Product & Service Innovation Management Exam Revision

Question 1 of 70

1

With reference to the new products process, a firm adopts the ready—fire—aim approach when it:

Select one of the following:

does not do the required homework before beginning development
lacks senior management support
chases a moving target
does not pay enough attention to quality

Explanation

Question 2 of 70

1

According to the latest Comparative Performance Assessment Study (CPAS), in comparison to the Rest, Best companies are:

Select one of the following:

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

Explanation

Question 3 of 70

1

Which of the following firms will have the most effective worldwide new product programs?

Select one of the following:

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

Explanation

Question 4 of 70

1

Firms with a global innovation culture:

Select one of the following:

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

Explanation

Question 5 of 70

1

Rules of thumb that firms have found that work for them can be referred to as:

Select one of the following:

syntaxes
heuristics
synergies
charters

Explanation

Question 6 of 70

1

New-to-the-firm products:

Select one of the following:

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

Explanation

Question 7 of 70

1

_____ are also known as "flanker" brands.

Select one of the following:

Improvised products
Line extensions
Repositionings
New-to-the-world products

Explanation

Question 8 of 70

1

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):

Select one of the following:

new-to-the-world product
repositioned product
improvised product
line extension

Explanation

Question 9 of 70

1

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?

Select one of the following:

New-to-the-world products
Line extensions
Product improvements
New-to-the-firm products

Explanation

Question 10 of 70

1

Which of the following is the first phase in the basic new products process?

Select one of the following:

Product development
Concept ideation and generation
Opportunity identification and selection
Project evaluation

Explanation

Question 11 of 70

1

The _____ comes into play once an opportunity is approved, and managers turn to various techniques to guide new product people in exploiting it.

Select one of the following:

Product Innovation Charter (PIC)
Concept Novelty Copyright (CNC)
Concept Ideation Rule (CIR)
Product Development Mandate (PMC)

Explanation

Question 12 of 70

1

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?

Select one of the following:

Concept or project evaluation phase
Product development phase
Product launch phase
Concept generation phase

Explanation

Question 13 of 70

1

When evaluating a new product proposal, a(n) _____ is used to see what potential consumers think about the idea.

Select one of the following:

utility test
feasibility analysis
concept test
construct validity analysis

Explanation

Question 14 of 70

1

Project evaluation involves preparing a statement of what is wanted from the new product, and this statement is called the:

Select one of the following:

product concept.
product protocol.
product prototype
product innovation charter.

Explanation

Question 15 of 70

1

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.

Select one of the following:

Special opportunity analysis
Ongoing corporate planning
Ongoing marketing planning
Distribution channel planning

Explanation

Question 16 of 70

1

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?

Select one of the following:

The product development phase
The product launch phase
The concept generation phase
The concept or project evaluation phase

Explanation

Question 17 of 70

1

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?

Select one of the following:

An underutilized resource
A new resource
An external mandate
An internal mandate

Explanation

Question 18 of 70

1

Select from the dropdown list to complete the text.

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

Explanation

Question 19 of 70

1

Designing and validating the production process for the best prototype takes place during the ❌ phase of the new products process.

Drag and drop to complete the text.

development

concept generation

launch

project evaluation

Explanation

Question 20 of 70

1

In the context of the new products process, which of the following best defines a full screen?

Select one of the following:

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

Explanation

Question 21 of 70

1

Select from the dropdown list to complete the text.

Ace Corporation, a software development firm, used a standard set of subcomponents for all its multimedia products. Ace is using a ( product platform, channel platform, category platform, brand platform ).

Explanation

Question 22 of 70

1

Which of the following is true of product planning?

Select one of the following:

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

Explanation

Question 23 of 70

1

❌ are widely used and tend to be billion-dollar assets personally driven by CEOs

Drag and drop to complete the text.

Brand platforms

Product platforms

Category platforms

Channel platforms

Explanation

Question 24 of 70

1

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?

Select one of the following:

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

Explanation

Question 25 of 70

1

Select from the dropdown list to complete the text.

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 ( low, high, medium, dangerous ).

Explanation

Question 26 of 70

1

Which of the following statements is true of a product innovation charter (PIC)?

Select one of the following:

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

Explanation

Question 27 of 70

1

Which of the following, if implemented, will most likely ensure that the product innovation charter (PIC) is effective?

Select one of the following:

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

Explanation

Question 28 of 70

1

Any "rules of the road" requirements imposed by a situation or by upper management form a part of the ❌ section of a PIC.

Drag and drop to complete the text.

background

guidelines

focus

goals-objectives

Explanation

Question 29 of 70

1

Select from the dropdown list to complete the text.

