Deck 20: Introducing New Market Offerings

Question 1

Most new-product activity is devoted to ________.

A)repositioning existing products
B)developing new-to-the-world products
C)backward innovation
D)improving existing products
E)none of the above

Answer 1

D

Question 2

Several factors hinder new-product development today,including ________-when a new product is successful,rivals are quick to copy it.

A)high cost of development
B)fragmented markets
C)a shortage of important ideas in certain areas
D)social and governmental constraints
E)shorter product life cycles

Answer 2

E

Question 3

One of the reasons new products can fail is________.

A)low development cost
B)government regulations
C)poor packaging
D)ignored or misinterpreted market research
E)all of the above

Answer 3

D

Question 4

Several factors hinder new-product development,including ________.

A)cost of development
B)fragmented markets
C)shortage of important ideas in certain areas
D)capital shortages
E)all of the above

Question 5

The number-one success factor for new products is ________.

A)product uniqueness and superiority
B)a marketing department that has expertise in new products
C)a firm with deep pockets
D)a tight marketing budget
E)market-skimming pricing

Question 6

__________ is(are)a cross-functional group charged with developing a specific product or business.
A)A venture team

A)Contract manufacturers
B)New-product managers
C)Product managers
D)None of the above

Question 7

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

A)venture groups
B)social networks
C)buzz agents
D)lead users
E)all of the above

Question 8

Most new-product activity is devoted to ________ existing products.

A)improving
B)coordinating
C)distributing
D)pricing
E)marketing

Question 9

________ means inviting the Internet community to help create content or software,often with prize money or a moment of glory involved.

A)Stage-gating
B)Cocreation
C)Microstocking
D)Buzzing
E)Crowdsourcing

Question 10

Fewer than ________ of all new products are truly innovative and new to the world.

A)30% to 35%
B)20%
C)10% to 15%
D)25%
E)40%

Question 11

A company can add new products through acquisition or development.The acquisition route can take three forms.The company can buy other companies;it can acquire patents from other companies;or it can buy a ________ or _________ from another company.

A)license;franchise
B)license;receive permission
C)franchise;co-brand
D)franchise;acquire rights
E)none of the above

Question 12

New-product ideas can come from interacting with various groups and from using _________.

A)marketing resources
B)financial resources
C)groups
D)test subjects
E)creativity-generating techniques

Question 13

One-on-one interviews and ________ discussions can explore product needs and reactions.

A)focus-group
B)strategic group
C)customer relationship group
D)management
E)advertising agency

Question 14

The new-product development process starts with the search for ________.

A)production efficiency
B)products that can be improved upon
C)overseas products
D)ideas
E)strategy

Question 15

Many top companies use the ________ to manage the innovation process.They divide the process into several phases,and at the end of each phase is a checkpoint where senior managers can make go,kill,hold,or recycle decisions.

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

Question 16

Newer companies create ________ that are cheaper and more likely to alter the competitive space.Established companies can be slow to react or invest in these technologies because they threaten their investment.

A)new products
B)newer markets
C)newer channels of distribution
D)disruptive technologies
E)none of the above

Question 17

Most established companies focus on ________ when it comes to innovation.

A)incremental innovation
B)continuous innovation
C)everyday innovation
D)demand innovation
E)competitive innovation

Question 18

New-to-the- world products are ________.

A)new products that create an entirely new market
B)new products that allow a company to enter an established market
C)new products that supplement established product lines
D)new products that provide greater perceived value and replace existing products
E)existing products that are targeted to new markets or market segments

Question 19

The traditional company-centric approach to product innovation is giving way to ________.

A)the increasing importance of company R&D departments
B)the cocreation of products with consumers
C)the insights of senior executives in the go/no-go stage-gate decisions
D)a more financially strict attitude toward funding new-product development
E)all of the above

Question 20

A(n)________ strategy to designing new products attaches high importance to incorporating customer preferences in the final design.

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

Question 21

A ________ occurs when the company dismisses a good idea.

A)product failure
B)brand failure
C)dual error
D)DROP-error
E)GO-error

Question 22

A company should motivate its employees to submit new ideas to a(n)________,whose name and phone number are widely circulated.

