Innovation Management Chapter 13 Quiz
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Questions and Answers

Which of the following is NOT considered a source in the product planning process?

  • Marketing
  • Economics (correct)
  • Customer analysis
  • R&D

    • Incremental improvements to existing products are classified as derivatives of existing platforms.

    False

    What are the four types of product development opportunities?

    New product platforms, incremental improvements, fundamentally new products, derivatives of existing platforms.

    The share-growth matrix is also known as the __________ box.

    <p>Boston</p> Signup and view all the answers

    Match the following product levels with their descriptions:

    <p>Core product = Essential basics needed to compete Expected product = Normal expectations of customers Augmented product = Features beyond normal expectations Fundamental product = Alternative term for core product</p> Signup and view all the answers

    What is a primary factor in driving new product planning?

    <p>Competitive strategy</p> Signup and view all the answers

    The competitive environment includes changes related only to technology.

    <p>False</p> Signup and view all the answers

    List two potential changes in the external environment that can affect product planning.

    <p>Technology changes, customer needs changes.</p> Signup and view all the answers

    What is the primary focus of network leadership in a company?

    <p>To choose and maintain focus on appropriate partners</p> Signup and view all the answers

    Product platforms allow companies to share components between different product models.

    <p>True</p> Signup and view all the answers

    What are two benefits of using product platforms?

    <p>Reduced cost of production and improved ability to update products.</p> Signup and view all the answers

    A product family should be linked to the product __________ strategy.

    <p>development</p> Signup and view all the answers

    Match the following benefits of product platforms with their descriptions:

    <p>Reduced cost of production = Lower manufacturing expenses through shared resources Shared components = Use of common parts across multiple products Reduced R&amp;D lead times = Faster development of new products Improved ability to update products = Easier enhancements based on shared components</p> Signup and view all the answers

    Which factor does NOT influence a product platform?

    <p>Social media trends</p> Signup and view all the answers

    Companies should evaluate their core capabilities in isolation from their networks.

    <p>False</p> Signup and view all the answers

    List one question that companies should ask during product planning.

    <p>What product development projects will be undertaken?</p> Signup and view all the answers

    What does product positioning refer to?

    <p>The perceptions customers have about the product relative to competitors</p> Signup and view all the answers

    Customers are generally able to recognize their favorite brands based on basic attributes alone.

    <p>False</p> Signup and view all the answers

    List one reason why consumers might pay a premium for certain brands even when they cannot taste the difference.

    <p>Brand loyalty or perceived quality.</p> Signup and view all the answers

    Product performance criteria involve customers' judgments or choices between _______.

    <p>alternative products</p> Signup and view all the answers

    Match the following branding strategies with their descriptions:

    <p>No brand name = Sold as a commodity Unique brand name = Product is distinguishable in the market Selling to another party = Another company places their trademark Buying in major components = Manufactured products are branded by the company</p> Signup and view all the answers

    Which of the following is NOT one of the branding strategies mentioned?

    <p>License the brand to multiple companies</p> Signup and view all the answers

    Brand loyalty has no impact on consumer behavior.

    <p>False</p> Signup and view all the answers

    What is a key factor that influences customers’ decisions when evaluating different products?

    <p>Perceptions of product positioning.</p> Signup and view all the answers

    What should companies primarily evaluate when considering product development partnerships?

    <p>Their core capabilities and network relationships</p> Signup and view all the answers

    Which benefit is NOT associated with using product platforms?

    <p>Increased customer engagement</p> Signup and view all the answers

    What aspect is significant for effective network leadership in product management?

    <p>Choosing appropriate partners for the network</p> Signup and view all the answers

    Which of the following factors can influence product platforms?

    <p>Changes in manufacturing technology</p> Signup and view all the answers

    What should be considered when planning the sequence of product development projects?

    <p>The timing and sequence of the projects</p> Signup and view all the answers

    Which of the following is a potential benefit of sharing components across product models?

    <p>Reduced R&amp;D lead times</p> Signup and view all the answers

    What is the primary focus of companies when using a product platform approach?

    <p>Differentiating components visible to customers</p> Signup and view all the answers

    Which question is essential for companies to ask during product planning?

