New Product Development

Which one of the following is a claimed benefit of developing new products?

• It is cheap to develop new products

• The latest technology can be a feature of new products

• Customers always prefer newly developed products

• It gives a business a big advantage because competitors will not be developing new products

All of the following are features of successful products except:

• a product that is not so expensive to produce that the price is higher than consumers are willing to pay

• a product that satisfies the needs of consumers

• a product that is well designed and is of the quality expected by consumers

• a product that is sold at a price below cost of production

The following are all stages in the development of a new product. Which option below puts these in the order in which the stages should be carried out?

i) Launch the product into the whole market.

ii) Develop and test a prototype of the new product.

iii) Create new ideas for the product.

iv) Research into costs, methods of production and likely sales.

• i), iii), iv), ii)

• ii), iv), i), iii)

• ii), iv), i), iii)

• iii), iv), ii), i)

All of the following are accurate descriptions of ways companies are trying to learn how to improve the odds of new-product success, except which one?

• Find out what successful new products have in common

• To learn lessons from new product failures

• Companies have to learn to understand their own consumers

• Do not overly rely on product innovation when you can succeed by copying others

New-product development starts with _____.

• Idea screening

• Idea generation

• Concept development and testing

• Marketing strategy development

The first idea reducing stage is ____________, which helps spot good ideas and drop poor ones as soon as possible.

• Idea generation

• Idea Screening

• Concept development and testing

• Marketing strategy development

Products may fail because

• The market size may have been overestimated

• The product's design did not meet consumer expectations

• The product was priced too high

• The product was advertised poorly

• Any of the above

Major sources of new-product ideas include internal sources and external sources. All of the following are the External sources of business ideas EXCEPT:

• Suppliers

• Customers

• Owners

• Competitors