Deck 1: The Strategic Elements of Product Development

Question 1

The term "product innovation" usually applies to functions, especially those of manufacturing or distribution.

Answer 1

False

Question 2

Research has shown that at least 40 percent of firms assign a marketing manager whose job it is to manage the phased new products process.

Answer 2

False

Question 3

With reference to the new products process, a firm adopts the ready-fire-aim approach when it:

A) lacks senior management support.
B) does not pay enough attention to quality.
C) chases a moving target.
D) does not do the required homework before beginning development.

Answer 3

D

Question 4

By definition, new products are limited to significant technological innovations.

Question 5

Radical innovation that displaces or obsoletes current products and creates totally new product categories is critical to the future growth and survival of a firm.

Question 6

Well-known business writer, Gary Hamel, has described _____ as "the most important business issue of our time."

A) product distribution
B) the creation of radical innovation
C) advertising and marketing of services
D) product line extensions

Question 7

An ideal new products team is essentially self-directed with limited or no cross-functionality.

Question 8

Product portfolio management refers to the procedure that takes a new product idea through concept evaluation, product development, launch, and post-launch.

Question 9

The terms "product idea," "product concept," and "product prototype" are interchangeable and they are all about the same thing.

Question 10

Which of the following statements is true of the importance of new products?

A) The failure rate for new products is estimated to be around 90 percent.
B) The new products process is exceedingly difficult.
C) Radical innovation is detrimental to the survival of a firm.
D) All the individuals involved in the creation of a new product generally belong to the same department.

Question 11

New-to-the-firm products revolutionize existing product categories or define wholly new ones.

Question 12

According to the latest Comparative Performance Assessment Study (CPAS), in comparison to the Rest, Best companies are:

A) more likely to use tradeoff analysis.
B) less likely to rely on portfolio analysis for product selection.
C) more likely to employ informal processes for selecting which concepts to develop.
D) less likely to rely on online communities for information gathering.

Question 13

In a new product process, an evaluation task that includes conditional "Go" decisions is sometimes called a fuzzy gate.

Question 14

A firm's global presence is no guarantee that it will automatically know how to efficiently manage its global operations.

Question 15

Which of the following is a reason for product failure in a firm?

A) Resorting to radical innovation with the new products process
B) Avoiding the use of the ready-fire-aim approach in the product development process
C) Chasing a moving target
D) Paying too much attention to customer needs

Question 16

New-to-the-world products are less likely to require consumer learning.

Question 17

Firms with a global innovation culture have the most effective global new product programs.

Question 18

Business firms expect, and get, a high percentage of their sales and profits from new products.

Question 19

New products can be tangible goods or services.

Question 20

The number one reason for new product success is a unique superior product.

Question 21

Which of the following is true of new product categories?

A) If a product is new-to-the-world, the risks and uncertainties faced by the firm are higher.
B) If a product is new-to-the-firm, the associated costs of development and launch tend to be lower.
C) Generally, all the new product categories are innovations.
D) New product categories have to be managed in a similar fashion.

Question 22

Luminos Co., a popular manufacturer of kitchen appliances, decides to enter the manufacturing sector of crockery and dinnerware. It markets a line of dinnerware, Illuminia, for the first time in its history. Its dinnerware will most likely fall into which of the following new product categories?

A) New-to-the-world products
B) New-to-the-firm products
C) Line extensions
D) Product improvements

Question 23

To cater to the constant demands of its customers, Roltez Pretzels, a manufacturer of pretzels and extruded corn snacks, introduces honey-mustard pretzels to its product line. The honey-mustard pretzels are examples of:

A) new-to-the-world products.
B) new-to-the-firm products.
C) "flanker" brands.
D) product improvements.

Question 24

Which of the following firms will have the most effective worldwide new product programs?

A) Firms that have implemented total quality management
B) Firms that use quality circles
C) Firms that follow a global innovation culture
D) Firms that are leaders in their respective industries

Question 25

Which of the following products define wholly new product categories and are most likely to require consumer learning or incorporate a very new technology?

A) Improvised products
B) New-to-the-world products
C) New-to-the-firm products
D) Repositionings

Question 26

A "me-too" product is most likely a:

A) new-to-the-world product.
B) new-to-the-firm product.
C) repositioned product.
D) reduced cost product.

Question 27

Firms with a global innovation culture:

A) have a disadvantage in implementing global launches.
B) are unwary of the differences in customer needs and preferences.
C) can better manage the R&D tasks associated with the new products process.
D) are only open to domestic markets.

Question 28

Rules of thumb that firms have found that work for them can be referred to as:

A) heuristics.
B) syntaxes.
C) synergies.
D) charters.

Question 29

Which of the following statements is true of new product categories?

A) New product categories do not differ with regard to their associated risks and uncertainties.
B) All new product categories are not necessarily innovations.
C) Additions or revisions to existing product lines do not fall under the domain of new product categories.
D) The least innovative category of new products is product repositionings.