A)idea manager
B)senior product manager
C)creative manager
D)advertising manager
E)top management person

Question 23

________ provide quantitative portrayals of market situations and how consumers see different products,services,and brands along various dimensions.

A)Brand concepts
B)Product concepts
C)Perceptual maps
D)Concept tests
E)Product ideas

Question 24

A(n)________ loses money when its sales do not cover variable costs.

A)strategic product failure
B)market product failure
C)absolute product failure
D)relative product failure
E)transfer product failure

Question 25

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

A)conjoint analysis
B)marketing strategy
C)gap research
D)need assessment
E)skunkworks

Question 26

A ________ occurs when the company permits a poor idea to move into development and commercialization.

A)dual error
B)brand failure
C)GO-error
D)DROP-error
E)product error

Question 27

Total estimated sales are the sum of estimated first-time sales,replacement sales,and ________ for the new product.

A)repeat sales
B)one-time purchases
C)infrequently purchased items
D)consumer products
E)industrial use products

Question 28

In the past,creating physical prototypes was costly and time consuming,but computer-aided design and manufacturing programs have changed that.Today,firms can use ________ to design products on a computer,and then produce rough models of each.

A)computer-aided design
B)rapid prototyping
C)model making
D)perceived reality
E)none of the above

Question 29

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 relationships
E)morphological analysis

Question 30

A(n)________ loses money,but its sales cover all its variable costs and some of the fixed costs.

A)strategic product failure
B)market product failure
C)partial product failure
D)relative product failure
E)transfer product failure

Question 31

The ________ technique for stimulating creativity starts with a problem,such as "getting something from one place to another via a powered vehicle," then lists every possible combination of attributes,such as the type of platform,the medium,and the power source.

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

Question 32

Increasingly,new-product ideas arise from ________ that combines two product concepts or ideas to create a new offering,such as cereal bars,which combine cereal and snacking.

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

Question 33

Company ________ and intermediaries are a particularly good source of ideas.These groups have firsthand exposure to customers and are often the first to learn about competitive developments.

A)marketing departments
B)competitors
C)sales representatives
D)top management
E)customers

Question 34

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

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

Question 35

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)marketing strategy
B)marketing research
C)gap level
D)conjoint analysis
E)purchase intentions

Question 36

The overall probability of success for a new product is a function of ________.

A)the probability of technical completion
B)the probability of commercialization,given technical completion
C)the probability of economic success,given commercialization
D)all of the above
E)none of the above

Question 37

The business attractiveness of a proposal is dependent on ________.

A)sales projections
B)cost projections
C)profit projections
D)all of the above
E)none of the above

Question 38

A(n)_________ yields a profit that is less than the company's target rate of return.

A)strategic product failure
B)market product failure
C)absolute product failure
D)relative product failure
E)transfer product failure

Question 39

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

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

Question 40

Attractive ideas must be refined into testable product concepts.A(n)________ is a possible product the company might offer to the market.

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

Question 41

The methodology of quality function deployment takes the list of desired ________ generated by market research and turns them into a list of ________ that the engineers can use.

A)customer attributes;engineering mandates
B)consumer attributes;environmental attributes
C)customer attributes;engineering attributes
D)consumer attributes;engineering specifications
E)none of the above

Question 42

The ________ method of measuring customer preferences asks the consumer to rank the options in order of preference.

A)rank-order
B)paired-comparisons
C)monadic-rating
D)alpha-ranking
E)beta-ranking

Question 43

The ________ method of measuring customer preferences presents pairs of items and asks the consumer which one is preferred in each pair.

A)rank-order
B)paired-comparison
C)monadic-rating
D)alpha-testing
E)beta-testing

Question 44

Companies use financial measures to evaluate the merit of a new-product proposal.The simplest to use is called ________ ,in which management estimates how many units of the product the company would have to sell to break even with the given price and cost structure.

A)conjoint analysis
B)risk analysis
C)regression analysis
D)ANOVA analysis
E)breakeven analysis

Question 45

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

A)Expensive products
B)Inexpensive products
C)Commodity products
D)Frequently purchased products
E)Infrequently purchased products

Question 46

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

A)Effective influence
B)Direct influence
C)Market influence
D)Brand influence
E)Personal influence

Question 47

The innovation diffusion process has been defined by Rogers as "the spread of a new idea from its source of invention or creation to its ultimate users or adopters." The consumer-adoption process focuses on the ________ process through which an individual passes from first hearing about an innovation to final adoption.

