196) One reason new products fail is that although most major corporations use a formal
decision-making process, sometimes they fail to critically evaluate the progress along the way.
This is why many firms have a ________ to ensure that problems are corrected before
proceeding to the next stage.
A) written protocol
B) Stage-Gate process
C) cross-functional team
D) prototype test
E) test market
197) The stage of the new-product development process that defines the role for a new product in
terms of the firm’s overall objectives is referred to as
A) distinctive competency determination.
B) new-product strategy development.
C) strategic marketing process.
D) strategic invention process.
E) product protocol definition.
198) New-product strategy development is
A) the stage of the new-product development process where specific product features and
benefits are selected prior creating a new-product prototype.
B) a formalized protocol for new-product development determined by the director of marketing.
C) the stage of the new-product development process that defines the role for a new product in
terms of the firm’s overall objectives.
D) the process of presenting cross-functional teams with a written new-product concept
statement and asking them to respond to it in writing.
E) the stage of the new-product development process that turns the idea on paper into a
prototype, which results in a demonstrable, producible product corresponding to its protocol.
199) In which stage of the new-product development 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
200) During the first stage of the new-product development process, two important activities take
place. They are
A) a SWOT analysis and environmental scanning.
B) open innovation and business analysis.
C) concept testing and product forecasting.
D) R&D and operations setup.
E) environmental scanning and open innovation.
201) In which stage of the new-product development 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
202) Occasionally, a firm’s Stage 1 product development activities can be blindsided 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.
203) Developing a pool of concepts to serve as candidates for new products is the ________
stage of the new-product development process.
A) open innovation
B) screening and evaluation
C) product development
D) new-product strategy development
E) idea generation
204) Idea generation is the stage in the new-product development 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.
205) Open innovation may enhance the ________ stage of the new-product development
process.
A) internal collaboration
B) screening and evaluation
C) product development
D) new-product strategy development
E) idea generation
206) All of the following are sources for new-product ideas except which?
A) competitors
B) universities
C) regulators
D) suppliers
E) employees
207) 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
208) Generating insights leading to marketing actions based on ideas from massive numbers of
people is called
A) brainstorming.
B) groupthink.
C) outsourcing.
D) crowdsourcing.
E) NIH method.
209) Dell used ________ to develop an online site to generate 13,464 ideas for new products as
well as website and marketing improvements.
A) brainstorming
B) crowdsourcing
C) group think
D) outsourcing
E) data mining
210) IDEO is a company that
A) creates innovative promotional programs for its clients’ new products.
B) 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 an internal legal department.
211) Which of the following is an IDEO design?
A) Crest Neat Squeeze toothpaste dispenser
B) Under Armour SpeedForm Gemini 2 smart shoe
C) 3M Post-it Notes
D) Pampers Swaddlers diapers
E) Apple iPod
212) 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.
213) 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) Conduct a survey among the 2 million people belonging to the NPD Consumer Panel.
B) Observe similar reality programs that are on competing television networks.
C) Contact contestants from other reality shows such as Survivor or The Amazing Race.
D) Brainstorm ideas from the TV production company’s employees.
E) Read about the stars of reality TV programs in gossip magazines such as Us Weekly and TV
programs like TMZ.
214) Because early-stage financing is almost always a problem for those starting a new business,
________ is a way to gather an online community of supporters to financially rally around a
specific project that is unlikely to get resources from traditional sources.
A) crowdfunding
B) open sourcing
C) venture capital
D) online banking
E) crowdsourcing
215) Which of the following firms uses crowdfunding to raise capital for products that are
unlikely to get resources from traditional sources?
A) IDEO
B) Kickstarter.com
C) Warren Buffet’s Berkshire Hathaway
D) The Industrial Design Group
E) Unfundable.com
216) The stage of the new-product development process that internally and externally evaluates
new-product ideas to eliminate those that warrant no further effort is referred to as
A) development.
B) Stage-Gate.
C) idea generation.
D) business analysis.
E) screening and evaluation.
217) Screening and evaluation is the stage of the new-product development process
A) at which prospective customers are exposed to new-product prototypes for the first time.
B) at which new-product concepts that have been found viable are converted into actual
prototypes.
C) that internally and externally assesses new-product ideas to eliminate those that warrant no
further effort.
D) that specifies the features of the product and the marketing strategy needed to bring it to
market and make financial projections.
E) where consumers evaluate a new product’s performance in an actual-use situation.
218) The screening and evaluation stage of the new-product development process involves
A) internal and external appraisals of new-product ideas.
B) product selection and budgeting projections.
C) business and cost analyses.
D) patent searches and environmental scanning.
E) idea selection and prototype development.
