Quiz
Chapter 11
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Questions in this quiz (50)
1Even if a product's potential is extremely high, its sales may not materialize due to insufficient marketing effort.
- ATrue
- BFalse
2In a new product development process, the financial analysis generally begins with the calculation of the net present value, NPV.
- ATrue
- BFalse
3In the product development process, sales forecasting is typically the responsibility of the process manager on the new product team.
- ATrue
- BFalse
4In addition to the considerations of time and cost, one should also consider product and market newness when selecting the most appropriate forecasting model.
- ATrue
- BFalse
5The A-T-A-R model is the basis of many simulated test markets.
- ATrue
- BFalse
6Laggards refer to those users who will be among the first to try the product.
- ATrue
- BFalse
7Adoption of innovation refers to the process by which an innovation is spread within a market, over time and over categories of adopters.
- ATrue
- BFalse
8Product innovators, including consumer packaged goods innovators, still most often use a simple version of the A-T-A-R model.
- ATrue
- BFalse
9Most common forecasting methods are extrapolations and work well on established products.
- ATrue
- BFalse
10An early field use test with a prototype will not assure success, but it can say intended users like what they see.
- ATrue
- BFalse
11Factor analysis can be used to estimate the net present value of a new product when it is still in the concept stage.
- ATrue
- BFalse
12Many of the mathematical sales forecasting models were initially developed for use on durable goods.
- ATrue
- BFalse
13New product projects need to be considered on how well they fit the firm's strategy for innovation.
- ATrue
- BFalse
14In a bottom-up strategic approach, the firm lays out its strategy first, and then allocates funds across different kinds of projects.
- ATrue
- BFalse
15With reference to new product development, the top performing firms tend to rely only on financial criteria.
- ATrue
- BFalse
16In order to calculate the net present value, that might be associated with a proposed product, it is necessary to:
- Acreate a sales forecast.
- Bcalculate the internal rate of return, IRR.
- Cdefine the payback period.
- Dassess costs.
17Which of the following is true of sales forecasting for new products?
- AIf a product's potential is high, sales will materialize in spite of insufficient marketing efforts.
- BSales forecasting is the final step in a financial analysis.
- CSales forecasting is conducted only after calculating key financial benchmarks such as net present value or internal rate of return.
- DSales forecasting is typically the responsibility of the marketing personnel on the new products team.
18Sales forecasting is typically the responsibility of a _____ on the new product team.
- Aproject manager
- Btechnical advisor
- Cmarketing person
- Dprocess manager
19In a new product development process, which of the following is most likely to be determined first while analyzing the financial aspects of a product?
- ANet present value
- BSales forecast
- CInternal rate of return
- DPayback period
20It is difficult to forecast success for _____.
- Aproduct improvements
- Bline extensions
- Cnew-to-the-world products
- Dflanker brands
21Ancon Inc., typically forecasts potential product sales based on the number of customers who say they would either definitely or probably buy the product, on a five-point scale. The firm's sales forecast is based upon _____.
- Aregression analysis
- Bthe A-T-A-R model
- Cpurchase intentions
- Dtest market results
22_____ is one of the pseudo sale market testing methods used later in the new product process, typically when the physical product is available for the consumer to take home and try.
- AThe Delphi probe model
- BThe A-T-A-R model
- CScenario writing
- DRegression analysis
23As per the A-T-A-R model, long-run market share can be expressed as MS = T × R × AW × AV. What does "T" stand for in the equation?
- AUltimate long-run trial rate
- BUltimate long-run repeat purchase rate
- CPercent awareness
- DPercent availability
24According to the A-T-A-R model, long-run market share can be expressed as MS= T × R × AW × AV. In this equation, "R" is the:
- Aultimate long-run trial rate.
- Bultimate long-run repeat purchase rate.
- Cpercent availability.
- Dpercent awareness.
25In the context of forecasting sales using an A-T-A-R model, which of the following methods can be used if the data availability is inaccurate?
- AA what-if analysis
- BA diffusion analysis
- CA regression analysis
- DA correlation analysis
26Which of the following serves as the basis of many simulated test markets?
- AThe cumulative expenditures curve
- BThe risk or payoff matrix
- CThe A-T-A-R model
- DThe decay curve
27_____ refers to the process by which an innovation is spread within a market, over time and over categories of adopters.
- ADiffusion of innovation
- BAdoption of innovation
- CAdaptation of innovation
- DSimulation of innovation
28Those users who will be among the first to try a product are called:
- Aearly adopters.
- Bthe early majority.
- Cthe late majority.
- Dlaggards.
29Which of the following forecasting tools is commonly used for durable goods and is based on the diffusion curve of new products through a population?
- AThe A-T-A-R model
- BEconometric analysis
- CMultiple regression analysis
- DThe Bass model
30With reference to the Bass diffusion model, which of the following best represents the growth in the total number of purchases that is typically based on adoption by innovators?
