Deck 1: The Strategic Elements of Product Development

Question 1

The leading factor in new product success is the development of a uniquely superior offering.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

Which of the following statements is true regarding a new product?

A)Failure rate for new products is around 90 percent.
B)A successful new product does more good for a firm than anything else that can happen.
C)The new products process is exceedingly simple.
D)Generally,all the people involved in the creation of a single product belong to the same department.

Question 7

New-to-the-world products are the least common form of new products.

Question 8

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 9

New-to-the-firm products are the least likely to require consumer learning.

Question 10

The new products team ideally is self-directed.

Question 11

The term "product innovation" usually applies to functions,especially manufacturing or distribution,and every new product benefits from this type of innovation.

Question 12

The best product-developing firms require about _____ ideas to generate one winning product.

A)four
B)nine
C)twelve
D)twenty

Question 13

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

Question 14

A successful new product does more good for a firm than anything else that can happen.

Question 15

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

Question 16

With reference to the new products process,when the firm ____,it is called the ready-fire-aim approach.

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

Question 17

Historically,almost 90 percent of all new products have failed.

Question 18

Which of the following statements is NOT true with regard to new product development?

A)Radical innovation is critical to future growth and even survival of the firm.
B)A successful new product does more good for an organization than anything else that can happen.
C)The new products process is exceedingly simple and can be used easily to increase profits.
D)Business firms expect and get a high percentage of their sales and profits from new products.

Question 19

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.

Question 20

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

Question 21

A "me-too" product is most likely to be a(n):

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

Question 22

Which of the following is the least innovative category of new products?

A)Cost-reduced products
B)New-to-the-firm products
C)New-to-the-world products
D)Additions to existing product lines

Question 23

P&G's Tide Liquid detergent,Apple's iMac,and Hewlett-Packard's LaserJet 7P are examples of:

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

Question 24

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)Improvements and revisions to existing products
D)Repositionings

Question 25

Products that are inventions are called:

A)new-to-the-world products.
B)new category entries.
C)addition to product lines.
D)product improvements.

Question 26

Rold Gold Pretzels introduced 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 products.
D)product improvements.

Question 27

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

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

Question 28

When a current product of a company has been enhanced to better serve consumer needs,it will fall in this new product category.

A)New-to-the-world products
B)New category entries
C)Additions to product lines
D)Product improvements

Question 29

Which of the following is the least common form of new products?

A)Cost reductions
B)Product improvements
C)New-to-the-world products
D)Repositionings

Question 30

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

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

Question 31

Product development has become more challenging due to:

A)lack of feedback from superiors.
B)increased level of employee expectations.
C)reduction in the budget allocated for HR activities in several firms.
D)increased globalization.

Question 32

Which of the following new product categories is also known as flanker brands?

A)Line extensions
B)New-to-the-world products
C)Improvements and revisions to existing products
D)Repositionings

Question 33

Which of the following statements is NOT true regarding new product categories?

A)The risks and uncertainties associated with various new product categories differ and the categories need to be managed differently.
B)All new product categories are necessarily innovations.
C)Many new products can be considered additions to existing product lines or improvements and revisions to existing products.
D)Launching new-to-the-world product means risk.

Question 34

Which of the following best represents rules of thumb that firms have found work for them?

A)Heuristics
B)Guidelines
C)Synergies
D)Product innovation charters

Question 35

Products that take a firm into a category or market new to it are best described as:

A)repositioned products.
B)new-to-the-firm products.
C)cost reductions.
D)line extensions.

Question 36

P&G's Ivory Soap and Tide powder laundry detergent have been revised numerous times throughout their history.Identify the product category that these products would BEST fit into.

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

Question 37

After years of producing powder and liquid dishwashing detergents,the Ace Corporation has recently introduced 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)addition to an existing product line.
C)repositioned product.
D)new product line.

Question 38

Hallmark is known for selling cards,gift-wrapping materials,and collectibles.In the summer of 2000,Hallmark added fresh-cut flower arrangements to its product offering.In 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)Additions to product lines
D)Product improvements

Question 39

The manufacturer of Luminarc is marketing a line of dinnerware for the first time in its history.In which of the new product categories would the dinnerware fall?

A)New-to-the-world products
B)New-to-the-firm products
C)Additions to product lines
D)Product improvements

Question 40

Which of the following products revolutionize existing product categories or define wholly new ones?

A)Improvements to existing offerings
B)New-to-the-world products
C)New-to-the-firm products
D)Repositionings

Question 41

Describe the various categories of new products.

Question 42

According to the text,the goal of a new products process is to:

A)control the cost of the new product.
B)manage the amount of risk and uncertainty involved.
C)have very low failure rates by playing it safe with close-to-home innovations.
D)successfully launch the new product.

Question 43

The _____ is tasked with leadership of a multifunctional new product development team.

A)functional representative
B)marketing manager
C)project manager
D)CEO

Question 44

In the evaluation tasks that occur after every phase in the new product process,a _____ problem occurs when teams actually make a full "Go" decision,but fail to commit any resources to the project.

A)hollow-gate
B)heuristic
C)fuzzy gate
D)unconfirmed step

Question 45

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

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

Question 46

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

Question 47

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 concept
B)product portfolio
C)product framework
D)product innovation charter

Question 48

What are the most important reasons for product failure?

Question 49

In a new product process,an evaluation task that includes conditional "Go" decisions is sometimes called a(n):

A)heuristic.
B)fuzzy gate.
C)unconfirmed step.
D)hollow-gate.

Question 50

The job of a _____ in the field of new products 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 51

Which of the following is NOT true about the product innovation charter (PIC)?

A)It is developed by first or second level managers.
B)It provides guidance to all functional areas involved in innovation.
C)It defines a scope of activity for new product development.
D)It helps the product team identify where they should focus their efforts.

Question 52

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

Question 53

Which of the following statements is true regarding invention?

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

Question 54

What is a fuzzy gate? Explain with an example.

Question 55

The most important factor contributing to the success of a new market offering is:

A)a unique,superior product.
B)a large advertising budget.
C)a massive distribution system.
D)price appeal.