Chapter 11

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Chapter 11—Developing and Managing Products TRUE/FALSE 1. A product must be a discontinuous innovation to be considered a “new” product. ANS: T There are six categories of new products, only one of which is new-to-the-world discontinuous innov- ative products. PTS: 1 REF: 167 OBJ: 11-1 TYPE: Comp TOP: 2. The development of a garlic-butter flavored crescent rolls by Pillsbury would not be considered a new product since the company was already making crescent rolls. It would simply be called a line exten- sion. ANS: F Line extensions are considered to be a type of new product. PTS: 1 REF: 168 OBJ: 11-1 TYPE: App TOP: 3. Central Bark is a dog day care center. When you check your dog into a Central Bark you know your pooch will be pampered. Since kennels have been boarding dogs for years, the dog day care is not really a new product. ANS: F There are many types of new product ranging from new-to-the-world products to low-price products. PTS: 1 REF: 168 OBJ: 11-1 TYPE: App TOP: 4. Very few firms follow a formal new-product development process. ANS: F Most companies follow a formal new-product development process. PTS: 1 REF: 168 OBJ: 11-2 TYPE: Comp TOP: 5. A firm's new-product strategy links the new-product development process with the objectives of the marketing departments, the business unit, and the corporation. ANS: T PTS: 1 REF: 168-169 OBJ: 11-2 TYPE: Comp TOP: 6. For a firm that adheres to the product concept, the logical place to start generating new-product ideas is with the customers of the firm. ANS: F Firms adhering the marketing concept logically start generating new-product ideas from customers.
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PTS: 1 REF: 169 OBJ: 11-2 TYPE: Comp TOP: 7. The two techniques that are considered most useful for generating new-product ideas are customer- generation and competitive imitation. ANS: F The two techniques considered most useful for generating new-product ideas are brainstorming and fo- cus groups. PTS: 1 REF: 170 OBJ: 11-2 TYPE: Def TOP: 8. Seven employees from a company are trying to come up with ideas for new-product development. The employees are all in a room together, shouting out potential ideas. The ideas are written down and evaluated as they are generated. This is an example of brainstorming. ANS: F Brainstorming does not involve evaluation of the ideas as they are generated; criticism of any kind is avoided.
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