- AThe cumulative expenditures curve
- BSkimming
- CInitial diffusion rate
- DItemized response
31Which of the following is the most commonly used approach to sales forecasting outside of the consumer packaged goods industry?
- AThe A-T-A-R model
- BProgressive regression
- CConjoint analysis
- DPerceptual gap mapping
32The management's primary task in sales forecasting is to:
- Apurchase state-of-the-art forecasting models.
- Bmake necessary estimates as solid as possible.
- Censure that all past sales records are accurately archived.
- Dconduct training on sales forecasting.
33Which of the following is a problem associated with sales forecasting?
- ASales managers tend to make promises a year ahead about sales time and support.
- BNew product managers spend a lot of time in conducting field tests on their new products.
- CMost common forecasting methods work well only on new products, and not on established products.
- DTarget users don't always know what the new product will actually be or what it will do for them.
34Leah Hubert senses that her "favorite" product concept might be dismissed due to "inappropriate and unreasonable" financial analysis tools that cannot accurately reflect its potential. Leah has attempted to use her influence to push the concept past such obstacles. In this scenario, Leah is functioning as a _____.
- Aproduct architect
- Bfinancial forecaster
- Cproduct champion
- Dfinancial analyst
35Firms that develop a stream of new items that differ very little from those now on the market, insert them into the market without great fanfare, watch which ones end users rebuy, and drop those that do not find favor are using the policy of _____.
- Alow-cost development and marketing
- Bforecasting and risk management
- Capproving situations, not numbers
- Dforecasting what is known
36When faced with weak financial estimates, NewPro Inc. sometimes implements its new product ideas on a small scale to see where the solution might lie. Based on this information, we can say that NewPro Inc. is employing _____.
- Amarket testing rollouts
- Beconometric modeling
- Clife cycle analysis
- Ddiffusion modeling
37Which of the following is a way of putting risk back into product innovation while managing it well?
- AIsolating or neutralizing the in-house critics
- BDemanding precise financial analysis at the time of screening
- CImplementing a product idea on a large scale when the financial analysis is weak
- DAvoiding the use of market testing rollouts
38Managers who feel business is suffering from "paralysis by analysis" are most likely to:
- Acommit to a strategy of low-cost development and marketing.
- Bapprove situations, not numbers.
- Cforecast what is known.
- Dgo ahead with sound forecasts but prepare to handle the risks.
39_____ analysis may be used to estimate the net present value of a new product when it is still in the concept stage.
- AReal-options
- BProgressive regression
- CFactor
- DConjoint
40The _____ tool includes several ways to assess strategic fit and market attractiveness, and also considers financial performance.
- Aopportunity identification and selection
- Bconcept generation
- Cconcept evaluation
- Ddevelopment
41In the new product development process, the product use test is conducted during the _____ phase of the process.
- Aopportunity identification and selection
- Bconcept generation
- Cproject evaluation
- Ddevelopment
42Strategic criteria for new product development are best analyzed through the use of _____.
- Afinancial modeling
- Bsales forecasting
- CPIC evaluation
- DNPV calculation
43If a firm is already involved in plenty of quick-hit projects, strategic portfolio considerations would indicate that new funding would be better routed to a long-term, major technology development. The firm, as per the example, follows a(n) _____.
- Atop-down strategic approach
- Bbottom-up strategic approach
- Cportfolio approach
- Dinductive approach
44A firm may approve many new product projects if:
- Asimple financial hurdles are not the only criterion.
- Bresource constraints are included in the NPV calculations.
- Cthe management ignores small, quick-hit projects to focus on developing new product technologies.
- Dlow-quality work reduces the quality of information used for decision making.
45Which of the following is true of top-performing firms?
- AThey only use the bottom-up approach for strategy development.
- BThey only use the top-down approach for strategy development.
- CThey use a combination of both top-down and bottom-up approaches for strategy development.
- DThey tend to rely only on financial criteria when selecting projects.
46Under the _____, the firm or SBU lays out a strategy, and then allocates funds across different kinds of projects.
- Atop-down strategic approach
- Btop-two-boxes approach
- Cmarket testing approach
- Dbottom-up strategic approach
47Firms that build strategic criteria into their project selection tools are using a _____ strategic approach.
- Atop-down
- Btop-two-boxes
- Cmarket testing
- Dbottom-up
48According to the Hoechst-U.S. scoring model, which of the following is a factor related to the firm's product innovation charter (PIC)?
- AProbability of technical success
- BProbability of commercial success
- CReward
- DStrategic leverage
49According to the Hoechst-U.S. scoring model, which of the following is a full-screen feasibility factor?
- AProbability of technical success
- BBusiness-strategy fit
- CStrategic leverage
- DReward
50According to the Hoechst-U.S. scoring model, which of the following factors is based on financial criterion?
- AProbability of technical success
- BBusiness-strategy fit
- CStrategic leverage
- DReward
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- Bachelor Product/Brand Quiz on Chapter 11, created by jh jhh on 29/10/2016.
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- jh jhh
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