Business Innovation
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Course Introduction
Business Innovation explores the processes, strategies, and mindsets required to develop and implement new ideas that drive organizational growth and competitiveness. The course examines the fundamentals of innovation management, including the identification of opportunities, creative problem-solving, designing innovative business models, and fostering a culture of continuous improvement. Students will analyze real-world case studies of disruptive companies, learn how to overcome barriers to innovation, and develop practical skills for initiating and managing change within both established firms and startups. Emphasis is placed on creativity, collaboration, and strategic decision-making to thrive in todays fast-evolving business landscape.
Recommended Textbook
New Products Management 10th Edition by
C. Merle Crawford
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20 Chapters
1103 Verified Questions
1103 Flashcards
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Page 2
Chapter 1: The Strategic Elements of Product Development
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Sample Questions
Q1) By definition,new products are limited to significant technological innovations.
A)True
B)False
Answer: False
Q2) Which of the following new product categories is also known as flanker brands?
A)Line extensions
B)New-to-the-world products
C)Improvements and revisions to existing products
D)Repositionings
Answer: A
Q3) Historically,almost 90 percent of all new products have failed.
A)True
B)False Answer: False
Q4) The leading factor in new product success is the development of a uniquely superior offering.
A)True
B)False Answer: True
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Chapter 2: The New Products Process
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Sample Questions
Q1) The product protocol should focus upon:
A)product price.
B)product specifications.
C)product advertising.
D)product benefits.
Answer: D
Q2) The full screen uses a scoring model of some type and results in a decision to deal only with development.
A)True
B)False
Answer: False
Q3) Using the cash-to-cash metric to complement speed-to-market helps the firm manage just the moment of launch,not the whole launch phase.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Opportunity Identification and Selection: Strategic Planning for New Products
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Sample Questions
Q1) Which of the following statements is true about a platform?
A)The term platform was initially used in the packaged goods industry.
B)A platform can be a design.
C)Usage of a platform generally increases the cost of the products.
D)Platforms can be used for manufactured goods but not for services.
Answer: B
Q2) Stanley Tool's hold on the woodworker is a successful example of an attempt to leverage ____.
A)technology
B)end-use experience
C)product experience
D)customer franchise
Answer: D
Q3) The new product team operates as a "company within a company" under the direction of the firm's new products strategy.
A)True
B)False
Answer: True
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Chapter 4: Creativity and the Product Concept
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Sample Questions
Q1) Identify the best sequence to follow during the development of a new product.
A)Technology;form;benefit
B)Form;technology;benefit
C)Benefit;technology;form
D)Technology;benefit;form
Q2) Under an open innovation policy,firms start with the understanding that much,if not most,of the knowledge they could use resides outside the firm.
A)True
B)False
Q3) Lead users are especially helpful in giving new product ideas because their work is of the problem-find-solve type.
A)True
B)False
Q4) One of the complicated issues a firm must manage in an open innovation policy is:
A)filtering the ideas.
B)intellectual property protection.
C)top management support.
D)developing a work culture suitable for open innovation policy.
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6
Chapter 5: Finding and Solving Customers Problems
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Sample Questions
Q1) Scenario analysis:
A)helps us in finding out those problems that customers do not know they have at this time.
B)is primarily used to solve current problems with products already in the market.
C)focuses on problems that have already been told to competitors.
D)involves watching customers using products in their own environments.
Q2) The fourth general source of stakeholder needs,scenario analysis,comes into play because the ideal problem for us to find is one that customers do not know they have at this time.
A)True
B)False
Q3) Which of the following guidelines should be followed for conducting a good scenario analysis?
A)Do a 20- to 25-year projection
B)A group of about 20 people works best
C)Periodically summarize progress
D)Never repeat the groups for scenario analyses
Q4) Describe the focus group method.
Q5) Explain reverse brainstorming.
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Chapter 6: Analytical Attribute Approaches: Introduction and
Perceptual Mapping
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Sample Questions
Q1) Discuss various attributes of products with examples.
Q2) The factor analysis procedure provides a useful statistic called the _____ for each factor,which is mathematically related to the amount of variance explained.
A)eigenvalue
B)factorvalue
C)clustervalue
D)basevalue
Q3) Analytical attribute techniques are felt to be more useful in Eastern culture than in Western.
A)True
B)False
Q4) A product attribute which indicates what the product does and how it works is known as the _____ of the product.
A)usability
B)feature
C)function
D)benefit
Q5) Describe determinant gap maps.
Q6) What are the three types of gap maps?
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Chapter 7: Analytical Attribute Approaches: Trade-Off
Analysis and Qualitative Techniques
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Sample Questions
Q1) One new measurement method,called information acceleration (IA),has recently been developed and was first applied by _____ in testing new electric car concepts.
A)General Motors
B)Hyundai
C)Honda
D)Toyota
Q2) Trade-off analysis is the name of one of the most common analytical tools used for conjoint analysis;conjoint analysis is thus the broader term.
