Chapter 7 Flashcards
(60 cards)
Q: What is the purpose of each evaluation step in the new product process?
To determine whether the idea should move to the next phase based on specific evaluation tasks and outcomes.
- Q: What happens to ideas during the evaluation process?
A: They become concepts, which are refined, evaluated, approved, and may become development projects or launched products.
- Q: What is phase II in the process and what are its assessment criteria?
A: Phase II is Concept Generation; criteria include Uniqueness, Need fulfillment, Feasibility, Impact, Scalability, Strategic fit.
- Q: What does the risk/payoff matrix evaluate?
A: The outcomes (success/failure) and decisions (move forward or kill) of a product concept.
- Q: Name the 4 risk strategies in product development.
Avoidance (eliminate risky product project altogether)
- Mitigation (reduce the risk to an acceptable, threshold level)
- Transfer (move responsibility to another organization)
- Acceptance (develop contingency plan (active) or deal with risks as they come up (passive))
- Q: What is prototype concept testing?
A: Testing a near-final version when the concept is easy to describe fully.
- Q: What is the main goal of concept testing?
A: To evaluate how customers react to a product idea before serious development begins.
- Q: What does “everything is tentative” mean in concept testing?
A: Product ideas can change at any time—feedback is welcome.
- Q: List the three purposes of concept testing.
A: Eliminate weak concepts, estimate sales, develop and refine the idea.
- Q: What is a decay curve used for?
Decay curve: a graph showing how the number of ideas or projects steadily drops (decays) as they move through each stage of the new-product development process—from hundreds of raw ideas down to the few that reach launch.
- Q: When does concept testing not work well?
A: When the benefit is personal, artistic, highly novel, misunderstood, or mismanaged.
- Q: What are “potholes” in innovation?
A: Major risks or challenges that need to be spotted early.
- Q: What is meant by “people dimension”?
A: People—not products—often cause problems due to behavior or decisions.
- Q: What are “surrogates” in testing?
A: Indirect questions used when direct answers aren’t available.
- Q: What does ATAR stand for?
A: Awareness, Trial, Availability, Repeat.
- Q: What does the ATAR model help forecast?
A: Sales and profitability of a new product.
- Q: Which evaluation techniques feed the ATAR model?
: Concept testing, product use testing, and market testing.
- Q: What is the role of the PIC in early screening?
A: It helps rule out concepts that don’t fit the firm’s capabilities or goals.
- Q: What’s required for someone to become a regular user, according to diffusion of innovation?
: Awareness → Trial → Availability → Satisfaction → Repeat.
- Q: What are the 4 parts of a concept testing plan?
A: Prepare concept, define respondent group, select response mode, plan interviewing sequence.
- Q: List four types of ideas the PIC should exclude.
A: Requires unknown tech, unfamiliar customers, wrong innovativeness, poor strategic fit.
- Q: What are two formats for a concept statement?
A: Commercialized (marketing-style) and Non-commercialized (fact-based).
- Q: When should competitive info be included?
A: When the customer doesn’t realize the benefit is new.
- Q: What is the top-two-boxes score?
A: % of people who say they would “definitely” or “probably” buy.
