Question 1

Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to kill cold and flu germs when users sneezed, coughed, or blew their noses into them. Unfortunately, people didn't believe the claim and were frightened by the "cidal" in the brand name. The reason for this product failure was

Accepted Answer

The answer of Kimberly-Clark developed its Avert Virucidal tissues that...

Question 2

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom. Although a clever idea, it failed because it

Accepted Answer

The answer of OUT! International's Hey! There's A Monster In...

Question 3

You have received the Vitality Index chart shown above for your business, Parvaderm, and upon analysis you are concerned that

Accepted Answer

New products are not contributing a high enough percentage of overall sales to sustain growth, which is a concern for maintaining business vitality and future growth.

Question 4

One of the two organization-related problems of inertia that can cause new-product failures is

Accepted Answer

The "not-invented-here" problem refers to an organization's resistance to ideas or products that originate outside the company, which can hinder the adoption and success of new products.

Question 5

Open innovation is

Accepted Answer

Open innovation involves leveraging both internal and external ideas and collaborations to develop and market new products.

Question 6

Less than ________ of new consumer packaged goods (CPG) exceed first-year sales of $50 million-the benchmark of a successful CPG launch.

Accepted Answer

Less than 3 percent of new consumer packaged goods exceed first-year sales of $50 million, which is considered the benchmark of a successful CPG launch.

Question 7

Before a new product or service is developed, a firm should have a precise protocol, a statement that includes which of these?

Accepted Answer

A well-defined target market is crucial for developing a new product or service, as it helps the firm understand who the product is for and tailor the development and marketing efforts accordingly.

Question 8

After gaining widespread attention with the media, as well as popularity with teens, hoverboards made by a variety of manufacturers were found to catch fire or explode. Hoverboard sales suffered greatly as a result of which common reason for product failure?

Accepted Answer

The hoverboards were found to catch fire or explode, indicating a failure in product quality, which led to decreased sales.

Question 9

A new-product or service protocol is

Accepted Answer

A new-product or service protocol is a statement that identifies a well-defined target market, specific customers' needs, wants, and preferences, and what the product or service will be and do to satisfy consumers.

Question 10

When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip. Unfortunately, consumers did not switch from munching on popcorn and potato chips. The primary reason for the failure of Fingos was

Accepted Answer

The primary reason for the failure of Fingos was that it did not have a significant point of difference to entice consumers to switch from their preferred snacks like popcorn and potato chips.

Question 11

Open innovation helps organizations overcome ________, one of the organizational inertias common in new-product failures.

Accepted Answer

Open innovation helps organizations overcome NIH (Not Invented Here) barriers by encouraging the use of external ideas and technologies, which can lead to more successful new-product development.

Question 12

Ideally, before a new product or service is developed, a firm should have a precise ________, which is a statement defining the target market, specifying customers' needs, and defining what the product or service will be and do to satisfy consumers.

Accepted Answer

A protocol is a detailed plan or statement that outlines the target market, specifies customer needs, and defines what the product or service will do to satisfy consumers, making it essential for new product development.

Question 13

Groupthink occurs in a new product planning process when

Accepted Answer

Groupthink occurs when individuals suppress dissenting opinions or doubts in order to maintain harmony or conformity within a group, often leading to poor decision-making. In this case, someone suspects a problem but is afraid to speak up due to the group's enthusiasm.

Question 14

Thirsty Dog! is a zesty beef-flavored, vitamin-enriched, mineral-loaded, lightly carbonated bottled water for dogs. It might have been a great product, but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers. The makers of this product had

Accepted Answer

The product faced challenges in gaining economical access to buyers due to intense competition for shelf space, which limited its ability to generate sufficient sales.

Question 15

________ consists of practices and processes that encourage the use of external as well as internal ideas and internal as well as external collaboration when conceiving, producing, and marketing new products and services.

Accepted Answer

Open innovation is a collaborative approach to innovation that involves sharing ideas and resources with external partners, such as customers, suppliers, and universities.

Question 16

One of the eight primary marketing-related reasons for new-product failure is

Accepted Answer

An insignificant point of difference means the new product does not offer a unique benefit or advantage over existing products, leading to its failure in the market.

Question 17

Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan. American car manufacturers could blame their failure to a great degree on

Accepted Answer

American car manufacturers failed to satisfy customer needs on critical factors by not providing right-hand-drive cars, which are necessary for driving on the left-hand side of the road in Japan.

Question 18

One of the eight primary marketing-related reasons for new-product failure is

Accepted Answer

No economical access to buyers is a primary marketing-related reason for new-product failure because it means the product cannot effectively reach or be distributed to the target market, limiting its sales potential.

Question 19

New-product or service failures may be reduced or avoided if the company developing them has

Accepted Answer

A precise protocol helps ensure that the product development process is well-defined, reducing the likelihood of failure by addressing potential issues early and aligning the product with market needs.

Question 20

Hewlett-Packard introduced its HP Tablet a few years after Apple launched its original iPad, about the same time Apple introduced its next-generation iPad2. Hewlett-Packard abandoned the product within months. According to the text, the HP Tablet's failure was due in large part to

Accepted Answer

The HP Tablet was introduced after the original iPad and around the same time as the iPad2, suggesting that the timing of its release was not optimal, contributing to its failure.

Quiz 10: Developing New Products and Services

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom. Although a clever idea, it failed because it

You have received the Vitality Index chart shown above for your business, Parvaderm, and upon analysis you are concerned that

One of the two organization-related problems of inertia that can cause new-product failures is

Open innovation is

Less than ________ of new consumer packaged goods (CPG) exceed first-year sales of $50 million-the benchmark of a successful CPG launch.

Before a new product or service is developed, a firm should have a precise protocol, a statement that includes which of these?

After gaining widespread attention with the media, as well as popularity with teens, hoverboards made by a variety of manufacturers were found to catch fire or explode. Hoverboard sales suffered greatly as a result of which common reason for product failure?

A new-product or service protocol is

When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip. Unfortunately, consumers did not switch from munching on popcorn and potato chips. The primary reason for the failure of Fingos was

Open innovation helps organizations overcome ________, one of the organizational inertias common in new-product failures.

Ideally, before a new product or service is developed, a firm should have a precise ________, which is a statement defining the target market, specifying customers' needs, and defining what the product or service will be and do to satisfy consumers.

Groupthink occurs in a new product planning process when

________ consists of practices and processes that encourage the use of external as well as internal ideas and internal as well as external collaboration when conceiving, producing, and marketing new products and services.

One of the eight primary marketing-related reasons for new-product failure is

Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan. American car manufacturers could blame their failure to a great degree on

One of the eight primary marketing-related reasons for new-product failure is

New-product or service failures may be reduced or avoided if the company developing them has

Hewlett-Packard introduced its HP Tablet a few years after Apple launched its original iPad, about the same time Apple introduced its next-generation iPad2. Hewlett-Packard abandoned the product within months. According to the text, the HP Tablet's failure was due in large part to