MKT366 : Midterm Revision Exam

[CH1] Careful research suggests that about 40% of new products fail, with the rate somewhat higher for consumer products than for business-to-business products.

[CH1] Line extensions and flankers that flesh out a product line in current markets are classified as new-to-the-firm products.

[CH1] Cost reductions are new products that provide the customer with similar performance but at a lower cost.

[CH1] The goal of the new products process is to manage down risk and uncertainty, and each additional phase requires less investment of financial and human resources.

[CH1] Compared with the rest, the best new product firms need more ideas to produce one successful new product.

[CH2] The first stages of the new products process are sometimes called the fuzzy front end because the product concept is still unclear at that point.

[CH2] In Phase 1, opportunities are researched, evaluated, validated and ranked as specific product concepts rather than as opportunities.

[CH2] Agile product development is a complementary process, popular in the software industry, in which a dedicated team works through a series of sprints managed by scrum masters.

[CH2] Spiral development is a build-test-feedback-revise process that is especially useful for new-to-the-world products.

[CH2] Serial innovators are typically senior executives who follow a fixed, step-by-step new products process.

[CH4] Social cohesion can be a barrier to firm creativity because very strong interpersonal ties may replace candid debate with friendly agreement.

[CH4] The three required inputs to the creation process are form, technology and benefit/need, and the innovation process must always start with the customer need.

[CH4] A feasible new product concept needs at least two of the three inputs, while a new product needs all three.

[CH4] Crowdsourcing is most likely to generate new-to-the-world products rather than modest product improvements.

[CH4] Open innovation is essentially the same as outsourcing because external sources replace the firm's internal sources of innovation.

[CH1] A breakfast-cereal brand launches snack bars and ready-to-drink versions under its existing brand to flesh out its line in the markets it already serves. Which type of new product is this?

[CH1] A company keeps its hand cream exactly as it is, but starts promoting the same product to men as an after-shave balm. Which type of new product is this?

[CH1] A telecom operator that has only ever sold mobile network services launches its first range of home security cameras, a category already offered by many other firms. Which type of new product is this?

[CH1] A manufacturer redesigns how it produces its blender so that customers get the same performance as before at a lower price. Which type of new product is this?

[CH1] Which strategic element of product development ensures that the team develops products in line with firm objectives and marketplace opportunities?

[CH1] A firm is deciding whether a promising opportunity adds financially and strategically to its current line, without spreading its scarce people and money too thin. Which strategic element is it using?

[CH1] Which of the following is NOT one of the benefits of using a new products process?

[CH1] According to the comparative performance study, the best new product firms are more likely than the rest to do which of the following?

[CH2] A firm's core market has become stagnant just as an aggressive new competitor enters it, so management starts searching for new product opportunities. Which source of identified opportunity is this?

[CH2] A chemicals company's laboratory discovers a new material that has many potential uses across different industries. Which source of identified opportunity is this?

[CH2] In agile product development, who ensures that the product meets customer requirements at all stages?

[CH2] Which sequence correctly lists the stages of concept/project evaluation?

[CH2] Which of the following is a marketing task, rather than a technical task, of Phase 4 (Development)?

[CH2] To shorten time to market, a firm adopts computer-aided design, rapid prototyping and common components across its models. Which acceleration technique is it applying?

[CH2] Compared with physical products, iterations in new service development tend to be:

[CH2] An engineer in a technology firm starts from an important customer problem, checks whether the market is big enough, and moves back and forth between the need and possible technical solutions without following fixed steps. Which role does this engineer play?

[CH4] A product team keeps aiming every new idea at the same simple demographic groups, such as the under-35 market. Which obstacle to idea generation is this?

[CH4] Members of a new product team believe they are being creative, but they only propose ideas they know the rest of the group will find acceptable. Which obstacle to idea generation is this?

[CH4] Well-paid senior managers dismiss a basic, low-priced product idea because they cannot see why an ordinary customer would want it. Which obstacle to idea generation does this show?

[CH4] Engineers on a cross-functional team stay loyal to their own department and defend its interests, because they do not feel they have a stake in the team's success. Which barrier to firm creativity is this?

[CH4] In the designer decaf example, the statement "There is a new chemical extraction process that isolates and separates chemicals from foods" represents which input?

[CH4] A manager proposes: "We should find a new way to solve the in-home training needs of PC users." Why is this NOT a product concept?

[CH4] A snowboard maker works closely with extreme-sport athletes who are part of a strong current trend and have already started modifying their own boards. Which source of new product ideas is the firm using?

[CH4] When interviewing lead users (or any users), what should a firm mainly ask them about?

[CH4] A company licenses a patented technology that no longer fits its corporate strategy to another firm in return for royalties. This is an example of:

[CH1] List and explain the six categories of new products, giving an example of each.

[CH1] Explain the three strategic elements of product development and discuss how they interact with each other.

[CH2] List the five phases of the basic new products process and briefly explain the main activities of each phase.

[CH2] Who is the serial innovator? Explain what serial innovators contribute to a firm and list their innate characteristics.

[CH2] Explain how the new products process differs for new-to-the-world products, including the role of spiral development and prototypes.

[CH4] List and explain the six obstacles to idea generation.

[CH4] Define a product concept. Explain the three inputs to the creation process and why at least two of them are needed, using the designer decaf example.

[CH4] Define open innovation, explain its main principles, and discuss its advantages and risks.

[CH2] Identify the two sources of identified opportunities that triggered Awal Dairy's search for new products. Support each with evidence from the case.

[CH1] Classify each of the two product ideas into the correct category of new products and justify your answer.

[CH4] Identify the two barriers to firm creativity affecting Awal's team and explain how each could reduce the team's creativity.

[CH4] Identify the two sources of new product ideas Sahra Gear used and compare the kind of ideas each is likely to produce, using evidence from the case.

[CH2] Name the development approach Sahra Gear's designers used and explain why it suits this product.

[CH4] What type of open innovation is the proposed patent licence? Explain one benefit for Sahra Gear and the main risk highlighted in the case.