question

Expensive industrial goods and new technologies will normally undergo alpha and beta testing.

answer

True

question

Employees can be a source of ideas for improving production, products, and services

answer

True

question

Modular function deployment methodology takes the list of desired customer attributes generated by market research and turns them into a list of engineering attributes that engineers can use.

answer

False

question

Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in?

answer

evaluation

question

A team formed at Intercom, Inc. to generate ideas for new products, conducts frequent meetings and engages in activities such as mind mapping and brainstorming. Most of the meetings are conducted at informal locations away from office. These workplaces are called ________.

answer

skunkworks

question

A business analysis is typically performed after the management has developed the product concept and marketing strategy.

answer

True

question

Electro Locomotors (EL), Inc. engages in the manufacture, distribution, and marketing of custom vehicles in Brazil. Bono, a hybrid car brand that the company produces, is a market leader in the hybrid vehicles segment. With the increased global focus on nature friendly vehicles and governmental subsidies for companies that manufacture hybrid vehicles, competition has increased for flex-fuel cars like Bono. The heads of the R&D team at EL is in a creative session to generate ideas for improvements to Bono. They consider each part of the car and discuss the possibilities of improvements in each of them. Identify the creativity technique used here.

answer

attribute listing

question

Intercom, Inc. together with its subsidiaries, primarily engages in the generation, transmission, and distribution of electric power in the United States. The company observes that its growth has stagnated over a period of two years. In an attempt to promote growth, it considers adding new features to the existing products and introducing a few new products. The company forms a committee consisting of three top executives, one of the production mangers, a few operational managers, and a representative of the HR department to generate ideas. This team is called a(n) ________.

answer

venture team

question

The strategic blueprint thinks about how the new product can fit into customers' lives and how it can be distinguished from competitors.

answer

True

question

Relative advantage of an innovation refers to the degree to which ________.

answer

it appears superior to existing products

question

The ________ used by companies divides the innovation process into stages, with a checkpoint at the end of each stage.

answer

stage-gate system

question

Organic growth refers to increasing the profitability of the organization by increasing employee productivity.

answer

False

question

Which of the following strategies for new-product development incorporates the buyers' preferences in the final design of the product?

answer

customer-driven engineering

question

Identify a shortcoming of giving the responsibility of new product development to the product managers of a company.

answer

Product managers are often busy managing existing lines.

question

Almost all companies use the conventional percentage-of-sales figure while budgeting for new product development.

answer

False

question

Which of the following is most closely related with the organic growth of an organization?

answer

developing new products from within

question

Adopters of new products move through five stages. These stages begin with ________ and follow with interest, evaluation, trial, and adoption.

answer

awareness

question

Some firms might delay new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the late entrant can avoid. This can be classified as a parallel entry.

answer

False

question

New-to-the-world products are ________.

answer

new products that create an entirely new market

question

Which of the following questions is answered during the business analysis of ideas?

answer

Can this product meet sales expectations?

question

Identify the stage in the consumer adoption process in which the customer is stimulated to seek information about the innovation

answer

interest

question

Venture teams are cross-functional groups charged with developing a specific product or business.

answer

True

question

The ________ technique used for stimulating creativity identifies a problem and then considers the dimension, the medium, and the power source.

answer

morphological analysis

question

A business analysis is performed mainly to identify if a company has got a technically and commercially sound product.

answer

False

question

A category concept defines the product's attributes and features

answer

False

question

The demand landscape uses conceptual lens and structured innovative-thinking tools to achieve market perspectives from different angles

answer

False

question

________ teams are cross-functional groups charged with developing a specific product or business.

answer

Venture

question

Which of the following terms refers to the degree to which the innovation can be tried on a limited basis?

answer

divisibility

question

Which of the following characteristics is closely associated with late majority adopter groups?

answer

high risk aversion

question

Morphological analysis starts by forming a new dimension and then thinks about the possible problems of the dimension.

answer

False

question

Joseph, a student of the Columbia University, finds many of his classmates have purchased the I-pad tablet PC from Apple Computers. I-pad, launched a few months before has been identified as a very useful product and many students in the U.S. have rated it highly. Considering all these, Joseph also decides to purchase an I-pad. Which of the following is the adopter group to which Joseph belongs?

answer

early majority

question

________ is the effect one person has on another's attitude or purchase probability

answer

Personal influence

question

Concept testing means validating the product concept by discussing within the design group.

answer

False

question

Troma Inc., is a famous manufacturer of cookware, that follows a traditional distributor-retailer system to distribute its products. The company abstains from the use of automated supply chain management (SCM) system mainly due to the fear of unknown. However, rapidly escalating operational costs and inefficiencies have made it absolutely necessary for the company to implement an SCM system. The company goes for a big-bang installation of SCM system to become more competitive and cost effective. Identify the adopter group to which Troma belongs.

