Question 1

At the interest stage of consumer-adoption process, the consumer becomes aware of the innovation but lacks information about it.

Accepted Answer

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Question 2

Beta testing tests the product within the firm to see how it performs in different applications.

Accepted Answer

Beta testing is the process of testing a product by real users in a real environment before it is released to the public. It is not testing within the firm.

Question 3

Perceived value refers to the gap between actual needs and satisfied needs of a customer.

Accepted Answer

Perceived value refers to the customer's evaluation of the benefits and costs of one product when compared with others, rather than the gap between actual needs and satisfied needs.

Question 4

How do companies organize new product development?

Accepted Answer

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Question 5

Expensive industrial goods and new technologies will normally undergo alpha and beta testing.

Accepted Answer

Alpha and beta testing are common practices in the development of new industrial goods and technologies, especially those with high costs and complex functions. Alpha testing refers to the initial internal testing stage, while beta testing involves testing with external users or customers to identify any remaining issues or bugs. These testing stages are important for ensuring the quality and reliability of the product before it is released to the market.

Question 6

Survival-age distribution refers to the number of customers that the product has in year one, two, three, and so on.

Accepted Answer

Survival-age distribution refers to the proportion of customers that remain loyal to a product or service after a certain period of time, not the number of customers in each year.

Question 7

Rapid prototyping refers to designing products on a computer and then producing rough models to show potential consumers for their reactions.

Accepted Answer

Rapid prototyping involves creating digital designs and then using 3D printing technology to produce physical prototypes quickly for testing and evaluation purposes. These prototypes can be shown to potential consumers for their feedback and reactions.

Question 8

The trade-off approach may be easier to use when there are only a few variables and alternatives.

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Question 9

Identify the major reasons why new product failures occur.

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Question 10

Adaptive conjoint analysis (ACA) is a "hybrid" data collection technique that combines self-explicated importance ratings with pair-wise trade-off tasks.

Accepted Answer

Adaptive conjoint analysis (ACA) does indeed combine self-explicated importance ratings with pair-wise trade-off tasks, making it a hybrid data collection technique.

Question 11

Explain how stage-gate systems are used by companies to manage innovation and new product launches.

Accepted Answer

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Question 12

Some firms might delay new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the late entrant can avoid. This can be classified as a parallel entry.

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Question 13

What are the types of new products that a firm can introduce? What are the problems associated with introducing a truly innovative product? What are the necessary conditions to create a radically innovative product?

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Question 14

Consumer preferences for alternative product concepts can be measured with conjoint analysis.

Accepted Answer

Conjoint analysis is a statistical technique used to determine how consumers value different attributes (e.g. price, brand, features) when making purchasing decisions. By presenting consumers with a series of hypothetical product concepts that vary in terms of their attributes, conjoint analysis can provide insights into which attributes are most important to consumers and how different combinations of attributes affect their preferences.

Question 15

Cannibalized income is the increased income on other company products resulting from adding this product to the line.

Accepted Answer

Cannibalized income refers to the loss of sales and revenue of existing products due to the introduction of a new product in the same line or category. It does not refer to increased income on other company products.

Question 16

Compatibility refers to the degree to which the innovation matches the values and experiences of the individuals.

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Question 17

A business analysis is typically performed after the management has developed the product concept and marketing strategy.

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Question 18

After a test, the most customer-appealing offer will be the most profitable offer to make.

Accepted Answer

While a customer-appealing offer may attract more customers initially, it may not necessarily be the most profitable one in the long run. Other factors such as production costs, competition, and market demand also play a role in determining profitability. Therefore, it is important to consider multiple factors when making pricing and promotional decisions, not just customer appeal.

Question 19

Dragalong income refers to additional income whereas cannibalized income refers to reduced income.

Accepted Answer

Dragalong income refers to the additional income that results from the sale of a product or service, while cannibalized income refers to the reduced income that results from the sale of a new product or service that competes with an existing product or service.

Question 20

Sales-wave research can be implemented quickly and carried out without final packaging and advertising.

Accepted Answer

Sales-wave research is focused on testing the appeal of a product or service to a target market. It can be done using prototypes or mock-ups without the need for final packaging and advertising. This makes it a quick and cost-effective way to gather feedback and insights on a product's potential success.

Quiz 20: Introducing New Market Offerings