The best new product ideas are based on ( channel desires, manufacturing efficiencies, profit goals, customer problems ), which serve as the heart of the concept generation process.

Explanation

Question 30 of 70

1

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?

Select one of the following:

Slower entry
Quick second
First entry
Late entry

Explanation

Question 31 of 70

1

Identify the activity that takes place during the phase of "preparing a firm for ideation."

Select one of the following:

Collecting concepts from internal sources
Establishing a nucleus for the screening stages
Offering possible solutions
Conducting an in-depth analysis of markets

Explanation

Question 32 of 70

1

Creative people tend to be creative throughout their lives and never become uncreative.

Select one of the following:

True
False

Explanation

Question 33 of 70

1

The MBTI Creativity Index uses an individual's ❌ to assess his or her creativity

Drag and drop to complete the text.

general knowledge

numerical ability

personality scores

intelligence quotient

Explanation

Question 34 of 70

1

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.

Select one of the following:

Accentuating the positive
Itemized response
Creative abrasion
Social cohesion

Explanation

Question 35 of 70

1

Prior to proceeding with development of a new product, a group of technical people and intended customers will review a ❌ statement to assess its potential.

Drag and drop to complete the text.

product input

product potential

product process

product concept

Explanation

Question 36 of 70

1

In the context of obtaining product ideas, open idea solicitation is known as:

Select one of the following:

crowdsourcing
skimming
market penetration
shoulder surfing

Explanation

Question 37 of 70

1

Select from the dropdown list to complete the text.

( Resellers, Vendors, Lead users, Inventors ) are those customers that are sought by a firm for eliciting new product ideas, since they have been associated with a significant current trend.

Explanation

Question 38 of 70

1

The objective of a firm using open innovation is to:

Select one of the following:

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

Explanation

Question 39 of 70

1

One of the complicated issues a firm must manage in an open innovation policy is:

Select one of the following:

complete outsourcing of a company's R&D
top management support
intellectual property protection
restrict the knowhow a company develops internally

Explanation

Question 40 of 70

1

Identify the correct statement with regard to end users as a source of ready-made new product concepts.

Select one of the following:

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

Explanation

Question 41 of 70

1

Which of the following is the reason that one can telescope the product development process into shorter periods of time?

Select one of the following:

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

Explanation

Question 42 of 70

1

The very first evaluation in the product development process usually:

Select one of the following:

occurs after a product idea has been developed
precedes the product concept
follows the development of a prototype
follows the product launch

Explanation

Question 43 of 70

1

During the concept generation phase of the basic new products process, the goal of product evaluation is to:

Select one of the following:

chart out the PIC
cull out the big/sure losers
conduct protocol checks and prototype tests
speculate sale in retrospect

Explanation

Question 44 of 70

1

A ❌ is an evaluation technique that tells one whether he or she is ready to develop a product for serious field testing

Drag and drop to complete the text.

speculative sale

scoring model

protocol check

full screen test

Explanation

Question 45 of 70

1

Which of the following statements is true of the cumulative expenditure curve?

Select one of the following:

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

Explanation

Question 46 of 70

1

Select from the dropdown list to complete the text.

According to the risk/payoff matrix, during the phase of concept/project evaluation of the new products process, a ( drop, decay, launch, development ) error occurs when a winning product is discarded.

Explanation

Question 47 of 70

1

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?

Select one of the following:

Mitigation
Avoidance
Passive acceptance
Transfer

Explanation

Question 48 of 70

1

In the new product evaluation process, everything in new product work should be keyed to a Go/No Go decision

Select one of the following:

True
False

Explanation

Question 49 of 70

1

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

Select one of the following:

True
False

Explanation

Question 50 of 70

1

In the case of the A-T-A-R model, R stands for ❌.

Drag and drop to complete the text.

rate

repeat

region

response

Explanation

Question 51 of 70

1

Which of the following is true of market-driven innovation?

Select one of the following:

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

Explanation

Question 52 of 70

1

Select from the dropdown list to complete the text.

( Universal, Exclusive, Individualistic, Unique ) design is the term sometimes used to mean the design of products to be usable by anyone regardless of age or ability.

Explanation

Question 53 of 70

1

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:

Select one of the following:

for the environment
to build or support corporate identity
for ease of manufacture
for price promotion

Explanation

Question 54 of 70

1

The process by which a customer's need is developed into a product design is called ❌.

Drag and drop to complete the text.

product differentiation

product architecture

product positioning

product validation

Explanation

Question 55 of 70

1

Chunks (or modules) are defined during which of the following steps of the product architecture process?

Select one of the following:

Analyzing interactions between chunks
Creating the product schematics
Creating geometric layouts
Clustering the schematic elements

Explanation

Question 56 of 70

1

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:

Select one of the following:

breakthrough products
derivative products
counterfeit products
innovative products

Explanation

Question 57 of 70

1

Select from the dropdown list to complete the text.

