each idea is recorded and then the thoughts that come up in relation to the ideas are written down and discussed. This process helps them to finalize a business plan. What technique is used here?

A) morphological analysis
B) forced relationship analysis
C) reverse assumption analysis
D) attribute listing
E) mind mapping

Question 33

A(n) ________ is a possible product the company might offer to the market.

A) test brand
B) alpha product
C) beta version product
D) product idea
E) product concept

Question 34

Modern firms use the ________ concept testing tool to design products on a computer and then produce rough models to show potential consumers for their reactions.

A) morphological analysis
B) rapid prototyping
C) concept testing
D) perceptual mapping
E) conjoint analysis

Question 35

Gordon Apparel, Inc. engages in the design, manufacture, and retail of fashion apparel for women, men, children, and pets. The company is known for its timely launch of apparels and stylish designer clothing. The company believes a new product has to create needs and not just satisfy the existing needs. To achieve this goal it engages in controlled idea generation techniques such as brainstorming while creating new designs. Which of the following parts of the DIG framework is given prominence here?

A) business analysis
B) strategic blueprint
C) opportunity space
D) internal design analysis
E) demand landscape

Question 36

Identify the element in the DIG network that considers how a new product can fit into customers lives and how it can be distinguished from the competitors' products.

A) business analysis
B) internal design analysis
C) strategic blueprint
D) demand landscape
E) opportunity space

Question 37

Surgeons and ER nurses would be considered ________ for surgical equipment.

A) venture agents
B) internal customers
C) buzz agents
D) lead users
E) connectors

Question 38

Morboro Energy, Inc. is a large chain of fuel stations. The company decided to expand its business by incorporating restaurants and automobile service stations as a part of its fuel outlets. This is an example of ________.

A) lateral marketing
B) brand extension
C) market development
D) internal marketing
E) brand personification

Question 39

Besides producing new and better ideas, __________ can help customers feel closer to and more favorably toward the company.

A) stage-gating
B) cocreation
C) microstocking
D) buzzing
E) open innovation

Question 40

________ works by listing all the normal assumptions about an entity and then turning them around.

A) Lateral marketing
B) Attribute listing
C) Reverse assumption analysis
D) Forced relationships
E) Morphological analysis

Question 41

Consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values that consumers attach to varying levels of a product's attributes.

A) concept testing
B) perceptual mapping
C) gap level analysis
D) conjoint analysis
E) morphological analysis

Question 42

The job of translating target customer requirements into a working prototype is helped by a set of methods referred to as ________.

A) quality function deployment
B) quality control processes
C) rapid prototyping
D) marketing control
E) control system formation

Question 43

________ is a "hybrid" data collection technique that combines self-explicated importance ratings with pair-wise trade-off tasks.

A) Sales wave analysis
B) Simulative data testing
C) Adaptive conjoint analysis
D) Business analysis
E) Exponential data collection

Question 44

Brown & Smith, Inc. engages in the design, development, making, and retail of designer jewelry. Before approving a new design of jewelry the company draws it on a computer and then produces models to show potential consumers for their reactions. This allows the company to analyze the possible customer reaction. Identify the concept testing method used here.

A) conjoint analysis
B) perceptual mapping
C) virtual reality testing
D) rapid prototyping
E) digital fabrication

Question 45

Which of the following products is most likely to undergo alpha and beta testing?

A) food products
B) industrial goods
C) consumer products
D) commodities
E) FMCG products

Question 46

Which of the following methodologies takes the list of desired customer attributes (CAs) generated by market research and turns them into a list of engineering attributes (EAs) that engineers can use?

A) quality control processes
B) quality function deployment
C) rapid prototyping
D) marketing control
E) control system formation

Question 47

Universal Services, Inc. provides communication services to residential and business customers in rural and small urban communities primarily in India. The company offers services such as local and long distance voice, data, and Internet and broadband product offerings. The company, in an attempt to increase the attractiveness of its offerings, decides to provide special voice and data packages to its customers. The company designs eight different packs that offer varying voice and data benefits to customers. The company then asks a few of its customers to rank the packs in order to choose two best packs. Which of the following testing methods is being used in the above scenario?

A) virtual reality testing
B) conjoint analysis
C) perceptual mapping
D) product fabrication
E) rapid prototyping

Question 48

In consumer-goods market testing, the company seeks to estimate four variables. These four variables are: trial, first repeat, adoption, and ________.

A) guaranteed response
B) price sensitivity
C) purchase frequency
D) usage convenience
E) preferential treatment

Question 49

A large FMCG company decides to test market Kora, a new brand of face cleanser, to be launched soon. The company initially distributes a few free samples to some prospective consumers. Later it offers the product to the customers at a discounted price and observes that not only more than seventy percent of the customers are purchasing it but the same number are also satisfied using it. The company keeps using this process 3-4 times to obtain a correct count of the number of people purchasing the product repeatedly. Which of the following testing methods is being used here?

A) simulated testing
B) controlled testing
C) full test marketing
D) parallel testing
E) sales-wave research

Question 50

With ________, respondents see different hypothetical offers formed by combining varying levels of the attributes, then rank the various offers.

A) gap level analysis
B) conjoint analysis
C) perceptual mapping
D) concept testing
E) morphological analysis

Question 51

________ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style, features, and performance.

A) Frequently purchased products
B) High-moving goods
C) Inexpensive products
D) Commodity products
E) Infrequently purchased products

Question 52

For a frequently purchased new product, the seller estimates repeat sales as well as first-time sales. A high rate of repeat purchasing means customers ________.

A) value price more than differentiation
B) do not support innovation on brands
C) value differentiation more than price
D) prefer personalized products rather than standard ones
E) are satisfied with the product

Question 53

The highest loss a project can create is called ________.

