NPDP Exam Question Simulator

Description

NPDP Exam Practice Questions from https://www.pdma.org/page/NPDP_practice_Qs
Marcin Zawisza
Quiz by Marcin Zawisza, updated more than 1 year ago
Marcin Zawisza
Created by Marcin Zawisza over 2 years ago
314
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Resource summary

Question 1

Question
__________ is the strategy defined by Miles and Snow for those companies that rapidly follow Prospector companies.
Answer
  • Responder
  • Defender
  • Analyzer
  • Reactor

Question 2

Question
What quantitative market research tool should be used to identify a gap in the products offered to a market?
Answer
  • Secondary research
  • Lead users
  • Any appropriate multivariate technique
  • On-line forums

Question 3

Question
Which pair of variables is NOT common in visual bubble chart displays of the balance of a portfolio?
Answer
  • Risk versus reward
  • Net present value versus return on investment
  • Cost versus benefit
  • Ease versus attractiveness

Question 4

Question
Gates are defined as decision points based on deliverables, criteria, and outputs. Outputs include __________.
Answer
  • Financial statements
  • Yes or no decisions
  • The highs and lows of impact and probability
  • Go, kill, hold, recycle decisions

Question 5

Question
Which of the following is the product life cycle stage when the company must make tough decisions about what to do with the product as sales decrease?
Answer
  • Introduction
  • Growth
  • Maturity
  • Decline

Question 6

Question
One of the most commonly referred to success factors, relating to team formation, for product development projects is __________.
Answer
  • Cross-functional representation
  • Lots of creative team members
  • A strong project leader
  • Team members who enjoy each other’s’ company

Question 7

Question
When developing metrics for a company, which of the following is a consideration in this process?
Answer
  • The scope of the measurement (e.g. business unit-wide, project-wide)
  • The time-frame of the measurement (e.g. past results, current performance)
  • The audience for the measurement (e.g. executives, middle managers)
  • All of the above

Question 8

Question
Who should be involved in the application of scoring new product opportunities?
Answer
  • A cross-functional team
  • Only the marketing manager
  • Only the new product manager
  • Only the Chief Executive

Question 9

Question
A company has decided on a name for its new product. The company has done an extensive search and has established that no other company or product is using this name. What form of Intellectual Property right should that company apply for to register the name?
Answer
  • Patent
  • Trademark
  • Copyright
  • Trade secret

Question 10

Question
Who is responsible for the strategic results of a new product development process in an organization?
Answer
  • Stage-Gate manager
  • Chief executive
  • Process owner
  • Scrum manager

Question 11

Question
Key elements of Agile new product process includes the scrum, the scrum master, the scrum team, the sprint, the product backlog, and the __________.
Answer
  • Stakeholders
  • Project manager
  • Product owner
  • Product champion

Question 12

Question
In sustainable development to abbreviation D4E stands for __________.
Answer
  • Design for Extinction
  • Development for the Environment
  • Design for Evolution
  • Design for the Environment

Question 13

Question
SWOT analysis can be used for ideation. What does SWOT address?
Answer
  • Strengths, weaknesses, opportunities, and threats
  • Strategy, willingness, organization, and teamwork
  • Strategy, weakness, organization, and threat
  • Strengths, willingness, opportunities, and teamwork

Question 14

Question
Secondary research should be conducted __________.
Answer
  • Mainly during the late stages of a project
  • When ethnographic research cannot be conducted
  • Before primary research
  • After primary research

Question 15

Question
In considering your portfolio in terms of market risk and technology risk, which combination is usually most desirable?
Answer
  • Low market risk, low technology risk
  • Low market risk, high technology risk
  • High market risk, low technology risk
  • High market risk, high technology risk

Question 16

Question
Most product development activity is focused on__________.
Answer
  • New brands
  • Line extensions
  • Derivatives and product improvement
  • New to world products

Question 17

Question
A unit of work small enough to be completed by the team in one sprint iteration is called?
Answer
  • Product backlog item
  • Scrum
  • Concept evaluation
  • TPS

Question 18

Question
The primary benefit of a Focus Group in marketing research is __________.
Answer
  • The ability to develop broad insights
  • Low cost
  • Ease of execution
  • Deep insights

