Question 1

Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Which of the following stages of new product development was Evelyn involved in when she set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner?
A) concept testing
B) marketing strategy development
C) idea screening
D) commercializing
E) crowdsourcing

Accepted Answer

Evelyn was involved in concept testing when she set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner. This stage involves presenting the product idea to a sample of potential consumers to gauge their reactions and gather feedback.

Question 2

Under a team-based new product development approach, ________.
A) a single departmental team works to complete different stages of the process before passing the new product along to the next department and stage
B) the organizational tension and confusion is less than under the sequential approach
C) company departments work closely together in cross-functional teams
D) a bottleneck at one phase can seriously delay an entire project
E) the new product passes from one department to another before finalizing

Accepted Answer

Under a team-based new product development approach, company departments work closely together in cross-functional teams. This approach involves collaboration and communication among different departments, reducing organizational tension and confusion, and allowing for the identification and resolution of potential problems early in the process. However, a bottleneck at one phase can still seriously delay an entire project. Therefore, the team-based approach requires coordination and flexibility to ensure timely completion of the new product.

Question 3

________ is a new product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.
A) Team-based product development
B) Simultaneous product development
C) Sequential product development
D) Horizontal integration
E) Vertical integration

Accepted Answer

Sequential product development is a new product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage. It is also known as the waterfall approach as it follows a sequential flow from idea generation to product launch.

Question 4

New product success requires all of the following EXCEPT ________.
A) a whole-company commitment
B) a holistic approach for finding new ways to create valued customer experiences
C) thinking up a few good ideas
D) introducing products that will satisfy a want or need for customers
E) efficient engineering and manufacturing

Accepted Answer

The answer of New product success requires all of the...

Question 5

A company can install a(n) ________ management system to collect, review, evaluate, and manage new product ideas.
A) quality
B) innovation
C) content
D) supply chain
E) customer relationship

Accepted Answer

An innovation management system would specialize in collecting, reviewing, evaluating, and managing new product ideas. Quality management systems focus on maintaining and improving product quality, content management systems organize and manage digital content, supply chain management systems focus on optimizing the supply chain, and customer relationship management systems focus on improving customer interactions and relationships.

Question 6

A product idea is an idea for a possible product that a company can offer the market.

Accepted Answer

A product idea is indeed an idea for a possible product that a company can offer the market. This idea can come from various sources such as customer feedback, market research, or internal brainstorming sessions. Once a product idea is chosen, the company can further develop and refine the concept before introducing it to the market.

Question 7

According to the text, the search for new product ideas should most likely be ________.
A) intermittent
B) holistic
C) segmented
D) compartmentalized
E) flexible

Accepted Answer

The answer of According to the text, the search for...

Question 8

Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?
A) concept testing process
B) customer value proposition
C) customer-centered new product development
D) customer lifetime value
E) team-based new product development

Accepted Answer

Customer-centered new product development focuses on finding new ways to solve customer problems and create more customer-satisfying experiences. The other options may be related to understanding customers' needs and preferences, but they do not necessarily prioritize finding new ways to solve problems and create satisfying experiences.

Question 9

Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step?
A) retest the product in additional markets
B) develop a planned market rollout over time
C) liquidate its assets to gain capital and capacity
D) seek the help of a nationally known consultant
E) develop a prototype

Accepted Answer

Developing a planned market rollout over time allows the company to gradually build up its capital and capacity while launching the product in a controlled and strategic manner. It also allows for adjustments to be made based on the success or challenges encountered in each market. Retesting in additional markets or seeking a consultant may also be viable options, but the company should prioritize developing a plan for a successful rollout. Liquidating assets should be a last resort and developing a prototype should have already been done before launching the test market.

Question 10

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.
A) clearly assigns responsibility for the process to a single department
B) yields a larger number of new product ideas
C) guarantees successful products
D) frees up senior management time
E) requires less budget support

Accepted Answer

The innovation management system approach is designed to promote a culture of innovation within a company, which should result in more ideas being generated. While it may help clarify responsibilities and free up management time, it does not guarantee successful products, nor does it necessarily require less budget support.

