AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: What is a New Product, and What Leads to Success?
10.New-to-the-world products are less likely to require consumer learning.
FALSE
Feedback: New-to-the-world products revolutionize existing product categories or define wholly new ones. They are the most likely to require consumer learning and/or incorporate a very new technology.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: What is a New Product, and What Leads to Success?
11.The number one reason for new product success is a unique superior product.
TRUE
Feedback: The number one reason for success is a unique superior product. Additionally, common causes of failure include "no need for the product" and "there was a need but the new product did not meet that need."
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: What is a New Product, and What Leads to Success?
12.The terms "product idea," "product concept," and "product prototype" are interchangeable and they are all about the same thing.
FALSE
Feedback: An average 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 distinct definitions for each of these terms, and they are not interchangeable.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Does This Field of Activity Have a Unique Vocabulary?
13.Product portfolio management refers to the procedure that takes a new product idea through concept evaluation, product development, launch, and post-launch.
FALSE
Feedback: Product portfolio management helps a firm assess which new products would be the best additions to the existing product line, given both financial and strategic objectives. In this chapter, we introduce the first strategic element, the new products process, as it serves as a framework for everything else. The new products process is the procedure that takes the new product idea through concept evaluation, product development, launch, and post-launch.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: The Strategic Elements of Product Development
14.Research has shown that at least 40 percent of firms assign a marketing manager whose job it is to manage the phased new products process.
FALSE
Feedback: Research 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 manager whose job it is to manage the phased new products process.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: The Basic New Products Process
15.In a new product process, an evaluation task that includes conditional "Go" decisions is sometimes called a fuzzy gate.
TRUE
Feedback: An evaluation task that includes conditional "Go" decisions is sometimes called a fuzzy gate.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: The Basic New Products Process
Multiple Choice Questions
16.Well-known business writer, Gary Hamel, has described _____ as "the most important business issue of our time."
A. product distribution
B. the creation of radical innovation
C. advertising and marketing of services
D. product line extensions
Feedback: Well-known business writer Gary Hamel has described the creation of radical innovation as "the most important business issue of our time." The Industrial Research Institute identified "accelerating innovation" and "business growth through innovation" as the top challenges faced by technology leaders.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: The Importance of New Products
17.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 is exceedingly 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 same department.