Question 19

Question
Elements of cost include all of the following except __________.
Answer
  • Fixed costs
  • Variable costs
  • Capital costs
  • Recurring costs

Question 20

Question
A value proposition should focus on __________, not __________.
Answer
  • Features, benefits
  • Benefits, costs
  • Revenue, costs
  • Benefits, features

Question 21

Question
A platform strategy is defined as _____?
Answer
  • A common marketing plan for a series of products
  • A common manufacturing system for a range of products
  • A set of system and interfaces thaht form a common structure from which a stream of derivative products can be effectively developed and manufactured
  • A strategy thaht connects marketing, technology and manufacturing

Question 22

Question
A corporate vision is ____.
Answer
  • A NPD project goal
  • A philosphy statement about the beliefs of the company
  • A set of values
  • A picture of some desired future state that the orgnization hopes to obtain

Question 23

Question
Mission statements helps organizations to ____.
Answer
  • Focus people and resources
  • Initiate ideas
  • Plan to product launch
  • Borrow capital at a low rate

Question 24

Question
A strategy can be dfined as ____.
Answer
  • A organisation's philosophy
  • A company's game plan for achievieng its long-term objectives
  • An organisation's new product development plan
  • The organisation's values statement

Question 25

Question
You are leading the strategic planning process for a horticultural company that is developing a new apple cultivar. A key element of the company's strategic planning is optimization of revenue from intellectual property. What specific form of intellectual property protection would you follow in this case?
Answer
  • Plant variety rights
  • Trademarking
  • Patenting
  • Copyrighting

Question 26

Question
Who is responsible for setting the corporate and business strategy?
Answer
  • Process management
  • Senior management
  • The stakeholders
  • The board of directors

Question 27

Question
Your competitors have launch a new product. As you elevate your response to compete with them, you realize thaht the technology employed in your current product has reached its limits and cannot be improved to increase the performance to effectively compete and the only option is to consider superseding with newer and advanced technology. What stage on the technology S-Curve are you on?
Answer
  • Growth stage
  • Embryonic stage
  • Maturity stage
  • Laggard

Question 28

Question
A dairy product manager has discovered a new microorganism that may have significant health benefits (probiotic). The company decides to initiate a significant reseatch program to prove these health benefits. It plans to use the probiotic in a range of product including yogurts, health drinks and instant formula. This is an exapme of what type of strategy:
Answer
  • Line extension
  • Technology
  • Platform
  • Marketing

Question 29

Question
Which of the following strategies is most likely to have a strong emphasis on technology?
Answer
  • Routine
  • Architectural
  • Radical
  • Both B and C

Question 30

Question
In the BCG Growh-State matrix cash-cow is defined as a product with high market share but low growth potential. What strategy should company adopt for this type of product?
Answer
  • Take as much profit from the product as possible
  • Sell the product while it is still making money
  • Carry out a detailed analysis of the product, the competitors, and the market, leading to clear strategy for the future of the product
  • Make significaant investment in product improvements

Question 31

Question
A weakness of NPV method for assesing projects in portfolio management is that:
Answer
  • Projects cannot be rank ordered
  • NPV doesn't allow for resource allocation
  • Tools for calculating NPV are not readily available
  • It is difficult to detemine accurate cash flow data for projects, especially early in the development process

Question 32

Question
Allocating resources across a set of projects to optimize performance is knowne as:
Answer
  • Value maximization
  • Profit seeking
  • Rationalization
  • Pruning

Question 33

Question
"Top-down" and "bottom-up" are ways to think about:
Answer
  • Forecasting
  • Leadership
  • Connecting customers with the orgasation
  • Linking strategy and the product portfolio

Question 34

Question
You are CEO of company A. Your company has grown organically through lots of acquisitions and you have a wide range of products that have been launched into a variety of markets, and your product teams have ideas to develop new products. You need to opimiize the investment across all of these existing and new products. What would you do?
Answer
  • Tell the reams no to develop any new products
  • Give each team the same amount of money and ask them to proceed with development
  • Establish a portfolio management process
  • Approve proects that cost less than $500K to develop