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 ( product launching, prototyping, design consolidation, concept testing ) stage of new product development.

Explanation

Question 58 of 70

1

Which of the following is most likely to be used in product-use testing?

Select one of the following:

A focused prototype
A comprehensive prototype
A conceptual prototype
An ideational prototype

Explanation

Question 59 of 70

1

❌ are technical people who convert styling into product dimensions or specifications.

Drag and drop to complete the text.

Industrial designers

Marketing personnel

Design engineers

Process engineers

Explanation

Question 60 of 70

1

Colocation helps integrate departments

Select one of the following:

True
False

Explanation

Question 61 of 70

1

Select from the dropdown list to complete the text.

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

Explanation

Question 62 of 70

1

Which of the following metrics is used to assess the financial performance of individual products?

Select one of the following:

Customer satisfaction
Competitive effect
Profitability
Market share

Explanation

Question 63 of 70

1

Which of the following is a product level performance measure used for individual products?

Select one of the following:

Market share
Unit volume
Product use
Time to launch

Explanation

Question 64 of 70

1

For a new product entry or line addition in an established market, the emphasis is on stimulation of:

Select one of the following:

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

Explanation

Question 65 of 70

1

Select from the dropdown list to complete the text.

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) ( tariff, expense, investment, liability ).

Explanation

Question 66 of 70

1

❌ information in combination with brand perceptions can be very helpful in developing a product positioning strategy.

Drag and drop to complete the text.

End-use segment

Geographic segment

Demographic segment

Benefit segment

Explanation

Question 67 of 70

1

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?

Select one of the following:

Loyalists
Price-driven
Light users
Rotators

Explanation

Question 68 of 70

1

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) ❌.

Drag and drop to complete the text.

wildcat operation

rollout strategy

enhancement strategy

butt-on operation

Explanation

Question 69 of 70

1

	Created by Erin Walker almost 7 years ago

MKT20024 study questions - multiple choice

Product & Service Innovation Management Exam Revision

Question 1 of 70

With reference to the new products process, a firm adopts the ready—fire—aim approach when it:

Select one of the following:

Explanation

Question 2 of 70

According to the latest Comparative Performance Assessment Study (CPAS), in comparison to the Rest, Best companies are:

Select one of the following:

Explanation

Question 3 of 70

Which of the following firms will have the most effective worldwide new product programs?

Select one of the following:

Explanation

Question 4 of 70

Firms with a global innovation culture:

Select one of the following:

Explanation

Question 5 of 70

Rules of thumb that firms have found that work for them can be referred to as:

Select one of the following:

Explanation

Question 6 of 70

New-to-the-firm products:

Select one of the following:

Explanation

Question 7 of 70

_____ are also known as "flanker" brands.

Select one of the following:

Explanation

Question 8 of 70

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):

Select one of the following:

Explanation

Question 9 of 70

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?

Select one of the following:

Explanation

Question 10 of 70

Which of the following is the first phase in the basic new products process?

Select one of the following:

Explanation

Question 11 of 70

The _____ comes into play once an opportunity is approved, and managers turn to various techniques to guide new product people in exploiting it.

Select one of the following:

Explanation

Question 12 of 70

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?

Select one of the following:

Explanation

Question 13 of 70

When evaluating a new product proposal, a(n) _____ is used to see what potential consumers think about the idea.

Select one of the following:

Explanation

Question 14 of 70

Project evaluation involves preparing a statement of what is wanted from the new product, and this statement is called the:

Select one of the following:

Explanation

Question 15 of 70

Select one of the following:

Explanation

Question 16 of 70

Select one of the following:

Explanation

Question 17 of 70

Select one of the following:

Explanation

Question 18 of 70

Select from the dropdown list to complete the text.

Explanation

Question 19 of 70

Designing and validating the production process for the best prototype takes place during the ❌ phase of the new products process.

Drag and drop to complete the text.

Explanation

Question 20 of 70

In the context of the new products process, which of the following best defines a full screen?

Select one of the following:

Explanation

Question 21 of 70

Select from the dropdown list to complete the text.

Ace Corporation, a software development firm, used a standard set of subcomponents for all its multimedia products. Ace is using a ( product platform, channel platform, category platform, brand platform ).

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 ( low, high, medium, dangerous ).

The best new product ideas are based on ( channel desires, manufacturing efficiencies, profit goals, customer problems ), which serve as the heart of the concept generation process.

( Resellers, Vendors, Lead users, Inventors ) are those customers that are sought by a firm for eliciting new product ideas, since they have been associated with a significant current trend.