Management 11th Edition Test Bank

Preview (16 of 721 Pages)

100%

Purchase to unlock

Loading page image...

1Student: ___________________________________________________________________________1.By definition, new products are limited to significant technological innovations.TrueFalse2.New products can be tangible goods or services.TrueFalse3.Radical innovation that displaces or obsoletes current products and creates totally new productcategories is critical to the future growth and survival of a firm.TrueFalse4.Business firms expect, and get, a high percentage of their sales and profits from new products.TrueFalse5.A firm's global presence is no guarantee that it will automatically know how to efficiently manageits global operations.TrueFalse6.Firms with a global innovationculture have the most effective global new product programs.TrueFalse7.An ideal new products team is essentially self-directed with limited or no cross-functionality.TrueFalse8.The term "product innovation" usually applies tofunctions, especially those of manufacturing ordistribution.TrueFalse9.New-to-the-firm products revolutionize existing product categories or define wholly new ones.TrueFalse10.New-to-the-world products are less likely to require consumer learning.TrueFalse

Loading page image...

11.The number one reason for new product success is a unique superior product.TrueFalse12.The terms "product idea," "product concept," and "product prototype" are interchangeable andthey are allabout the same thing.TrueFalse13.Product portfolio management refers to the procedure that takes a new product idea throughconcept evaluation, product development, launch, and post-launch.TrueFalse14.Research has shown that atleast 40 percent of firms assign a marketing manager whose job it isto manage the phased new products process.TrueFalse15.In a new product process, an evaluation task that includes conditional "Go" decisions issometimes called a fuzzy gate.TrueFalse16.Well-known business writer, Gary Hamel, has described _____ as "the most important businessissue of our time."A.product distributionB.the creation of radical innovationC.advertising and marketing ofservicesD.product line extensions17.Which of the following statements is true of the importance of new products?A.The failure rate for new products is estimated to be around 90 percent.B.The new products process isexceedingly difficult.C.Radical innovation is detrimental to the survival of a firm.D.All the individuals involved in the creation of a new product generally belong to the samedepartment.

Loading page image...

18.Which of the following is a reason forproduct failure in a firm?A.Resorting to radical innovation with the new products processB.Avoiding the use of the ready—fire—aim approach in the product development processC.Chasing a moving targetD.Paying too much attention to customer needs19.With reference to the new products process, a firm adopts the ready—fire—aim approach whenit:A.lacks senior management support.B.does not pay enough attention to quality.C.chases a moving target.D.does not dothe required homework before beginning development.20.According to the latest Comparative Performance Assessment Study (CPAS), in comparison tothe Rest, Best companies are:A.more likely to use tradeoff analysis.B.less likely to relyon portfolio analysis for product selection.C.more likely to employ informal processes for selecting which concepts to develop.D.less likely to rely on online communities for information gathering.21.Which of the following firms willhave the most effective worldwide new product programs?A.Firms that have implemented total quality managementB.Firms that use quality circlesC.Firms that follow a global innovation cultureD.Firms that are leaders in theirrespective industries22.Firms with a global innovation culture:A.have a disadvantage in implementing global launches.B.are unwary of the differences in customer needs and preferences.C.can better manage the R&D tasksassociated with the new products process.D.are only open to domestic markets.

Loading page image...

23.Rules of thumb that firms have found that work for them can be referred to as:A.heuristics.B.syntaxes.C.synergies.D.charters.24.Products that are inventions and create a whole new market are called:A.new-to-the-world products.B.new-to-the-firm products.C."flanker" brands.D.improvised products.25.New-to-the-firm products are:A.inventions thatcreate a whole new market.B.products that take a firm into a category new to it.C.products that are new to the world, but are not new to the firm.D.products that are retargeted for a new use or application.26.New-to-the-firm products:A.most likely require consumer learning.B.most likely involve the incorporation of a very new technology.C.tend to revolutionize existing product categories.D.are new to a company, but are not new to theworld.27._____ are also known as "flanker" brands.A.Line extensionsB.New-to-the-world productsC.Improvised productsD.Repositionings

Loading page image...