Question 35

Question
In evaluation product opportunities, which of the following is a financial method for evalutaion?
Answer
  • Strategic alligment
  • Return of investment
  • Technical feasibility
  • Time to market

Question 36

Question
In evaluating product opportnities, which of the folllowing is a non-financial method for evalutaion?
Answer
  • Level of risk
  • Net present value
  • Payback period
  • Internal rate of return

Question 37

Question
Company A has recently implemented a range of new product development practices. As s first stage, it has used a range of ideation tools to generate a number of potential new product ideas. It is now seeking to evaluate and prioritize th 150 product ideas for further evalutaion and development. What technique would you recomend for the first stage of evaluating the 150 new product ideas?
Answer
  • Pass/fail evaluation
  • Financial analysis
  • Ask boss to do it
  • Detailed scoring of each idea against strategic criteria

Question 38

Question
Mary is a product manager for ACE Electronics. Sha has been asked by the senior management executive to prepare a list of criteria as a basis for evaluation of new opportunities to be included in the new products portfolio. She presents the following list: potential market share, potentil contribution to company profitability, availbility of product development resources. MAry has omitted the moist important criterion form her list. What it is?
Answer
  • Support from the chief executive
  • Alignment with the company's new product strategy
  • Sufficient marketing budget
  • Sufficient manufacturing capability

Question 39

Question
Which of the following statement best represents the relationship between the number of projects that engineers are working on and their productivity?
Answer
  • Engineers get more productive the more projects they work on
  • Engineers work just as well on five projects as they do on one
  • Assigning engineers to more than two projects starts to reduce their productivity
  • It it best to have engineers each work on just one project

Question 40

Question
Jane has been evaluating the state of the innovation portfolio at ACME Bricks and Construcion. Several simultaneous projects use the same set of product development experts. Moreover, many of thse projects are being delayed and compete with other business priorities. What critical aspect of portfolio management Jane loo at to adress these issues?
Answer
  • Resource allocation
  • Project flow
  • Agile project development
  • Strategy execution

Question 41

Question
Mary works as a product development engineer at an automotice parts supplier. Her boss has been complaining about the long lead time in getting new products to market. He belives that the iterative changes, inherent in most of the new products, could be carried out much more efficiently. What type of product development process would you suggest that Mary recommend to her boss to reduce time to market?
Answer
  • Waterfall
  • Integrated
  • Agile
  • Stage-Gate

Question 42

Question
In the early stages of the new products process there is a lot of uncertainty. These stages are often referred to as ____.
Answer
  • Concept generation
  • The fuzzy fornt end
  • Business case development
  • Concept evaluation

Question 43

Question
The sing of a mature product development process within an organization is the ability of the orgnization to:
Answer
  • Include and integrate stakeholders and senior management throughout the development process
  • Use iterative and risk-limiting steps to facilitate effective and efficient new product development
  • Continously fill the pipeline with new products
  • Develop its own best practices from the various models and experiences

Question 44

Question
The first step in the classic waterfall process is requirements. The last step is known as:
Answer
  • Development
  • Maintenance
  • Verification
  • Implementation

Question 45

Question
Key element of Agile new product process includes the scrum, the scrum master, the scrum team, the spring, the product backlog, and:
Answer
  • Stakeholders
  • Project manager
  • Product owner
  • Product champion

Question 46

Question
A company is developing a product thst is basically a realtively simple line extension of existing products. I knows the market well and the risks associated with product failure are low. What type of Stage-Gate process would be most likely appropriate for this development
Answer
  • A 5-stage process with heavy emphasis on initial business analysis
  • A 5-stage process with significant market reaserch research built into the decision-making
  • A relatively short 3-stage process focusing on speed to market
  • A 3-stage process with a strong emphasis on pre-launch test test marketing

Question 47

Question
The process desgned to build a product through a series of fixedlength iterations givining teams a framework for shipping software on a regular cadence is called:
Answer
  • Sprint
  • Lean
  • Scrum
  • Agile

Question 48

Question
Gates are defined as decision points based on deliverables, criteria and outputs. Outputs include:
Answer
  • Financial statements
  • Yes or no decisions
  • The highs and lows of impact and propability
  • Go, kill, hold, recycle decisions

