Question 1

Open innovation may enhance the ________ stage of the new-product development process.
A) internal collaboration
B) screening and evaluation
C) product development
D) new-product strategy development
E) idea generation

Accepted Answer

Open innovation can bring in ideas from external sources, which can enhance the idea generation stage of the new-product development process.

Question 2

Imagine you work for a TV production company that has been approached by one of the broadcast TV networks to develop a concept for a new reality show. Where are you most likely to look first for ideas?
A) Conduct a survey among the 2 million people belonging to the NPD Consumer Panel.
B) Observe similar reality programs that are on competing television networks.
C) Contact contestants from other reality shows such as Survivor or The Amazing Race.
D) Brainstorm ideas from the TV production company's employees.
E) Read about the stars of reality TV programs in gossip magazines such as Us Weekly and TV programs like TMZ.

Accepted Answer

Observing similar reality programs on competing television networks would give the TV production company an idea of what types of reality shows are currently popular and successful among viewers. This could help them develop a concept that appeals to the network's audience and has a higher chance of being greenlit for production. Conducting a survey among the NPD Consumer Panel, contacting contestants from other reality shows, brainstorming with company employees, or reading gossip magazines may not provide as informed insight into the industry trends and preferences of the network's target audience.

Question 3

Because early-stage financing is almost always a problem for those starting a new business, ________ is a way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources.
A) crowdfunding
B) open sourcing
C) venture capital
D) online banking
E) crowdsourcing

Accepted Answer

Crowdfunding is a way to gather financial support from a large number of individuals through an online platform. This is particularly useful for businesses or projects that may not be able to secure funding from traditional sources like venture capital or banks. Open sourcing, crowdsourcing and online banking are not necessarily related to the concept of early-stage financing for startups. Venture capital is a form of investment, but it typically involves larger amounts of funding than what is needed in the early stages of a business.

Question 4

The stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort is referred to as
A) development.
B) Stage-Gate.
C) idea generation.
D) business analysis.
E) screening and evaluation.

Accepted Answer

Screening and evaluation is the stage of the new-product process that involves both internal and external evaluation of the new-product ideas to determine which ones should be pursued further and which ones should be eliminated. Development refers to the stage in which the product is actually developed, Stage-Gate is a comprehensive process of managing new-product ideas and development, idea generation is the stage of coming up with new-product ideas, and business analysis is the stage of assessing the financial viability of a new-product idea.

Question 5

Generating insights leading to marketing actions based on massive numbers of people's ideas is called
A) brainstorming.
B) groupthink.
C) outsourcing.
D) crowdsourcing.
E) NIH method.

Accepted Answer

Crowdsourcing involves gathering ideas or opinions from a large group of people, often through an online platform, and using those insights to inform business decisions or marketing actions. Brainstorming is a similar process, but typically involves a smaller group of people generating ideas collectively. Groupthink refers to the tendency for groups to make decisions based on group consensus rather than individual opinions or critical thinking. Outsourcing refers to the practice of hiring another company or individual to perform certain tasks or functions. The NIH method is not a common term used in marketing or business.

Question 6

Which of the following is an IDEO design?
A) Crest Neat Squeeze toothpaste dispenser
B) Under ArmourSpeedForm Gemini 2 smart shoe
C) 3M Post-it Notes
D) Pampers Swaddlers diapers
E) Apple iPod

Accepted Answer

The Crest Neat Squeeze toothpaste dispenser was designed by IDEO.

Question 7

________ includes considering employee interactions with customers to ensure they are consistently delivered and experienced, clearly differentiated from other offerings, and relevant and valuable to the target market.
A) Capacity management
B) Customer experience management
C) Derived demand
D) Internal marketing
E) The key service factor

Accepted Answer

Customer experience management involves ensuring all interactions with customers are consistently delivered and experienced, differentiated from other offerings, and relevant and valuable to the target market. This includes employee interactions with customers. Capacity management refers to managing the resources needed to deliver services, derived demand refers to the demand for a service resulting from the demand for another product or service, internal marketing refers to marketing to employees to ensure they understand and deliver the company's brand, and the key service factor refers to the most important aspect of a service.

