COPY: New Product Development Process Quiz

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What is the primary goal of the idea screening stage in new product development?

To generate a large number of innovative concepts.

To develop prototypes of all potential new products.

To gather customer feedback on product ideas.

To identify promising concepts and eliminate poor ones. (correct)

Which of the following is an example of an internal source for new product ideas?

Customer feedback surveys.

A company's research and development department. (correct)

Ideas from a supplier of raw materials.

Competitor analysis reports.

What does the 'R-W-W' framework in idea screening stand for?

Research-Write-Review.

Relevance-Workability-Results.

Refine-Weigh-Workable.

Real-Win-Worth doing. (correct)

What does crowdsourcing involve in the context of new product development?

Inviting a broad community of people to contribute to the innovation process. (D) Signup and view all the answers

Which scenario best exemplifies the use of external sources for new product ideas?

A company receiving a suggestion from a distributor regarding product packaging. (B) Signup and view all the answers

According to the content, what was the original service that Delfast provided before it expanded into electric bicycle manufacturing?

A parcel delivery service. (A) Signup and view all the answers

What was the primary goal of Tupperware's Clever Container Challenge?

To use IoT technologies for developing smart food containers. (C) Signup and view all the answers

What is the primary purpose of Google's Area 120?

To encourage continued internal innovation by allowing employees to work on projects. (C) Signup and view all the answers

What does the term 'acquisition' refer to in the context of new product development?

The buying of a whole company, a patent, or a license to produce someone else’s product. (D) Signup and view all the answers

According to the information provided, what is the approximate failure rate of new products introduced each year?

95 percent (A) Signup and view all the answers

What is a key characteristic of Google's approach to new product development, as described in the text?

A process that moves quickly and fosters widespread innovation. (C) Signup and view all the answers

Which of the following best describes 'new product development' as defined in the provided text?

The process of creating original products, product improvements, product modifications, and new brands developed from the firm’s own R&D. (B) Signup and view all the answers

What is meant by the term 'moon shots' in the context of Alphabet's new product development?

Futuristic, high-risk projects with the potential for profound impact. (D) Signup and view all the answers

The text suggests that innovation at Google is:

Part of the company’s DNA and can occur anywhere within it (C) Signup and view all the answers

What are the two primary ways a company can obtain new products?

Acquisition and New product development. (B) Signup and view all the answers

Which of the following actions would best represent 'product modification' in the context of new product development?

Making changes to an existing product's design or features. (D) Signup and view all the answers

For which of the following scenarios would test marketing be LEAST necessary?

The introduction of a slightly different flavor of an already established product line. (D) Signup and view all the answers

In the context of new product development, what is the primary purpose of a product concept?

To articulate the product idea in terms that resonate with consumers. (B) Signup and view all the answers

What is the primary goal of customer-centered new product development?

To create products that solve customer problems and offer satisfying experiences. (B) Signup and view all the answers

Which of these best describes a core characteristic of team-based new product development?

Various company departments work together closely at the same time. (C) Signup and view all the answers

How does 'product image' differ from 'product concept' in new product development?

Product image is how consumers perceive the product, while the product concept is a detailed description of the idea. (B) Signup and view all the answers

What is the main objective of concept testing in the new product development process?

To gauge consumer reaction to a new product idea before investing resources. (D) Signup and view all the answers

What is a key objective of creating an innovation management system?

To establish a culture that promotes new product thinking and development. (D) Signup and view all the answers

In the context of new product development, what is the meaning of 'commercialization'?

The process of finally bringing a new product to the market. (B) Signup and view all the answers

What is the primary goal of marketing strategy development in the context of new product development?

To create a preliminary marketing plan based on the product concept. (B) Signup and view all the answers

What is the primary purpose of conducting a business analysis during new product development?

To see if the product meets the objectives of the company financially. (A) Signup and view all the answers

What is the potential risk associated with cutting spending during turbulent times in the context of new product development?

It could cause a company to become less competitive in the market. (C) Signup and view all the answers

Which of the following is NOT mentioned as a characteristic of successful new product development?

Cost Driven (C) Signup and view all the answers

Which of the following best describes what occurs during the product development stage of new product development?

The product concept is turned into a tangible physical product. (C) Signup and view all the answers

What is the defining characteristic of the 'test marketing' stage in new product development?

The product is being tested in a real market before a full launch. (B) Signup and view all the answers

Which type of product would most likely require a comprehensive test marketing process?

A new, complex smart home device with advanced features. (D) Signup and view all the answers

What is the correct order of the following stages in the new product development process? (1) Business Analysis (2) Concept Testing (3) Product Development (4) Test Marketing

2, 1, 3, 4 (C) Signup and view all the answers

Which stage of the product life cycle is characterized by slow sales growth and minimal or no profits?

Introduction (D) Signup and view all the answers

During which stage of the product life cycle do sales typically increase rapidly and new competitors enter the market?

Growth (A) Signup and view all the answers

What is a key characteristic of the maturity stage of the product life cycle?

Slowdown in sales growth and increased competition (D) Signup and view all the answers

In which stage of the product life cycle are companies most likely to increase their spending on promotion and R&D to maintain sales and profits?

Maturity (D) Signup and view all the answers

Which of the following best describes the sales trend in the decline stage of the product life cycle?

Falling off (D) Signup and view all the answers

During which phase of a product's life cycle are economies of scale most likely to be achieved?

Growth (C) Signup and view all the answers

Which of the following options is NOT a typical characteristic of the introduction stage of the product life cycle?

Rapid market acceptance (B) Signup and view all the answers

What can be inferred about the competitive landscape during the maturity stage of the product life cycle?

Many suppliers, many substitute products (A) Signup and view all the answers

Which of the following is a modification strategy employed during the maturity stage of a product's life cycle?

Modifying the marketing mix to appeal to new market segments. (B) Signup and view all the answers

What is a primary characteristic of the maturity stage in the product life cycle?

Peak sales and stable, high profits. (B) Signup and view all the answers

According to the provided information, what strategy does Campbell's Soup Company use during the maturity stage?

They have created a website and phone application to encourage greater usage of their goods. (C) Signup and view all the answers

What is the main objective of marketing activities during the decline phase of the product life cycle?

Reduce expenditures to enhance profitability as sales decline. (A) Signup and view all the answers

Which customer group is most likely to purchase products in the decline stage of the product life cycle?

Lagging adopters who are slow to accept new ideas. (B) Signup and view all the answers

What does 'harvesting a product' imply during the decline stage of a product's life cycle?

Reducing marketing and distribution costs while still generating sales. (B) Signup and view all the answers

Hallmark is described as 'reimagining how it delivers modern digital experiences'. Which stage of the product life-cycle is this most likely happening for their core offering of greeting cards?

Late maturity or early decline stage as purchasing habits change. (C) Signup and view all the answers

What happens to the cost per customer as a product moves from the introduction to the maturity stage?

The cost per customer decreases from high to low. (C) Signup and view all the answers