A)mental
B)physical
C)manual
D)critical path
E)management

Question 48

Advantages of sales-wave research include an indication of ________.

A)trial rates the product would achieve with different sales promotion incentives
B)the brand's power to gain distribution and favorable shelf position
C)the likely success of network effects on the purchase of the product
D)levels of satisfaction for those who try the product
E)all of the above

Question 49

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

A)survival-age distribution
B)distribution
C)obsolescence
D)product failure
E)product-performance usage

Question 50

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)complexity

Question 51

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

A)product
B)innovation
C)new idea
D)creative product
E)none of the above

Question 52

The amount of market testing that a new product undergoes is influenced by ________.

A)investment cost
B)investment risk
C)time pressure
D)research cost
E)all of the above

Question 53

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

A)marketing expertise
B)relative advantage
C)packaging
D)government regulations
E)all of the above

Question 54

When prototypes are ready,they must be put through rigorous functional tests and ________ before they enter the marketplace.

A)consumer behavior testing
B)customer tests
C)internal tests
D)marketing department testing
E)lab testing

Question 55

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 are ________.

A)dissatisfied with the product
B)brand switchers
C)satisfied with the product
D)brand evangelists
E)indifferent to the product

Question 56

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

A)money-back guarantee
B)price
C)purchase frequency
D)usage
E)preferences

Question 57

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)innovation
D)diffusion process
E)none of the above

Question 58

Advantages of ________ include that it can be implemented quickly,conducted with a fair amount of security,and carried out without final packaging and advertising.

A)sales-wave research
B)simulated test marketing
C)controlled test marketing
D)actual test markets
E)none of the above

Question 59

The ________ method of measuring customer preferences asks the consumer to rate each product on a scale so marketers can derive the individual's preference order and levels.

A)paired-comparison
B)rank-order
C)monadic-rating
D)alpha-testing
E)beta-testing

Question 60

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

A)quality function deployment (QFD)
B)quality control processes (QFP)
C)R&D
D)marketing control
E)none of the above

Question 61

Concept testing of prototypes is particularly easy with radically different,new-to-the-world products.

Question 62

Truly innovative firms must strongly condemn and punish failure within their product development organizations.

Question 63

New-product development requires senior management to define business domains,product categories,and specific criteria.

Question 64

Many companies assign responsibility for new-product ideas to product managers,but product managers are often so busy managing existing lines that they give little thought to new products other than line extensions.

Question 65

Products designed for the world market,or at least to include neighboring countries,achieve significantly more profits,both at home and abroad.Thus companies should adopt an international focus in designing and developing new products.

Question 66

The more a tested concept resembles the final product or experience,the more dependable concept testing is.

Question 67

The traditional system of new-product cocreation with consumers is giving way to a more company-centric approach to product innovation.

Question 68

A product idea is a possible product the company might offer to the market.

Question 69

New-to-the world products are products that create entirely new markets.

Question 70

Group brainstorming sessions should generally be allowed to run themselves.Trained facilitators tend to slow down the momentum of such sessions and quash innovation.

Question 71

A relative product failure loses money,but its sales cover all its variable costs and some of the fixed costs associated with the product rollout.

Question 72

Truly innovative products incur the greatest cost and risk to the firm because they are both new to the company and new to the marketplace.

Question 73

Although developing new products can help a company get ahead in the marketplace,if a company currently markets a successful product,there is no need to spend money or staff time on developing new products.

Question 74

A company can add new products through acquisition or development.

Question 75

A product concept is an elaborated version of the idea expressed in consumer terms.

Question 76

Product-development costs rise substantially with each successive development stage,so screening is intended to drop poor ideas as early as possible.

Question 77

The new-product development process is always linear-products move past the stage gates in sequence and are not allowed to backtrack through previous gates.

Question 78

Focus groups provide the most reliable data on the likelihood of success for radical innovations.

Question 79

A singular customer focus always helps to create better new products.

Question 80

Most established companies focus on incremental innovation,which is the gradual improvement of existing products.