Question 1

________ calls for developing a master chart showing the simultaneous and sequential activities that must take place to launch the product.By estimating how much time each activity takes,the planners estimate completion time for the entire project.

Accepted Answer

The process described is critical path scheduling, which involves creating a chart that outlines the order and timing of activities needed for a project, and estimating the completion time based on these factors. Inventory management, innovation diffusion, product adoption, and personal influence are not directly relevant to this process.

Question 2

Companies handle the organizational aspect of new-product development in several ways.Some companies use product managers,others use new-product managers,and others use different techniques.List two additional organizational methods .

Accepted Answer

The answer of Companies handle the organizational aspect of new-product...

Question 3

When commercializing a new product,market-entry timing is critical.Your firm has the distinction of being the first to market with your new product.As the first entrant in the market,your company can enjoy ________.

Accepted Answer

Being the first mover in the market can offer several advantages such as building brand loyalty, establishing a competitive advantage, capturing early market share, and setting the standards for the industry. This can lead to increased brand awareness, market attractiveness, and a better chance of long-term success. Parallel entry and late entry are not relevant in this scenario.

Question 4

Not everyone believes a customer focus helps to create better new products.Why might this be?

Accepted Answer

The answer of Not everyone believes a customer focus helps...

Question 5

Your company has brought in 25 consumers identified as innovators and/or heavy users of its products and is observing them as they use your new product.This test is intended to expose unanticipated problems of safety and servicing and to alert you to customer training and servicing requirements.In marketing terms,this is called ________.

Accepted Answer

The scenario described is referring to beta testing, which is a type of product testing that involves a group of external users (in this case, innovators and heavy users of the company's products) testing the product in a real-world environment before it is officially launched. This type of testing helps identify any unexpected problems or opportunities for improvement before the product is released to the general public.

Question 6

The financial analysis for your new product shows that for the fist year you must sell 100,000 units at an average selling price of $10.00 in order to cover the costs of introduction,marketing,and development.The financial process used to arrive at these numbers is called ________.

Accepted Answer

The financial process used to arrive at the numbers of units to be sold and the selling price in order to cover costs is called breakeven analysis. It helps determine the point at which revenue will equal the total costs, which is essential for determining profitability.

Question 7

SuperToy Co.just came out with a new remote controlled motorcycle,with a special battery pack that is purchased separately.When assessing the cash flows associated with the new toy,income from the purchase of the battery pack is considered ________.

Accepted Answer

The answer of SuperToy Co.just came out with a new...

Question 8

Your company is in the beginning stages of rolling out its new line of fishing gear.Targeted consumers include fishing clubs,sporting good store buyers,and subscribers to fishing magazines.In marketing terms,these prime prospects would be classified as ________.

Accepted Answer

The answer of Your company is in the beginning stages...

Question 9

3M,Hewlett-Packard,Lego,and many other companies use the stage-gate system to manage the innovation process.Define the stage-gate system.

Accepted Answer

The answer of 3M,Hewlett-Packard,Lego,and many other companies use the stage-gate...

Question 10

Your personal physician prides himself on being on top of the literature regarding new medicines for his patients.In fact,your doctor prides himself on being the first to prescribe new medicines to help his patients.In marketing terms,your doctor can be said to be a(n)________.

Accepted Answer

The answer of Your personal physician prides himself on being...

Question 11

New products fail at a disturbing rate.In the United States,the failure rate is potentially as high as 95%.New products fail for many reasons.List three of the reasons why new products fail.

Accepted Answer

The answer of New products fail at a disturbing rate.In...

Question 12

A GO-error occurs when the company permits a poor idea to move into development and commercialization.Identify the three kinds of product failure that result from GO-errors.

Accepted Answer

The answer of A GO-error occurs when the company permits...

Question 13

What is the open innovation movement and how has it affected the way companies go about identifying new ideas?

Accepted Answer

The answer of What is the open innovation movement and...

Question 14

You have been asked to participate in an idea-generating session at work.You and your group have been asked to list all the normal assumptions about desk chairs and then asked to reverse them.What creative technique area you using?

Accepted Answer

The answer of You have been asked to participate in...

Question 15

New-product development can be hindered by several factors.List three of the factors hindering new-product development.

Accepted Answer

The answer of New-product development can be hindered by several...

Question 16

Your father-in-law still refuses to buy a DVD player.His rationale is that he still has a BetaMax VCR recorder in the basement that represents old technology.You inform him that videotape is an outdated technology and soon their will be no video tapes for rental or purchase.Based upon the factors influencing the adoption process,your father-in-law can be best described as a(n)________.

Accepted Answer

The father-in-law's refusal to adopt new technology, despite the fact that it is becoming outdated and obsolete, indicates that he is a laggard. Laggards are the last group of consumers to adopt new technologies and are often resistant to change.

Question 17

Fewer than 10% to 15% of all new products are truly innovative and new to the world.In producing a new-to-the-world product,as opposed to a brand or line extension,a firm and a market face increased pressures in what two areas?

Accepted Answer

The answer of Fewer than 10% to 15% of all...

Question 18

You have been asked to try a firm's new line of potato chips at no cost to you.Now you have been approached by the firm and asked if you would pay $1.00 per bag for these chips (regular price $1.99)or if you would prefer your regular brand of potato chips.You choose your favorite brand of chips instead.The firm then offers you the option of purchasing their chips for $.90 per bag.You are participating in a ________.

Accepted Answer

The answer of You have been asked to try a...

Question 19

Companies that fail to develop new products are putting themselves at risk.Explain why this is true.

Accepted Answer

The answer of Companies that fail to develop new products...

Question 20

Your firm has chosen a few representative cities,and the sales force tries to sell the trade on carrying the product and giving it good shelf exposure.The company puts on a full advertising and promotion campaign.Total costs exceed $1 million dollars.Your firm has decided to conduct a ________.

Accepted Answer

The situation described suggests that the company is ready to launch the product in the market, but before doing so, they want to conduct a small-scale launch to test the product's acceptance among customers. This is known as a test market, where the company launches the product in a few representative cities to gauge its acceptance and potential performance. The company incurs significant costs on advertising and promotion, which indicates a full-scale launch is not yet planned. Hence, a controlled test market, where the company chooses specific territories to test the product, is the best choice.

Quiz 20: Introducing New Market Offerings