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31. Which of the following risk strategies is most likely to incur opportunity costs?
32. In which of the following risk strategies is risk reduced to an acceptable, threshold level,
perhaps through redesigning a product to include more backup systems or increasing product
reliability?
33. The use of subcontractors or joint ventures is most likely to be closely associated with
the _____ risk strategy.
34. Which of the following risk strategies typically involves developing a contingency plan to
accompany new product development?
35. Which of the following is true of a decay curve?
36. Which of the following statements about the new product evaluation process is untrue?
37. A rolling evaluation means that a project is being assessed continuously, which implies
that it is dealing with risk via _____.
38. Which of the following statements is true of a new product development project that is
evaluated with the help of rolling evaluation?
39. The farther a new product idea is allowed to proceed through the development process:
40. Concept testing is sometimes called concept _____ to reinforce the idea of helping the
item, not just killing it off.
41. Which of the following statements is true regarding the people dimension of the
evaluation system?
42. Which of the following statements is true of surrogate questions?
43. Lexus Inc. is interested in determining whether a potential new product will be preferred
by customers, even before it is launched. Since customer reactions cannot be gauged at this
stage, the firm can make use of _____ to gather pieces of information that can substitute for what
it wants to learn.
44. Identify the question that can act as a substitute for the real question, "Will customers
prefer the product introduced?" in the product development process.
45. The A-T-A-R model is most akin to a _____.
46. In the case of the A-T-A-R model, R stands for _____.
47. The A-T-A-R concept is taken from _____.
48. When a person or firm who try something, shares results with a person or firm who
cannot try it, it is known as a(n) _____ trial.
49. According to the terms in the A-T-A-R model, availability means the percentage chance
that:
50. Which of the following can provide the data needed for the A-T-A-R model?
51. What are the important reasons for new product failure?
52. Briefly describe how the purpose of evaluation varies through each stage of the new
product development process.
53. Describe the cumulative expenditures curve.
54. Explain "go error" and "drop error" with relevance to the risk/payoff matrix.
55. Discuss the uses and significance of the A-T-A-R model as an evaluation system.
The evaluation techniques such as primarily concept testing, product use testing, and market
testing will provide the data needed for the A-T-A-R model. The A-T-A-R comes in handy
relatively early in concept evaluation, as a rough forecasting tool i.e., what is the potential profit
contribution of this product, is it satisfactory, and how could it be improved? The A-T-A-R model
