Question 1

Which stage in the new-product process is a SWOT analysis used to identify the strategic role the new product might serve in the firm's business portfolio?
A)idea generation
B)screening and evaluation
C)business analysis
D)development
E)new-product strategy development

Accepted Answer

SWOT analysis is used during the new-product strategy development stage to identify the strengths, weaknesses, opportunities, and threats of the new product and how it fits into the firm's overall business portfolio. This helps the firm determine the strategic role the new product might serve and whether it aligns with their overall business objectives.

Question 2

The stage of the new-product process that develops a pool of concepts to serve as candidates for new products is referred to as __________.
A)idea generation
B)product development
C)open innovation assessment
D)screening and evaluation
E)new-product strategy development

Accepted Answer

Idea generation is the stage in the new-product process where a pool of ideas for potential products is generated. This is the initial step in the process and involves brainstorming and collection of a large volume of potential ideas.

Question 3

In addition to seeking ideas from more well-known sources, organizations also get ideas from universities, inventors, and smaller nontraditional firms. For example, General Mills partnered with Brigham Young University to license its patent for __________.
A)scones with coffee-flavored cream frosting
B)an Omega-3 enriched SKU for the Philadelphia cream cheese line
C)a carbonated yogurt called Go-Gurt Fizzix
D)deep fried chicken skins for people who cannot eat pork
E)a crispy baked macaroni and cheese snack that can be eaten out of a bag like Cheetos

Accepted Answer

The answer of In addition to seeking ideas from more...

Question 4

Brainstorming sessions at IDEO can generate as many as __________ ideas for products in an hour.
A)10
B)25
C)50
D)100
E)200

Accepted Answer

IDEO is known for their highly creative brainstorming sessions, which can generate up to 100 ideas for products in just one hour. Therefore, option D is the correct choice.

Question 5

Open innovation helps organization overcome __________, one of the organizational inertias common in new-product failures.
A)groupthink
B)intelligent failures
C)incomplete protocols
D)NIH barriers
E)bad timing

Accepted Answer

Open innovation helps organizations overcome NIH (Not Invented Here) barriers, which is a common form of organizational inertia where companies resist ideas and innovations from external sources.

Question 6

Generating insights leading to marketing actions based on massive numbers of peoples' ideas is called __________.
A)brainstorming
B)groupthink
C)outsourcing
D)crowdsourcing
E)NIH method

Accepted Answer

Crowdsourcing involves gathering and analyzing ideas or information from a large, diverse group of people, which can then be used to inform marketing actions. Brainstorming involves generating ideas within a smaller group, while groupthink refers to a situation where individuals in a group conform to a certain, often flawed, way of thinking. Outsourcing refers to contracting work or services to an outside company or individual, which may or may not involve generating marketing insights. The NIH method stands for "Not Invented Here," which refers to a reluctance to consider outside or unfamiliar ideas, which is not applicable in this context. Therefore, the best choice is D, crowdsourcing.

Question 7

All of the following are sources for new product ideas EXCEPT:
A)competitors.
B)universities.
C)regulators.
D)suppliers.
E)employees.

Accepted Answer

Regulators are not typically a source for new product ideas, as their focus is on ensuring compliance with laws and regulations rather than innovation and ideation. Competitors, universities, suppliers, and employees are all common sources for generating new product ideas.

Question 8

Idea generation refers to
A)the stage of the new-product process when concepts are converted to prototypes.
B)the stage of the new-product process that develops a pool of concepts to serve as candidates for new-products.
C)the stage of the new-product process where possible promotional campaigns and advertising themes are created.
D)the techniques used to screen and reject those ideas that have no merit.
E)the discussion and decision of which as target market segments will be selected.

Accepted Answer

Idea generation is the stage in the new-product process that develops a pool of concepts to serve as candidates for new products. It involves brainstorming and coming up with new and innovative ideas for potential new products. The other answer choices refer to different stages in the new-product process.

Question 9

Dell used __________ to develop an online site to generate 13,464 ideas for new products and website and marketing improvements.
A)brainstorming
B)crowdsourcing
C)group think
D)outsourcing
E)data mining

Accepted Answer

Dell used crowdsourcing, a process where a company takes input or ideas from a large group of people, to develop their online site and generate ideas for new products and website/marketing improvements.

