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Product & Service Innovation Management Exam Revision
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Questions in this quiz (70)
1With reference to the new products process, a firm adopts the ready—fire—aim approach when it:
- Adoes not do the required homework before beginning development
- Blacks senior management support
- Cchases a moving target
- Ddoes not pay enough attention to quality
2According to the latest Comparative Performance Assessment Study (CPAS), in comparison to the Rest, Best companies are:
- Aless likely to rely on online communities for information gathering
- Bmore likely to employ informal processes for selecting which concepts to develop
- Cless likely to rely on portfolio analysis for product selection
- Dmore likely to use tradeoff analysis
3Which of the following firms will have the most effective worldwide new product programs?
- AFirms that use quality circles
- BFirms that have implemented total quality management
- CFirms that follow a global innovation culture
- DFirms that are leaders in their respective industries
4Firms with a global innovation culture:
- Acan better manage the R&D tasks associated with the new products process
- Bare unwary of the differences in customer needs and preferences
- Chave a disadvantage in implementing global launches
- Dare only open to domestic markets
5Rules of thumb that firms have found that work for them can be referred to as:
- Asyntaxes
- Bheuristics
- Csynergies
- Dcharters
6New-to-the-firm products:
- Aare new to a company, but are not new to the world
- Bmost likely require consumer learning
- Cmost likely involve the incorporation of a very new technology
- Dtend to revolutionize existing product categories
7_____ are also known as "flanker" brands.
- AImprovised products
- BLine extensions
- CRepositionings
- DNew-to-the-world products
8Ace 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):
- Anew-to-the-world product
- Brepositioned product
- Cimprovised product
- Dline extension
9Luminos 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?
- ANew-to-the-world products
- BLine extensions
- CProduct improvements
- DNew-to-the-firm products
10Which of the following is the first phase in the basic new products process?
- AProduct development
- BConcept ideation and generation
- COpportunity identification and selection
- DProject evaluation
11The _____ comes into play once an opportunity is approved, and managers turn to various techniques to guide new product people in exploiting it.
- AProduct Innovation Charter (PIC)
- BConcept Novelty Copyright (CNC)
- CConcept Ideation Rule (CIR)
- DProduct Development Mandate (PMC)
12In 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?
- AConcept or project evaluation phase
- BProduct development phase
- CProduct launch phase
- DConcept generation phase
13When evaluating a new product proposal, a(n) _____ is used to see what potential consumers think about the idea.
- Autility test
- Bfeasibility analysis
- Cconcept test
- Dconstruct validity analysis
14Project evaluation involves preparing a statement of what is wanted from the new product, and this statement is called the:
- Aproduct concept.
- Bproduct protocol.
- Cproduct prototype
- Dproduct innovation charter.
15Brew & 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.
- ASpecial opportunity analysis
- BOngoing corporate planning
- COngoing marketing planning
- DDistribution channel planning
16Acron 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?
- AThe product development phase
- BThe product launch phase
- CThe concept generation phase
- DThe concept or project evaluation phase
17George, 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?
- AAn underutilized resource
- BA new resource
- CAn external mandate
- DAn internal mandate
18An 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.
- Aproduct innovation gap
- Bquality gap
- Cassessment gap
- Dperformance gap
19Designing and validating the production process for the best prototype takes place during the [blank_start]development[blank_end] phase of the new products process.
- Adevelopment
- Bconcept generation
- Claunch
- Dproject evaluation
20In the context of the new products process, which of the following best defines a full screen?
- AIt refers to unsolicited ideas for concept generation that pour in through spam mails
- BIt refers to the formal type of evaluation where all views are evaluated using a scoring model
- CIt refers to a set of ideation tools that can be used to generate new concepts
- DIt refers to a comprehensive business analysis that is conducted before idea generation
21Ace 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].
- Aproduct platform
- Bchannel platform
- Ccategory platform
- Dbrand platform
22Which of the following is true of product planning?
- AIf customers differ in their preferences, firms will often resort to a platform strategy
- BFirms that take a domestic approach to new products, on average, do better than those that develop products for multinational markets
- CIf customer needs are very different; one way is to sell a global product that does not scale economies
- DFirms adopt a "global" strategy to use several platforms to provide a single product across multinational markets
23[blank_start]Brand platforms[blank_end] are widely used and tend to be billion-dollar assets personally driven by CEOs
- ABrand platforms
- BProduct platforms
- CCategory platforms
- DChannel platforms
24Many 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?