219) The ________ stage of the new-product development process includes an examination of
the technical feasibility for the product, such as 3M determining that the firm’s micro-replication
technology (the 3,000 tiny gripping fingers) could be used to improve the gripping power of
batting or work gloves.
A) development
B) Stage-Gate
C) idea generation
D) business analysis
E) screening and evaluation
220) A 3M researcher worked with university students to develop the Post-it® Flag Highlighter.
When his team evaluated the technical feasibility of the proposed design and determined whether
the idea met the firm’s objectives set earlier, at which stage of the new-product development
process was this product?
A) idea generation
B) screening and evaluation
C) business analysis
D) new-product strategy development
E) concept testing
221) Customer experience management (CEM) is
A) the integration of the service component of the marketing mix with efforts to influence
consumer demand.
B) the unique combination of benefits received by targeted buyers that include quality,
convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
C) the process of managing the entire customer experience within the company.
D) a cluster of benefits that an organization promises customers to satisfy their needs.
E) the ability of logistics management to satisfy users in terms of time, dependability,
communication, and convenience.
222) ________ includes considering employee interactions with customers to ensure they are
consistently delivered and experienced, clearly differentiated from other offerings, and relevant
and valuable to the target market.
A) Capacity management
B) Customer experience management
C) Derived demand
D) Internal marketing
E) The key service factor
223) An external evaluation with consumers that consists of preliminary testing of a new-product
idea rather than the actual finished product is referred to as
A) new-product strategy development.
B) idea generation.
C) crowdsourcing.
D) market testing.
E) a concept test.
224) A concept test is an
A) internal evaluation among members of the entire cross-functional new-product development
team that consists of preliminary testing of a new-product idea rather than the actual product.
B) external evaluation with consumers that consists of preliminary testing of a new-product idea
rather than the actual finished product.
C) internal evaluation that consists of preliminary testing of a new-product idea using a mock-up
or prototype of the new item.
D) in-house computer simulation of the new product that closely resembles the actual product to
forecast sales.
E) in-depth questionnaire filled out both by internal marketing personnel and external customers
to ensure that the final product meets all the needs expressed in the original product plan.
225) Concept tests are part of which stage in the new-product development process?
A) development
B) screening and evaluation
C) idea generation
D) new-product strategy development
E) business analysis
226) The stage of the new-product development process that specifies the features of the product
and the marketing strategy needed to bring it to market and make financial projections is referred
to as
A) idea generation.
B) business analysis.
C) marketing analysis.
D) product development.
E) commercialization.
227) Business analysis is the stage of the new-product development process
A) during which the target markets are selected and resources are allocated to reach them.
B) during which the target market segments that show potential are selected and those that do not
are eliminated.
C) that specifies the features of the product and the marketing strategy needed to bring it to
market and make financial projections.
D) during which there is a formal accounting of all monies spent on R&D to determine the return
on investment (ROI) that the new product will give back to the firm.
E) that internally and externally evaluates new-product ideas to eliminate those warranting no
further effort.
228) An assessment of the “business fit” of the proposed new product, from whether it can be
economically produced to the marketing strategy needed to have it succeed, takes place during
which stage of the new-product development process?
A) business analysis
B) screening and evaluation
C) new-product strategy development
D) development
E) every stage with the exception of new-product strategy development
229) A general review of possible marketing and product synergies, economic analysis, and
cannibalization potential would all take place during which stage of the new-product
development process?
A) business analysis
B) screening and evaluation
C) new-product strategy development
D) development
E) These activities are addressed at every stage except new-product strategy development.
230) Detailed financial projections and determination if a new product could be protected with
231) All of the following actions occur during the business analysis stage of the new-product
development process except which?
232) A full-scale operating model of the product or service under development is referred to as a
A) sample.
B) framework.
C) template.
D) prototype.
E) blueprint.
233) A prototype is a
A) miniature version of an actual new product used in concept testing to identify any changes
that need to be made prior to its commercialization.
B) full-scale operating model of the product or service under development.
C) sample of a new product given to prospective customers and opinion leaders used to generate
awareness prior to the product’s commercial release.
D) simulated operating model of the product given to consumers to use in full-scale field testing.
E) digital version of a product produced in multiple shapes, colors, and sizes to determine which
version of the product customers like best.
234) The stage of the new-product development process that turns an idea on paper into a
prototype is referred to as
A) idea generation.
B) screening and evaluation.
C) business analysis.
D) commercialization.
E) development.
235) Development is the stage of the new-product development process
A) where initial ideas are generated and discussed.
B) that turns an idea on paper into a prototype.
C) where product characteristics and product benefits are selected.
D) where cross-functional team members and leaders are selected and initial tasks are assigned.
E) where the first version of a product enters the marketplace.