A)True
B)False
Q3) The analysis of the process by which customers compare and evaluate brands based on their attributes or features is best described by the term _____ analysis.
A)trade-off
B)dimensional
C)fundamental
D)lexical
Q4) What is information acceleration (IA)? Explain with an example.
Q5) Explain the terms "utility lever" and "buyer's experience cycle."
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Chapter 8: The Concept Evaluation System
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Sample Questions
Q1) Which of the following statements is true regarding the people dimension of the evaluation system?
A)It is difficult to kill an idea in the early stage as most of the people are yet to evaluate the ideA.
B)New product development generally does not affect the promotions and bonus given to the people involved.
C)Early in the life of a new product,the idea may have little support outside of R&D.
D)Late in the development cycle,fewer people support the idea.
Q2) Which of the following is a surrogate question that can help know customer reactions early on,even before the product has been developed?
A)Will the customers prefer the product?
B)Will cost of the product be competitive?
C)Does the concept match our manufacturing skills?
D)Will competition leap in?
Q3) The A-T-A-R concept is based on the diffusion of risk model.
A)True
B)False
Q4) Discuss the risk / payoff matrix.Explain go error and drop error.
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Page 10
Chapter 9: Concept Testing
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Sample Questions
Q1) Once the concept passes the first hurdle,concept testing will focus next on:
A)estimating the product's sales / trial rate.
B)calculating production costs.
C)approximating materials costs.
D)prototyping the product.
Q2) Discuss uses of concept testing.
Q3) A complete new product concept is a statement about anticipated product that will yield problem solutions relative to other products already available.
A)True
B)False
Q4) Basically,a product concept is a:
A)physical prototype.
B)product feature.
C)core competency.
D)claim of proposed satisfactions.
Q5) Benefit segments are most likely to be identified / described using the ____.
A)risk / payoff matrix
B)cluster analysis
C)trial averages
D)cumulative expenditures curve
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Chapter 10: The Full Screen
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Q1) One of the methods used to combine the individual team member's ratings drops the highest and lowest ratings before averaging.Identify the method in discussion.
A)Sensitivity testing
B)Factor analysis
C)Olympic method
D)Profiling method
Q2) Discuss the role of a product champion.
Q3) The Analytic Hierarchy Process is a form of _____ analysis.
A)attribute
B)factor
C)decision tree
D)scoring
Q4) All of the following are surrogates for commercial accomplishment EXCEPT: A)sales
B)margins on sales
C)marketing / administrative expenses
D)net present value
Q5) Discuss the objectives of full screen.
Q6) Explain the analytic hierarchy process.
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Chapter 11: Sales Forecasting and Financial Analysis
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Q1) Which of the following forecasting techniques most likely has the lowest cost?
A)Simple time series
B)Scenario writing
C)Delphi probe
D)Econometric analysis
Q2) In a bottom-up strategic approach,the firm lays out its strategy first,and then allocates funds across different kinds of projects.
A)True
B)False
Q3) Many of the very successful product developing firms have realized that only focusing on financial analysis for a new product project is not enough.One must also reconsider the _____ and the strategic criteria it implies.
A)NPV
B)PIC
C)IRR
D)EPA
Q4) The A-T-A-R model is the basis of many simulated test markets.
A)True
B)False
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Chapter 12: Product Protocol
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Sample Questions
Q1) A product protocol is:
A)a signed agreement between negotiating parties such as marketing,technical,operations,and others.
B)a totally informal agreement based on negotiations which are adversarial in nature.
C)written by the engineering team in order to avoid conflict between various functional areas,as today most firms employ multifunctional teams.
D)a guideline that currently has a standard form,an accepted name,and established practices.
Q2) What is product protocol?
Q3) When an automobile manufacturer makes a statement,"The car,using the new German 11-Z4 engine,must accelerate from 0 to 60 miles per hour in 8 seconds," he is expressing a product function in terms of a(n)_____.
A)design parameter
B)embedded feature
C)cost benefit
D)tangible feature
Q4) Discuss product positioning.
Q5) What are the three types of product attributes?
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Chapter 13: Design
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Q1) Which of the following is most likely to be used in product-use testing?
A)Focused prototype
B)Comprehensive prototype
C)Conceptual prototype
D)Ideational prototype
Q2) Nokia phones share common design elements that make them unique,yet at the same time familiar.The company calls these commonalities "Nokia DNA." Nokia's products can be best described as being designed:
A)for the environment.
B)to build or support corporate identity.
C)for ease of manufacture.
D)for price promotion.
Q3) On average,up to 80 percent of a product's cost is determined by the time it is designed.
A)True
B)False
Q4) What are derivative products?
Q5) What is a prototype? What types of prototypes may be used,and for what purposes?
Q6) Briefly define product architecture.What steps are involved in this process?
Q7) Briefly describe the major contributions of design to new product goals.
