Question 1

When benefit segments are overlaid onto a perceptual map, it results in a cumulative expenditures curve.

Accepted Answer

Overlaid benefit segments on a perceptual map would not result in a cumulative expenditures curve. These are two separate analytical tools used in marketing research.

Question 2

The use of subcontractors or joint ventures is most likely to be closely associated with the _____ risk strategy.

Accepted Answer

The use of subcontractors or joint ventures is a method of transferring risk from the organization to another entity. In this case, the subcontractor or joint venture assumes some of the risk associated with the project, making it a transfer risk strategy.

Question 3

Which of the following outcomes of a risk/payoff matrix, used for evaluating a new product process, is most likely to be the costliest for a firm?

Accepted Answer

The answer of Which of the following outcomes of a...

Question 4

During the concept generation phase of the basic new products process, the goal of product evaluation is to:

Accepted Answer

The goal of product evaluation during concept generation is to eliminate any big/sure losers from the pool of potential ideas, allowing for a more manageable number of concepts to move onto the next phase of the process. Charting out the PIC (Product Innovation Charter) typically occurs earlier in the process and is used to define the scope and purpose of the new product development project. Conducting tests and checks on prototypes comes later in the process, once the concepts have been refined and developed into actual products. Speculating sales in retrospect is not an appropriate measure for evaluating product concepts during the concept generation phase.

Question 5

The first use of evaluation is focused upon:

Accepted Answer

The first use of evaluation is to provide direction for the selection of potential product concepts. Evaluation helps in determining the potential success of various product concepts before investing resources into development. This helps businesses prioritize which concepts are worth pursuing further.

Question 6

The evaluation issue during the launch phase in the new product development process that seeks to find out if a firm has proven itself able to make and market an item on a commercial scale is usually carried out by the evaluation task called _____.

Accepted Answer

Market testing is the evaluation task during the launch phase that seeks to find out if a firm has proven itself able to make and market an item on a commercial scale. Prototype development is part of the earlier design phase, market capitalization is a financial measure and not a part of the new product development process, and market segmentation is a separate task related to identifying and targeting specific customer groups.

Question 7

With reference to the purpose of evaluation, which of the following questions that a firm asks, tests the aspect of scalability of assessing ideas in the concept generation phase of the basic new products process?

Accepted Answer

The question that tests the aspect of scalability is whether the firm can become more efficient in production as volume increases. This relates to the ability of the firm to handle increased demand for the product and maintain quality while keeping costs under control. This question is relevant in the concept generation phase because it helps the firm identify ideas that have the potential for growth and profitability in the long run. Options A, B, and D are more relevant to other aspects of evaluation, such as customer needs, development capability, and alignment with corporate strategy and culture, respectively.

Question 8

Which of the following actions causes backtracking?

Accepted Answer

Backtracking occurs when steps in the product development process are skipped, requiring the team to go back and redo previous work. This can be time-consuming and expensive, negatively impacting the overall development timeline and budget.

Question 9

Which of the following statements is true of the cumulative expenditure curve?

Accepted Answer

The early expenditures curve is representative of product development in technical fields because it reflects a high initial investment in research and development before production scales up, which is common in industries like optics, pharmaceuticals, and high-tech.

Question 10

If the number of determinant attributes is very less, identifying benefit segments on an importance map can be very complex.

Accepted Answer

When there are few determinant attributes, the importance map will have a smaller number of dimensions, making it easier to identify benefit segments.

Question 11

In which of the following risk strategies is risk reduced to an acceptable, threshold level, perhaps through redesigning a product to include more backup systems or increasing product reliability?

Accepted Answer

Mitigation is a risk strategy that involves taking measures to reduce the probability or impact of a risk. In this case, the risk is reduced to an acceptable level through redesigning the product to include more backup systems or increasing product reliability. Avoidance involves eliminating the risk altogether, passive acceptance is accepting the risk without taking any action, and transfer involves transferring the risk to another party, such as an insurance company.

Question 12

The primary purpose of evaluation during Phase III of the basic new products process is to:

Accepted Answer

The primary purpose of evaluation during Phase III is to identify concepts that will proceed further in the development process. This is done through testing and analysis to determine the viability and potential success of the product. The other options may be components of Phase III, but they are not the primary purpose.

Question 13

A new product appears first as a(n) _____.

Accepted Answer

A new product starts as an idea before it is developed into a prototype, model or code.

Question 14

The very first evaluation in the product development process usually:

Accepted Answer

The very first evaluation in the product development process typically precedes the product concept. This evaluation is focused on gathering information about the market, potential customers, and competitors in order to develop a clear understanding of the opportunity and need for the product. It may also involve analyzing technical feasibility and identifying potential risks or challenges that could impact the development process. Only after this evaluation is complete can the product concept be developed.

Question 15

Which of the following risk strategies typically involves developing a contingency plan to accompany new product development?

Accepted Answer

Active acceptance involves acknowledging the risk but also preparing for its potential impact by developing a plan, such as a contingency plan, especially in scenarios like new product development.

Question 16

Benefit segmentation is used to identify unsatisfied market segments and concentrate a firm's efforts on developing concepts ideally suited to the needs of those segments.

Accepted Answer

Benefit segmentation focuses on identifying market segments based on their unique needs and preferences, and developing specific marketing strategies to meet those needs. By identifying and targeting these unsatisfied segments, firms can better position themselves to compete and succeed in the market.

Question 17

Which of the following risk strategies is most likely to incur opportunity costs?

Accepted Answer

Avoidance involves completely avoiding or eliminating the risk, which may lead to missed opportunities or potential benefits that could have been gained by taking the risk. This incurs opportunity costs. The other strategies (mitigation, transfer, and acceptance) still involve managing the risk in some capacity, and therefore are less likely to incur opportunity costs.

Question 18

A _____ is an evaluation technique that tells one whether he or she is ready to develop a product for serious field testing.

Accepted Answer

A protocol check is an evaluation technique used to determine if a product or concept meets the predefined criteria or standards necessary before moving forward to more serious stages of development or field testing. It helps in assessing the readiness of the product for further investment in development.

Question 19

Which of the following industries is most likely to be represented by a late expenditures curve?

Accepted Answer

The consumer packaged goods industry is most likely to be represented by a late expenditures curve because it involves products with relatively short development times and rapid market saturation. This means that significant marketing and production expenditures occur closer to the product's launch, fitting the characteristics of a late expenditures curve.

Question 20

According to the risk/payoff matrix, during the phase of concept/project evaluation of the new products process, a _____ error occurs when a winning product is discarded.

Accepted Answer

During the concept/project evaluation phase, one of the risks is discarding a potential winning product. This is referred to as a type I error or a "drop" error, and it can be costly for the company in terms of missed opportunities and lost revenues. The other options (decay, launch, and development) do not accurately describe this specific risk in the concept/project evaluation phase.

Quiz 7: Concept Evaluation and Testing