Question 1

The biggest cause of new product failure is that the:
A)new product idea was not properly communicated to the intended user.
B)intended buyer did not see a need for the item.
C)new product was very costly.
D)new product did not meet its neeD.

Accepted Answer

If the intended buyer does not see a need for the item, they will not be motivated to purchase it, leading to failure in the market. While the other options (improper communication, costliness, and not meeting needs) can certainly contribute to failure, they are not the most significant cause.

Question 2

In the new product development process,the product innovation charter is developed immediately after concept testing.

Accepted Answer

The product innovation charter is developed before concept testing. It defines the scope of the new product development project, including the target market, customer needs, product features, and project objectives. It serves as a guide throughout the development process, helping to ensure that the project stays on track and is aligned with the company's overall strategy.

Question 3

The product innovation charter (PIC)directing new product development eliminates more product ideas than all the other evaluations combined.

Accepted Answer

The product innovation charter sets the strategic direction for new product development and helps to ensure that only ideas that align with the company's goals and objectives are selected for further evaluation and development. As a result, many ideas that may not fit within the established parameters outlined in the PIC are eliminated early on in the process.

Question 4

Prototypes are the least expensive form of concept statement because very few decisions have to be made about the new product to get it into a prototype.

Accepted Answer

Prototyping requires decisions about the design, materials, and features, which can add to the cost.

Question 5

To avoid the bazooka effect,the idea source should participate in the initial reaction.

Accepted Answer

The answer of To avoid the bazooka effect,the idea source...

Question 6

Which of the following type of ideas are NOT likely to be eliminated by the product innovation charter (PIC)?
A)Ideas that require technologies the firm does not have.
B)Ideas to be sold to customers about whom the firm has no close knowledge.
C)Ideas that offer the wrong degree of innovativeness.
D)Ideas which differ from those of competitors or current trends.

Accepted Answer

The PIC is a document that outlines the boundaries of innovation for a company. It helps in selecting and prioritizing innovative projects. Ideas that differ from those of competitors or current trends aren't likely to be eliminated by the PIC because they represent opportunities for differentiation and competitive advantage. On the other hand, ideas that require technologies the firm does not have or ideas to be sold to customers about whom the firm has no close knowledge can be eliminated by the PIC as they may not align with the firm's capabilities or goals. Ideas that offer the wrong degree of innovativeness may also be eliminated as they may not fit into the company's innovation strategy.

Question 7

When benefit segments are overlaid onto a perceptual map,it results in a cumulative expenditures curve.

Accepted Answer

Benefit segments and perceptual maps help in understanding customers' perceptions and behavior, but they do not directly result in a cumulative expenditures curve. The curve is typically created by analyzing actual spending data.

Question 8

The real-time response survey combines the best features of focus groups and surveys and has proved useful in screening new consumer product concepts.

Accepted Answer

The statement is true. The real-time response survey allows for immediate feedback from participants, like in a focus group, while also collecting quantitative data like in a survey. This can be helpful in quickly testing and refining new consumer product concepts.

Question 9

Which of the following evaluation precedes the appearance of the concept?
A)Market testing
B)Creation of product innovation charter
C)Concept testing
D)Joint space mapping

Accepted Answer

The creation of a product innovation charter is a strategic document that outlines the goals, objectives, and guidelines for new product development before specific concepts are developed and tested.

Question 10

The first purpose of a concept test is to generate the sales or trial rate that a product would enjoy.

Accepted Answer

The first purpose of a concept test is to evaluate the potential of a product or idea by soliciting feedback from target consumers. It's not primarily focused on generating sales or trial rates, but on refining the idea and addressing potential issues before launch.

Question 11

The optimum combination of attributes desired by the market can be identified using the cumulative expenditures curve.

Accepted Answer

The cumulative expenditures curve is not typically used to identify the optimum combination of attributes desired by the market; it is more related to cost analysis and budgeting.

Question 12

Virtual reality captures the advantages and most of the disadvantages of the prototype.

Accepted Answer

Virtual reality captures the advantages of a prototype by allowing for immersive testing and visualization, but it does not inherently capture the disadvantages unless specifically designed to simulate them.

Question 13

A complete new product concept is a statement about anticipated product that will yield problem solutions relative to other products already available.

Accepted Answer

A complete new product concept is designed to offer solutions to problems that existing products in the market are not able to solve. Therefore, it is true that a new product concept is a statement about an anticipated product that will yield problem solutions relative to other products already available.

Question 14

Theoretically,the brand closest to the consumer's ideal brand is most likely to be bought.

Accepted Answer

This statement is true according to the theory of brand loyalty and consumer behavior. When a consumer perceives a brand to be closest to their ideal brand in terms of quality, price, features, and other factors, they are more likely to buy that brand. This is because the brand is aligned with their needs, preferences, and values, and they trust it to deliver the desired benefits consistently. Therefore, companies strive to create strong brand equity by understanding and meeting the consumer's expectations and desires, thereby increasing the likelihood of purchase and loyalty.

Question 15

Concept testing,if done properly,is equally effective and useful for all types of products.

Accepted Answer

Concept testing may not be equally effective and useful for all types of products. The effectiveness and usefulness of concept testing depend on factors such as the complexity of the product, the innovativeness of the concept, the target audience, and the stage of the product development process. For instance, concept testing may be more useful for complex high technology products that require a significant investment of resources compared to simple consumer products. Similarly, for a product introduced in a new market, concept testing may be more useful as it provides insights into customer acceptance and preferences.

Question 16

Pre-BASES is a concept test that provides rough sales predictions.

Accepted Answer

Pre-BASES is a concept test that provides rough sales predictions, making Option A true.

Question 17

Concept testing can be used for developing an idea,not just for testing it.

Accepted Answer

Concept testing can be used to gather feedback and refine an idea, allowing for improvements and adjustments to be made before fully developing and launching it.

Question 18

Benefit segmentation may be used to identify unsatisfied market segments and concentrate the firm's efforts on developing concepts ideally suited to the needs of those segments.

Accepted Answer

Benefit segmentation is a form of market segmentation that focuses on identifying different customer benefits that are important to different market segments. By identifying unsatisfied market segments through benefit segmentation, a company can create products or services that meet the unique needs and desires of those segments. Therefore, the statement is true.

Question 19

During concept testing,the firm will do all of the following EXCEPT:
A)evaluate quality,time,and cost factors.
B)confirm the target market.
C)develop a product positioning statement.
D)perform full screening and begin development.

Accepted Answer

During concept testing, the firm evaluates the concept and gathers feedback from potential consumers to determine if the idea is viable. However, the firm would not perform full screening or begin development at this stage. This would typically happen after the concept has been refined and finalized through further testing, research, and analysis. The other options listed are common activities during the concept testing phase.

Question 20

While preparing a product innovation charter (PIC),the earliest evaluation that a firm makes is of ____.
A)its competitors
B)the legal requirements imposed upon it
C)its target market
D)itself and its situation

Accepted Answer

The earliest evaluation a firm makes when preparing a product innovation charter is of itself and its situation to understand its capabilities, resources, and strategic goals.

Quiz 9: Concept Testing

The biggest cause of new product failure is that the: