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1. Even if a product's potential is extremely high, its sales may not materialize due to
insufficient marketing effort.
2. In a new product development process, the financial analysis generally begins with the
calculation of the net present value, NPV.
3. In the product development process, sales forecasting is typically the responsibility of the
process manager on the new product team.
4. In addition to the considerations of time and cost, one should also consider product and
market newness when selecting the most appropriate forecasting model.
5. The A-T-A-R model is the basis of many simulated test markets.
6. Laggards refer to those users who will be among the first to try the product.
7. Adoption of innovation refers to the process by which an innovation is spread within a
market, over time and over categories of adopters.
8. Product innovators, including consumer packaged goods innovators, still most often use a
simple version of the A-T-A-R model.
9. Most common forecasting methods are extrapolations and work well on established
products.
10. An early field use test with a prototype will not assure success, but it can say intended
users like what they see.
11. Factor analysis can be used to estimate the net present value of a new product when it is
still in the concept stage.
12. Many of the mathematical sales forecasting models were initially developed for use on
durable goods.
13. New product projects need to be considered on how well they fit the firm's strategy for
innovation.
14. In a bottom-up strategic approach, the firm lays out its strategy first, and then allocates
funds across different kinds of projects.
15. With reference to new product development, the top performing firms tend to rely only on
financial criteria.
16. In order to calculate the net present value, that might be associated with a proposed
product, it is necessary to:
17. Which of the following is true of sales forecasting for new products?
18. Sales forecasting is typically the responsibility of a _____ on the new product team.
19. In a new product development process, which of the following is most likely to be
determined first while analyzing the financial aspects of a product?
20. It is difficult to forecast success for _____.
21. Ancon Inc., typically forecasts potential product sales based on the number of customers
who say they would either definitely or probably buy the product, on a five-point scale. The firm's
sales forecast is based upon _____.
22. _____ is one of the pseudo sale market testing methods used later in the new product
process, typically when the physical product is available for the consumer to take home and try.
23. As per the A-T-A-R model, long-run market share can be expressed as MS = T × R ×
AW × AV. What does "T" stand for in the equation?
24. According to the A-T-A-R model, long-run market share can be expressed as MS= T × R
× AW × AV. In this equation, "R" is the:
25. In the context of forecasting sales using an A-T-A-R model, which of the following
methods can be used if the data availability is inaccurate?
26. Which of the following serves as the basis of many simulated test markets?
27. _____ refers to the process by which an innovation is spread within a market, over time
and over categories of adopters.
28. Those users who will be among the first to try a product are called:
29. Which of the following forecasting tools is commonly used for durable goods and is based
on the diffusion curve of new products through a population?