- AThere is more information about consumers available to product managers now than ever before
- BPeople like making spur-of-the-moment decisions based on real-time information
- CPeople can sense their environment better now than ever before; what might be "too much information" for some might be essential information for others
- DAs more people become accustomed to virtual spaces, the boundary between these and the real world will become increasingly blurred
25A 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].
- Alow
- Bhigh
- Cmedium
- Ddangerous
26Which of the following statements is true of a product innovation charter (PIC)?
- AIt is typically prepared by middle-level managers
- BIt is designed to provide guidance to the business units on the role of innovation
- CIt reminds us that the new product strategy is primarily for processes and other activities
- DIt can be thought of as a kind of vision statement that is applied at macro level
27Which of the following, if implemented, will most likely ensure that the product innovation charter (PIC) is effective?
- AA PIC strategized toward processes rather than products
- BA PIC developed exclusively by specific teams rather than cross-functional teams
- CA PIC prepared by senior management to define the role and scope of innovation
- DA PIC that is relatively different from a mission statement
28Any "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.
- Abackground
- Bguidelines
- Cfocus
- Dgoals-objectives
29The best new product ideas are based on [blank_start]customer problems[blank_end], which serve as the heart of the concept generation process.
- Achannel desires
- Bmanufacturing efficiencies
- Cprofit goals
- Dcustomer problems
30Which 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?
- ASlower entry
- BQuick second
- CFirst entry
- DLate entry
31Identify the activity that takes place during the phase of "preparing a firm for ideation."
- ACollecting concepts from internal sources
- BEstablishing a nucleus for the screening stages
- COffering possible solutions
- DConducting an in-depth analysis of markets
32Creative people tend to be creative throughout their lives and never become uncreative.
- ATrue
- BFalse
33The MBTI Creativity Index uses an individual's [blank_start]personality scores[blank_end] to assess his or her creativity
- Ageneral knowledge
- Bnumerical ability
- Cpersonality scores
- Dintelligence quotient
34Rex 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.
- AAccentuating the positive
- BItemized response
- CCreative abrasion
- DSocial cohesion
35Prior 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.
- Aproduct input
- Bproduct potential
- Cproduct process
- Dproduct concept
36In the context of obtaining product ideas, open idea solicitation is known as:
- Acrowdsourcing
- Bskimming
- Cmarket penetration
- Dshoulder surfing
37[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.
- AResellers
- BVendors
- CLead users
- DInventors
38The objective of a firm using open innovation is to:
- Acompletely outsource its R&D
- Bto reach out beyond its familiar research partners and to access R&D carried out globally
- Callow for inputs purely from external sources by keeping the internal sources on hold for a later point in time
- Dget tolerant to some aberrations and thereby allow innovation at the cost of rule violations
39One of the complicated issues a firm must manage in an open innovation policy is:
- Acomplete outsourcing of a company's R&D
- Btop management support
- Cintellectual property protection
- Drestrict the knowhow a company develops internally
40Identify the correct statement with regard to end users as a source of ready-made new product concepts.
- AThey are most likely to generate modest product improvements rather than new-to-the-world products
- BA typical end-user is more likely to come up with ideas that are easily developed into real products
- CThe role of an end user is independent of the industry and does not vary across industries
- DA customer-designed product cannot be directly transferred to manufacturing or production
41Which of the following is the reason that one can telescope the product development process into shorter periods of time?
- AThe development process always proceeds in a step by step manner
- BThe development process begins after the initial prototypes are generated
- CA product and its marketing plan are evaluated as separate and divisible pieces
- DA cross-functional team works on the development process
42The very first evaluation in the product development process usually:
- Aoccurs after a product idea has been developed
- Bprecedes the product concept
- Cfollows the development of a prototype
- Dfollows the product launch
43During the concept generation phase of the basic new products process, the goal of product evaluation is to:
- Achart out the PIC
- Bcull out the big/sure losers
- Cconduct protocol checks and prototype tests
- Dspeculate sale in retrospect
44A [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
- Aspeculative sale
- Bscoring model
- Cprotocol check
- Dfull screen test
45Which of the following statements is true of the cumulative expenditure curve?