Question 49

Question
Lean processes are focued primarly on:
Answer
  • Putting more discipline into processes
  • Making processes more Agile
  • Removing waste
  • Encouraging cross-functional integration

Question 50

Question
The framework, functions, and processes that guide activities in project, program and portfolio management and provide guidance, decision making and oversight is called:
Answer
  • Governance
  • Project management
  • Team leadership
  • General management

Question 51

Question
Product design specifications are primarly intended to:
Answer
  • Translate qualitative design features into quantitative parameteres
  • Indentify the core benefit of product
  • Identify customer needs
  • List the tangible features of a product

Question 52

Question
The House of Quality relates the voice of the customer to the voice of:
Answer
  • Marketing
  • Advertising
  • Engineering
  • Manufacturing

Question 53

Question
Which ideation tool used in new product development generates a graphical output linking various pieces of information, ideas and thoughts?
Answer
  • Mind-mapping
  • Brainstorming
  • Brainwriting
  • Delphi technique

Question 54

Question
The creative process of generating and communicating new ideas where and idea is basic element of thought that can be visual, concrete or abstract is termed:
Answer
  • Market research
  • Ideation
  • Concept development
  • Mind-mapping

Question 55

Question
The product design specifications must use a set of metrics to ensure they are met during the desing work. Suppose you are designing a new automobile. Which of the following is an acceeptable product design metric:
Answer
  • The seats are comfortable
  • The car accelerates from 0 to 60 miles per hour in less than 6 seconds
  • The towting capacity is adequate for most people to use a boat trailer
  • There are a wide range of colors and fabrics available for the interior

Question 56

Question
SCAMPER is an ideation technique that uses word stimuli including:
Answer
  • Adapt, put to another use
  • Substitute, combine, modify
  • Reverse, eliminate
  • All of the above

Question 57

Question
The product concept description should include which three elements?
Answer
  • Customer needs, enviromental factos, customer use reports
  • Qualitative descrption, quantitative parameters nad technical deliverables
  • Core benefits, tangible attributes and augmented features
  • Competitive benchmark, concept description, qualitative measures

Question 58

Question
What is the pattern in TRIZ problem-solving matrix:
Answer
  • Indentify the specific problem first, then the general problem and identify a general solution before a specific solution
  • Identify the specific problem first, test a solution with a targeted customer group, generate more prototypes, select speciic solution
  • First use a general problem with general solution, then select the specific problem to solve
  • Identify a cross-functional team that can test various product solutions with customers and select the highest rated solution

Question 59

Question
Jack is a consultant to a manufacturing company. He has been asked to evauate the components and parts of the product as well as the whole desing (system view) and the method of assembly used (manual, automatic, fixed automation and robotic assembly). What specific design tool should Jack use?
Answer
  • Design for manufacturing
  • Design for assembly
  • Design for functionality
  • Design for life

Question 60

Question
What specific design tool uses the following methods: Think-aloud laddering, Quantification Theory I (QTI), PLS analysis and Genetix and Fuzzy logic?
Answer
  • Taguchi
  • Six Sigma
  • Kansei
  • TRIZ

Question 61

Question
A product manager reviewed technical publications, electronic databases, and websites prior to deisgning a research project that directly contacts prospective customers. This review of already-published materials is an example of:
Answer
  • Market testing
  • Voice of the customer
  • Portfolio management
  • Secondary market research

Question 62

Question
During new product development, companies ofen use ____ to measure end user satisfaction with a product and to determine whether the company can deliver the total quality product as promised.
Answer
  • Lead user research
  • Product use testing
  • Secondary research
  • Quality function deployment

Question 63

Question
You are responsible for validating the value proposition of adding a number of new features to your current product line. A way to explore the association between adding one or more new features and the perceived value to the user would be to:
Answer
  • Color code the feature sets so that they are easily identified by the user
  • Add fake sets of features to see if respondents identify the actual product features
  • Run a volumentric study of the most profitable product prototype to forecast sales
  • Conduct a conjoint study varing feature sets and price points to optimize the new feature set and product prices

