Question 1

Which of the following is an internal source for new product ideas?
A) competitors
B) company executives
C) marketing research firms
D) trade magazines
E) government agencies

Accepted Answer

Company executives are considered an internal source for new product ideas as they have a deep understanding of the company's objectives, resources, and capabilities. They can identify new product opportunities based on their knowledge of the market, customer needs, and technological trends. Competitors, marketing research firms, trade magazines, and government agencies are considered external sources for new product ideas.

Question 2

Acquisition refers to ________.
A) the buying of a whole company, a patent, or a license to produce someone else's product
B) an agreement between two or more commercial companies to produce a common product
C) a partnership between two companies to produce a product in different countries by sharing risks
D) investments made in a country's businesses by foreign citizens, often in the form of stocks
E) the development of original products, product improvements, product modifications, and new brands through the firm's own product development strategies

Accepted Answer

Acquisition refers to the buying of a whole company, a patent, or a license to produce someone else's product.

Question 3

Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else's product.

Accepted Answer

Acquisition refers to the purchase of a complete company, a patent, or a license to produce someone else's product.

Question 4

John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify?
A) idea screening
B) idea generation
C) concept testing
D) product development
E) product manufacturing

Accepted Answer

John's fascination for his grandmother's sherbet recipes is the first stage of new product development process, which is idea generation.

Question 5

Which of the following is an external source for ideas?
A) project managers
B) engineers
C) salespeople
D) manufacturing staff
E) suppliers

Accepted Answer

Suppliers are a key external source for ideas, as they may have new and innovative products or processes that can be incorporated into a company's offerings. Project managers, engineers, salespeople, and manufacturing staff are typically internal sources for ideas.

Question 6

Which of the following is a significant challenge presented by the product life cycle?
A) increased expenses
B) increased competition
C) new product development
D) evaluation of results
E) recognizing the stages as a product goes through them

Accepted Answer

The answer of Which of the following is a significant...

Question 7

Product improvements, product modifications, and original products can all be classified as ________.
A) blueprints
B) new products
C) prototypes
D) product extensions
E) test products

Accepted Answer

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

Question 8

In the new product development process, the first idea-reducing stage is ________.
A) business analysis
B) idea generation
C) concept development
D) crowdsourcing
E) idea screening

Accepted Answer

Idea screening is the first idea-reducing stage in the new product development process, in which the company evaluates and filters out the unsuitable, unfeasible, and unprofitable ideas generated in the idea generation stage. Business analysis, concept development, and crowdsourcing are the subsequent stages in the process, while idea generation is the preliminary stage that precedes idea screening.

Question 9

Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?
A) brainstorming
B) idea screening
C) crowdsourcing
D) outsourcing
E) concept testing

Accepted Answer

Crowdsourcing is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process. Brainstorming is a technique for generating ideas, idea screening is the process of evaluating ideas, outsourcing is the practice of hiring an external company to perform a task, and concept testing is the process of testing new product concepts with a target market.

Question 10

Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best ideas during the ________ stage.
A) business analysis
B) idea generation
C) concept testing
D) idea screening
E) concept development

Accepted Answer

The executives plan to filter out the best ideas, which indicates that they will be conducting idea screening to narrow down the extensive list of ideas generated during the brainstorming session. Therefore, the correct choice is D - idea screening.

Question 11

Explain common reasons for the failure of new products. What methods can a company adopt to improve its odds of new product success?

Accepted Answer

The answer of Explain common reasons for the failure of...

Question 12

Which of the following statements is true of the idea generation stage in the new product development process?
A) The purpose of idea generation is to reduce the number of ideas to the least possible number.
B) Truly innovative companies rely exclusively on a single source for new product ideas.
C) Customers are the least important sources of new product ideas.
D) Truly innovative companies develop extensive innovation networks that capture ideas and inspiration from every possible source.
E) Truly innovative companies seldom rely on customers and the general public for ideas.

Accepted Answer

Truly innovative companies recognize the importance of seeking ideas and inspiration from every possible source, including customers, competitors, employees, and partners, and often develop extensive innovation networks to capture ideas. The goal of idea generation is to generate as many ideas as possible, not reduce them to the least possible number, and relying exclusively on a single source for new product ideas is not a sustainable strategy for innovation. Therefore, option D is the most accurate statement.