answer

laggard

question

Which of the following is the mental step in consumer-adoption process where the customer starts considering whether to try the innovation?

answer

evaluation

question

Pager, a simple personal device for short messages, became famous in the 1990s. Troveron Communications launched a pager in the early twenty-first century. Due to the introduction of mobile phones and text messaging, the pager industry was on a decline. The company's innovations were not well received by the market and the product became a failure. Which of the following is the most likely reason for the product's failure in this case?

answer

poor launch timing of the product

question

In an attempt to improve the product, a company that manufactures screwdrivers discusses the modification of each attribute, such as replacing the wooden handle with plastic, providing torque power, adding different screw heads, and so on. This creativity technique is called ________.

answer

morphological analysis

question

In consumer-goods market testing, the company seeks to estimate four variables. These four variables are: trial, first repeat, adoption, and ________.

answer

purchase frequency

question

Consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values that consumers attach to varying levels of a product's attributes.

answer

conjoint analysis

question

Attribute listing lists several ideas and considers each in relationship to the others

answer

False

question

Modern firms use the ________ concept testing tool to design products on a computer and then produce rough models to show potential consumers for their reactions.

answer

rapid prototyping

question

Universal Services, Inc. provides communication services to residential and business customers in rural and small urban communities primarily in northern England. The company offers services such as local and long distance voice, data, and Internet and broadband product offerings. The company, in an attempt to increase the attractiveness of its offerings, decides to provide special voice and data packages to its customers. The company designs eight different packs that offer varying voice and data benefits to customers. The company then asks a few of its customers to rank the packs in order to choose two best packs. Which of the following testing methods is being used in the above scenario?

answer

conjoint analysis

question

The highest loss a project can create is called ________.

answer

maximum investment exposure

question

Consumer preferences for alternative product concepts can be measured with conjoint analysis.

answer

True

question

Identify the element in the DIG network that considers how a new product can fit into customers lives and how it can be distinguished from the competitors' products.

answer

strategic blueprint

question

Which of the following is an advantage of sales-wave research?

answer

It can be implemented quickly with a fair amount of security.

question

Which of the following methodologies takes the list of desired customer attributes (CAs) generated by market research and turns them into a list of engineering attributes (EAs) that engineers can use?

answer

quality function deployment

question

________ process recognizes the value of returning to an earlier stage to make improvements before moving forward.

answer

Spiral development

question

________ is a customer test that involves placing the product within the firm to see how it performs in different applications

answer

Alpha testing

question

Crowdsourcing means inviting the Internet community to help create content or software, often with prize money or a moment of glory as an incentive.

answer

False

question

It has been observed that most new products have shorter product life cycles. What is the reason for this?

answer

Rivals quickly copy products that are successful

question

Cocreation can help a company create favorable word of mouth

answer

True

question

For a frequently purchased new product, the seller estimates repeat sales as well as first-time sales. A high rate of repeat purchasing means customers ________.

answer

are satisfied with the product

question

Rapid prototyping refers to designing products on a computer and then producing rough models to show potential consumers for their reactions.

answer

True

question

Which of the following is usually referred to as a full-blown test market?

answer

a city or a few cities

question

A large FMCG company decides to test market Kora, a new brand of face cleanser, to be launched soon. The company initially distributes a few free samples to some prospective consumers. Later it offers the product to the customers at a discounted price and observes that not only more than seventy percent of the customers are purchasing it but the same number are also satisfied using it. The company keeps using this process 3-4 times to obtain a correct count of the number of people purchasing the product repeatedly. Which of the following testing methods is being used here?

answer

sales-wave research

question

The job of translating target customer requirements into a working prototype is helped by a set of methods referred to as ________.

answer

quality function deployment

question

The ________ uses observational, anthropological, and ethnographic methods or consumer self-reports to map consumer needs, wants, and even beyond.

answer

demand landscape

question

Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________ entry.

answer

late

question

At the interest stage of consumer-adoption process, the consumer becomes aware of the innovation but lacks information about it.

answer

False

question

Companies that fail to develop new products leave their existing offerings vulnerable to increased domestic and foreign competition.

answer

True

question

Many believe that customer focus does not help to create better or new products. This belief rests on which of the following ideas?

answer

Customers are at times unaware of what they really want.

question

Which of the following uses conceptual lens and structured innovative-thinking tools to achieve market perspectives from different angles?

answer

opportunity space

question

Sales-wave research can be implemented quickly and carried out without final packaging and advertising.

answer

True

question

________ contribution lists the changes in income to other company products caused by the introduction of a new product

answer

Supplementary

Marketing Management Chapter 20 – Introducing New Market Offerings – Flashcards

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