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Chapter 14: Development Team Management
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Q1) In the _____ option,both functional and project views are critical-neither ongoing business nor the new product should be the driver.
A)venture
B)balanced matrix
C)functional matrix
D)project matrix
Q2) _____ is defined as the extent to which participants in the process see themselves as independent from the project or committed to it.
A)Functional orientation
B)Projectization
C)Politicization
D)Authoritarianism
Q3) The _____ option of the new products organization structure extends projectization to its ultimate and is most useful for new-to-the-world or new-to-the-firm products.
A)venture
B)functional
C)functional matrix
D)balanced matrix
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Chapter 15: Product Use Testing
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Sample Questions
Q1) Most testers prefer disclosing the brand of the product during use testing.
A)True
B)False
Q2) What are the various disadvantages of copying an innovator's product?
Q3) Firms that simply copy innovative products gain high profits due to price competition.
A)True
B)False
Q4) To pass which of the following tests must the new item solve whatever problem the customer had,no matter how long it takes?
A)Alpha test
B)Gamma test
C)Beta test
D)Pre-use sense test
Q5) Product use testing is also known as _____ testing.
A)opportunity
B)concept
C)field
D)market
Q6) Describe the four types of product use tests.
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Chapter 16: Strategic Launch Planning
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Sample Questions
Q1) Generally,packaging may provide all of the following EXCEPT:
A)Containment
B)Display
C)Information
D)Core benefits
Q2) Every new product must be identified,and the accurate term for what identifies products is copyright.
A)True
B)False
Q3) Brand names are important assets that provide value to both the firm and its customers,as they communicate quality,build positive brand images,and encourage customer loyalty.This value is known as _____.
A)service mark
B)brand mark
C)brand equity
D)trade asset
Q4) Typically,courts deny a private brand absolute rights to copy a well-known brand's trade dress.
A)True
B)False
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Chapter 17: Implementation of the Strategic Plan
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Sample Questions
Q1) Before introducing its new products,the sales force of the Seri Corporation gives middlemen a "heads up" that a new product or version is coming.The firm's action can be seen as an example of _____.
A)signaling
B)illegal advertising
C)a promo piece
D)whistleblowing
Q2) Announcement kicks off the _____ phase of the launch cycle.
A)introduction
B)growth
C)beachhead
D)product testing
Q3) A price clearly above the market,but appropriate to a differentiated product,nonthreatening to competition,and with room for some price manipulations,characterizes this pricing strategy.
A)Premium pricing
B)Penetration pricing
C)Skimming pricing
D)Competitive pricing
Q4) Describe three common patterns for launch strategies and tactics.
Page 19
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Chapter 18: Market Testing
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Q1) Write a short note on minimarkets.What are its advantages?
Q2) Under which of the following situations market testing will be quick,if at all it takes place?
A)The competitors can take retaliatory action that will hurt the company.
B)The new product requires huge capital investments.
C)The company is planning to enter into a new industry by launching the product.
D)The consumer interest in the product is low.
Q3) Test market results are projectable.
A)True
B)False
Q4) A rollout as compared to test marketing:
A)cannot provide as much datA.
B)gives competitors more time to beat the firm to national market.
C)allows the firm to minimize losses in case of failure.
D)takes more time to go national.
Q5) Which of the following statements is NOT true regarding market testing?
A)There is a growing trend toward quicker,less costly market testing methods.
B)Test marketing is now a relatively minor market testing technique.
C)Test marketing,being more accurate is replacing scanner based methods.
D)Many firms have replaced the traditional test market with a product rollout.
Page 20
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Chapter 19: Launch Management
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Sample Questions
Q1) Many developers shun launch management because:
A)it delays introduction of the product in the market.
B)of problems in finding good tracking variables.
C)it is too expensive.
D)of difficulties in developing a good contingency plan.
Q2) Comparing performance against criteria that signal the beginning of the removal process best relates to which of the following stages of the stepwise product deletion process?
A)Analysis and revitalization stage
B)Recognition of the product to be deleted
C)Evaluation and decision formulation stage
D)Implementation stage
Q3) The first step of a launch system is to develop a contingency plan.
A)True
B)False
Q4) In principle,launch management plans of large firms and small firms are exactly the same-problem,tracking variable,trigger point,and remedial plan ready to go.
A)True
B)False
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Chapter 20: Public Policy Issues
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Sample Questions
Q1) Traditionally,product liability has been applied to all of the following EXCEPT:
A)manufactured products.
B)services.
C)consumer goods.
D)industrial goods.
Q2) A new product is said to harm the environment in all of the following cases EXCEPT if:
A)its raw materials are scarce or hard to get.
B)its design is not compatible with breakthrough technology.
C)its use causes pollution.
D)recycling cannot deal with its disposal.
Q3) An implied warranty is any statement of fact made by the manufacturer about a product,whether made by salespeople,retailers,or others.
A)True
B)False
Q4) Generally,green product innovation refers to development of a low cost version of a successful product.
A)True
B)False
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Page 22