Question 1

Which of the following statements is true regarding the people dimension of the evaluation system?

Accepted Answer

Early in the life of a new product, the product idea may have little support outside of R&D. This is because in the early stages of product development, the idea is still being developed and has not been widely shared or evaluated by others outside of the research and development team. As such, there may be limited support for the idea until it has been more fully developed and evaluated.

Question 2

Which of the following statements is true of a new product development project that is evaluated with the help of rolling evaluation?

Accepted Answer

The answer of Which of the following statements is true...

Question 3

Concept testing will work best for:

Accepted Answer

Concept testing is a method to test new ideas or concepts with a target audience before they launch. It is more suitable for concepts related to consumer packaged goods as these products are tangible, and consumers can easily understand and evaluate them. They can give their feedback on the features, benefits, design, and packaging of the product. For concepts embodying new art and entertainment, it is better to perform market testing instead. For concepts embodying new technology that users cannot visualize, it is better to conduct exploratory research before concept testing. For concepts related to a product whose prime benefit is a personal sense, it is better to conduct product testing or sensory testing.

Question 4

Concept testing is a part of the _____ process.

Accepted Answer

The answer of Concept testing is a part of the...

Question 5

In the context of the A-T-A-R model, _____ means someone in the buying unit hears about the existence of a new product with some characteristic that differentiates it.

Accepted Answer

Awareness is the first stage of the A-T-A-R model, in which someone in the buying unit becomes aware of the existence of a new product.

Question 6

Concept testing was essentially invented by ____.

Accepted Answer

Concept testing was essentially invented by industrial firms as a way to evaluate consumer response to a product idea before it is introduced to the market.

Question 7

Which of the following is true of a decay curve?

Accepted Answer

Decay curves are often used in risk management to visualize the reduction of risk over time, especially in the context of product lifecycles or project management. The idea of a decay curve can indeed stem from decisions made on a risk matrix, where risks are identified, assessed, and prioritized, leading to strategies to mitigate them over time.

Question 8

Which of the following is true of the product innovation charter (PIC) of a firm?

Accepted Answer

The PIC precludes the practice of having unwanted proposals eat up valuable development funds before they are detected.

Question 9

The farther a new product idea is allowed to proceed through the development process:

Accepted Answer

As a product progresses through the development process, more time, money, and resources are invested which makes it tougher to stop the product. This is because stakeholders become more emotionally invested in the project and it becomes harder to justify abandoning it.

Question 10

While preparing the product innovation charter (PIC), the earliest evaluation that a firm makes is of ____.

Accepted Answer

The earliest evaluation a firm makes while preparing the product innovation charter (PIC) is of itself and its situation. This involves understanding the firm's strengths, weaknesses, opportunities, and threats (SWOT analysis) so that it can make informed decisions about the new product or service it wants to develop. Once the firm has a clear understanding of its own situation, it can then conduct market research to evaluate its competitors, legal requirements, and technologies used by competitors.

Question 11

If it is simple to go from concept to full service description, then the services firm can proceed to:

Accepted Answer

Once the service description is fully developed, the next logical step for the services firm would be to prototype concept testing to ensure feasibility and desirability of the service before investing further resources into development. A product innovation charter, concept statement, and analyzing competitors' offerings may come before or after the service description, but prototyping would be the best next step in this scenario.

Question 12

A product concept is a:

Accepted Answer

A product concept is a proposed idea for a product which outlines the intended value it will provide to customers. It is not a finalized result, feature, or physical prototype, but rather a high-level idea of what the product will offer.

Question 13

Concept testing is sometimes called concept _____ to reinforce the idea of helping the item, not just killing it off.

Accepted Answer

Concept testing is often referred to as concept development because the process is aimed at refining and improving the product concept, not just assessing its viability.

Question 14

A rolling evaluation means that a project is being assessed continuously, which implies that it is dealing with risk via _____.

Accepted Answer

Rolling evaluations involve ongoing assessment of a project's progress and potential risks. To deal with these risks, the project team can choose to either accept them and continue with the project or mitigate them through proactive actions. Mitigation involves taking steps to reduce the likelihood or impact of a potential risk. Therefore, the best choice is C as it includes both acceptance and mitigation as possible risk management strategies.

Question 15

Which of the following statements about the new product evaluation process is untrue?

Accepted Answer

Everything in new product work should not be keyed to a Go/No Go decision.

Question 16

Which of the following statements is true of surrogate questions?

Accepted Answer

Surrogate questions are used when it is difficult or not possible to directly measure what needs to be evaluated. They are not necessarily constant and can change depending on the stage of the evaluation process. They can be useful at different stages of product development. The response to surrogate questions can have value beyond answering a critical question and can provide additional insights. Therefore, option D is the most accurate statement about surrogate questions.

Question 17

In the context of the A-T-A-R model, _____ means the percentage chance that if a buyer wants to try a product, the effort to find it will be successful.

Accepted Answer

Availability refers to the percentage chance that if a buyer wants to try a product, the effort to find it will be successful.

Question 18

VSFS Software Solutions Inc. is aware that its newly launched app is prone to certain risks and creates a contingency plan to counter the risk. Which generic risk strategy is the company adopting in this scenario?

Accepted Answer

The company is adopting an active acceptance strategy by acknowledging the risks associated with their new app and creating a contingency plan to counter those risks. This strategy involves being proactive in addressing potential risks instead of just passively accepting them or avoiding them altogether. Transfer would involve passing on the risk to another party, which is not mentioned in the scenario.

Question 19

In the case of the A-T-A-R model, R stands for _____.

Accepted Answer

In the A-T-A-R model, R stands for "repeat," which refers to the repeat purchase rate in the context of new product forecasting.

Question 20

The A-T-A-R concept is taken from _____.

Accepted Answer

The A-T-A-R concept is taken from the diffusion of innovation theory, which describes the stages that a new product goes through as it is adopted by consumers: Awareness, Trial, Adoption, and Reinforcement. This concept can be used in marketing to understand how quickly and widely a product will be adopted by customers.

Quiz 7: Concept Evaluation and Testing