28.When a current product of a company has been enhanced to better serve consumerneeds, theproduct will fall into the new product category of _____.A.new-to-the-world productsB.repositioningsC.line extensionsD.product improvements29.Ace Corporation is a manufacturer of powder and liquiddishwashing detergents. Owing topopular 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 describedas a(n):A.new-to-the-world product.B.line extension.C.repositioned product.D.improvised product.30._____ refer to those products that are retargeted for a new use or application.A."Flanker" brandsB.Line extensionsC.RepositioningsD.New-to-the-world products31.Zooky Inc. is a well-known manufacturer of bubble gums, candies, chewing gums, and ediblebreath strips. The company recently introduced a new range of sugar-free, antibacterial chewinggum.Zooky's new product can be best described as a(n):A.line extension.B.new-to-the-firm product.C.new-to-the-world product.D.repositioned product.32.Luminos Co., a popular manufacturer of kitchen appliances, decides to enterthe manufacturingsector of crockery and dinnerware. It markets a line of dinnerware, Illuminia, for the first time in itshistory. Its dinnerware will most likely fall into which of the following new product categories?A.New-to-the-world productsB.New-to-the-firm productsC.Line extensionsD.Product improvements

Loading page image...

33.Designethic Co. is known for selling cards, gift-wrapping materials, and collectibles. In a bid tocompete with its counterparts, Designethic added fresh-cutflower arrangements to its range ofproduct offerings in the year 2015. Into which of the following new product categories would thefloral arrangements fall?A.New-to-the-world productsB.New-to-the-firm productsC.Line extensionsD.Repositionings34.To cater to the constant demands of its customers, Roltez Pretzels, a manufacturer of pretzelsand extruded corn snacks, introduces honey-mustard pretzels to its product line. The honey-mustard pretzels are examples of:A.new-to-the-world products.B.new-to-the-firm products.C."flanker" brands.D.product improvements.35.In an attempt to extend the life of its brand of AquaFresh soap, Agate Inc., a soap manufacturer,makes certain enhancements to thecharacteristics and quality of its soaps. Agate's productswould best fit into the new product category of:A.line extensions.B.new-to-the-firm products.C.new-to-the-world products.D.product improvements.36.Which of thefollowing categories of new products would present higher risks and uncertainties aswell as associated costs of development and launch?A.Line extensionsB.New-to-the-world productsC.Improvised productsD.Repositionings

Loading page image...

37.Which of the following products define wholly new product categories and are most likely torequire consumer learning or incorporate a very new technology?A.Improvised productsB.New-to-the-world productsC.New-to-the-firm productsD.Repositionings38.A "me-too" product is most likely a:A.new-to-the-world product.B.new-to-the-firm product.C.repositioned product.D.reduced cost product.39.Which of the following statements is true of new productcategories?A.New product categories do not differ with regard to their associated risks and uncertainties.B.All new product categories are not necessarily innovations.C.Additions or revisions to existing product lines do not fall under the domain of new productcategories.D.The least innovative category of new products is product repositionings.40.Which of the following is true of new product categories?A.If a product is new-to-the-world, the risks anduncertainties faced by the firm are higher.B.If a product is new-to-the-firm, the associated costs of development and launch tend to belower.C.Generally, all the new product categories are innovations.D.New product categories have to bemanaged in a similar fashion.41.Which of the following is the least innovative new product category?A.Cost reductionsB.Product improvementsC.Line extensionsD.Repositionings

Loading page image...

42.Which of the following isconsidered to be the most innovative category of new products?A.Cost-reduced productsB.New-to-the-firm productsC.New-to-the-world productsD.Line extensions43.Which of the following statements is true regardinginvention?A.An invention is usually patentable.B.To managers, invention is a dimension of complexity.C.There are far more innovations than inventions.D.An invention refers to the overall process whereby an innovation istransformed into acommercial product.44._____ refers to the overall process whereby an invention is transformed into a commercialproduct that can be sold profitably.A.InnovationB.AttributionC.BrainstormingD.Pricing45.A marketing researcher is most likely to serve as a _____ in a new product development team.A.functional representativeB.process managerC.scientific advisorD.project leader46.The job of a _____ in the field of newproduct management is to help project managers developand use good new product processes.A.team executiveB.process managerC.functional representativeD.technical specialist

Loading page image...

