Chapter 01
The Strategic Elements of Product Development
True / False Questions
1. By definition, new products are limited to significant technological innovations.
True False
2. New products can be tangible goods or services.
True False
3. 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
4. Business firms expect, and get, a high percentage of their sales and profits from new
products.
True False
5. A firm's global presence is no guarantee that it will automatically know how to efficiently
manage its global operations.
True False
6. Firms with a global innovation culture have the most effective global new product programs.
True False
,7. An ideal new products team is essentially self-directed with limited or no cross-functionality.
True False
8. The term "product innovation" usually applies to functions, especially those of manufacturing
or distribution.
True False
9. New-to-the-firm products revolutionize existing product categories or define wholly new ones.
True False
10. New-to-the-world products are less likely to require consumer learning.
True False
11. The number one reason for new product success is a unique superior product.
True False
12. The terms "product idea," "product concept," and "product prototype" are interchangeable and
they are all about the same thing.
True False
13. Product portfolio management refers to the procedure that takes a new product idea through
concept evaluation, product development, launch, and post-launch.
True False
14. Research has shown that at least 40 percent of firms assign a marketing manager whose job
it is to manage the phased new products process.
True False
,15. In a new product process, an evaluation task that includes conditional "Go" decisions is
sometimes called a fuzzy gate.
True False
Multiple Choice Questions
16. Well-known business writer, Gary Hamel, has described _____ as "the most important
business issue of our time."
A. product distribution
B. the creation of radical innovation
C. advertising and marketing of services
D. product line extensions
17. Which of the following statements is true of the importance of new products?
A. The failure rate for new products is estimated to be around 90 percent.
B. The new products process is exceedingly difficult.
C. Radical innovation is detrimental to the survival of a firm.
D. All the individuals involved in the creation of a new product generally belong to the same
department.
, 18. Which of the following is a reason for product failure in a firm?
A. Resorting to radical innovation with the new products process
B. Avoiding the use of the ready—fire—aim approach in the product development process
C. Chasing a moving target
D. Paying too much attention to customer needs
19. With reference to the new products process, a firm adopts the ready—fire—aim approach
when it:
A. lacks senior management support.
B. does not pay enough attention to quality.
C. chases a moving target.
D. does not do the required homework before beginning development.
20. According to the latest Comparative Performance Assessment Study (CPAS), in comparison
to the Rest, Best companies are:
A. more likely to use tradeoff analysis.
B. less likely to rely on portfolio analysis for product selection.
C. more likely to employ informal processes for selecting which concepts to develop.
D. less likely to rely on online communities for information gathering.
The Strategic Elements of Product Development
True / False Questions
1. By definition, new products are limited to significant technological innovations.
True False
2. New products can be tangible goods or services.
True False
3. 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
4. Business firms expect, and get, a high percentage of their sales and profits from new
products.
True False
5. A firm's global presence is no guarantee that it will automatically know how to efficiently
manage its global operations.
True False
6. Firms with a global innovation culture have the most effective global new product programs.
True False
,7. An ideal new products team is essentially self-directed with limited or no cross-functionality.
True False
8. The term "product innovation" usually applies to functions, especially those of manufacturing
or distribution.
True False
9. New-to-the-firm products revolutionize existing product categories or define wholly new ones.
True False
10. New-to-the-world products are less likely to require consumer learning.
True False
11. The number one reason for new product success is a unique superior product.
True False
12. The terms "product idea," "product concept," and "product prototype" are interchangeable and
they are all about the same thing.
True False
13. Product portfolio management refers to the procedure that takes a new product idea through
concept evaluation, product development, launch, and post-launch.
True False
14. Research has shown that at least 40 percent of firms assign a marketing manager whose job
it is to manage the phased new products process.
True False
,15. In a new product process, an evaluation task that includes conditional "Go" decisions is
sometimes called a fuzzy gate.
True False
Multiple Choice Questions
16. Well-known business writer, Gary Hamel, has described _____ as "the most important
business issue of our time."
A. product distribution
B. the creation of radical innovation
C. advertising and marketing of services
D. product line extensions
17. Which of the following statements is true of the importance of new products?
A. The failure rate for new products is estimated to be around 90 percent.
B. The new products process is exceedingly difficult.
C. Radical innovation is detrimental to the survival of a firm.
D. All the individuals involved in the creation of a new product generally belong to the same
department.
, 18. Which of the following is a reason for product failure in a firm?
A. Resorting to radical innovation with the new products process
B. Avoiding the use of the ready—fire—aim approach in the product development process
C. Chasing a moving target
D. Paying too much attention to customer needs
19. With reference to the new products process, a firm adopts the ready—fire—aim approach
when it:
A. lacks senior management support.
B. does not pay enough attention to quality.
C. chases a moving target.
D. does not do the required homework before beginning development.
20. According to the latest Comparative Performance Assessment Study (CPAS), in comparison
to the Rest, Best companies are:
A. more likely to use tradeoff analysis.
B. less likely to rely on portfolio analysis for product selection.
C. more likely to employ informal processes for selecting which concepts to develop.
D. less likely to rely on online communities for information gathering.
