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Product & Service Innovation Management Exam Revision

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MKT20024 study questions - multiple choice
Erin Walker
Quiz by Erin Walker, updated more than 1 year ago
Erin Walker
Created by Erin Walker over 7 years ago
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Question 1

Question
With reference to the new products process, a firm adopts the ready—fire—aim approach when it:
Answer
  • does not do the required homework before beginning development
  • lacks senior management support
  • chases a moving target
  • does not pay enough attention to quality

Question 2

Question
According to the latest Comparative Performance Assessment Study (CPAS), in comparison to the Rest, Best companies are:
Answer
  • less likely to rely on online communities for information gathering
  • more likely to employ informal processes for selecting which concepts to develop
  • less likely to rely on portfolio analysis for product selection
  • more likely to use tradeoff analysis

Question 3

Question
Which of the following firms will have the most effective worldwide new product programs?
Answer
  • Firms that use quality circles
  • Firms that have implemented total quality management
  • Firms that follow a global innovation culture
  • Firms that are leaders in their respective industries

Question 4

Question
Firms with a global innovation culture:
Answer
  • can better manage the R&D tasks associated with the new products process
  • are unwary of the differences in customer needs and preferences
  • have a disadvantage in implementing global launches
  • are only open to domestic markets

Question 5

Question
Rules of thumb that firms have found that work for them can be referred to as:
Answer
  • syntaxes
  • heuristics
  • synergies
  • charters

Question 6

Question
New-to-the-firm products:
Answer
  • are new to a company, but are not new to the world
  • most likely require consumer learning
  • most likely involve the incorporation of a very new technology
  • tend to revolutionize existing product categories

Question 7

Question
_____ are also known as "flanker" brands.
Answer
  • Improvised products
  • Line extensions
  • Repositionings
  • New-to-the-world products

Question 8

Question
Ace Corporation is a manufacturer of powder and liquid dishwashing detergents. Owing to popular demand, the company introduces a single-load, scented, gel detergent encased in water-soluble bags designed to fit dishwasher detergent trays. The firm's new product is best described as a(n):
Answer
  • new-to-the-world product
  • repositioned product
  • improvised product
  • line extension

Question 9

Question
Luminos Co., a popular manufacturer of kitchen appliances, decides to enter the manufacturing sector of crockery and dinnerware. It markets a line of dinnerware, Illuminia, for the first time in its history. Its dinnerware will most likely fall into which of the following new product categories?
Answer
  • New-to-the-world products
  • Line extensions
  • Product improvements
  • New-to-the-firm products

Question 10

Question
Which of the following is the first phase in the basic new products process?
Answer
  • Product development
  • Concept ideation and generation
  • Opportunity identification and selection
  • Project evaluation

Question 11

Question
The _____ comes into play once an opportunity is approved, and managers turn to various techniques to guide new product people in exploiting it.
Answer
  • Product Innovation Charter (PIC)
  • Concept Novelty Copyright (CNC)
  • Concept Ideation Rule (CIR)
  • Product Development Mandate (PMC)

Question 12

Question
In which of the following phases of the new products process is the first formal type of assessment done on new product concepts with regard to financial, technical, and marketing criteria?
Answer
  • Concept or project evaluation phase
  • Product development phase
  • Product launch phase
  • Concept generation phase

Question 13

Question
When evaluating a new product proposal, a(n) _____ is used to see what potential consumers think about the idea.
Answer
  • utility test
  • feasibility analysis
  • concept test
  • construct validity analysis

Question 14

Question
Project evaluation involves preparing a statement of what is wanted from the new product, and this statement is called the:
Answer
  • product concept.
  • product protocol.
  • product prototype
  • product innovation charter.

Question 15

Question
Brew & More, a popular beverage manufacturer, produces and sells a popular mint flavored drink called Mintz. A new competitor enters the market and offers a similar mint-based drink that's suited for consumers on diet. This company offers its products at a much lower price. Brew & More calls for a line extension to meet the encroachment of its new competitor in its annual marketing plan. Identify the stream of activity that feeds strategic planning for new products in this scenario.
Answer
  • Special opportunity analysis
  • Ongoing corporate planning
  • Ongoing marketing planning
  • Distribution channel planning

Question 16

Question
Acron Co.'s new products team is engaged in the new products process. The members of the team select a high potential opportunity and begin creating new product ideas by identifying problems businesses or people have and suggesting solutions to them. Which of the following phases of the new products process will the team enter next?
Answer
  • The product development phase
  • The product launch phase
  • The concept generation phase
  • The concept or project evaluation phase