A) rapid prototyping income
B) payback income
C) maximum investment exposure
D) incremental yearly exposure
E) cannibalized income

Question 54

Which of the following is an advantage of sales-wave research?

A) It gives surprisingly accurate results on advertising effectiveness.
B) It allows the brand to gain favorable shelf position.
C) It guarantees immediate brand recognition and high sales volume.
D) It can be implemented quickly with a fair amount of security.
E) It easily creates a buzz in the minds of customers.

Question 55

________ is a customer test that involves placing the product within the firm to see how it performs in different applications.

A) Beta testing
B) Research testing
C) Sales-wave testing
D) Alpha testing
E) Simulated testing

Question 56

Which of the following is usually referred to as a full-blown test market?

A) an internal focus group
B) a discussion group
C) a country
D) a city or a few cities
E) a laboratory

Question 57

________ contribution lists the changes in income to other company products caused by the introduction of a new product.

A) Supplementary
B) Dragalong
C) Gross
D) Cumulative
E) Net

Question 58

The trade-off approach may be easier to use when there are/is ________.

A) many variables
B) only a few alternatives
C) observers that are biased
D) possible offers that are limited
E) only one highly desirable solution

Question 59

To estimate replacement sales, management must research the product's ________, the number of units that fail in year one, two, three, and so on.

A) survival-age distribution
B) lifecycle ratio
C) obsolescence rate
D) business turnover ratio
E) product-performance usage

Question 60

During ________, the company's technical people observe how customers use the product, a practice that often exposes unanticipated problems of safety and servicing and alerts the company to customer training and servicing requirements.

A) beta testing
B) research testing
C) sales-wave testing
D) alpha testing
E) simulated testing

Question 61

Relative advantage of an innovation refers to the degree to which ________.

A) it matches the values and experiences of the individuals
B) it is difficult to understand or use
C) it can be tried on a limited basis
D) it appears superior to existing products
E) the benefits of use are observable or describable to others

Question 62

Which of the following terms refers to the degree to which the innovation can be tried on a limited basis?

A) compatibility
B) relative advantage
C) divisibility
D) communicability
E) complexity

Question 63

________ is the effect one person has on another's attitude or purchase probability.

A) Sharing power
B) Collaborative power
C) Market influence
D) Brand power
E) Personal influence

Question 64

Robert has heard about the latest cell phone from LG electronics that features Wi-Fi hotspot technology. Wi-Fi hotspot is a technology that allows users to share mobile internet with other Wi-Fi enabled devices. Robert visits the company's Web site to read more about the phone. Robert is in the ________ stage of consumer-adoption process.

A) interest
B) awareness
C) evaluation
D) trial
E) adoption

Question 65

Five characteristics influence the rate of adoption of an innovation. One of these is ________.

A) marketing expertise
B) relative advantage
C) packaging attractiveness
D) government regulations
E) place of value exchange

Question 66

Adopters of new products move through five stages. These stages begin with ________ and follow with interest, evaluation, trial, and adoption.

A) awareness
B) investigation
C) trial
D) innovation
E) diffusion

Question 67

Which of the following is the mental step in consumer-adoption process where the customer starts considering whether to try the innovation?

A) adoption
B) trial
C) awareness
D) evaluation
E) interest

Question 68

Armordo is a famous vacuum cleaner brand in Korea. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in?

A) awareness
B) adoption
C) evaluation
D) trial
E) interest

Question 69

Companies typically must create a strong R&D and marketing partnership to pull off a radical innovation.

Question 70

Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________ entry.

A) strategic pay off
B) parallel
C) balancing
D) late
E) compensating

Question 71

The degree to which the beneficial results of an innovation's use are observable or describable to others is called ________.

A) divisibility
B) communicability
C) compatibility
D) relative advantage
E) plainness

Question 72

Organic growth refers to increasing the profitability of the organization by increasing employee productivity.

Question 73

High-tech firms that function in a market with high technological uncertainty, high market uncertainty, and high investment costs are not likely to seek radical innovation.

Question 74

Troma Pte Ltd, is a famous manufacturer of cookware, that follows a traditional distributor-retailer system to distribute its products. The company abstains from the use of automated supply chain management (SCM) system mainly due to the fear of unknown. However, rapidly escalating operational costs and inefficiencies have made it absolutely necessary for the company to implement an SCM system. The company goes for a big-bang installation of SCM system to become more competitive and cost effective. Identify the adopter group to which Troma belongs.

A) innovator
B) early adopter
C) early majority
D) laggard
E) late majority

Question 75

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?

A) first entry
B) blunt entry
C) parallel entry
D) late entry
E) exchange entry

Question 76

A(n) ________ is any good, service, or idea that is perceived as new, no matter how long its history.

A) commodity
B) innovation
C) adoption
D) invention
E) novel product

Question 77

Identify the stage in the consumer adoption process in which the customer is stimulated to seek information about the innovation.

A) awareness
B) adoption
C) interest
D) evaluation
E) trial

Question 78

Joha, a student of the Delhi University, finds many of his classmates have purchased the iPad tablet PC from Apple Computers. iPad, launched a few months before has been identified as a very useful product and many students have rated it highly. Considering all these, Joha decides to purchase an iPad. Which of the following is the adopter group to which Joha belongs?

A) early adopter
B) innovator
C) late majority
D) laggard
E) early majority

Question 79

People who are technology enthusiasts, venturesome, and who enjoy tinkering with new products and mastering their intricacies are called ________.

A) innovators
B) early adopters
C) early majority
D) investigators
E) experimenters

Question 80

Which of the following characteristics is closely associated with late majority adopter groups?

A) superior technological knowledge
B) low price sensitiveness
C) opinion leadership
D) deliberate pragmatism
E) high risk aversion