D. New product categories have to be managed in a similar fashion.
Feedback: Generally, if a product is new-to-the-world or new-to-the-firm (the first two categories), the risks and uncertainties faced by the firm are higher, as are the associated costs of development and launch.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Topic: What is a New Product, and What Leads to Success?
41.Which of the following is the least innovative among the given set of new product categories?
A. New-to-the-firm products
B. Product improvements
C. Line extensions
D. Repositionings
Feedback: The least innovative categories are product repositionings and cost reductions. They tend to outperform the middle categories in terms of meeting financial criteria, returns on investment, and resulting market shares. This is because new products in the "middle ground" are not new enough to really excite new customers, yet different enough from existing products that there are fewer synergies.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: What is a New Product, and What Leads to Success?
42.Which of the following is considered to be the least innovative among the categories of new products?
A. Cost-reduced products
B. New-to-the-firm products
C. New-to-the-world products
D. Line extensions
Feedback: Cost-reduced products are new products that simply replace existing products in the line, providing the customer similar performance but at a lower cost. The most innovative new product categories and the least innovative categories (the repositionings and cost reductions) outperform the middle categories in terms of meeting financial criteria, returns on investment, and resulting market shares. This is because new products in the "middle ground" are not new enough to really excite new customers, yet different enough from existing products that there are fewer synergies.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Topic: What is a New Product, and What Leads to Success?
43.Which of the following statements is true regarding invention?
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 is transformed into a commercial product.
Feedback: To managers invention refers to the dimension of uniqueness—the form, the formulation, and the function of something. It is usually patentable. Innovation refers to the overall process whereby an invention is transformed into a commercial product that can be sold profitably.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Topic: Does This Field of Activity Have a Unique Vocabulary?
44._____ refers to the overall process whereby an invention is transformed into a commercial product that can be sold profitably.
A. Innovation
B. Attribution
C. Brainstorming
D. Pricing
Feedback: There is sometimes confusion over the terms invention and innovation. To managers, invention refers to the dimension of uniqueness—the form, the formulation, and the function of something. It is usually patentable. Innovation refers to the overall process whereby an invention is transformed into a commercial product that can be sold profitably. The invention may take but a few moments.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Does This Field of Activity Have a Unique Vocabulary?
45.A marketing researcher is most likely to serve as a _____ in a new product development team.
A. functional representative
B. process manager
C. scientific advisor
D. project leader
Feedback: An example of a functional representative on a team is a marketing researcher or a production planner. These people may be representatives on several teams or just one and maybe full time or part time.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Topic: Does the Field of New Products Offer Careers?
46.The job of a _____ in the field of new product management is to help project managers develop and use good new product processes.