Question 10

Many forward-looking companies have discovered that their own organization does not generate enough useful new-product ideas. This has caused them to find new product ideas by developing strategic relationships with outside individuals and organizations, a practice known as __________.
A)innovation alliances
B)open innovation
C)open collaboration
D)piggy-back thinking
E)stakeholder cooperation

Accepted Answer

The practice of finding new product ideas by developing strategic relationships with outside individuals and organizations is referred to as "open innovation." Option A ("innovation alliances") is similar but more specific, referring to partnerships specifically focused on innovation. Option C ("open collaboration") is a valid term, but it doesn't fully capture the idea of seeking external new-product ideas. Options D and E are not commonly used terms in this context.

Question 11

IDEO is a company that
A)creates innovative promotional programs for its clients' new products.
B)is a firm that developed the formal Stage-Gate process to commercialize new products for its clients.
C)uses design thinking to develop new products for other organizations.
D)rates new products like Consumer Reports.
E)runs patent searches for companies that don't have and internal legal department.

Accepted Answer

IDEO is known for using design thinking to help companies develop new products and services. They focus on human-centered design and have worked with a wide range of organizations, from startups to Fortune 500 companies.

Question 12

Business researchers emphasize that firms must actively involve customers and suppliers in the new-product development process. This means that the focus should be on what the new product will __________ rather than simply what they want.
A)look like
B)cost them
C)do for them
D)feel like
E)consist of in terms of new features

Accepted Answer

The emphasis should be on what the new product will do for the customers and suppliers, meaning the benefits or value it will provide to them, rather than just their wants or preferences. This will help ensure that the new product meets the needs of the target market and is more likely to be successful.

Question 13

Idea generation is the stage in the new-product process that
A)develops a pool of concepts to serve as candidates for new products.
B)selects a single concept and scrutinizes it for all potential benefits and flaws.
C)separates ideas into two categories: consumer-oriented and organization-oriented.
D)requires the organization to perform a SWOT analysis and an environmental scan.
E)consists of the techniques used to screen and reject those ideas that have no merit.

Accepted Answer

Idea generation is the first stage in the new-product process where a pool of ideas is generated to serve as candidates for new products. This involves various techniques like brainstorming, customer suggestions, market research, etc., to generate a variety of ideas to be evaluated further. Therefore, option A is the correct choice.

Question 14

During the first stage of the new-product process, two important activities take place. They are
A)SWOT analysis and environmental scanning.
B)open innovation and business analysis.
C)concept testing and product forecasting.
D)R&D and operations set-up.
E)environmental scanning and open innovation.

Accepted Answer

The answer of During the first stage of the new-product...

Question 15

Open innovation may enhance the __________ stage of the new-product process.
A)open innovation
B)screening and evaluation
C)product development
D)new-product strategy development
E)idea generation

Accepted Answer

The answer of Open innovation may enhance the __________ stage...

Question 16

In which stage in the new-product process would a firm use both a SWOT analysis and environmental scanning to assess its strengths and weaknesses relative to the trends it identifies as opportunities or threats?
A)idea generation
B)screening and evaluation
C)new-product strategy development
D)business analysis
E)development

Accepted Answer

The new-product strategy development stage is where a firm assesses its strengths and weaknesses relative to the opportunities and threats identified through environmental scanning. SWOT analysis is a tool used in this stage to identify a firm's internal strengths and weaknesses, while environmental scanning is used to identify external opportunities and threats. Therefore, the best answer is C.

Question 17

Developing a pool of concepts to serve as candidates for new products is the __________ stage of the new-product process.
A)open innovation
B)screening and evaluation
C)product development
D)new-product strategy development
E)idea generation

Accepted Answer

Idea generation is the first stage of the new-product process where a pool of concepts is generated as potential candidates for new products. The other options refer to later stages in the process. Open innovation involves partnering with external entities for idea generation and development, screening and evaluation involves evaluating and selecting the most promising concepts from the pool, product development involves creating and testing the physical product, and new-product strategy development involves developing a marketing strategy for the product.

