Question 1

Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see whether they are using his tools for other tasks or have modified the tools for some other purpose. These customers are __________, who can provide ideas for new and improved products.

Accepted Answer

Lead users are customers who are ahead of the curve in terms of using a product or service. They are often experts in the field and can provide valuable insights into product improvement or new product development. In this case, Ron's customers who are modifying or using his tools for other tasks are likely lead users and can provide ideas for new and improved products.

Question 2

Companies that develop customized business software often work closely with their users when installing their products. This close contact often creates new product ideas through

Accepted Answer

Close contact with users often results in new product ideas through customer input. This allows companies to create customized software that meets the specific needs of their clients. However, reverse engineering, licensing technology, R&D consortia, and clinical trials are not typically involved in this process.

Question 3

Barbara is using a test model of her firm's new inline skates to see whether they work according to the design specifications. Barbara is involved in

Accepted Answer

Barbara is involved in alpha testing, which is the internal testing of a product using a prototype or a test model.

Question 4

Golf ball manufacturers use Iron Mike, a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in

Accepted Answer

The answer of Golf ball manufacturers use Iron Mike, a...

Question 5

When conducting exploratory concept testing for her firm's new Internet anti-piracy software, Dee knows the most important question is

Accepted Answer

The most important question in exploratory concept testing is whether potential customers would be interested in purchasing the product. Therefore, choice B is the best answer. Choices A, C, D, and E are important considerations as well, but they are not as critical as determining customer interest in the product.

Question 6

Before the development of computer-assisted design software, many firms handcrafted __________, wooden or clay models that served as rough physical representations of a new product.

Accepted Answer

The sentence mentions "rough physical representations of a new product," indicating that prototypes were made before the development of computer-aided design software. The other choices do not fit the context.

Question 7

When testing new products, most firms consider the question of whether testing products on animals

Accepted Answer

Testing products on animals should only be done if it contributes to the health and well-being of human users. This is in line with ethical standards and ensures that animal testing is only used when absolutely necessary.

Question 8

At the end of a brainstorming session, participants are often asked to

Accepted Answer

Asking participants to vote on the best ideas helps to prioritize and narrow down the most promising ones to move forward with.

Question 9

One of the key characteristics of brainstorming sessions is

Accepted Answer

One of the key characteristics of brainstorming sessions is that no idea is immediately accepted or rejected. This allows for a free flow of ideas and encourages creativity. It also prevents participants from feeling discouraged or criticized, which can hinder the creative process. The focus is on generating ideas, rather than evaluating them, which can be done later in the selection process.

Question 10

Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina will ask consumers what they think of the clothing, but the most important question is

Accepted Answer

The most important question in this situation is whether consumers would actually purchase the swimwear if it becomes available. This feedback is crucial in determining the potential success of the product and the viability of the business. While questions about retailers, pricing, promotion, and seasonality are important, they are secondary to understanding consumer demand.

Question 11

A major limitation in the use of internal R&D departments for new idea generation is that

Accepted Answer

Internal R&D departments can be quite expensive to maintain, especially if they require specialized equipment and personnel. This can limit the organization's ability to generate new ideas and innovate in the long run.

Question 12

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in

Accepted Answer

This scenario describes alpha testing, which is typically done by the manufacturer's staff to ensure the product is functional and stable before moving on to beta testing with external users. Product launch and test marketing are later stages in the product development and launch process, while concept testing occurs earlier in the process to gauge consumer interest and demand.

Question 13

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Car racing provides an opportunity for

Accepted Answer

Beta testing refers to testing a product or technology in real-world conditions before it is launched to the wider market. By racing cars, auto companies are able to push their designs and technology to the limits, identifying weaknesses and areas for improvement. This allows them to refine the product before it reaches customers, ultimately leading to a better end product.

Question 14

Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in __________, a form of new idea generation.

Accepted Answer

Brainstorming is a form of new idea generation where a group of people come together to generate as many ideas as possible in a short amount of time without judgment. In this scenario, the advertising agency team is brainstorming names for a new beach resort.

Question 15

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is

Accepted Answer

If a new product concept receives positive evaluations from potential customers during concept testing, the next step should be to start developing the product. This involves creating a prototype, testing it, and refining it until it is ready to be marketed. Market testing and launching the product would come later in the process. Brainstorming and reverse engineering would not be relevant at this stage.

Question 16

The pharmaceutical industry often justifies the high prices for new drugs by arguing that it researches as many as one hundred new compounds before it comes up with one __________, an extremely successful product that pays for the costs associated with the other attempts to develop new products.

Accepted Answer

The sentence states that the pharmaceutical industry justifies high prices for new drugs by arguing that they research many compounds before coming up with one "extremely successful product." The term "blockbuster" is commonly used to describe a highly successful product in various industries, including the pharmaceutical industry.

Question 17

__________ are customers who modify existing products according to their own ideas to suit their specific needs.

Accepted Answer

Lead users are customers who modify existing products to suit their specific needs, and they are often at the forefront of trends and innovations. Early Adopters are customers who are among the first to try out new products or services, Market testers are people or organizations that test a product by trying it out in different settings, Reverse Engineers are people who analyze another company's product to determine how it was made, and Concept testers help companies evaluate new product ideas.

Question 18

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in

Accepted Answer

The answer of Lorraine belongs to a national consumer panel...

Question 19

__________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.

Accepted Answer

The term "reverse engineering" refers to the practice of taking apart a product to analyze its components and design, with the ultimate goal of creating an improved version of the product that does not infringe on any existing patents held by competitors. This process may involve dissecting a physical product, analyzing its software code, or investigating various other features in order to gain a better understanding of how it works and how it could be improved.

Question 20

Concept testing is important because it can

Accepted Answer

Concept testing can help a firm avoid the costs of unnecessary product development by providing feedback on the viability and appeal of a new product concept before investing significant resources into development and launch. It also helps to identify potential issues and areas for improvement, leading to a more successful and profitable product in the market.

Quiz 12: Developing New Products