Question 1

The first use of evaluation is focused upon:

Accepted Answer

The first use of evaluation is focused upon providing direction for the selection of potential product concepts. Evaluation helps in assessing the feasibility, potential, and suitability of various product ideas, and choosing the most promising ones for further development.

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

The answer of The farther a new product idea is...

Question 4

Which of the following industries is most likely represented by a late expenditure curve?

Accepted Answer

Consumer packaged goods have a late expenditure curve because they are typically purchased at the end of the month when consumers have received their paychecks.

Question 5

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

Accepted Answer

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

Question 6

Development is naturally ____.

Accepted Answer

Development is an iterative process, which means it involves repeating and refining steps until the desired result is achieved. It is not necessarily sequential, as some steps may need to be revisited or altered throughout the process. It is not retrospective, as this term refers to looking back on past events, and it is not convoluted, which means twisted or complicated.

Question 7

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

Accepted Answer

Avoidance strategy involves completely avoiding the activity or situation that poses a risk. However, this may result in missing out on potential opportunities that could have been gained if the activity had been pursued. Therefore, avoidance strategy is most likely to incur opportunity costs.

Question 8

According to the risk / payoff matrix,during the phase of concept / project evaluation,managerial problems arise when there is a _____ error.

Accepted Answer

In the risk/payoff matrix, the concept/project evaluation phase involves assessing potential risks and payoffs associated with the project. Managerial problems can arise if there is a drop error, meaning that a project with high risks and low payoffs is pursued, or a project with low risks and high payoffs is abandoned. Therefore, A) drop is the best choice.

Question 9

All of the following statements about the evaluation system / process are true EXCEPT:

Accepted Answer

While it's important to have a decision point for the evaluation process, not everything should be solely based on a Go / No Go decision. Other factors such as feasibility and market demand should also be considered.

Question 10

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

Accepted Answer

Concept testing is sometimes referred to as concept development because it focuses on refining and improving the idea rather than just assessing its viability.

Question 11

For every 100 product concepts which are there before concept testing,usually only _____ ever get to the market.

Accepted Answer

According to research, only 2 out of every 100 product concepts actually make it to the market after concept testing. This highlights the importance of thorough concept testing, as it can help weed out ideas that may not be successful in the competitive marketplace.

Question 12

In this risk strategy,risk is reduced to an acceptable,threshold level,perhaps through redesigning the product to include more backup systems or increasing product reliability.

Accepted Answer

Mitigation refers to reducing the severity or impact of a risk to an acceptable level. This can be done by implementing backup systems or increasing product reliability, as mentioned in the statement. Avoidance involves eliminating the risk altogether, passive acceptance involves accepting the risk without any action, and transfer involves shifting the risk to another party (such as through insurance). Therefore, mitigation is the best choice in this context.

Question 13

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

Stopping a product that would succeed is costliest because it results in lost potential revenue and market opportunities.

Question 14

Which of the following risk strategies is said to be employed by a firm that develops a contingency plan to accompany new product development?

Accepted Answer

Active acceptance involves recognizing a risk and developing a contingency plan to address it if it occurs.

Question 15

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

Accepted Answer

Rolling evaluation means continuous assessment and management of risk, which implies that the risk is being accepted and mitigated throughout the project. Option A (avoidance/transfer) suggests that risks are being avoided or transferred rather than continuously managed. Option B (acceptance/avoidance) implies that risks are being accepted but not effectively managed through avoidance. Option D (mitigation/avoidance) suggests that risks are being mitigated and avoided, but not continuously managed through rolling evaluation. Hence, the best choice is C.

Question 16

The primary purpose of evaluation during Phase III of the evaluation process is:

Accepted Answer

The primary purpose of evaluation during Phase III is to identify concepts that will proceed further in the development process. It assesses the viability of the product or service and its potential success in the market. This evaluation helps in making decisions on whether to continue with the development process or not. A marketing plan and a full-scale prototype may be developed later on in the process, but the main focus in Phase III evaluation is to determine the concepts that show the most promise for success. Eliminating mistakes made during the launch phase is not the primary purpose of Phase III evaluation.

Question 17

The evaluation issue during the launch phase in the new product process is whether the firm has proven itself able to make and market the item on a commercial scale.This issue is usually resolved by some form of ____.

Accepted Answer

Market testing is the most appropriate way to evaluate the success of a new product launch. Market testing allows firms to collect customer feedback and assess the demand for the new product before investing significant resources in commercial-scale production and marketing. Prototype development and iteration analysis are important steps in the new product development process, but do not necessarily ensure commercial success. Development protocols refer to a set of guidelines for designing and testing new products, but do not address the specific issue of commercial viability during the launch phase.

Question 18

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

Accepted Answer

The use of subcontractors or joint ventures implies transferring the risk to another party, which is the essence of the transfer risk strategy. By subcontracting or forming a joint venture, the project or organization can leverage the expertise or resources of the subcontractor or partner to manage the risk better or share the burden of potential losses. Therefore, option D is the best choice.

Question 19

The first use of evaluation usually:

Accepted Answer

The first use of evaluation usually precedes the product concept, as it is important to evaluate the market, customer needs, and competition before developing a product concept. This helps ensure that the product is meeting the needs of the target market and has a viable chance of success.

Question 20

During the concept generation stage,the goal of evaluation is to:

Accepted Answer

The goal of evaluation during the concept generation stage is to eliminate the big / sure loser(s) and narrow down the options to the most promising ideas. This helps to focus resources on the most viable concepts and increase the chances of success. Encouraging the development of all concepts generated is not necessarily practical or feasible, since resources are limited. Assessing the usability of the product and ensuring a large developmental budget are important considerations, but they are not the primary goal of evaluation during the concept generation stage.

Quiz 8: The Concept Evaluation System