Deck 8: Innovation and New Product Strategy

Question 1

 Which of the following enables producing a product by building it up a layer at a time?

A) Additive manufacturing
B) Productive layering
C) Merchandise fabrication
D) Object enabling

Answer 1

Additive manufacturing

Question 2

 New products that provide improved performance or greater perceived value (or lower cost) are called _____ innovations. 

A) transformational
B) substantial
C) nondescript
D)incremental

Answer 2

incremental

Question 3

_____ innovation occurs when products are radically new and the values created are substantial.

A) Substantial
B) Transformational
C) Incremental
D) Nondescript

Answer 3

 Transformational

Question 4

Conformity between consumer value expectations and product use experience indicates greater new-product opportunities.

Question 5

 _____ is the combination of benefits provided by a product minus all of the costs incurred by the buyer.

A) Product use experience
B) Customer satisfaction
C) Customer value
D) Leveraging cost

Question 6

 Products that are significantly new and create important value for customers are called _____ innovations. 

A) transformational
B) incremental
C) substantial
D) nondescript

Question 7

The _____ is a form of innovation through collaborative relationships where a company posts a problem and anyone can propose a solution.

A) elite circle
B) innovation mall
C) innovation community
D) consortium

Question 8

A new-product screening involves testing if the product is commercially viable.

Question 9

 The _____ is a form of innovation through collaborative relationship in which a company chooses participants,defines the problem,and chooses the solution.

A) elite circle
B) innovation mall
C) innovation community
D) consortium

Question 10

Analyzing customer value expectations to finding new-product opportunities are very useful in evaluating potential transformational innovations.

Question 11

 The elite circle is a form of innovation through collaborative relationship in which a company chooses participants,defines the problem,and chooses the solution.

Question 12

The _____ is a form of innovation through collaborative relationships where anybody can propose problems,offer solutions,and decide which solutions to use.

A) elite circle
B) innovation mall
C) innovation community
D) consortium

Question 13

Customer _____ indicates how well the product use experience compares to the value expected by the buyer. 

A) value
B) satisfaction
C) need
D) segmentation

Question 14

A product prototype is the first completed model of the product that is ready for commercial production and marketing.

Question 15

The traditional method of market testing helps eliminate the risk present in simulated tests of competitor exposure.

Question 16

 New products that provide improved performance or greater perceived value are known as substantial innovations.

Question 17

 When products become commodities,profit margins increase and differentiated advantages are easily achieved.

Question 18

Product specifications describe what the product will do rather than how it should be designed.

Question 19

 The objective of _____ is to identify needs for new products and improvements in existing products,processes,and supporting services. 

A) test marketing
B) incremental innovation
C) analytical positioning techniques
D) customer value analysis

Question 20

 Radical innovations have the potential of creating negative impacts on the leading firms that pursue new-product strategies using existing technologies.

Question 21

Which of the following is a description of the Generic (market-pull) products process type?

A) The team begins with a market opportunity and selects appropriate technologies to meet customer needs.
B) The team begins with a new technology, and then finds an appropriate market.
C) The team assumes that the new product will be built around an established technological subsystem.
D) Characteristics of the product are highly constrained by the production process.

Question 22

Which of the following marketing tests is conducted in an actual market environment?

A) Regression tests
B) Simulated tests
C) Traditional tests
D) Web-enabled tests

Question 23

The _____ is a form of innovation through collaborative relationships which operates like a private club with participants jointly selecting problems,deciding how to work on them,and choosing solutions.

A) elite circle
B) innovation mall
C) innovation community
D) consortium

Question 24

 _____ consists of the pursuit of a deliberate,ongoing strategy of developing and introducing new products that attract the buyers of a company's existing products. 

A) Sustained innovation
B) Proactive cannibalization
C) Cross production
D) Planned obsolescence

Question 25

Which of the following is true of scanner-based tests?

A) It uses cable television and a computerized database to track new product.
B) It is the cheapest and quickest market test available.
C) Its findings are more accurate than actual market tests.
D) It is conducted in a fabricated shopping environment inside a research facility.

Question 26

 Explain the importance of concept evaluation in new-product planning.

Question 27

How can innovations be classified? What are the different types of innovations?

Question 28

Which of the following are examples of quick-build products?

A) Sporting goods, furniture, tools
B) Software, cellular phones
C) Pharmaceuticals, space systems
D) Airplanes, jet engines, automobiles

Question 29

Product _____ refers to when a new product attracts sales from an existing product.

A) cannibalization
B) knockdown
C) scaffolding
D) benchmarking

Question 30

 Describe how focus groups help generate new-product ideas.

Question 31

Which of the following is the first step in the new-product-planning process?

A) Idea generation
B) Marketing strategy development
C) Product development
D) Customer needs analysis

Question 32

 The company's _____ spells out management's choice of the company's most promising opportunities for new products. 

A) mission statement
B) vision consortium
C) innovation strategy
D) articles of incorporation

Question 33

Describe the various forms of innovation through collaborations?

Question 34

Which of the following describes the process for platform products?

A) Characteristics of the product are highly constrained by the production process.
B) New products are slight variations of existing configurations.
C) System must be decomposed into several subsystems and many components.
D) The team assumes that the new product will be built around an established technological subsystem.

Question 35

 What is proactive cannibalization and what is the strategic logic of this concept?