Feedback: One reason for studying about new products is that the new products process is exceedingly difficult. Hundreds of individuals are involved in the creation of a single product, but all are from separate departments (sales, engineering, manufacturing, and so on) where they may have their own agendas.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Topic: The Importance of New Products
18.Which of the following is a reason for product failure in a firm?
A. Resorting to radical innovation with the new products process
B. Avoiding the use of the ready—fire—aim approach in the product development process
C. Chasing a moving target
D. Paying too much attention to customer needs
Feedback: Some of the reasons why products fail include the following: A firm doesn't understand the customer, or underfunds the required research and development, or doesn't do the required homework before beginning development, sometimes called the ready—fire—aim approach, or doesn't pay enough attention to quality, or lacks senior management support, or chases a moving target leading to issues such as unstable specifications and scope creep.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Topic: The Importance of New Products
19.With reference to the new products process, a firm adopts the ready—fire—aim approach when it:
A. lacks senior management support.
B. does not pay enough attention to quality.
C. chases a moving target.
D. does not do the required homework before beginning development.
Feedback: One of the important reasons a firm fails in the new product process is it does not do the required homework before beginning development, sometimes called the ready-fire-aim approach.
AACSB: Analytic
Blooms: Understand
Difficulty: 3 Hard
Topic: The Importance of New Products
20.According to the latest Comparative Performance Assessment Study (CPAS), in comparison to the Rest, Best companies are:
A. more likely to use tradeoff analysis.
B. less likely to rely on 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.
Feedback: The most recent CPAS study reveals that the Best companies at product development manage their new products process differently than do the Rest. Relative to the Rest, the Best are more likely to use market research tools like creativity sessions, tradeoff analysis, alpha and beta testing, and so on. They rely more on portfolio analysis for product selection and tend to use online communities for information gathering.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Topic: The Importance of New Products
21.Which of the following firms will have the most effective worldwide new product programs?
A. Firms that have implemented total quality management
B. Firms that use quality circles
C. Firms that follow a global innovation culture
D. Firms that are leaders in their respective industries
Feedback: The best research available on the new product process finds that firms 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 of differences in customer needs and preferences, and respectful of different national cultural and business environments.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Topic: Globalization and New Product Development
22.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 tasks associated with the new products process.
D. are only open to domestic markets.
Feedback: A firm with a global innovation culture is better at integrating its global knowledge, can better manage the R&D tasks associated with the new products process, and has an advantage in implementing global launches.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium