

New Product Development Pre-Test
Questions
Course Introduction
New Product Development explores the processes, strategies, and tools involved in creating and launching innovative products in todays dynamic markets. The course examines idea generation, market research, concept development, design, prototyping, business analysis, and commercialization. Students will learn how to identify customer needs, evaluate product feasibility, manage cross-functional teams, and address challenges from inception to market entry. Through case studies, group projects, and real-world examples, learners gain practical skills for managing product lifecycles and bringing new products successfully to market.
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) Discuss the terms "product innovation" and "process innovation."
Answer: The term "process innovation" usually applies to functions,especially the manufacturing or distribution process,and every new product benefits from this type of innovation.
The term "product innovation" applies to the total operation by which a new product is created and marketed,and it includes innovation in all of the functional processes.
Q2) Which of the following statements is true regarding a new product?
A)Failure rate for new products is around 90 percent.
B)A successful new product does more good for a firm than anything else that can happen.
C)The new products process is exceedingly simple.
D)Generally,all the people involved in the creation of a single product belong to the same department.
Answer: B
Q3) By definition,new products are limited to significant technological innovations.
A)True
B)False
Answer: False
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3
Chapter 2: The New Products Process
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Sample Questions
Q1) The process for managing breakthrough innovation differs from managing ongoing product development processes.
A)True
B)False
Answer: True
Q2) The product protocol should focus upon:
A)product price.
B)product specifications.
C)product advertising.
D)product benefits.
Answer: D
Q3) Firms that strive for mindshare think not about the speed of an individual product's development and launch,but rather about creating a dominant position in the mind of the customer.
A)True
B)False
Answer: True
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Page 4

Chapter 3: Opportunity Identification and Selection: Strategic Planning for New Products
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Sample Questions
Q1) Goals are short-term,specific measures of progress / accomplishment.
A)True
B)False
Answer: False
Q2) IBM used a standard set of subcomponents for all ThinkPad products.This is an example of IBM using a ____.
A)brand platform
B)category platform
C)channel platform
D)product platform
Answer: D
Q3) 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
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Page 5

Chapter 4: Creativity and the Product Concept
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Sample Questions
Q1) All of the following are common barriers to a firm's creativity EXCEPT:
A)strong functional area allegiance.
B)heavy stress on continuous improvement.
C)strong group friendships / cohesion.
D)management tolerance of "mistakes."
Q2) Any two of the three product inputs-form,benefit,technology-are sufficient to produce a concept.
A)True
B)False
Q3) The practice of citing the advantages of a proposed idea before addressing the shortcomings in a "positive manner" is called:
A)itemized response.
B)velvet-gloving.
C)accentuating the positive.
D)soft-soaping.
Q4) Since creative people often interact with other creative types,they tend to respond best to group rewards.
A)True
B)False
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Chapter 5: Finding and Solving Customers Problems
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Sample Questions
Q1) The focus group is an inexpensive technique that has proven to be the most effective means of identifying / solving marketing problems.
A)True
B)False
Q2) The end result of the problem-based concept generation process is:
A)a detailed situation analysis.
B)the selection of one or more problem identification techniques.
C)the development of concept statements for further evaluation.
D)a rank-ordered list of potential problems.
Q3) Generally,groups are much better than individuals in dealing with really new ideas and finding radical solutions to problems.
A)True
B)False
Q4) One of the dimensions of sorting and ranking the problems used by the bothersome technique is the:
A)cost of resolving the problem.
B)frequency of problem occurrence.
C)time required for problem resolution.
D)complexity of the problem.
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Chapter 6: Analytical Attribute Approaches: Introduction and
Perceptual Mapping
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Sample Questions
Q1) Techniques used for creating perceptual gap maps based on overall similarities require customers to rate choices on individual attributes.
A)True
B)False
Q2) Which of the following gap maps was developed to deal with the fact that users may make purchase decisions based on "phantom" attributes that they cannot identify or verbalize?
A)AR perceptual GAP maps
B)OS perceptual GAP maps
C)Snake plot maps
D)Determinant maps
Q3) Which of the following is a statistical technique available in computer packages which is typically used to reduce the large number of attributes to a small number of underlying dimensions,which can then serve as the axes of the perceptual map?
A)Factor analysis
B)PEST analysis
C)Cluster analysis
D)Projective analysis
Q4) Briefly describe the strengths and weaknesses of AR perceptual maps.
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Chapter 7: Analytical Attribute Approaches: Trade-Off
Analysis and Qualitative Techniques
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Sample Questions
Q1) Information acceleration:
A)involves using a two-dimensional matrix for studying consumer preferences of product attributes.
B)simulates the information typically available in a realistic purchase situation.
C)is very inexpensive and has a number of extensions.
D)involves listing all of the physical features of a product type.
Q2) Explain the terms "utility lever" and "buyer's experience cycle."
Q3) _____ analysis is the name of one of the most common analytical tools used to assess tradeoffs.
A)Technical
B)Leaps
C)Conjoint
D)Fundamental
Q4) Checklists typically consist of ____.
A)description of features
B)list of questions
C)list of attributes
D)description of potential target markets
Q5) List the guidelines for the use of conjoint analysis.
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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 surrogate questions?
A)Surrogates often remain constant at different times in the evaluation process.
B)An example of a surrogate question is,"Will the product sell?"
C)They are based on the fact that the timing of factual information often matches our need for it.
D)Their response has little value except to help answer a critical question that cannot be answered directly.
Q2) Discuss the people dimension of the new product process.
Q3) A-T-A-R model is applicable to services as well as industrial products.
A)True
B)False
Q4) In the case of A-T-A-R model,R stands for ____.
A)rate
B)response
C)repeat
D)region
Q5) What are the important reasons for new product failure?
Q6) Describe the cumulative expenditures curve.
Q7) Briefly describe how the purpose of evaluation varies through each stage of the new product development process.
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Chapter 9: Concept Testing
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Sample Questions
Q1) The real-time response survey combines the best features of focus groups and surveys and has proved useful in screening new consumer product concepts.
A)True
B)False
Q2) Which of the following evaluation precedes the appearance of the concept?
A)Market testing
B)Creation of product innovation charter
C)Concept testing
D)Joint space mapping
Q3) Which of the following methods of concept testing combines the best features of focus groups and surveys and has proved useful in screening new consumer product concepts?
A)Group interviews
B)Real-time response surveys
C)Mail surveys
D)Telephone surveys
Q4) Briefly describe the provisos which can be applied by an organization to resist the bazooka effect.
Q5) Define the method of preference regression.
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Chapter 10: The Full Screen
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Sample Questions
Q1) Raw materials / components supply is one of the technical success factors included in the Industrial Research Institute Scoring Model.
A)True
B)False
Q2) Star Inc.automatically vetoes a proposed product if it scores poorly on a few "critical" factors.These critical factors identified by the firm are known as _____ factors.
A)Level Four
B)surrogate
C)culling
D)groupware
Q3) With reference to the screening model based on Project NewProd,which of the following is included in the "should-meet" criteria?
A)Availability of raw material
B)Market attractiveness
C)Availability of distribution channels
D)Acceptable risk-return ratio
Q4) Explain the analytic hierarchy process.
Q5) Discuss the role of a product champion.
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Chapter 11: Sales Forecasting and Financial Analysis
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Sample Questions
Q1) In the new product development process,the product use test is conducted during the _____ phase of the process.
A)opportunity identification and selection
B)concept generation
C)concept / project evaluation
D)development
Q2) Leah Hubert feels that her "favorite" product concept is likely to 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.She is functioning as a _____.
A)product architect
B)financial forecaster
C)product champion
D)financial analyst
Q3) Typically,product innovators including consumer packaged goods innovators still most often use a simple version of the A-T-A-R model.
A)True
B)False
Q4) Summarize the problems associated with forecasting.
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Chapter 12: Product Protocol
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Sample Questions
Q1) Which of the following statements regarding QFD is NOT true?
A)It is driven by customer needs.
B)It helps to identify and eliminate "products without markets" early.
C)It encourages cross-functional cooperation.
D)It is based on the core competencies of the firm.
Q2) New product projects that use a well-known and well-established technology for product improvements are said to be using wildcatting.
A)True
B)False
Q3) The protocol statement clearly defines the firm's _____,which is a specific group of consumers / end-users having specific problems the firm hopes to solve at a profit for itself.
A)focus group
B)target market
C)core group
D)augmented market
Q4) Discuss product positioning.
Q5) What are the three types of product attributes?
Q6) Discuss the general purposes of the product protocol statement.
Q7) What is product protocol?
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Chapter 13: Design
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Sample Questions
Q1) A product design which is developed in collaboration with end users and which captures the voice of the customer is known as a universal design.
A)True
B)False
Q2) By definition,a comprehensive prototype is a fully functioning,full-size product that is essentially complete and ready for examination by potential customers.
A)True
B)False
Q3) In the product architecture process,during which of the following steps chunks (or modules)are defined?
A)Analyzing interactions between chunks
B)Creating the product schematics
C)Creating geometric layouts
D)Clustering the schematic elements
Q4) A derivative product is a totally new offering developed from a platform specially created for it.
A)True
B)False
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Chapter 14: Development Team Management
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Sample Questions
Q1) Virtual teams can meet in synchronous or asynchronous mode.
A)True
B)False
Q2) The lower the projectization,the more the power leans toward the project manager.
A)True
B)False
Q3) What are the various organizational structure options for a new products organization?