Question 64

Question
Factor analysis, cluster analysis. multidimensional scalling, conjoint analysis, and multiple regression analysis are examples of _____:
Answer
  • Qualitative research techniques
  • Multivariate research techniques
  • Voice od customer techniques
  • Ethnographic research techniques

Question 65

Question
Information gathered by other researchers for other purposes, the fit between research method and research purpose, unknown sample size, varying levels of quality, and dated information are all pitfalls of which type(s) of market research?
Answer
  • Survey research
  • Voice of the customer
  • Secondary market research
  • All the above

Question 66

Question
A software company is developing an update to a specific app for online shopping. The company has extensive experience with its target through previous product launches. Even if there are minor faults with the app, these can be quickly remedied after launch without significant negative customer response. Speed to market is critical. The company is seeking customer reaction to the improved features and functionality of the new app. What market reasarch approach would yuo recommend?
Answer
  • Focus group
  • In-house alpha testing followed by beta testing
  • Test marketing
  • Factor analysis

Question 67

Question
Reaserach that involves collectiong information specifally tailored to your need (such as focus groups or surveys) is known as ____:
Answer
  • Primary research
  • Secondary research
  • Qualititative research
  • Quantitative research

Question 68

Question
The primary benefit of a focus group in marketing research is ____:
Answer
  • The ability to develop broad insights
  • Low costs
  • Ease of execution
  • Deep insights

Question 69

Question
A toy manufacturing company is developing a "powered vehicle" for 10-12-year-old children. Potential risks: The company has extensive experience in the toy market, but mainly with under 5-year-olds. The risks associated with project relate to a lack of previous engagement with the 10-12-year group, and meeting their specific requrements. Getting the product right is more important than speed to market. Market information required: Target market input to the concept development and design specifications. What market research technique would you recommend?
Answer
  • Consumer panels selected from the target age group
  • Alpha testing
  • Ethical approval followed by consumer panels from the target age group
  • Crowdsourcing

Question 70

Question
Social media is particularly good for reaching ____:
Answer
  • Potential new customers
  • Lead users
  • Customers in foreign markets
  • Those needing customer service

Question 71

Question
Ensuring that the right team principles are in place to promote performance is an aspect of a management role and is called ....:
Answer
  • Team motivation
  • Team development
  • Project management
  • Senior leadership

Question 72

Question
The role responsible for estabilishing the product innovatio process and for ensuring its quality and consistency and ongoing training in its application is called:
Answer
  • Process manager
  • Process champion
  • Process owner
  • Process developer

Question 73

Question
You are hired as a new product development consultant by an established company that is having challenges with its new product development innovation initiatives. Upon observing the work practices across the company, you note an emphasis on individuals working alone, very little social interaction either at or outside of work, limited recignition of staff performance, and frequent criticism of failure. What specific area wolud you recommend as the primary focus for the company to improve its product innovation?
Answer
  • Better tools to assist in all aspects of product innovation
  • An improved product innovation process, used by all staff
  • Developing a culture of innobation
  • Encouraging senior managers to get more involved in product innovation

Question 74

Question
The set of propoerties of the work enviroment, perceived directly or indirectly by employess to have a major effect on employee behavior, is termed:
Answer
  • Culture
  • Enviroment
  • Climate
  • Organisational structure

Question 75

Question
Ensuring, over time, that a product (or group of products) or services meets the needs of customers by continuosly monitoring and modifying elements of the marketing mix is generally the role of a ....:
Answer
  • Product manager
  • Project manager
  • General manager
  • Marketing manager

Question 76

Question
Which of the following best describes a team?
Answer
  • A group of individauls who meet regularly
  • People who enjoy doing the sam things
  • A group of people with a common purpose for which the hold themselves mutually accountable
  • A group of people appointed to complete a specific task

Question 77

Question
Tuckman identified five stages of team development. What does the formming stage involve?
Answer
  • Deciding on team direction
  • Bringing the team together and getting to know each other
  • Appointing a team leader
  • Resolving differences among team members

Question 78

Question
A functional team is best suited for which type of project?
Answer
  • Highly complex, requiring strong cross-disciplinary collaboration
  • Product development that is totally new to the company
  • A project that demands total commitment from team members
  • Relatively simple product line extensions or improvements