Question 11

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in cross-functional groups to save time and money in the new product development process. Fantastic Flavors uses a ________ approach.
A) customer-centered new product development
B) sequential product development
C) team-based new product development
D) heuristic
E) functional

Accepted Answer

The scenario describes a situation where employees from different functions work together in cross-functional teams to save time and money in the new product development process. This is the essence of team-based new product development. Options A (customer-centered new product development) and B (sequential product development) do not accurately describe the scenario. A heuristic approach is a problem-solving strategy that uses practical methods to solve a problem, but this is not relevant to the scenario. Option E (functional) describes a traditional approach where employees work in their functional areas without collaborating across functions.

Question 12

Companies seldom solicit ideas from customers during the idea generation stage of product development.

Accepted Answer

Companies often solicit ideas from customers during the idea generation stage of product development through methods such as surveys, focus groups, and feedback forms. This helps companies gain insights into customer needs and preferences, which can lead to the development of successful products.

Question 13

Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is designed to effortlessly vacuum clean the floors of on-the-go and elderly consumers.
A) product placement
B) product concept
C) product image
D) product idea
E) virtual product

Accepted Answer

The product concept refers to the detailed version of the idea stated in meaningful consumer terms, which in this case is the practical use of solar power in a vacuum cleaner designed for specific consumer needs.

Question 14

Which of the following is the goal of the team-based new product development approach when it uses cross-functional teams that overlap the steps in the process?
A) gain a big competitive edge by getting the right new products to market
B) save time and increase effectiveness
C) increase production efficiency and customer satisfaction
D) speed product distribution to market and reduce costs
E) reduce organizational tension and confusion

Accepted Answer

The goal of the team-based new product development approach when it uses cross-functional teams that overlap the steps in the process is to save time and increase effectiveness by having a team that can work on multiple aspects of the development process simultaneously. This approach enables multiple perspectives and expertise to be utilized throughout the development process, ensuring a higher quality end-product.

Question 15

In the concept development stage, a firm will create a single product concept to test.

Accepted Answer

In the concept development stage, a firm will create several product concepts to test and gather feedback before selecting a final concept to move forward with.

Question 16

Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.
A) timing
B) location
C) organizational structure
D) test marketing
E) product mix

Accepted Answer

The firm must first decide on the timing of the launch to ensure market readiness and optimal impact.

Question 17

Which of the following is a disadvantage of a team-based approach to new product development?
A) It takes longer for the development of a new product.
B) The development effort is not as effective because of employee inexperience.
C) It decreases the efficiency of the new product development process.
D) It can result in organizational confusion and tension.
E) The process does not work with the shorter life cycles of many of today's products.

Accepted Answer

A team-based approach to new product development can lead to confusion and tension within the organization due to conflicting opinions, beliefs, and interests among team members. This can result in delays, inefficiencies, and even project failure. However, if managed effectively, a team-based approach can also lead to improved innovation, creativity, and problem-solving capabilities.

Question 18

Blair Housewares wants to add new products to its existing line of products. Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number.

Accepted Answer

The purpose of idea generation is to create a large number of ideas, and the succeeding stages aim to narrow down and refine these ideas to identify the most viable options.

Question 19

New product development begins with a systematic search for new product ideas through idea generation.

Accepted Answer

The statement is true. New product development does often begin with an idea generation process where companies actively seek out new product ideas through various methods such as customer surveys, market research, brainstorming sessions, and more.

Question 20

According to the commercialization stage of the new product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.
A) where to launch the new product
B) how to launch the new product
C) why to launch the new product
D) what pricing strategies to implement
E) what marketing mix elements to use

Accepted Answer

After deciding when to launch the new product, the next step in the commercialization stage is to decide where to launch it, determining the geographical areas or markets to target initially.

Quiz 9: Developing New Products and Managing the Product Life Cycle

Under a team-based new product development approach, ________.

________ is a new product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

New product success requires all of the following EXCEPT ________.

A company can install a(n) ________ management system to collect, review, evaluate, and manage new product ideas.

A product idea is an idea for a possible product that a company can offer the market.

According to the text, the search for new product ideas should most likely be ________.

Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?

Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step?

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in cross-functional groups to save time and money in the new product development process. Fantastic Flavors uses a ________ approach.

Companies seldom solicit ideas from customers during the idea generation stage of product development.

Which of the following is the goal of the team-based new product development approach when it uses cross-functional teams that overlap the steps in the process?

In the concept development stage, a firm will create a single product concept to test.

Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.

Which of the following is a disadvantage of a team-based approach to new product development?

Blair Housewares wants to add new products to its existing line of products. Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number.

New product development begins with a systematic search for new product ideas through idea generation.

According to the commercialization stage of the new product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.