Q4) Lockheed's Skunkworks,a group of researchers pulled out of their familiar departments and routine activities to concentrate on specific innovation targets,is a good illustration of a _____ (the venture may be kept in the regular organization,or it may be spun outside the current division).
A)spinout venture
B)spin-off venture
C)functional organization
D)functional matrix
Q5) Functional areas tend to focus more on company goals than their own goals.
A)True
B)False
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Chapter 15: Product Use Testing
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Sample Questions
Q1) What are the various disadvantages of copying an innovator's product?
Q2) In this type of test,use of the test product is interspersed with two competitive products.
A)Monadic test
B)Paired comparison test
C)Triangular comparison test
D)Sequential monadic test
Q3) What are the various user groups available for product testing?
Q4) All of the following are advantages of reaching user groups by mail,as compared to personal contact EXCEPT:
A)more flexibility.
B)increased depth of questioning.
C)higher speed.
D)lower costs.
Q5) In a _____ test,there are back-to-back monadic tests with the same respondent.
A)staggered paired comparison
B)paired comparison
C)triangular comparison
D)silent competitor comparison
Q6) Describe the four types of product use tests.
Page 17
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Chapter 16: Strategic Launch Planning
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Sample Questions
Q1) Ralph Corp. ,deliberately seeks out very small targets (neighborhoods or industrial subsets)with unique purchase patterns.The firm is targeting _____.
A)macromarkets
B)elite markets
C)micromarkets
D)primary markets
Q2) Which of the following statements is NOT true regarding strategic "givens"?
A)They may be very expensive to change during strategic launch planning.
B)They include certain established operation decisions.
C)They are more easily modified as compared to tactical decisions.
D)They comprise a "resistance to change" that new products people often dislike.
Q3) Markets segmented according to variables such as values,activities,and lifestyles can be best described as using _____ segmentation.
A)end-use
B)geographic and demographic
C)behavioral and psychographic
D)benefit
Q4) What is brand equity? Discuss its importance.
Q5) Discuss the "crossing the chasm" model suggested by Geoffrey Moore.
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Chapter 17: Implementation of the Strategic Plan
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Sample Questions
Q1) _____ is the term most widely used to cover all of the information and attitude effort put into changing end-user perceptions.
A)Beachhead
B)Copy strategy
C)Communications
D)Preannouncing
Q2) In terms of launch tactics,pharmaceutical firms put the bulk of their money into:
A)customization.
B)personal selling.
C)technical research.
D)manufacturing process development.
Q3) Announcement kicks off the _____ phase of the launch cycle.
A)introduction
B)growth
C)beachhead
D)product testing
Q4) Early growth is the second stage of the launch cycle.
A)True
B)False
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Chapter 18: Market Testing
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Sample Questions
Q1) A firm desiring to use two or more market testing techniques is likely to follow its early,first effort with some type of _____ method especially in the case of informal selling for industrial firms or minimarkets for consumer firms.
A)controlled sale
B)pseudo sale
C)speculative sale
D)simulated test market
Q2) _____ is a variation on minimarkets.
A)Micromarkets
B)Informal selling
C)Controlled-distribution scanner markets
D)Speculative selling
Q3) What are the two important insights that can be gained from market testing?
Q4) Which of the following information will be indicated by market testing?
A)If there is a real need for the product
B)If the product meets the need
C)If the product is marketed poorly
D)If the product can be manufactured with the help of existing infrastructure
Q5) Explain test marketing with an example.
Q6) Briefly describe the speculative sale method.
Page 20
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Chapter 19: Launch Management
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Sample Questions
Q1) Briefly describe the steps involved in the typical launch management system.
Q2) Firms may best select problems for control by using:
A)the hierarchy of effects model.
B)Maslow's hierarchy of needs.
C)the expected effects matrix.
D)perceptual mapping models.
Q3) This is the last step in the launch management system and decides,if required,when the contingency plan must be turned loose.
A)Selecting potential problems to control
B)Selecting the trigger points
C)Developing contingency plans
D)Ranking and controlling potential problems
Q4) Selecting problems needing control can be based on all of the following EXCEPT:
A)the fact that a firm cannot control all problems.
B)the potential damage.
C)the likelihood of occurrence.
D)the fact that once tracked,they will assure success.
Q5) Abandonment marks the end of the launch manager's job.
A)True
B)False
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Chapter 20: Public Policy Issues
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Sample Questions
Q1) Most industries aggressively greet every legislative thrust on new products,and vigorous public affairs programs are standard fare.
A)True
B)False
Q2) Which of the following tasks is most likely to be performed by a recall program coordinator?
A)Assessing the safety risk
B)Communicating to the media and to regulatory bodies
C)Taking the corrective action
D)Making financial arrangements to sustain the loss
Q3) One of the key defenses available to a manufacturer in the case of a product liability suit is assumption of risk by the user.
A)True
B)False
Q4) 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
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