    <p>What product development projects will be undertaken?</p> Signup and view all the answers

    What does product positioning primarily concern?

    <p>The perceptions customers have about a product's market position</p> Signup and view all the answers

    Why might consumers pay a premium for brands they cannot distinguish by taste?

    <p>They perceive premium brands as associated with higher quality</p> Signup and view all the answers

    What could be an outcome of brand strategy involving no brand name?

    <p>Competition based solely on price</p> Signup and view all the answers

    What does the research suggest about consumers recognizing brands by fundamental attributes?

    <p>Consumers often fail to recognize brands they buy frequently</p> Signup and view all the answers

    Which of the following is a possible strategy for a brand?

    <p>Sell the product to another party for rebranding</p> Signup and view all the answers

    Which of the following factors is NOT considered when customers evaluate products?

    <p>Market trends</p> Signup and view all the answers

    What aspect does not generally influence consumer behavior towards brand preference?

    <p>Technical specifications</p> Signup and view all the answers

    Which branding strategy involves selling products as commodities without brand names?

    <p>Generic branding</p> Signup and view all the answers

    Which type of product development opportunity involves creating completely new and innovative products?

    <p>Fundamentally new products</p> Signup and view all the answers

    What is a primary purpose of the reactive strategy in product planning?

    <p>To prevent competitors from entering small market segments</p> Signup and view all the answers

    Which dimension does the share-growth matrix use to plot products?

    <p>Market share and market growth</p> Signup and view all the answers

    How many levels of differentiation does Levitt suggest?

    <p>Four</p> Signup and view all the answers

    What might be a significant change in the external environment affecting product planning?

    <p>Changes in consumer preferences</p> Signup and view all the answers

    Which of the following is included in the expected product level according to Levitt?

    <p>Comfortable interior and accessories</p> Signup and view all the answers

    Which factor is likely to initiate changes in the competitive environment?

    <p>New regulatory developments</p> Signup and view all the answers

    What is a potential benefit of differentiating products at the augmented product level?

    <p>Enhanced customer engagement</p> Signup and view all the answers

    What type of product development opportunity involves adjustments made to existing products?

    <p>Incremental improvements</p> Signup and view all the answers

    Which of the following elements is NOT considered in the external competitive environment?

    <p>Employee turnover rates</p> Signup and view all the answers

    According to Levitt, what is the core product?

    <p>The essential basics required to compete</p> Signup and view all the answers

    What is the primary goal of a reactive strategy in product planning?

    <p>To respond to competitive market pressures</p> Signup and view all the answers

    Which of the following best describes the term 'augmented product'?

    <p>Added services and benefits beyond customer expectations</p> Signup and view all the answers

    What is the primary dimension used in the Boston box for comparing products?

    <p>Market share versus market growth</p> Signup and view all the answers

    What factor can significantly influence customer needs in the competitive environment?

    <p>Evolving technological standards</p> Signup and view all the answers

    Which product development opportunity is characterized by creating entirely unique concepts that do not derive from existing products?

    <p>Fundamentally new products</p> Signup and view all the answers

    What does product positioning primarily involve?

    <p>The perceptions customers have about a product's market position</p> Signup and view all the answers

    Which statement about customer brand recognition is accurate?

    <p>Research shows consumers often cannot identify familiar brands by fundamental attributes.</p> Signup and view all the answers

    Which branding strategy involves selling a product as a commodity?

    <p>Using no brand name at all</p> Signup and view all the answers

    What is a rationale for why consumers might pay a premium for specific brands?

    <p>Brand loyalty influences purchasing decisions regardless of discernible differences.</p> Signup and view all the answers

    Which element is NOT typically included in the potential product?

    <p>Basic functionalities required for product operation</p> Signup and view all the answers

    Which of the following best describes factors customers consider when evaluating products?

    <p>Product performance and attributes</p> Signup and view all the answers

    What is a key focus of brand strategy?

    <p>Creating a consistent market presence through brand identity</p> Signup and view all the answers

    Which factor is least likely to influence a consumer's decision-making process between different products?

    <p>The physical store layout</p> Signup and view all the answers

    What aspect is crucial for effective network leadership in a company?

    <p>Choosing appropriate partners and maintaining their focus</p> Signup and view all the answers

    Which of the following is NOT a benefit of using product platforms?

    <p>Increased complexity in project management</p> Signup and view all the answers

    Which of the following factors is likely to affect a product platform?

    <p>Changes in customer preferences</p> Signup and view all the answers

    What is a primary objective of companies using product platforms?

    <p>To differentiate components while sharing processes</p> Signup and view all the answers

    What core capability should companies evaluate within their networks?

    <p>The strength of relationships with customers, suppliers, and partners</p> Signup and view all the answers

    During product planning, what is essential for managing a portfolio of projects?

    <p>To determine the timing and sequence of all projects</p> Signup and view all the answers

    Which statement best describes a product platform?

    <p>It serves as a foundation for a family of products tied to a development strategy</p> Signup and view all the answers

    What is a significant outcome of evaluating core capabilities within a network?

    <p>Effective collaboration with relevant partners</p> Signup and view all the answers

    What is a primary benefit of using product platforms in development?

    <p>Reduced cost of production</p> Signup and view all the answers

    What should companies primarily consider when forming a network for product development?

    <p>The core capabilities of the company</p> Signup and view all the answers

    Which factor is likely to lead to changes in a product platform?

    <p>Shifts in manufacturing technology</p> Signup and view all the answers

    What characteristic is essential for effective network leadership?

    <p>Strategic selection of partners and keeping them focused</p> Signup and view all the answers

    Which of the following questions is relevant during the product planning process?

    <p>What is the timing and sequence of the projects?</p> Signup and view all the answers

    What primarily drives the need for coordination in modern networks?

    <p>The interconnectedness of relationships within networks</p> Signup and view all the answers

    Which of the following factors does NOT influence product platforms?

    <p>Competitors' marketing strategies</p> Signup and view all the answers

    What is a focus of a reactive strategy in product planning?

    <p>Filling product lines to cover small market segments</p> Signup and view all the answers

    Which of the following is NOT a source of product development opportunities?

    <p>Employee feedback</p> Signup and view all the answers

    What is an augmented product primarily characterized by?

    <p>Enhanced features and services beyond customer expectations</p> Signup and view all the answers

    Which of the following types of product development opportunities focuses on adding features to existing products?

    <p>Incremental improvements to existing products</p> Signup and view all the answers

    What dimensions does the share-growth matrix use to analyze product positions?

    <p>Market growth and market share</p> Signup and view all the answers

    Which factor is least likely to influence product strategies in a competitive environment?

    <p>Internal employee morale</p> Signup and view all the answers

    At which level of differentiation do products provide the basic components needed to function in the market?

    <p>Core product</p> Signup and view all the answers

    Which statement best describes the expected product level of differentiation?

    <p>It consists of elements that customers accept as normal expectations.</p> Signup and view all the answers

    What aspect does product positioning primarily involve?

    <p>Assessing customer perceptions relative to competitors</p> Signup and view all the answers

    Why do consumers continue to purchase premium brands even if they cannot identify differences?

    <p>They rely on marketing and advertising</p> Signup and view all the answers

    Which of the following best describes a branding strategy that involves selling a product without any brand name?

    <p>Commodity marketing</p> Signup and view all the answers

    Which factor is crucial in how customers differentiate between products?

    <p>Consumer perceptions</p> Signup and view all the answers

    What could be a possible outcome of a brand strategy relying solely on fundamental attributes?

    <p>Market confusion among consumers</p> Signup and view all the answers

    Which statement about product performance criteria is correct?

    <p>They involve customers' judgments and choices.</p> Signup and view all the answers

    What role does developing a unique brand name play in brand strategy?

    <p>It helps establish a distinct market identity.</p> Signup and view all the answers

    What does substantial research indicate about consumers and brand recognition?

    <p>Consumers struggle to recognize frequent brands by fundamental attributes.</p> Signup and view all the answers

    What type of project focuses solely on adding or modifying features of existing products?

    <p>Incremental improvements project</p> Signup and view all the answers

    Which model for new product development is characterized by a dedicated project team from various functions?

    <p>Cross-functional model</p> Signup and view all the answers

    Which of the following is NOT a benefit gained through using product platforms?

    <p>Unique components for each model</p> Signup and view all the answers

    The new product strategy of a firm is linked to which of the following?

    <p>Marketing strategy, technology strategy, and overall corporate strategy</p> Signup and view all the answers

    What classification does the model known as the 'over-the-wall' model belong to?

    <p>Departmental-stage models</p> Signup and view all the answers

    Study Notes

    Innovation Management and New Product Development

    • Chapter 13 focuses on product and brand strategy.
    • Learning objectives include explaining how product strategies affect firm performance.
    • Recognizing that new products serve various strategic purposes is crucial.
    • Understanding platform concepts in new product development is important.
    • Assessing brand strategy's role in product development and success is essential.
    • Differentiating and positioning products for market success is key.
    • Recognizing the role of marketing research in new product development is vital.

    Capabilities, Networks, and Platforms

    • Companies need to evaluate their core capabilities by assessing the relationship network within and around the firm.
    • These relationships involve customers, suppliers, distributors, and other related firms.
    • Nowadays, networks compete, so coordinated activities across the network are essential.
    • Choosing appropriate partners and keeping them focused are critical for network leadership.

    Product Platforms

    • Product platforms refer to product families and should be linked to product development strategy.
    • Product platforms can change due to manufacturing technology changes, customer needs, and competitor actions.
    • Companies differentiate visible components while sharing production processes across models using platform concept.
    • Benefits of product platforms include reduced production costs, shared components, faster R&D, simplified systems, and easier product updates.

    Product Planning

    • Key questions in product planning include:
      • What product development projects should be undertaken?
      • What is the mix of projects (new products, improvements)?
      • What is the timing and sequence of projects?
    • Product development opportunities can come from marketing, R&D, customers, and competitor analysis.
    • Product development opportunities are categorized as new platforms, incremental improvements, fundamentally new products (discontinuous), or derivatives of existing platforms.

    Product Strategy (Competitive Strategy)

    • Competitive strategy influences new product planning, potentially on a short or long-term basis.
    • A reactive product strategy involves filling out existing product lines, e.g., with different sizes or features, to avoid competitors exploiting market gaps.

    Product Portfolios

    • Product portfolio analysis uses market share and market growth as dimensions to plot positions.

    The Competitive Environment

    • External factors affecting product development include changing technologies, industry structures, regulations, and customer needs.

    Differentiation and Positioning

    • Levitt (1986) describes four levels of product differentiation:
      • The core product: essential features for competition.
      • The expected product: expected features.
      • The augmented product: features, services, and benefits exceeding expectations.
      • The potential product: anticipated future beneficial features.

    Product Positioning

    • Product positioning reflects customer perceptions of a product's market place relative to competitors.
    • Understanding how customers differentiate between products and the factors influencing their choices is important.

    Product Performance Criteria

    • Product performance factors include factors like operation, reliability, price, delivery, sophistication, service, durability, usability, safety, maintenance, parts availability, appearance, flexibility, advertising, operator comfort, design, and environmental impact.

    Managing Brands

    • Research suggests consumers often struggle to identify brands based on fundamental attributes alone.
    • This leads to questions about why consumers pay premiums for brands they presumably cannot differentiate.

    Brand Strategy

    • Brand strategy options:
      • No brand name (commodity).
      • Unique brand name.
      • Licensing/outsourcing branding.
      • Company-branding of components.

    Brand Extensions

    • Brand extension uses an existing brand name for new products in the same or related product fields.

    Withdrawing Products

    • Reasons for product withdrawal: poor sales, future trends, or cost-benefit analysis.

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    Innovation Management and New Product Development 6th Edition Chapter 13 PDF

    Description

    This quiz covers key concepts from Chapter 13 on product and brand strategy in innovation management. It assesses your understanding of how product strategies influence firm performance, the strategic purposes of new products, and the importance of platform concepts. Additionally, it examines the pivotal role of marketing research in successful product development.

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