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armstrong08tif

Chapter8

New-ProductDevelopmentandProductLife-CycleStrategies

 

Multiple-Choice

1._____isthedevelopmentoforiginalproducts,productimprovements,productmodifications,andnewbrandsthroughthefirm’sownR&Defforts.

a.Ideageneration

b.Concepttesting

c.Testmarketing

d.Newproductdevelopment

Answer:

(d)Difficulty:

(1)Page:

264

2.Allofthefollowingaredifferentwaysafirmcanobtainnewproducts,exceptwhichone?

a.Byacquiringawholenewcompany

b.Afirmcanobtainanewproductthroughpatents

c.Afirmcanobtainanewproductbylicensingsomeoneelse'snewproduct

d.AfirmcanobtainanewproductbyusingtheR&Ddepartmentofotherfirmsinthesameindustry.

Answer:

(d)Difficulty:

(2)Page:

264

3.Allofthefollowingareaccuratedescriptionsofreasonswhynewproductsfail,exceptwhichone?

a.Althoughthemarketsizewascorrectlyestimated,theproductideaitselfwasnotgood.

b.Theactualproductwasnotdesignedaswellasitshouldhavebeen.

c.Thenewproductwaspricedtoohigh.

d.Thenewproductwasadvertisedpoorly.

Answer:

(a)Difficulty:

(3)Page:

264

4.Allofthefollowingareaccuratedescriptionsofwayscompaniesareanxioustolearnhowtoimprovetheoddsofnew-productsuccess,exceptwhichone?

a.Findoutwhatsuccessfulnewproductshaveincommon.

b.Tolearnlessonsfromnewproductfailures.

c.Companieshavetolearntounderstandtheirownconsumers.

d.Donotoverlyrelyonproductinnovationwhenyoucansucceedbycopyingothers.

Answer:

(d)Difficulty:

(3)Pages:

262-264

5.

New-productdevelopmentstartswith_____.

a.ideascreening

b.ideageneration

c.conceptdevelopmentandtesting

d.marketingstrategydevelopment

Answer:

(b)Difficulty:

(2)Page:

265

6._____isthesystematicsearchfornew-productideas.

a.Ideageneration

b.Ideascreening

c.Conceptdevelopmentandtesting

d.Marketingstrategydevelopment

Answer:

(a)Difficulty:

(1)Page:

265

7.Allofthefollowingaremajorinternalsourcesofnew-productideas,exceptwhichone?

a.Pickingthebrainsofcompanyexecutives,scientists,engineersandsalespeopleisagoodwaytogenerateideas.

b.Intrapreneurialprogramsthatencourageemployeestothinkanddevelopnew-productideasisagoodwaytogenerateideas.

c.Somecompaniesemploycreativeapproaches,includingboth"methodandmadness"inhelpingthemtogeneratenewproductideas.

d.Goodideascomefromwatchingandlisteningtocustomers.

Answer:

(d)Difficulty:

(3)Page:

266

8.Majorsourcesofnewproductideasinclude_____.

a.internalsources,usingcompanyR&D

b.creativeapproaches,usingboth"methodandmadness"approaches

c.watchingandlisteningtocustomers

d.alloftheabovearesourcesofnewproductideas

Answer:

(d)Difficulty:

(2)Page:

266

9.Allofthefollowingaremajorexternalsourcesofnew-productideas,exceptwhichone?

a.Companiescanconductsurveysorfocusgroupstolearnaboutconsumerneedsandwants.

b.Competitorsareagoodsourceofnew-productideas.

c.Somecompaniesemploycreativeapproaches,includingboth"methodandmadness"inhelpingthemtogeneratenewproductideas.

d.Goodideascomefromwatchingandlisteningtocustomers.

Answer:

(d)Difficulty:

(3)Page:

266

10.

Allofthefollowingareaccuratedescriptionsofnewproductideas,exceptwhichone?

a.Newproductdevelopmentstartswithideageneration.

b.Somecompaniesusebrainstormingexercisesthatexpandpeople'smindsandgeneratenewideasaroundtheclient'sproblem.

c.Atthebeginningoftheprocess,carefullyscrutinizeeachideaandthrowfar-fetchedandimpracticalonesoutthewindow.

d.Customersmustbecarefulnottorelytooheavilyoncustomerinputwhendevelopingnewproducts.

Answer:

(c)Difficulty:

(3)Pages:

268-269

11.Somecompanieshaveinstalleda(n)_____thatdirectstheflowofnewideastoacentralpointwheretheycanbecollected,reviewed,andevaluated.

a.new-productdevelopmentteam

b.ideamanagementsystem

c.computersystem

d.satellitesystem

Answer:

(b)Difficulty:

(3)Page:

269

12.Inordertoinstallanideamanagementsystem,wherebyallideasaredirectedtoacentralpoint,acompanycandoanyorallofthefollowing:

a.Appointarespectedseniorpersontobethefirm'sideamanager.

b.Createacross-functionalideamanagementcommitteecomprisingofpeopleformR&D,finance,engineeringandoperationstomeetandevaluatenewproductideas.

c.Rewardemployeesthroughformalrecognitionprograms.

d.Alloftheabovearelegitimatewaystosystematicallycollectideas.