Question 8

Customer experience management (CEM) is
A) the integration of the service component of the marketing mix with efforts to influence consumer demand.
B) the unique combination of benefits received by targeted buyers that include quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
C) the process of managing the entire customer experience within the company.
D) a cluster of benefits that an organization promises customers to satisfy their needs.
E) the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.

Accepted Answer

Customer experience management (CEM) is the process of managing the entire customer experience within the company. It involves understanding and addressing customer needs and expectations at every touchpoint of their journey with the organization. CEM includes strategies to improve customer satisfaction, loyalty, and advocacy. Options A, B, D, and E are not correct as they do not accurately define CEM.

Question 9

Idea generation is the stage in the new-product development process that
A) develops a pool of concepts to serve as candidates for new products.
B) selects a single concept and scrutinizes it for all potential benefits and flaws.
C) separates ideas into two categories: consumer-oriented and organization-oriented.
D) requires the organization to perform a SWOT analysis and an environmental scan.
E) consists of the techniques used to screen and reject those ideas that have no merit.

Accepted Answer

Idea generation is the initial stage in the new-product development process where a pool of potential product concepts are developed. The purpose of this stage is to generate a wide variety of ideas that can then be evaluated and narrowed down to the most promising ones. Option B is a stage in the new-product development process called concept development and testing where a single concept is selected and analyzed in-depth. Option C is not a commonly used approach in idea generation. Option D is part of the situation analysis stage which precedes idea generation. Option E describes the process of idea screening which occurs after idea generation.

Question 10

IDEO is a company that
A) creates innovative promotional programs for its clients' new products.
B) developed the formal Stage-Gate process to commercialize new products for its clients.
C) uses "design thinking" to develop new products for other organizations.
D) rates new products like Consumer Reports.
E) runs patent searches for companies that don't have an internal legal department.

Accepted Answer

IDEO is known for using "design thinking" to develop new products for other organizations. They specialize in human-centered design and have worked with clients such as Apple, PepsiCo, and Procter & Gamble to create innovative products and services.

Question 11

A 3M researcher worked with university students to develop the Post-it® Flag Highlighter. When his team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's objectives set earlier, at which stage of the new-product process was this product?
A) idea generation
B) screening and evaluation
C) business analysis
D) new-product strategy development
E) concept testing

Accepted Answer

The stage described is "screening and evaluation," where the technical feasibility of the design is assessed and alignment with the firm's objectives is determined.

Question 12

All of the following are sources for new-product ideas except which?
A) competitors
B) universities
C) regulators
D) crowdsourcing
E) employees

Accepted Answer

Regulators are not typically a source for new-product ideas; they are more involved in setting rules and standards that products must comply with.

Question 13

Dell used ________ to develop an online site to generate 13,464 ideas for new products as well as website and marketing improvements.
A) brainstorming
B) crowdsourcing
C) group think
D) outsourcing
E) data mining

Accepted Answer

Dell used crowdsourcing, which involves obtaining ideas or feedback from a large group of people (in this case, through an online site) to develop new product ideas and improve their website and marketing strategies. Brainstorming involves generating spontaneous ideas in a small group setting, while groupthink refers to the tendency for groups to conform to the dominant viewpoint without critical evaluation. Outsourcing involves contracting work to an external organization, and data mining involves analyzing large sets of data to uncover patterns and insights.

Question 14

Developing a pool of concepts to serve as candidates for new products is the ________ stage of the new-product process.
A) open innovation
B) screening and evaluation
C) product development
D) new-product strategy development
E) idea generation

Accepted Answer

Idea generation is the stage where a pool of concepts is developed for new products. This involves brainstorming ideas and gathering suggestions from various sources such as customers, employees, and competitors. This stage is critical as it forms the basis for the rest of the new-product process.

Question 15

The screening and evaluation stage of the new-product process involves
A) internal and external appraisals of new-product ideas.
B) product selection and budgeting projections.
C) business and cost analyses.
D) patent searches and environmental scanning.
E) idea selection and prototype development.