47.A _____ assumes a leadership role thatoversees a team of people representing variousfunctional departments.A.functional representativeB.process managerC.project managerD.marketing researcher48.The _____, a strategy for new products, ensures that the newproduct team develops productsthat are in line with firm objectives and strategies and that address marketplace opportunities.A.product prototypeB.product portfolioC.product frameworkD.product innovation charter49._____helps a firm assess which new products would be the best additions to existing productlines, given both financial and strategic objectives.A.A product finances charterB.Product portfolio managementC.A product assessment matrixD.Product value-add assessment50.Which of the following is the first phase in the basic new products process?A.Concept ideation and generationB.Opportunity identification and selectionC.Project evaluationD.Productdevelopment51.What are the most important reasons for product failure?

Loading page image...

52.Discuss the terms "product innovation" and "process innovation."53.Describe the various categories of new products.54.Briefly explain the terms: new products process, product innovation charter, and product portfoliomanagement.55.What is a fuzzy gate? Explain with an example.

Loading page image...

1Key1.By definition, new products arelimited to significant technological innovations.FALSEMention new products and people think about technology—iPods, iPhones, YouTube, virtualrealities, fiber optics, and the like. But most new products are far simpler—low-carb colas, newmovies, new singing stars, fast foods, and new flavors of frozen yogurt.AACSB: AnalyticBlooms: UnderstandCrawford-Chapter 01 #1Difficulty: 2 MediumTopic: Setting2.New products can be tangible goods or services.TRUENew products can be tangible goods or services. New products can be destined for theconsumer market, the business-to-business market, or both.AACSB: AnalyticBlooms: UnderstandCrawford-Chapter 01 #2Difficulty: 2 MediumTopic: Setting3.Radicalinnovation that displaces or obsoletes current products and creates totally newproduct categories is critical to the future growth and survival of a firm.TRUEMany managers realize that radical innovation is critical to future growth and even the survivalof a firm. Here, radical innovation is innovation that displaces or obsoletes current productsand/or creates totally new product categories.AACSB: AnalyticBlooms: UnderstandCrawford-Chapter 01 #3Difficulty: 2 MediumTopic: The Importance of New Products

Loading page image...

4.Business firms expect, and get, a high percentage of their sales and profits from newproducts.TRUEA successful new product does more good for a firm than anything else. Best business firmsnot only have a higher percentage rate of successes, but also derive almost twice as manysales and profits from new products (defined as five years old or younger) than do the rest.Best firms are also more efficient in developing successful products.AACSB: AnalyticBlooms: RememberCrawford-Chapter 01 #4Difficulty: 1 EasyTopic: The Importance of New Products5.A firm's global presence is no guarantee that it will automatically know how to efficientlymanage its global operations.TRUEA firm's global presence is noguarantee that it will automatically know how to efficientlymanage its global operations. Effectively coordinating and marshaling the efforts acrossmultiple countries to develop and to launch successful new products is a major challenge.AACSB: AnalyticBlooms: RememberCrawford-Chapter 01 #5Difficulty: 1 EasyTopic: Globalization and New Product Development6.Firms with a global innovation culture have the most effective global new product programs.TRUEFirms with a global innovation culture have the most effective global new product programs.Having a global innovation culture means that a firm is open to global markets, mindful ofdifferences in customer needs and preferences, and respectful of different national culturaland business environments.AACSB: AnalyticBlooms: RememberCrawford-Chapter 01 #6Difficulty: 1 EasyTopic: Globalization and New Product Development

Loading page image...

