Question 1

When companies move beyond gathering new-product ideas from customers,and instead work with customers and involve them directly in the innovation process,this is an example of ________.

Accepted Answer

The answer of When companies move beyond gathering new-product ideas...

Question 2

________ marketing is the stage at which the product and marketing program are introduced into more realistic market settings.

Accepted Answer

The answer of ________ marketing is the stage at which...

Question 3

A company launching a new product into the market should first decide where to launch the product.

Accepted Answer

The answer of A company launching a new product into...

Question 4

Business ________ involves the review of sales,costs and profit projections to find out whether they satisfy the company's objectives.

Accepted Answer

The answer of Business ________ involves the review of sales,costs...

Question 5

The stage at which new-product and marketing programs are introduced into realistic market settings is called concept testing.

Accepted Answer

The stage described is known as market testing, not concept testing. Concept testing typically involves presenting the product concept to target consumers before a physical product is developed, to gauge potential interest and gather feedback. Market testing, on the other hand, involves introducing the actual product and marketing programs into a realistic market setting to test their performance before a full-scale launch.

Question 6

The business analysis stage represents the first large jump in financial investment in the new-product development process.

Accepted Answer

The business analysis stage is not the first large jump in financial investment in the new-product development process; typically, this occurs later, after initial concept and development stages, where the feasibility and market potential are assessed.

Question 7

If the product concept passes the business test,it moves into product ________.

Accepted Answer

The answer of If the product concept passes the business...

Question 8

Simulated test markets allow firms to obtain realistic evaluations of new products in 'real world' settings while hiding their activities from competitors.

Accepted Answer

Simulated test markets typically occur in controlled environments, not 'real world' settings, and are primarily used to gauge consumer response rather than to hide activities from competitors.

Question 9

JumBo Games is launching a new set of games in the commercialisation stage.The first decision for management to make is introduction timing,and the second is where to launch the new product.

Accepted Answer

The statement mentions that JumBo Games is in the commercialisation stage of launching a new set of games, indicating that introduction timing and where to launch the product are important decisions for management to make. Therefore, the statement is true.

Question 10

To test the product concept of a new idea,the R & D department of a firm will develop a prototype that will excite consumers and can be produced quickly at budgeted costs.

Accepted Answer

This statement is true. Developing a prototype is a common way for R&D departments to test the product concept and generate excitement among consumers. The prototype should also be designed to be produced at budgeted costs to ensure feasibility for mass production.

Question 11

New-product development starts with idea ________.

Accepted Answer

The answer of New-product development starts with idea ________....

Question 12

A product ________ is an idea for a possible product that a company can see itself offering to the market.

Accepted Answer

The answer of A product ________ is an idea for...

Question 13

In spite of the benefits of test marketing,many firms today question its value.

Accepted Answer

Test marketing can be expensive and time-consuming, and there are alternative methods such as simulation and modeling that can help predict consumer responses. Additionally, some argue that test marketing can lead to competitors being alerted to new product developments and potentially copying them before the official launch.

Question 14

Simulated test marketing enables a company to clearly estimate the repeat-purchase rate under conditions where consumers spend their own money and choose among competing brands.

Accepted Answer

Simulated test marketing typically involves controlled environments and scenarios, which may not fully replicate the conditions where consumers use their own money and make choices among competing brands in a real-world setting, thus making it challenging to accurately estimate the repeat-purchase rate.

Question 15

To avoid the problems of too few new product ideas and the failure of many good ideas,management should install an innovation management system that collects,reviews,evaluates and manages new-product ideas.

Accepted Answer

An innovation management system helps organizations to systematically collect and manage new-product ideas, evaluate them, and select the best ones for further development. This can help to avoid the problems of too few ideas and unsuccessful products.

Question 16

________ test marketing uses a range of research and computer modelling approaches to evaluate consumer reactions and speed up the process.

Accepted Answer

The answer of ________ test marketing uses a range of...

Question 17

A product ________ is the way consumers perceive an actual or potential product.

Accepted Answer

The answer of A product ________ is the way consumers...

Question 18

Sequential product development has the advantage of not only being a team-oriented approach,but also of being faster in bringing products to market.

Accepted Answer

Sequential product development, also known as the waterfall model, often takes longer to bring products to market compared to iterative or agile methodologies because each phase must be completed before the next begins, limiting opportunities for parallel work and quick adjustments based on feedback.

Question 19

A product ________ is a detailed version of an idea stated in meaningful consumer terms.

Accepted Answer

The answer of A product ________ is a detailed version...

Question 20

Idea ________ is used to spot good ideas and drop poor ones as soon as possible.

Accepted Answer

The answer of Idea ________ is used to spot good...

Quiz 8: New Products: Developing and Managing Innovation