Accepted Answer

The screening and evaluation stage involves assessing new-product ideas through internal and external appraisals to determine their feasibility and potential success.

Question 16

In addition to seeking ideas from more well-known sources, organizations also get ideas from universities, inventors, and smaller nontraditional firms. For example, General Mills partnered with Brigham Young University to license its patent for
A) scones with coffee-flavored cream frosting.
B) an Omega-3 enriched SKU for the Philadelphia cream cheese line.
C) a carbonated yogurt called Go-Gurt Fizzix.
D) deep fried chicken skins for people who cannot eat pork.
E) a crispy baked macaroni and cheese snack that can be eaten out of a bag like Cheetos.

Accepted Answer

The answer of In addition to seeking ideas from more...

Question 17

Business researchers emphasize that firms must actively involve customers and suppliers in the new-product development process. This means that the focus should be on what the new product will ________ rather than simply what they want.
A) look like
B) cost them
C) do for them
D) feel like
E) consist of in terms of new features

Accepted Answer

The sentence states that firms must focus on what the new product will do for customers and suppliers, rather than just what they want. Therefore, the best choice is C - do for them.

Question 18

The ________ stage of the new-product process includes an examination of the technical feasibility for the product, such as 3M determining that the firm's micro-replication technology (the 3,000 tiny gripping fingers per square inch) could be used to improve the gripping power of batting or work gloves.
A) development
B) Stage-Gate
C) idea generation
D) business analysis
E) screening and evaluation

Accepted Answer

The answer of The ________ stage of the new-product process...

Question 19

Screening and evaluation is the stage of the new-product development process
A) at which prospective customers are exposed to new-product prototypes for the first time.
B) at which new-product concepts that have been found viable are converted into actual prototypes.
C) that internally and externally assesses new-product ideas to eliminate those that warrant no further effort.
D) that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.
E) where consumers evaluate a new product's performance in an actual-use situation.

Accepted Answer

Screening and evaluation is the stage where new-product ideas are internally and externally assessed and evaluated to eliminate those that are not viable or do not warrant further effort. This is done to narrow down the number of ideas to a select few that are worth pursuing further in the new-product development process.

Question 20

Which of the following firms uses crowdfunding to raise capital for products that are unlikely to get resources from traditional sources?
A) IDEO
B) Kickstarter.com
C) Warren Buffett's Berkshire Hathaway
D) the Industrial Design Group
E) Unfundable.com

Accepted Answer

Kickstarter.com is a crowdfunding platform that helps creators raise capital for projects that might not receive funding from traditional sources.

Quiz 9: Developing New Products and Services

Open innovation may enhance the ________ stage of the new-product development process.

Imagine you work for a TV production company that has been approached by one of the broadcast TV networks to develop a concept for a new reality show. Where are you most likely to look first for ideas?

Because early-stage financing is almost always a problem for those starting a new business, ________ is a way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources.

The stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort is referred to as

Generating insights leading to marketing actions based on massive numbers of people's ideas is called

Which of the following is an IDEO design?

________ includes considering employee interactions with customers to ensure they are consistently delivered and experienced, clearly differentiated from other offerings, and relevant and valuable to the target market.

Customer experience management (CEM) is

Idea generation is the stage in the new-product development process that

IDEO is a company that

A 3M researcher worked with university students to develop the Post-it® Flag Highlighter. When his team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's objectives set earlier, at which stage of the new-product process was this product?

All of the following are sources for new-product ideas except which?

Dell used ________ to develop an online site to generate 13,464 ideas for new products as well as website and marketing improvements.

Developing a pool of concepts to serve as candidates for new products is the ________ stage of the new-product process.

The screening and evaluation stage of the new-product process involves

In addition to seeking ideas from more well-known sources, organizations also get ideas from universities, inventors, and smaller nontraditional firms. For example, General Mills partnered with Brigham Young University to license its patent for

Business researchers emphasize that firms must actively involve customers and suppliers in the new-product development process. This means that the focus should be on what the new product will ________ rather than simply what they want.

Screening and evaluation is the stage of the new-product development process

Which of the following firms uses crowdfunding to raise capital for products that are unlikely to get resources from traditional sources?