Question 30

New-to-the-firm products:

A) most likely require consumer learning.
B) most likely involve the incorporation of a very new technology.
C) tend to revolutionize existing product categories.
D) are new to a company, but are not new to the world.

Question 31

Products that are inventions and create a whole new market are called:

A) new-to-the-world products.
B) new-to-the-firm products.
C) "flanker" brands.
D) improvised products.

Question 32

Ace Corporation is a manufacturer of powder and liquid dishwashing detergents. Owing to popular demand, the company introduces a single-load, scented, gel detergent encased in water-soluble bags designed to fit dishwasher detergent trays. The firm's new product is best described as a(n):

A) new-to-the-world product.
B) line extension.
C) repositioned product.
D) improvised product.

Question 33

When a current product of a company has been enhanced to better serve consumer needs, the product will fall into the new product category of _____.

A) new-to-the-world products
B) repositionings
C) line extensions
D) product improvements

Question 34

_____ are also known as "flanker" brands.

A) Line extensions
B) New-to-the-world products
C) Improvised products
D) Repositionings

Question 35

_____ refer to those products that are retargeted for a new use or application.

A) "Flanker" brands
B) Line extensions
C) Repositionings
D) New-to-the-world products

Question 36

Zooky Inc. is a well-known manufacturer of bubble gums, candies, chewing gums, and edible breath strips. The company recently introduced a new range of sugar-free, antibacterial chewing gum. Zooky's new product can be best described as a(n):

A) line extension.
B) new-to-the-firm product.
C) new-to-the-world product.
D) repositioned product.

Question 37

Which of the following categories of new products would present higher risks and uncertainties as well as associated costs of development and launch?

A) Line extensions
B) New-to-the-world products
C) Improvised products
D) Repositionings

Question 38

New-to-the-firm products are:

A) inventions that create a whole new market.
B) products that take a firm into a category new to it.
C) products that are new to the world, but are not new to the firm.
D) products that are retargeted for a new use or application.

Question 39

Designethic Co. is known for selling cards, gift-wrapping materials, and collectibles. In a bid to compete with its counterparts, Designethic added fresh-cut flower arrangements to its range of product offerings in the year 2015. Into which of the following new product categories would the floral arrangements fall?

A) New-to-the-world products
B) New-to-the-firm products
C) Line extensions
D) Repositionings

Question 40

In an attempt to extend the life of its brand of AquaFresh soap, Agate Inc., a soap manufacturer, makes certain enhancements to the characteristics and quality of its soaps. Agate's products would best fit into the new product category of:

A) line extensions.
B) new-to-the-firm products.
C) new-to-the-world products.
D) product improvements.

Question 41

_____ helps a firm assess which new products would be the best additions to existing product lines, given both financial and strategic objectives.

A) A product finances charter
B) Product portfolio management
C) A product assessment matrix
D) Product value-add assessment

Question 42

Between the phases of the new products process, there are points when:

A) the actual developmental tasks of the phases need to be carried out.
B) the hard Go/No Go decisions need to be made.
C) the process is stalled, and no work is done.
D) the process enters into buffer phases.

Question 43

Which of the following is considered to be the least innovative among the categories of new products?

A) Cost-reduced products
B) New-to-the-firm products
C) New-to-the-world products
D) Line extensions

Question 44

Which of the following is the first phase in the basic new products process?

A) Concept ideation and generation
B) Opportunity identification and selection
C) Project evaluation
D) Product development

Question 45

What is a fuzzy gate? Explain with an example.

Question 46

The _____, a strategy for new products, ensures that the new product team develops products that are in line with firm objectives and strategies and that address marketplace opportunities.

A) product prototype
B) product portfolio
C) product framework
D) product innovation charter

Question 47

Briefly explain the terms: new products process, product innovation charter, and product portfolio management.

Question 48

_____ refers to the overall process whereby an invention is transformed into a commercial product that can be sold profitably.

A) Innovation
B) Attribution
C) Brainstorming
D) Pricing

Question 49

Which of the following is the least innovative among the given set of new product categories?

A) New-to-the-firm products
B) Product improvements
C) Line extensions
D) Repositionings

Question 50

A marketing researcher is most likely to serve as a _____ in a new product development team.

A) functional representative
B) process manager
C) scientific advisor
D) project leader

Question 51

A _____ assumes a leadership role that oversees a team of people representing various functional departments.

A) functional representative
B) process manager
C) project manager
D) marketing researcher

Question 52

Describe the various categories of new products.

Question 53

The job of a _____ in the field of new product management is to help project managers develop and use good new product processes.

A) team executive
B) process manager
C) functional representative
D) technical specialist

Question 54

Which of the following statements is true regarding invention?

A) An invention is usually patentable.
B) To managers, invention is a dimension of complexity.
C) There are far more innovations than inventions.
D) An invention refers to the overall process whereby an innovation is transformed into a commercial product.

Question 55

Discuss the terms "product innovation" and "process innovation."