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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