Question 18

Occasionally, a firm's Stage 1 product development activities can be blind-sided by a revolutionary new product or technology that completely disrupts its business, which is sometimes called a __________.
A)marketing opportunity
B)disruptive innovation
C)business threat
D)crowdsourcing
E)concept test

Accepted Answer

A disruptive innovation is a new technology, product, or service that disrupts the existing market and displaces established market-leading firms, products, and alliances. It could blindside the firm's product development activities, and it may not be able to respond effectively to the disruptive innovation. Hence, option B is the correct answer. Other options are incorrect because they do not accurately describe a situation where a revolutionary new product completely disrupts a firm's business.

Question 19

Imagine you work for a TV production company that has been approached by one of the broadcast TV networks to develop a concept for a new reality show. Where are you most likely to look first for ideas?
A)conducting a survey among the 2 million people belonging to the NPD Consumer Panel
B)observing similar reality programs that are on competing television networks like CBS or MTV
C)contacting contestants from other reality shows like Survivor or The Amazing Race
D)brainstorming ideas from the TV production company's employees
E)reading about the stars of reality TV programs in gossip magazines like Us Weekly and TV programs like TMZ

Accepted Answer

The answer of Imagine you work for a TV production...

Question 20

The Marriott Corporation sent a six-person intelligence team to travel and stay at economy hotels around the country for a six-month period. The purpose of these visits was to
A)allow the team to reap the benefits of the new product, Fairfield Inns.
B)assess the strengths and weaknesses of economy hotels that could be used in the new-product development process for the launch of a new economy hotel chain.
C)complete customer satisfaction surveys to purposefully create inaccuracies in the marketing research for competing economy hotels.
D)obtain the demographics and media behavior of consumers who stay at these facilities in order to develop a target market profile.
E)refute the assumption that open innovation can benefit the Marriott Corporation.

Accepted Answer

The purpose of the visits was to assess strengths and weaknesses of economy hotels that could be used in the new-product development process for the launch of a new economy hotel chain.

Quiz 9: Developing New Products and Services

Which stage in the new-product process is a SWOT analysis used to identify the strategic role the new product might serve in the firm's business portfolio?

The stage of the new-product process that develops a pool of concepts to serve as candidates for new products is referred to as __________.

In addition to seeking ideas from more well-known sources, organizations also get ideas from universities, inventors, and smaller nontraditional firms. For example, General Mills partnered with Brigham Young University to license its patent for __________.

Brainstorming sessions at IDEO can generate as many as __________ ideas for products in an hour.

Open innovation helps organization overcome __________, one of the organizational inertias common in new-product failures.

Generating insights leading to marketing actions based on massive numbers of peoples' ideas is called __________.

All of the following are sources for new product ideas EXCEPT:

Idea generation refers to

Dell used __________ to develop an online site to generate 13,464 ideas for new products and website and marketing improvements.

Many forward-looking companies have discovered that their own organization does not generate enough useful new-product ideas. This has caused them to find new product ideas by developing strategic relationships with outside individuals and organizations, a practice known as __________.

IDEO is a company that

Business researchers emphasize that firms must actively involve customers and suppliers in the new-product development process. This means that the focus should be on what the new product will __________ rather than simply what they want.

Idea generation is the stage in the new-product process that

During the first stage of the new-product process, two important activities take place. They are

Open innovation may enhance the __________ stage of the new-product process.

In which stage in the new-product process would a firm use both a SWOT analysis and environmental scanning to assess its strengths and weaknesses relative to the trends it identifies as opportunities or threats?

Developing a pool of concepts to serve as candidates for new products is the __________ stage of the new-product process.

Occasionally, a firm's Stage 1 product development activities can be blind-sided by a revolutionary new product or technology that completely disrupts its business, which is sometimes called a __________.

Imagine you work for a TV production company that has been approached by one of the broadcast TV networks to develop a concept for a new reality show. Where are you most likely to look first for ideas?

The Marriott Corporation sent a six-person intelligence team to travel and stay at economy hotels around the country for a six-month period. The purpose of these visits was to