79 Questions
What is the primary purpose of new product development in the innovation process?
To generate profits to cover the initial cost
What is the outcome of idea generation in the business approach?
Generating a successful business idea
What is the primary focus of market research in new product development?
To introduce the right product to customers
What is the primary reason for product failure after launch?
Insufficient market research
What is the final stage of the business approach in new product development?
Commercialization
What is the primary goal of the analysis/research phase in new product development?
To complete a feasibility analysis
What is the primary outcome of adopting a sustainable NPD strategy?
Reducing product failure rates
What is the primary focus of the startup phase in new product development?
Implementing a business plan
What is the primary purpose of idea screening and selection?
To choose the best product concept that meets certain criteria
What is the consequence of not replacing or innovating a product?
The demand for the product will decrease over time
What is the term for the process of translating a selected idea into a physical product or a new feature?
Product development
What is the primary benefit of concurrent engineering in NPD?
Improved communication and integration among teams
What is the primary purpose of conducting a series of evaluations in the NPD process?
To assess the technical, commercial, and business feasibility of a concept
What is the term for the process of identifying business opportunities for new products?
Idea generation
What is the primary reason why NPD is critical for firms to stay in the market?
To stay competitive by innovating and replacing products
What is the term for a tentative version of a product that includes features and benefits?
Prototype
What is the primary purpose of managing and growing the firm in the context of organization feasibility?
To achieve commercial maturity
What is the main objective of the industry/market feasibility assessment?
To assess the industry's attractiveness and major constraints
What is the primary focus of a detailed business plan?
To provide a roadmap for implementation, investment, and ownership
What occurs when sales start during the NPD process?
We begin to cover the initial cost
What is the relationship between product/service desirability and target market attractiveness?
They are interdependent
What is the primary difference between a business opportunity and a product concept?
A business opportunity is a possible idea, while a product concept is a clear description of benefits
What is the primary purpose of identifying fatal flaws in the product or service?
To avoid potential risks and issues
What is the primary focus of the concept development phase in the NPD process?
To generate ideas for new products or services
What is the primary reason for involving customers in every stage of the new product development process?
To ensure that the product reflects their needs
What is the main challenge in involving customers as a resource for ideas in the idea generation stage?
Finding the right customer groups to collect reliable information
What is the role of customers as co-creators in the idea screening and selection stage?
Ranking ideas based on their importance to customers
What is the primary concern when selecting customers for involvement in the new product development process?
Getting reliable and useful information from customers
What is the role of customers as users in the product introduction stage?
Verifying product features
Why is customers' involvement in the new product development process critical?
Because they provide valuable information and ideas
What is the main benefit of involving customers in the product development stage?
Involving customers in a wide range of development tasks
What is the main difference between customers as resources and customers as co-creators in the new product development process?
Customers as resources are involved in the idea generation stage, while customers as co-creators are involved in the product development stage
What was the initial reaction of consumers to the introduction of fax machines in the 1960s?
They were skeptical about its potential uses
What was a major challenge faced by firms when introducing totally new products to the market?
Educating the mass market about the product's value
Why did consumers initially reject the Dyson bagless vacuum cleaner in the 1990s?
They did not want to see dirt collected in a transparent container
What was the outcome of the introduction of the Chrysler Cruiser in the 1990s?
It was widely accepted in the industry
What was a key feature of the marketing campaign for the I-pod when it was introduced?
It provided a detailed explanation of its benefits
What is a characteristic of industries that experience more complicated processes in new product development?
They have a high level of technical activities
Why do firms need to educate customers about new products?
Because customers may not accept the product due to its novelty
What was the benefit of the I-pod that allowed users to save songs they liked?
Its ability to save the songs that you like
The primary goal of new product development is to generate profits to cover the initial cost of innovation.
True
A new product has only one interpretation across different customers.
False
Conducting a series of evaluations is only necessary during the analysis/research phase in new product development.
False
The final stage of the business approach in new product development is the startup phase.
True
The primary benefit of concurrent engineering in NPD is to reduce production costs.
False
Involving customers in every stage of new product development is necessary to ensure product success.
True
The primary concern when selecting customers for involvement in new product development is their technical expertise.
False
Adopting a sustainable NPD strategy ensures that the new product will not fail after launch.
False
The primary purpose of involving customers in the NPD process is to ensure that the product reflects the needs of the market.
False
Customers are only involved in the idea generation stage of the NPD process.
False
The role of customers as co-creators is limited to the idea generation stage.
False
Involving customers in the NPD process can lead to unreliable and unuseful information if not done carefully.
True
Customers are only involved in the product development stage to define the final product design.
False
The primary role of customers as users is to test product performance.
False
Lead users are the only source of information for new product development.
False
Ranking ideas based on their importance to customers is not a key issue in the idea screening and selection stage.
False
A new product can be considered as a minor change in the existing product.
True
The NPD process is only critical for firms that want to stay ahead in the market.
False
Educating customers about new products is not necessary because they will automatically understand its benefits.
False
Introducing a new design of a product always requires significant resources and time to come to market.
True
Lead users are never willing to participate in evaluating emerging concepts.
False
A new product can never be considered as a change in the packaging of the existing product.
False
Introducing a new product with the same features but a new smell is never considered a new product.
False
Lead users are only passionate about improving products and are not loyal to the brand.
False
Product failure can occur when customers are not aware of the product's value.
True
Sustainable NPD strategy involves introducing a new product that only considers environmental sustainability criteria.
False
Reducing energy consumption is an example of adopting sustainable NPD strategy.
True
Adopting sustainable NPD strategy can lead to a decrease in sales.
False
Finding the right communication channel with customers is important to define their needs inaccurately.
False
Integrating customers in each stage of NPD is necessary to educate them about the product's value.
True
New technology should always be adopted without considering customers' needs.
False
Adopting sustainable NPD strategy can lead to an increase in operation costs.
False
The introduction of microcomputers in the 1960s was initially successful due to consumers' ability to predict all potential uses.
False
The Chrysler Cruiser was widely accepted in the industry immediately after its launch in the 1990s.
False
The primary purpose of educating customers about new products is to create a competitive position by controlling price.
True
The level of technical activities is less intense in industries that experience more complicated processes.
False
The I-pod was initially successful due to its ability to hold only a few songs.
False
The Dyson bagless vacuum cleaner was initially successful due to its ability to collect dirt in a transparent container.
False
Fax machines were widely accepted by consumers immediately after their introduction in the 1960s.
False
Test your understanding of New Product Development (NPD) process, including the sequence of events, four stages model, customer roles, and adopting sustainable NPD strategies. Learn about product failure and educating customers for new products.
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