Question 17

Question
George, the marketing manager of Axil Bicycles, discovers that the company's current market is becoming stagnant and the product life cycle is far past the dynamic growth stage. George also learns that Axil's competitor, Kinetixyles, is developing an innovative new bicycle with novel features. George thus proposes that Axil Bicycles should also come up with a new product, equipped with superior features. Which of the following types of opportunities is identified here?
Answer
  • An underutilized resource
  • A new resource
  • An external mandate
  • An internal mandate

Question 18

Question
An example of an internal mandate is the [blank_start]product innovation gap[blank_end], which tends to increase the discrepancy between a firm‘s current sales and the target sales established during long-range planning.
Answer
  • product innovation gap
  • quality gap
  • assessment gap
  • performance gap

Question 19

Question
Designing and validating the production process for the best prototype takes place during the [blank_start]development[blank_end] phase of the new products process.
Answer
  • development
  • concept generation
  • launch
  • project evaluation

Question 20

Question
In the context of the new products process, which of the following best defines a full screen?
Answer
  • It refers to unsolicited ideas for concept generation that pour in through spam mails
  • It refers to the formal type of evaluation where all views are evaluated using a scoring model
  • It refers to a set of ideation tools that can be used to generate new concepts
  • It refers to a comprehensive business analysis that is conducted before idea generation

Question 21

Question
Ace Corporation, a software development firm, used a standard set of subcomponents for all its multimedia products. Ace is using a [blank_start]product platform[blank_end].
Answer
  • product platform
  • channel platform
  • category platform
  • brand platform

Question 22

Question
Which of the following is true of product planning?
Answer
  • If customers differ in their preferences, firms will often resort to a platform strategy
  • Firms that take a domestic approach to new products, on average, do better than those that develop products for multinational markets
  • If customer needs are very different; one way is to sell a global product that does not scale economies
  • Firms adopt a "global" strategy to use several platforms to provide a single product across multinational markets

Question 23

Question
[blank_start]Brand platforms[blank_end] are widely used and tend to be billion-dollar assets personally driven by CEOs
Answer
  • Brand platforms
  • Product platforms
  • Category platforms
  • Channel platforms

Question 24

Question
Many futurists advocate studying the emerging trends in society and deriving product opportunities from them. A team of experts from the consulting firm Social Technologies identified six important and provocative modern trends. One of these trends is "The transparent self." Which of the following observations is primarily associated with this trend?
Answer
  • There is more information about consumers available to product managers now than ever before
  • People like making spur-of-the-moment decisions based on real-time information
  • People can sense their environment better now than ever before; what might be "too much information" for some might be essential information for others
  • As more people become accustomed to virtual spaces, the boundary between these and the real world will become increasingly blurred

Question 25

Question
A manufacturer of ice creams introduces a new mint and lime flavored ice cream. According to the product/market matrix, the amount of innovativeness risk that the firm brings with this new flavor would be [blank_start]low[blank_end].
Answer
  • low
  • high
  • medium
  • dangerous

Question 26

Question
Which of the following statements is true of a product innovation charter (PIC)?
Answer
  • It is typically prepared by middle-level managers
  • It is designed to provide guidance to the business units on the role of innovation
  • It reminds us that the new product strategy is primarily for processes and other activities
  • It can be thought of as a kind of vision statement that is applied at macro level

Question 27

Question
Which of the following, if implemented, will most likely ensure that the product innovation charter (PIC) is effective?
Answer
  • A PIC strategized toward processes rather than products
  • A PIC developed exclusively by specific teams rather than cross-functional teams
  • A PIC prepared by senior management to define the role and scope of innovation
  • A PIC that is relatively different from a mission statement

Question 28

Question
Any "rules of the road" requirements imposed by a situation or by upper management form a part of the [blank_start]guidelines[blank_end] section of a PIC.
Answer
  • background
  • guidelines
  • focus
  • goals-objectives

Question 29

Question
The best new product ideas are based on [blank_start]customer problems[blank_end], which serve as the heart of the concept generation process.
Answer
  • channel desires
  • manufacturing efficiencies
  • profit goals
  • customer problems

Question 30

Question
Which timing strategy is very demanding, because a firm following this strategy has to make the decision to enter the market before the innovator is successful or has even come to market?
Answer
  • Slower entry
  • Quick second
  • First entry
  • Late entry

Question 31

Question
Identify the activity that takes place during the phase of "preparing a firm for ideation."
Answer
  • Collecting concepts from internal sources
  • Establishing a nucleus for the screening stages
  • Offering possible solutions
  • Conducting an in-depth analysis of markets

Question 32

Question
Creative people tend to be creative throughout their lives and never become uncreative.
Answer
  • True
  • False

