New Product Portfolio Management

Question 1

NPPM

Answer 1

Dynamic decision process of evaluating, selecting, prioritising, and allocating resources to product development projects

Question 2

Managers use 3 dimensions to evaluate new product projects

Answer 2

1. Value maximisation
2. Balance
3. Strategic fit

Question 3

Risk perceptions of managers influenced by

Answer 3

1. Uncertainty in goal identification and goal importance
2. Consequence of outcome
3. Amount of information available

Question 4

NPPM dimensions’ performance outcomes

Answer 4

Best performing firms derive more profits from newly commercialised products than average performing firms

Question 5

Balance, value max and strategic fit relationships

Answer 5

• balance most important
• value maximisation insignificant
• strategic fit negative but insignificant relationship with performance