Answer:

(d)Difficulty:

(3)Page:

269

13.Thepurposeof_____istogeneratealargenumberofideas.

a.ideascreening

b.ideageneration

c.conceptdevelopmentandtesting

d.marketingstrategydevelopment

Answer:

(b)Difficulty:

(2)Page:

270

14.Thefirstideareducingstageis_____,whichhelpsspotgoodideasanddroppooronesassoonaspossible.

a.ideageneration

b.ideascreening

c.conceptdevelopmentandtesting

d.marketingstrategydevelopment

Answer:

(b)Difficulty:

(2)Page:

270

15.

A_____isadetailedversionoftheideastatedinmeaningfulconsumerterms.

a.productidea

b.productconcept

c.productimage

d.testmarket

Answer:

(b)Difficulty:

(2)Page:

270

16.A_____isthewayconsumersperceiveanactualorpotentialproduct.

a.productidea

b.productconcept

c.productimage

d.testmarket

Answer:

(c)Difficulty:

(1)Page:

270

17.Anattractiveideamustbedevelopedintoa_____.

a.productidea

b.productconcept

c.productimage

d.testmarket

Answer:

(b)Difficulty:

(2)Page:

270

18.Allofthefollowingareaccuratedescriptionsofactivitiesperformedintheideascreeningstageofnewproductdevelopment,exceptwhichone?

a.Ideascreeninghelpsspotgoodideasanddroppooronesassoonaspossible.

b.Companieswanttogoaheadonlywiththeproductideasthatwillturnintoprofitableproducts.

c.Manycompaniesrequiretheirexecutivestowriteupnewproductideasonastandardformthatcanbereviewedbyanew-productcommittee.

d.Settingupatoll-freenumberorWebsiteforanyonewhowantstosendanewideatotheideamanager.

Answer:

(d)Difficulty:

(2)Page:

270

19._____callsfortestingnew-productconceptswithgroupsoftargetconsumers.

a.Conceptdevelopment

b.Concepttesting

c.Ideageneration

d.Ideascreening

Answer:

(b)Difficulty:

(2)Page:

271

20.

_____entailstestingnew-productconceptswithatargetgroupofconsumerstofindoutiftheconceptshavestrongconsumerappeal.

a.Conceptdevelopment

b.Concepttesting

c.Ideageneration

d.Ideascreening

Answer:

(b)Difficulty:

(1)Page:

271

21.Productconceptsarepresentedtoconsumersduringconcepttestinginanyofthefollowingways,exceptwhichone?

a.Awordorpicturedescriptionispresentedtoconsumers.

b.Aconcreteandphysicalpresentationoftheconceptwillincreasethereliabilityoftheconcepttest.

c.Somecompaniesareusingvirtualrealitytotestproductconcepts.

d.CompaniesarereluctanttousetheWebtotestproductconcepts.

Answer:

(d)Difficulty:

(3)Pages:

271-272

22.Designinganinitialmarketingstrategyforanewproductbasedonthe_____iscalledmarketingstrategydevelopment.

a.newproductidea

b.productconcept

c.testmarketresults

d.productprototype

Answer:

(b)Difficulty:

(3)Page:

272

23.Themarketingstrategystatementinnewproductdevelopmentconsistsofthreeparts:

_____,_____,and_____.

a.ideageneration;ideascreening;conceptdevelopment

b.ideageneration;conceptdevelopment;concepttesting

c.ideageneration;ideascreening;ideamanagement

d.targetmarketdescription;plannedproductpositioning;sales,marketshare,andprofitgoalsforthefirstfewyears.

Answer:

(d)Difficulty:

(2)Page:

272

24._____involvesareviewofthesales,costs,andprofitprojectionsforanewproducttofindoutwhethertheysatisfythecompany'sobjectives.

a.Ideageneration

b.Ideascreening

c.Businessanalysis

d.Conceptdevelopmentandtesting

Answer:

(c)Difficulty:

(2)Page:

273

25.

Ifaproductconceptpassesthe_____,itmovesinto_____.

a.businessanalysistest;productdevelopment

b.conceptdevelopmentstage;productdevelopment

c.concepttestingstage;productdevelopment

d.ideagenerationstage;productdevelopment

Answer:

(a)Difficulty:

(2)Page:

273

26.Oncemanagementhasdecidedonaproductconceptandmarketingstrategy,itcannextevaluatethe_____oftheproposal.

a.productideaportion

b.productdevelopmentpart

c.businessattractiveness

d.commercialviability

Answer:

(c)Difficulty:

(2)Page:

273

27.Intheproductconceptstageofnew-productdevelopment,theproductismerelya_____.

a.worddescription

b.crudemock-up

c.drawing

d.alloftheabove

Answer:

(d)Difficulty:

(2)Page:

273

28.Inthe_____ofnew-productdevelopment,oftenproductsundergorigorousteststomakesurethattheyperformsafelyandeffectivelyorthatconsumerswillfindvalueinthem.

a.businessanalysisstage

b.ideageneration

c.conceptdevelopmentandtestingstage

d.productdevelopmentphase

Answer:

(d)Difficulty:

(3)Page:

273

29._____isthestageofnew-productdevelopmentinwhichtheproductandmarketingprogramaretestedinmorerealisticmarketsettings.

a.Businessanalysis

b.Ideageneration

c.Testmarketing

d.Marketingstrategydevelopment

Answer:

(c)Difficulty:

(2)Page:

274

30.

Allofthefollowingareaccuratedescriptionsoftestmarketing,exceptwhichone?

a.Testmarketingisthestageatwhichtheproductandmarketingprogramareintroducedintorealisticmarketsettings.

b.Testmarketingbyconsumer-packagedgoodsfirmshasbeenincreas

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