Chapter 1

Question 1

What is value?

Answer 1

Value = Benefits/Cost

Question 2

What is value a function of?

Answer 2

1. Benefits
2. Cost
3. Context

Question 3

What are the types of new products? Know their descriptions.

Answer 3

1. New-to-the-World (new market)
2. New-to-the-Firm (new category for the firm)
3. Additions to Existing Product Lines, (line extensions and flankers)
4. Improvements and Revisions to Current Products
5. Repositionings (new use or application)
6. Cost Reductions (same performance, lower cost)

Question 4

What percentage of new products fail?

Answer 4

40%

Question 5

According to Peter Drucker, the purpose of a business is to create a customer? Therefore, what are its two basic functions?

Answer 5

Marketing and Innovation

Question 6

What are the three inputs to the New Products Process?

Answer 6

The right quality, at the right time, at the right cost

Question 7

All NPD activities are targeted to directly or indirectly improve one of the four dimensions of customer value. What are these four dimensions?

Answer 7

1. Quality
2. Cost
3. Time
4. Experience

Question 8

What are the six corporate functions?

Answer 8

1. Accounting
2. Human Resources
3. Finance
4. Operations
5. Marketing/Sales
6. R&D-MIS-IT