Question 1

What is the greatest challenge during the business analysis phase of new product development?&#10;A) estimating product demand&#10;B) responding to segment shifts&#10;C) calculating production costs&#10;D) determining the marketing mix

Accepted Answer

Estimating product demand is the greatest challenge during the business analysis phase of new product development. It involves researching and analyzing the market to determine how much demand exists for the product, which can be difficult as it depends on various factors that can be hard to predict, such as consumer behavior and preferences, competition, and economic conditions. Responding to segment shifts, calculating production costs, and determining the marketing mix are important aspects of the business analysis phase as well, but demand estimation is the most crucial challenge.

Question 2

Research indicates that the majority of new products are innovative,while a smaller percentage are revisions of existing products.

Accepted Answer

Research actually indicates that the majority of new products are revisions of existing products, while a smaller percentage are truly innovative. This is because companies often make small tweaks to existing products to optimize them for consumer preferences, rather than creating entirely new products from scratch.

Question 3

Which phase of the new product development process specifies the target market and estimates production costs?&#10;A) prototype and market testing&#10;B) concept development&#10;C) business analysis&#10;D) idea selection

Accepted Answer

B

Question 4

In a brief essay,discuss the issues of timing and cannibalization as they relate to the product launch phase of new product development.

Accepted Answer

The answer of In a brief essay,discuss the issues of...

Question 5

In most cases,launching a product is the most expensive phase of the new product development process.

Accepted Answer

Launching a product involves significant marketing and promotional expenses, which make it the most expensive phase of the product development process.

Question 6

Modern views of product design assert that the process should be ________.&#10;A) holistic&#10;B) technical&#10;C) aesthetic&#10;D) functional

Accepted Answer

Modern views of product design emphasize the importance of considering all aspects of a product, including its technical functionality, aesthetic appeal, and usability. This approach is known as holistic design, which recognizes that all of these components are interconnected and must be considered together to create a successful product.

Question 7

Which of the following is a finding that emerged from the Kano model?&#10;A) Performance factors are rarely specified by customers.&#10;B) Excitement factors remain stable throughout the product life cycle.&#10;C) An increase in the quality of basic factors increases customer satisfaction.&#10;D) Performance factors are connected to the explicit needs and desires of customers.

Accepted Answer

The Kano model, developed by Noriaki Kano, identifies different categories of customer preferences, including basic factors, performance factors, and excitement factors. Performance factors are directly connected to the explicit needs and desires of customers, meaning that as these factors are improved, customer satisfaction is likely to increase. This is because performance factors are attributes that customers say they want in a product, and their presence or enhancement directly correlates with the level of satisfaction.

Question 8

Which of the following is a true statement regarding research and development?&#10;A) R&D investments produce equivalent profits.&#10;B) Research refers to incremental changes in product design.&#10;C) The law of diminishing returns applies to R&D investments.&#10;D) Development refers to basic product explorations undertaken by a firm.

Accepted Answer

The law of diminishing returns applies to R&D investments, meaning that the more a company invests in R&D, the less additional benefit or profit it receives. This is because at a certain point, the costs of R&D may outweigh the benefits. A, B, and D are not true statements regarding research and development.

Question 9

The idea generation stage of the new product development process consumes approximately 50% of the development time and requires significant financial resources.

Accepted Answer

The idea generation stage is just one of several stages in the new product development process and typically does not consume 50% of the development time or require the most significant financial resources. Later stages such as development, testing, and commercialization usually require more time and financial investment.

Question 10

The Kano model is used to generate new product ideas based on ________.&#10;A) market entry strategies&#10;B) portfolio strengths&#10;C) customer needs&#10;D) online surveys

Accepted Answer

The Kano model is a tool used to identify and prioritize customer needs and preferences, making it especially useful for generating new product ideas that will meet those needs. It does not specifically address market entry strategies, portfolio strengths, or rely solely on online surveys.

Question 11

Product improvements,product modifications,and original products can all be classified as ________.&#10;A) new products&#10;B) product concepts&#10;C) pioneer products&#10;D) exploratory products

Accepted Answer

The answer of Product improvements,product modifications,and original products can all...

Question 12

Once a new product passes the business analysis test,it moves into which stage of the development process?&#10;A) product launching&#10;B) prototype testing&#10;C) concept testing&#10;D) mass marketing

Accepted Answer

The answer of Once a new product passes the business...

Question 13

Which of the following would best enable a marketer to measure the utility a customer attaches to a new product's features?&#10;A) Kano model&#10;B) SWOT analysis&#10;C) conjoint analysis&#10;D) virtual reality test

Accepted Answer

The answer of Which of the following would best enable...

Question 14

New product development begins with ________.&#10;A) business analysis&#10;B) concept testing&#10;C) idea generation&#10;D) test marketing

Accepted Answer

The answer of New product development begins with ________.&#10;A) business...

Deck 30: Note : Products - New Product Development