3.9.2 Innovation

What is the first step in the New Product Development (NPD) process?

• Analysis and Screening

• Idea

• Development

• Value Analysis

Which department is responsible for coming up with new ideas and developing new products?

• Marketing

• Operations

• Research and Development

• Human Resources

What is the goal of value analysis in the New Product Development process?

• To create a prototype

• To balance the function, features, and appearance of a product with the cost of making, warehousing, and distributing it

• To test the product in a limited geographical area

• To launch the product

Which of the following is a disadvantage of innovation?

• Innovation can help businesses stay ahead of competitors

• Innovation can lead to higher profits

• Innovation can be very costly and time-consuming

• Innovation can improve product quality

What is the purpose of test marketing in the New Product Development process?

• To develop a working prototype

• To balance the function, features, and appearance of a product

• To test the new product in a limited geographical area and analyze consumer feedback

• To launch the product

Which functional area of business might need to raise extra working capital to pay for R&D?

• Marketing

• Operations

• Finance

• Human Resources

What is a prototype in the context of New Product Development?

• A final product ready for launch

• A preliminary model of a product used to test and refine the design

• A marketing strategy

• A financial analysis tool

Which of the following is an example of process innovation?

• Developing a new product

• Improving existing products

• Putting in place new or improved production and delivery methods

• Launching a new marketing campaign

What is the final step in the New Product Development process?

• Development

• Value Analysis

• Test Marketing

• Launch

Which functional area of business is concerned with the training of employees to use new equipment?

• Finance

• Operations

• Marketing

• Human Resources