BUSI 438 EXAM 2

  

Question 1 

1. What      are the most important reasons for product failure? 

    

4 points   

Question 2 

1. A      pen that sprays ink onto the paper is an example of a product: 

  

usage.   

 

function.   

 

feature.   

 

benefit.   

3 points   

Question 3 

1. Rules      of thumb that firms have found that work for them can be referred to as: 

  

heuristics.   

 

syntaxes.   

 

synergies.   

 

charters.   

3 points   

Question 4 

1. Firms      with a global innovation culture have the most effective global new      product programs. 

True 

False 

3 points   

Question 5 

1. In      developing new products, marketers must: 

  

avoid   using perceptual mapping. 

 

always   distribute a few free samples of the product. 

 

rely   only upon managerial intuition/experience. 

 

avoid   being bound by what is now impossible. 

3 points   

Question 6 

1. The      data obtained from users through the customer attribute ratings system is      primarily used for creating an OS perceptual gap map. 

True 

False 

3 points   

Question 7 

1. _____      are also known as "flanker" brands. 

  

Line   extensions 

 

New-to-the-world   products 

 

Improvised   products 

 

Repositionings   

3 points   

Question 8 

1. Which      of the following is a statistical technique available in computer packages      that is typically used to reduce the large number of attributes to a small      number of underlying dimensions? 

  

Factor   analysis 

 

SWOT   analysis 

 

Cluster   analysis 

 

Projective   analysis 

3 points   

Question 9 

1. Benefits      are product attributes that can be broken down into a limited set—uses and      users. 

True 

False 

3 points   

Question 10 

1. Which      of the following is considered to be the most innovative category of new      products? 

  

Cost-reduced   products 

 

New-to-the-firm   products 

 

New-to-the-world   products 

 

Line   extensions 

3 points   

Question 11 

1. The      job of a _____ in the field of new product management is to help project      managers develop and use good new product processes. 

  

team   executive 

 

process   manager 

 

functional   representative 

 

technical   specialist 

3 points   

Question 12 

1. The      _____, a strategy for new products, ensures that the new product team      develops products that are in line with firm objectives and strategies and      that address marketplace opportunities. 

  

product   prototype 

 

product   portfolio 

 

product   framework 

 

product   innovation charter 

3 points   

Question 13 

1. Which      of the following is a disadvantage of perceptual gap mapping? 

  

It   ignores the nuances and shadings of consumer responses. 

 

It   relies only on managerial intuition/experience. 

 

It   deals only with "conceptual leaps" critical to developing   new-to-the-world products. 

 

It   cannot be used for concept generation and new product development. 

3 points   

Question 14 

1. Which      of the following statements is true regarding invention? 

  

An   invention is usually patentable. 

 

To   managers, invention is a dimension of complexity. 

 

There   are far more innovations than inventions. 

 

An   invention refers to the overall process whereby an innovation is transformed   into a commercial product. 

3 points   

Question 15 

1. Product      attributes include features, functions, and benefits. 

True 

False 

3 points   

Question 16 

1. _____      refers to the overall process whereby an invention is transformed into a      commercial product that can be sold profitably. 

  

Innovation   

 

Attribution   

 

Brainstorming   

 

Pricing   

3 points   

Question 17 

1. A      "me-too" product is most likely a: 

  

new-to-the-world   product. 

 

new-to-the-firm   product. 

 

repositioned   product. 

 

reduced   cost product. 

3 points   

Question 18 

1. Which      of the following statements is true of the importance of new products? 

  

The   failure rate for new products is estimated to be around 90 percent. 

 

The   new products process is exceedingly difficult. 

 

Radical   innovation is detrimental to the survival of a firm. 

 

All   the individuals involved in the creation of a new product generally belong to   the same department. 

3 points   

Question 19 

1. OS      techniques: 

  

run   on perceptions of overall similarities between pairs of brands. 

 

require   customers to rate choices on individual attributes. 

 

do   not consider phantom attributes. 

 

typically   result in formidable data cubes. 

3 points   

Question 20 

1. Analytical      attribute techniques: 

  

are   used to preserve current product attributes. 

 

are   used to create new product concepts. 

 

are   used to enhance current product attributes but not to add new attributes. 

 

are   used to promote groupthink in the new product development process. 

3 points   

Question 21 

1. The      "data cube" produced by AR perceptual gap maps are typically      small in terms of size and are of practical value to managers. 

True 

False 

3 points   

Question 22 

1. In      a determinant gap map, _____. 

  

a   manager uses customer attribute ratings to get data 

 

the   scoring may seem arbitrary 

 

a   manager uses overall similarities to get data from users 

 

the   accuracy of the scoring system is not subject to managerial error 

3 points   

Question 23 

1. According      to the latest Comparative Performance Assessment Study (CPAS), in      comparison to the Rest, Best companies are: 

  

more   likely to use tradeoff analysis. 

 

less   likely to rely on portfolio analysis for product selection. 

 

more   likely to employ informal processes for selecting which concepts to develop. 

 

less   likely to rely on online communities for information gathering. 

3 points   

Question 24 

1. A      product is really nothing but attributes. 

True 

False 

3 points   

Question 25 

1. Determinant      gap maps rely less on managerial judgment and more on tangible sales data.      

True 

False 

3 points   

Question 26 

1. With      reference to the new products process, a firm adopts the ready—fire—aim      approach when it: 

  

lacks   senior management support. 

 

does   not pay enough attention to quality. 

 

chases   a moving target. 

 

does   not do the required homework before beginning development. 

3 points   

Question 27 

1. Luminos      Co., a popular manufacturer of kitchen appliances, decides to enter the      manufacturing sector of crockery and dinnerware. It markets a line of      dinnerware, Illuminia, for the first time in its history. Its dinnerware      will most likely fall into which of the following new product categories? 

  

New-to-the-world   products 

 

New-to-the-firm   products 

 

Line   extensions 

 

Product   improvements 

3 points   

Question 28 

1. Jonathan,      a marketing manager, is involved in a gap analysis procedure to seek      customer perceptions of his company's new product. He obtains useful data      from users using overall similarities of his customer preferences. This      data is particularly useful in generating _____ gap maps. 

  

OS   perceptual 

 

AR   perceptual 

 

reflective   

 

determinant   

3 points   

Question 29 

1. New      products can be tangible goods or services. 

True 

False 

3 points   

Question 30 

1. Radical      innovation that displaces or obsoletes current products and creates      totally new product categories is critical to the future growth and      survival of a firm. 

True 

False 

3 points   

Question 31 

1. Which      of the following is a reason for product failure in a firm? 

  

Resorting   to radical innovation with the new products process 

 

Avoiding   the use of the ready—fire—aim approach in the product development process 

 

Chasing   a moving target 

 

Paying   too much attention to customer needs 

3 points   

Question 32 

1. When      a current product of a company has been enhanced to better serve consumer      needs, the product will fall into the new product category of _____. 

  

new-to-the-world   products 

 

repositionings   

 

line   extensions 

 

product   improvements 

3 points   

Question 33 

1. Which      of the following is true of new product categories? 

  

If   a product is new-to-the-world, the risks and uncertainties faced by the firm   are higher. 

 

If   a product is new-to-the-firm, the associated costs of development and launch   tend to be lower. 

 

Generally,   all the new product categories are innovations. 

 

New   product categories have to be managed in a similar fashion.