Question 33

Question
The MBTI Creativity Index uses an individual's [blank_start]personality scores[blank_end] to assess his or her creativity
Answer
  • general knowledge
  • numerical ability
  • personality scores
  • intelligence quotient

Question 34

Question
Rex is the general manager of the New Way Hotel. Whenever an employee comes up to Rex with a new idea, he listens patiently, cites all of the advantages of the new idea and then addresses the negatives, but only in a constructive mode. Identify the technique being used by Rex to encourage creativity.
Answer
  • Accentuating the positive
  • Itemized response
  • Creative abrasion
  • Social cohesion

Question 35

Question
Prior to proceeding with development of a new product, a group of technical people and intended customers will review a [blank_start]product concept[blank_end] statement to assess its potential.
Answer
  • product input
  • product potential
  • product process
  • product concept

Question 36

Question
In the context of obtaining product ideas, open idea solicitation is known as:
Answer
  • crowdsourcing
  • skimming
  • market penetration
  • shoulder surfing

Question 37

Question
[blank_start]Lead users[blank_end] are those customers that are sought by a firm for eliciting new product ideas, since they have been associated with a significant current trend.
Answer
  • Resellers
  • Vendors
  • Lead users
  • Inventors

Question 38

Question
The objective of a firm using open innovation is to:
Answer
  • completely outsource its R&D
  • to reach out beyond its familiar research partners and to access R&D carried out globally
  • allow for inputs purely from external sources by keeping the internal sources on hold for a later point in time
  • get tolerant to some aberrations and thereby allow innovation at the cost of rule violations

Question 39

Question
One of the complicated issues a firm must manage in an open innovation policy is:
Answer
  • complete outsourcing of a company's R&D
  • top management support
  • intellectual property protection
  • restrict the knowhow a company develops internally

Question 40

Question
Identify the correct statement with regard to end users as a source of ready-made new product concepts.
Answer
  • They are most likely to generate modest product improvements rather than new-to-the-world products
  • A typical end-user is more likely to come up with ideas that are easily developed into real products
  • The role of an end user is independent of the industry and does not vary across industries
  • A customer-designed product cannot be directly transferred to manufacturing or production

Question 41

Question
Which of the following is the reason that one can telescope the product development process into shorter periods of time?
Answer
  • The development process always proceeds in a step by step manner
  • The development process begins after the initial prototypes are generated
  • A product and its marketing plan are evaluated as separate and divisible pieces
  • A cross-functional team works on the development process

Question 42

Question
The very first evaluation in the product development process usually:
Answer
  • occurs after a product idea has been developed
  • precedes the product concept
  • follows the development of a prototype
  • follows the product launch

Question 43

Question
During the concept generation phase of the basic new products process, the goal of product evaluation is to:
Answer
  • chart out the PIC
  • cull out the big/sure losers
  • conduct protocol checks and prototype tests
  • speculate sale in retrospect

Question 44

Question
A [blank_start]protocol check[blank_end] is an evaluation technique that tells one whether he or she is ready to develop a product for serious field testing
Answer
  • speculative sale
  • scoring model
  • protocol check
  • full screen test

Question 45

Question
Which of the following statements is true of the cumulative expenditure curve?
Answer
  • The early expenditures curve initially slopes downward and then starts sloping upward
  • The late expenditures curve is representative of product development in technical fields such as optics
  • The late expenditures curve initially slopes upward and then starts sloping downward
  • The early expenditures curve is representative of product development in technical fields

Question 46

Question
According to the risk/payoff matrix, during the phase of concept/project evaluation of the new products process, a [blank_start]drop[blank_end] error occurs when a winning product is discarded.
Answer
  • drop
  • decay
  • launch
  • development

Question 47

Question
In which of the following risk strategies is risk reduced to an acceptable, threshold level, perhaps through redesigning a product to include more backup systems or increasing product reliability?
Answer
  • Mitigation
  • Avoidance
  • Passive acceptance
  • Transfer

Question 48

Question
In the new product evaluation process, everything in new product work should be keyed to a Go/No Go decision
Answer
  • True
  • False

Question 49

Question
In a new product development project that is evaluated with the help of rolling evaluation, participants avoid mindsets of good and bad about the project
Answer
  • True
  • False

Question 50

Question
In the case of the A-T-A-R model, R stands for [blank_start]repeat[blank_end].
Answer
  • rate
  • repeat
  • region
  • response

Question 51

Question
Which of the following is true of market-driven innovation?
Answer
  • The main purpose of design in market-driven innovation is to modify the product so that it meets customer expectations.
  • In market-driven innovation, new meanings and new technologies are pushed forth
  • In market-driven innovation, design is of primary importance, and it takes on the leadership role
  • The main role of design in market-driven innovation is to modify the product so that it can accommodate the performance characteristics

Question 52

Question
[blank_start]Universal[blank_end] design is the term sometimes used to mean the design of products to be usable by anyone regardless of age or ability.
Answer
  • Universal
  • Exclusive
  • Individualistic
  • Unique

Question 53

Question
DarkBerry Inc., a cellphone manufacturer, manufactures products that share common design features that make them unique, yet at the same time familiar. All of DarkBerry's cellphones have a sleek appearance and an elegant design. DarkBerry's products can be best described as being designed:
Answer
  • for the environment
  • to build or support corporate identity
  • for ease of manufacture
  • for price promotion

Question 54

Question
The process by which a customer's need is developed into a product design is called [blank_start]product architecture[blank_end].
Answer
  • product differentiation
  • product architecture
  • product positioning
  • product validation

Question 55

Question
Chunks (or modules) are defined during which of the following steps of the product architecture process?
Answer
  • Analyzing interactions between chunks
  • Creating the product schematics
  • Creating geometric layouts
  • Clustering the schematic elements

Question 56

Question
Flyto Co., a Japanese automobile manufacturing company, recently introduced two new car models in America. These models were developed using the same platform as one of Flyto's existing models, but were modified incrementally in terms of technology. Flyto's latest products are examples of:
Answer
  • breakthrough products
  • derivative products
  • counterfeit products
  • innovative products

Question 57

Question
Artwork Corps' new product team is preparing decorative graphics, a brand name, and a logo for its latest potential product. The team is most likely to be in the [blank_start]design consolidation[blank_end] stage of new product development.
Answer
  • product launching
  • prototyping
  • design consolidation
  • concept testing

Question 58

Question
Which of the following is most likely to be used in product-use testing?
Answer
  • A focused prototype
  • A comprehensive prototype
  • A conceptual prototype
  • An ideational prototype

Question 59

Question
[blank_start]Design engineers[blank_end] are technical people who convert styling into product dimensions or specifications.
Answer
  • Industrial designers
  • Marketing personnel
  • Design engineers
  • Process engineers

Question 60

Question
Colocation helps integrate departments
Answer
  • True
  • False

Question 61

Question
If a firm decides to be very aggressive at the time of launching a new product, it is an example of a(n) [blank_start]platform decision[blank_end].
Answer
  • platform decision
  • action decision
  • tactical decision
  • operational decision

Question 62

Question
Which of the following metrics is used to assess the financial performance of individual products?
Answer
  • Customer satisfaction
  • Competitive effect
  • Profitability
  • Market share

Question 63

Question
Which of the following is a product level performance measure used for individual products?
Answer
  • Market share
  • Unit volume
  • Product use
  • Time to launch

Question 64

Question
For a new product entry or line addition in an established market, the emphasis is on stimulation of:
Answer
  • trial purchase, which is a precursor to adoption
  • joint demand for the new product as well as an existing product
  • repeat purchases for an existing product
  • derived demand for the new product as well as an existing product

Question 65

Question
Gloria, a marketing manager at Big Three Inc., is preparing for the launch of a new product. The company's top management wants to keep its spending strategy low key. To convince the top management that the new product needs an aggressive entry, Gloria should promote the marketing cost associated with the launch as a(n) [blank_start]investment[blank_end].
Answer
  • tariff
  • expense
  • investment
  • liability

Question 66

Question
[blank_start]Benefit segment[blank_end] information in combination with brand perceptions can be very helpful in developing a product positioning strategy.
Answer
  • End-use segment
  • Geographic segment
  • Demographic segment
  • Benefit segment

Question 67

Question
Leo Burnett advertising agency uses scanner data to cluster food buyers into six groups. Which of these groups consists of people who buy all major brands, always on deals?
Answer
  • Loyalists
  • Price-driven
  • Light users
  • Rotators

Question 68

Question
Some firms capitalize on the end-user penchant by just launching a product and following up to see who the buyers are, then focusing their promotions accordingly. This is an example of a(n) [blank_start]wildcat operation[blank_end].
Answer
  • wildcat operation
  • rollout strategy
  • enhancement strategy
  • butt-on operation

Question 69

Question
One of the methods to position a product in the marketplace is to use attributes. In this context, which of the following is an attribute?
Answer
  • Benefits
  • Surrogates
  • Expert opinions
  • Metaphors

Question 70

Question
Which of the following contradicts the concept of an umbrella brand strategy?
Answer
  • Mass brand strategy
  • Generic brand strategy
  • Corporate brand strategy
  • Individual brand strategy
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