【正文】 be severely reduced if the pany is under great time pressure because the season is just starting or because petitors are about to launch petitive brands. Answer: True Page: 653 Level of difficulty: Medium78. High investment highrisk products, where the chance of failure is high, do not necessarily need to be market tested. Answer: False Page: 653 Level of difficulty: Medium79. The job of translating target customer requirements into a working prototype is helped by a set of methods known as quality function deployment, which takes the desired customer attributes and turns them into a list of engineering attributes. Answer: True Page: 651 Level of difficulty: Hard 80. Following a successful concept test, the newproduct manger will develop a preliminary strategy plan for introducing the new product into the market. Answer: True Page: 648 Level of difficulty: Hard 81. The second part of the strategy plan for the new product includes price, distribution strategy, and marketing budget for the first year. Answer: True Page: 648 Level of difficulty: Medium82. Consumer preferences for alternative product concepts can be measured through conjoint analysis, a method for deriving the utility values that consumers attach to varying levels of a product’s attributes. Answer: True Page: 646 Level of difficulty: Medium83. A “product idea” is a possible product the pany might offer to the market. Answer: True Page: 645 Level of difficulty: Easy84. A “product concept” is an elaborated version of the idea expressed in consumer terms. Answer: True Page: 645 Level of difficulty: Easy85. A DROPerror occurs when the pany permits a poor idea to move into development and mercialization. Answer: False Page: 643 Level of difficulty: Medium86. A GOerror occurs when the pany dismisses an otherwise good idea as unworkable. Answer: False Page: 643 Level of difficulty: Medium87. An “absolute product failure” is a product that loses money for the firm. Answer: True Page: 643 Level of difficulty: Medium88. A “partial product failure” yields a profit but that profit is less than the firm’s target return on investment. Answer: False Page: 643 Level of difficulty: Medium89. A “relative product failure” loses money, but its sales cover all its variable costs and some of the fixed costs associated with the product rollout. Answer: False Page: 643 Level of difficulty: Medium90. A “newtothe world products” are products that create entirely new markets. Answer: True Page: 634 Level of difficulty: Easy91. “New product lines” are new products that allow a pany to enter an established market for the first time. Answer: True Page: 634 Level of difficulty: Easy92. “Additions to existing product lines” are new products that supplement established product lines such as package size, flavors, and so on. Answer: True Page: 634 Level of difficulty: Easy93. “Improvement and revisions of existing products” are new products that provide improved performance or greater perceived value and replace existing products. Answer: True Page: 634 Level of difficulty: Easy94. “Repositionings” are when existing products are targeted to new markets or market segments. Answer: True Page: 634 Level of difficulty: Easy95. Less than 10 percent of all new products are truly innovative and new to the world. These products involve the greatest cost and risk because they are new to both the pany and the marketplace. Answer: True Page: 634 Level of difficulty: Easy 96. Most established pany’s focus on incremental innovation, which is the gradual improvement of existing products. Answer: True Page: 636 Level of difficulty: Medium 97. Newer panies focus or create disruptive technologies that are cheaper and more likely to alter the petitive space. Answer: True Page: 636 Level of difficulty: Medium 98. Once a pany has carefully segmented the market, identified their needs, and determined market positioning, it is ready to design new products. Answer: False Page: 637 Level of difficulty: Hard 99. Newproduct development requires senior management to define business domains, product categories, and specific criteria. Answer: True Page: 637 Level of difficulty: Medium 100. A pany can add new products through acquisition or development. Answer: True Page: 634 Level of difficulty: Easy Essay 101. A pany can add new products through acquisition or development. The pany can develop new products in its own laboratories, or it can contract with independent researcher or newproduct development firms to develop specific new products. We can identify six categories of new products. List these categories. Suggested Answer: These categories are newtotheworld products。 new product lines。 additions to existing product lines。 improvements and revisions of existing products。 repositionings。 and cost reductions Page: 634 Level of difficulty: Easy 102. In an economy of change, continuous innovation is necessary. Most panies rarely innovate, some innovate occasionally, and a few innovate continuously. Comment on why a pany should continuously develop new products. Suggested Answer: Companies that fail to develop new products are putting themselves at risk. Their existing products are vulnerable to changing customer needs and tastes, new technologies, shortened product life cycles, and increased domestic and foreign petition. Page: 636 Level of difficulty: Hard 103. Companies handle the organizational aspect of newproduct development in several ways. List the various ways panies internally breakout the new product process. Suggested Answer: Many panies assign responsibility for newproducts to product managers。 some panies have newproduct managers。 others have a highlevel management mittee charged with reviewing