Question 79

Question
What type of assesment helps a team achieve increased communication during the work of the project?
Answer
  • Personality assesment, like the Myers-Briggs Type Indicator
  • Work style assesment, like DiSC
  • Functional resource assesment as used in creating the project budget
  • Project portfolio management assesment

Question 80

Question
A company has decided to embard on a high-risk project that is focued on the development of a product outside the traditional boundaries of company operation. What type of team structure would be modst suitable for this type of project?
Answer
  • Autonomous
  • Lightweight
  • Functional
  • Agile

Question 81

Question
Janes is the product manager for a toy manufacturing and marketing company. The company has just embarked on developing a new product targeted at children between 8 and 12 years of age. Jane has just completed an early stage feasibility analysis of the product profitability potential. She has completed a comprehensive survey of the potential market, has examined the company's technical capability with respect to design and manufacture, has discussed the company's ability to market new product withe the marketing manager, and has developed an extensive spreadsheet to analyze the profit potential under diffrent scenarios. What important consideration has Jance failed to take into account?
Answer
  • Support from senior management
  • The company's manufacturing capability
  • The export market potential
  • The time to market

Question 82

Question
You need to estimate the sales potential of a new product to determine its overall financial feasibility. Your sales manager estimates there is a 40% chance of achieving sales of 500.000 units and a 60% chance of selling 1.000.000 units. What sales potential would you use in your feasibility analysis?
Answer
  • 600.000 units
  • 700.000 units
  • 800.000 units
  • 900.000 units

Question 83

Question
Jane is establishing her own company to manufacture and market a novel range of sports clothes for children aged 8 to 12 years of age. In applying for a loan from her bank, she has been told that she needs to estmiate the required working capital. Why is working capital so important to Jane in the establishment of her new business?
Answer
  • It tells her how much money she has to invest in her new business
  • It provides an indication of new business potential to pay off its short-term financial liabilities
  • It provides a sound basis for calculating the return on investment of the new business
  • It provides a basis for how much money she should seek to borrow from the bank

Question 84

Question
In which of the following scenarios is it most important to use net present value rather than payback period for financial analysis of a new product's potential?
Answer
  • A high level of capital expenditure is required, the product has long potential life cycle, and interest rates are high
  • A low level od capital expenditure is required, the product has long potential life cyckle and interest rates are hign
  • Potential profitability is high, the product has a log life cycle and interest are low
  • Potential profitability is high, the product has a short life cycle and interest rates are high

Question 85

Question
Product management actions taken during the product life cycle are first determined by which of the following?
Answer
  • Life cycle assessment
  • Sustainability plans
  • Product, prices, promotion and plance
  • Phase of the product's life cycle

Question 86

Question
In the introduction stage of the product life cycle, which of the following product pricing strategies is most commonly used?
Answer
  • Penetration pricing
  • Skimming pricing
  • Either A or B
  • Competitive pricing

Question 87

Question
What types of consumer is most likely to purchase a product in ist introduction stage?
Answer
  • Laggards
  • Early adopters
  • Innovators
  • Early majority

Question 88

Question
Jack is a product manager responsible for a product that has clearly entered the decline stage of its life cycle. What strategy should Jack adopt?
Answer
  • Seek to reduce costs and continue to sell to a loyal market
  • Rejuvenate the product by adding new features and finding new users
  • Discontinue the product
  • Any od A, B or C

Question 89

Question
In the management of product portfolio, it is important to:
Answer
  • Have a good mix of products across the introduction, growth and maturity stages of the product life cycle
  • Focus strongly on products in the introduction and growth stages of the product lige cycle
  • Place significant emphasis on the product in the maturity stage of the product life cycle
  • Place significant emphasis on products in the growth and maturity steges of the product life cycle

Question 90

Question
A product manager is charged with launching a new product. She decides on initially launching into a specific market segment and then, on the basis of achievieng penetration into this segment, to roll the product ou progressively to more segments. This approach to launching a new product is called a:
Answer
  • Rollout strategy
  • Beachhead strategy
  • Market testing
  • Market expansion
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