- AThe early expenditures curve initially slopes downward and then starts sloping upward
- BThe late expenditures curve is representative of product development in technical fields such as optics
- CThe late expenditures curve initially slopes upward and then starts sloping downward
- DThe early expenditures curve is representative of product development in technical fields
46According 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.
- Adrop
- Bdecay
- Claunch
- Ddevelopment
47In 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?
- AMitigation
- BAvoidance
- CPassive acceptance
- DTransfer
48In the new product evaluation process, everything in new product work should be keyed to a Go/No Go decision
- ATrue
- BFalse
49In a new product development project that is evaluated with the help of rolling evaluation, participants avoid mindsets of good and bad about the project
- ATrue
- BFalse
50In the case of the A-T-A-R model, R stands for [blank_start]repeat[blank_end].
- Arate
- Brepeat
- Cregion
- Dresponse
51Which of the following is true of market-driven innovation?
- AThe main purpose of design in market-driven innovation is to modify the product so that it meets customer expectations.
- BIn market-driven innovation, new meanings and new technologies are pushed forth
- CIn market-driven innovation, design is of primary importance, and it takes on the leadership role
- DThe main role of design in market-driven innovation is to modify the product so that it can accommodate the performance characteristics
52[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.
- AUniversal
- BExclusive
- CIndividualistic
- DUnique
53DarkBerry 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:
- Afor the environment
- Bto build or support corporate identity
- Cfor ease of manufacture
- Dfor price promotion
54The process by which a customer's need is developed into a product design is called [blank_start]product architecture[blank_end].
- Aproduct differentiation
- Bproduct architecture
- Cproduct positioning
- Dproduct validation
55Chunks (or modules) are defined during which of the following steps of the product architecture process?
- AAnalyzing interactions between chunks
- BCreating the product schematics
- CCreating geometric layouts
- DClustering the schematic elements
56Flyto 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:
- Abreakthrough products
- Bderivative products
- Ccounterfeit products
- Dinnovative products
57Artwork 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.
- Aproduct launching
- Bprototyping
- Cdesign consolidation
- Dconcept testing
58Which of the following is most likely to be used in product-use testing?
- AA focused prototype
- BA comprehensive prototype
- CA conceptual prototype
- DAn ideational prototype
59[blank_start]Design engineers[blank_end] are technical people who convert styling into product dimensions or specifications.
- AIndustrial designers
- BMarketing personnel
- CDesign engineers
- DProcess engineers
60Colocation helps integrate departments
- ATrue
- BFalse
61If 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].
- Aplatform decision
- Baction decision
- Ctactical decision
- Doperational decision
62Which of the following metrics is used to assess the financial performance of individual products?
- ACustomer satisfaction
- BCompetitive effect
- CProfitability
- DMarket share
63Which of the following is a product level performance measure used for individual products?
- AMarket share
- BUnit volume
- CProduct use
- DTime to launch
64For a new product entry or line addition in an established market, the emphasis is on stimulation of:
- Atrial purchase, which is a precursor to adoption
- Bjoint demand for the new product as well as an existing product
- Crepeat purchases for an existing product
- Dderived demand for the new product as well as an existing product
65Gloria, 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].
- Atariff
- Bexpense
- Cinvestment
- Dliability
66[blank_start]Benefit segment[blank_end] information in combination with brand perceptions can be very helpful in developing a product positioning strategy.
- AEnd-use segment
- BGeographic segment
- CDemographic segment
- DBenefit segment
67Leo 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?
- ALoyalists
- BPrice-driven
- CLight users
- DRotators
68Some 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].
- Awildcat operation
- Brollout strategy
- Cenhancement strategy
- Dbutt-on operation
69One of the methods to position a product in the marketplace is to use attributes. In this context, which of the following is an attribute?
- ABenefits
- BSurrogates
- CExpert opinions
- DMetaphors
70Which of the following contradicts the concept of an umbrella brand strategy?
- AMass brand strategy
- BGeneric brand strategy
- CCorporate brand strategy
- DIndividual brand strategy
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- MKT20024 study questions - multiple choice
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- Erin Walker
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