What is customer-centered new product development?

Focus on solving customer problems and creating satisfying experiences.

What is a major consideration in commercialization?

When and where to launch the product.

In the business analysis stage, a company evaluates:

Sales, costs, and profit projections.

What is the main purpose of concept testing?

Assess consumer reactions to the product concept

During the growth stage of the product life cycle, companies often:

Reduce prices to attract more buyers.

What happens during the decline stage of the product life cycle?

Profits drop, and companies choose to maintain, harvest, or drop product.

Concept testing is used to

Test product concepts with target consumers.

Idea screening helps companies:

) Identify good ideas and eliminate poor ones.

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FIB Chapter 7: New Product Development

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Questions 15

Answers

1
The product life cycle stage characterized by slow sales growth and little or no profit is
Decline
Introduction
Maturity
Growth
2
Internal sources of new product ideas include:
Research and development teams within the company
Customers and competitors
Suppliers and distributors
Crowdsourcing communities
3
What is customer-centered new product development?
Outsourcing innovation to external agencies.
Focus on solving customer problems and creating satisfying experiences.
Prioritizing low-cost production methods.
Developing products with minimal input from consumers.
4
What is a major consideration in commercialization?
Whether to involve crowdsourcing.
Whether the product passes the concept test.
The cost of research and development.
When and where to launch the product.
5
In the business analysis stage, a company evaluates:
Product design and usability.
Sales, costs, and profit projections.
Test marketing outcomes.
Consumer feedback from focus groups.
6
Which strategy involves modifying the product to increase its appeal in the maturity stage?
Market penetration
Product modification
Cost leadership
Diversification
7
Which term refers to the buying of a whole company, a patent, or a license to produce someone else’s product?
Acquisition
Commercialization
Innovation
Crowdsourcing
8
Which of the following is NOT a source of new product ideas?
Internal sources
Elimination process
Crowdsourcing
External sources
9
Which stage of the product life cycle typically involves the highest promotional expenses?
Introduction
Maturity
Growth
Decline
10
What is the main purpose of concept testing?
Assess consumer reactions to the product concept
Finalize the design of the product
Test the feasibility of production methods
Determine the pricing strategy for the product
11
During the growth stage of the product life cycle, companies often:
Minimize marketing expenses.
Reduce prices to attract more buyers.
Withdraw the product from the market.
Focus on reducing production capacity.
12
What happens during the decline stage of the product life cycle?
Companies focus on consumer education.
Sales increase exponentially.
Profits drop, and companies choose to maintain, harvest, or drop product.
New competitors enter the market.
13
Business analysis involves reviewing all of the following EXCEPT:
Profit projections
Cost estimates
Competitor strategies
Sales forecasts
14
Concept testing is used to
Launch the product into the market.
Test product concepts with target consumers.
Develop physical versions of the product.
Finalize the marketing strategy.
15
Idea screening helps companies:
Build prototypes for selected ideas.
Conduct consumer concept testing.
Develop detailed marketing strategies.
) Identify good ideas and eliminate poor ones.

FIB Chapter 7: New Product Development Flashcards | StudBud