7.An ideal new products team is essentially self-directed with limited or nocross-functionality.FALSEAn underlying principle of product development is teamwork. The new products team ideally iscross-functional, comprising personnel from marketing, R&D, engineering, manufacturing,production, design, and other functional areas as well.AACSB: AnalyticBlooms: UnderstandCrawford-Chapter 01 #7Difficulty: 2 MediumTopic: How Product Development is Different8.The term "product innovation" usually applies to functions, especially those of manufacturingor distribution.FALSEThe term product innovation applies to the total operation by which a new product is createdand marketed, and it includes innovation in all of the functional processes, while the termprocess innovation usually applies to functions,especially the manufacturing or distributionprocess, and every new product benefits from this type of innovation.AACSB: AnalyticBlooms: UnderstandCrawford-Chapter 01 #8Difficulty: 2 MediumTopic: How Product Development is Different9.New-to-the-firm products revolutionize existing product categories or define wholly new ones.FALSENew-to-the-world products revolutionize existing product categories or define wholly newones. They are the most likely to require consumer learning and/or incorporate a very newtechnology. New-to-the-firm products are products that take a firm into a category new to it.AACSB: AnalyticBlooms: RememberCrawford-Chapter 01 #9Difficulty: 1 EasyTopic: What is a New Product, and What Leads to Success?

Loading page image...

10.New-to-the-world products are less likely to require consumer learning.FALSENew-to-the-world products revolutionize existing product categories or define wholly newones. They are the most likely to require consumer learning and/orincorporate a very newtechnology.AACSB: AnalyticBlooms: RememberCrawford-Chapter 01 #10Difficulty: 1 EasyTopic: What is a New Product, and What Leads to Success?11.The number one reason for new product success is a unique superior product.TRUEThe number one reason for success is a unique superior product. Additionally, commoncauses of failure include "no need for the product" and "there was a need but the new productdid not meet that need."AACSB: AnalyticBlooms: RememberCrawford-Chapter 01 #11Difficulty: 1 EasyTopic: What is a New Product, and What Leads to Success?12.The terms "product idea," "product concept," and "product prototype" are interchangeable andthey are all about the same thing.FALSEAnaverage person might think that a product idea, a product concept, a product prototype,and maybe even a product are all about the same thing. But there are separate distinctdefinitions for each of these terms, and they are not interchangeable.AACSB: AnalyticBlooms: RememberCrawford-Chapter 01 #12Difficulty: 1 EasyTopic: Does This Field of Activity Have a Unique Vocabulary?

Loading page image...

13.Product portfolio management refers to the procedure that takes a new product idea throughconcept evaluation, product development, launch, and post-launch.FALSEProduct portfolio management helps a firm assess which new products would be the bestadditions to the existing product line, given both financial and strategic objectives. In thischapter, we introduce the first strategic element, the new products process, as it serves as aframework for everything else. The new products process is the procedure that takes the newproduct idea through concept evaluation, product development, launch, and post-launch.AACSB: AnalyticBlooms: RememberCrawford-Chapter 01 #13Difficulty: 1 EasyTopic: The Strategic Elements of Product Development14.Research has shown that at least 40 percent of firms assign a marketing manager whose job itis to manage thephased new products process.FALSEResearch has shown that about 70 percent of firms use some kind of formal, cross-functional,phased new products process, and at least 40 percent of firms assign a process managerwhose job it is to manage the phased new products process.AACSB: AnalyticBlooms: RememberCrawford-Chapter 01 #14Difficulty: 1 EasyTopic: The Basic New Products Process15.In a new product process, an evaluation task that includes conditional "Go" decisions issometimes called a fuzzy gate.TRUEAn evaluation task that includes conditional "Go" decisions is sometimes called a fuzzy gate.AACSB: AnalyticBlooms: RememberCrawford-Chapter 01 #15Difficulty: 1 EasyTopic: The Basic New Products Process

Preview Mode

This document has 721 pages. Sign in to access the full document!

Report

Study Now!

Document Details

Related Documents

CIS 337 Unit 7 Assignment Final Project Part IV Pr

Analysis of Leadership in Monster Inc

Evaluation of Alphabet's Mission, Vision, and 8-29

Boundless Management

Uncovering the Martha Stewart Tax Scandal Insider

Boundless Business

JetBlue Airlines Case Analysis

Effective Speaker Notes Template for BUS 210 Prese

Leading as a Function of Management

McDonald's Q4 Earnings U

Company

Explore

Study Tools