Question 13

Why are customers often considered the most important sources of new product ideas?
A) Customers are close to the market and can pass along information about problems and new product possibilities.
B) The company can analyze customer questions and complaints to find new products that better solve consumer problems.
C) Customers buy competing new products, take them apart to see how they work, analyze sales, and then decide to purchase.
D) Customers review the sales, costs, and profit projections for a new product to find out whether the product satisfies the company's objectives.
E) Customers estimate the minimum and maximum sales to assess the range of risk.

Accepted Answer

The answer of Why are customers often considered the most...

Question 14

Which of the following is a common reason for new product failure?
A) incorrect estimation of the market size
B) low product development costs
C) ineffective social marketing campaigns
D) low selling prices of products
E) patent ownership exclusively held by the company

Accepted Answer

Incorrect estimation of the market size is a common reason for new product failure as it can lead to a mismatch between the supply and demand of the product. If the market size is overestimated, it can result in excess inventory and financial losses, whereas underestimating the market size can lead to missed opportunities and low sales.

Question 15

Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.
A) new product development
B) acquisition
C) joint venture
D) licensing contract
E) divestment

Accepted Answer

The scenario describes a firm buying all assets and ownership equity of another company, which is an example of an acquisition.

Question 16

Which of the following is the most likely reason that employees regularly attend trade shows and seminars?
A) to analyze the product life cycle
B) to test new product concepts
C) to get new product ideas
D) to imitate competitors' products and strategies
E) to implement a team-based new product development approach

Accepted Answer

Trade shows and seminars are great places for employees to network and gather information from industry experts and other companies. Attending these events can provide employees with new product ideas and insights into emerging trends in their industry. Analyzing the product life cycle or imitating competitors' products and strategies are not the primary reasons for attending these events. Implementing a team-based new product development approach may involve attending trade shows and seminars, but it is not a reason on its own. Testing new product concepts is also a possibility, but it is included in the broader category of gathering new product ideas.

Question 17

New product development starts with ________.
A) concept development
B) idea screening
C) idea generation
D) concept testing
E) test marketing

Accepted Answer

Idea generation is the first stage in new product development where ideas are gathered from various sources such as customers, employees, and competitors. It is the starting point for the entire new product development process.

Question 18

A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?
A) The products were priced too high.
B) The products were advertised incorrectly.
C) Competitors fought back harder than expected.
D) Product research was too extensive.
E) The product development costs were high.

Accepted Answer

Product research being too extensive is the least likely cause of product failure. Extensive research would typically lead to better understanding of the market and customer needs, resulting in better product development and marketing strategy. The other options, such as pricing, advertising, competitive factors, and development costs, are all common reasons for product failure.

Question 19

Many companies have developed ________ programs that encourage employees to develop new product ideas.
A) management
B) incentive
C) entrepreneurial
D) intrapreneurial
E) crowdsourcing

Accepted Answer

The phrase "encourage employees to develop new product ideas" suggests that the program is aimed at fostering innovation and creativity within the company. Intrapreneurship programs are designed to do just that, by giving employees the opportunity and resources to develop new ideas and projects within the company's existing framework. Option A (management) is too general and doesn't refer specifically to fostering innovation. Option B (incentive) could be a part of an intrapreneurship program, but it alone does not constitute such a program. Option C (entrepreneurial) refers to starting a new business or venture outside of an existing organization, and is therefore not relevant in this context. Option E (crowdsourcing) involves gathering ideas and contributions from a large group of people, which is not the same as an intrapreneurship program that focuses on employees within the company.

Question 20

A firm can obtain new products through acquisition or new product development efforts.

Accepted Answer

A firm can acquire new products by purchasing another company or product line, or they can develop new products through research and development efforts.

Quiz 9: New Product Development and Product Life-Cycle Strategies

Which of the following is an internal source for new product ideas?

Acquisition refers to ________.

Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else's product.

John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify?

Which of the following is an external source for ideas?

Which of the following is a significant challenge presented by the product life cycle?

Product improvements, product modifications, and original products can all be classified as ________.

In the new product development process, the first idea-reducing stage is ________.

Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?

Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best ideas during the ________ stage.

Explain common reasons for the failure of new products. What methods can a company adopt to improve its odds of new product success?

Which of the following statements is true of the idea generation stage in the new product development process?

Why are customers often considered the most important sources of new product ideas?

Which of the following is a common reason for new product failure?

Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.

Which of the following is the most likely reason that employees regularly attend trade shows and seminars?

New product development starts with ________.

A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?

Many companies have developed ________ programs that encourage employees to develop new product ideas.

A firm can obtain new products through acquisition or new product development efforts.