Business market management 3rd edition anderson test bank

Business Market Management 3rd Edition Anderson Test Bank Visit to download the full and correct content document: https://testbankdeal.com/dow nload/business-market-management-3rd-edition-anderson-test-bank/

Chapter 6 New Offering Realization Multiple Choice Questions 1. ________ is the process of developing new core products or services, augmenting them to construct market offerings, and bringing them to market. a. New offering realization b. Market-oriented development c. Aggregate project planning d. Incentive to change (a; Easy; p. 228; Analytic Skills) 2. The firm’s _______ defines what knowledge and know-how resources the firm requires, how it will attain them, and how they will translate into market advantages for the firm. a. technology strategy b. market strategy c. learning strategy d. project strategy (a; Easy; p. 230-231; Analytic Skills) 3. The firm's _______, defines the target market segments and customers and a course of action that the firm will pursue to deliver superior value to them. a. technology strategy b. market strategy c. learning strategy d. project strategy (b; Easy; p. 231; Analytic Skills) 4. The firm's _______ refers to gains in design and process knowledge and know-how and is paramount for organizational enhancement and renewal to occur. a. technology strategy b. market strategy c. learning d. project strategy (c; Easy; p. 232; Analytic Skills) 5. The firm's _______ concerns getting the most out of available resources. a. technology strategy b. market strategy c. learning d. efficiency (d ;Easy; p. 232; Analytic Skills)

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6. The firm's _______ refers to the time it takes to complete a development cycle. a. speed-to-market b. market strategy c. learning d. efficiency (a ;Easy; p. 233; Analytic Skills) 7. The key objective in managing individual development projects, _______, is the time between the first instant someone could have started working on a development program and the instant the final product was available to the customer. a. development speed b. product cost c. product performance d. development program expense (a; Moderate; p. 234; Reflective Thinking) 8. The key objective in managing individual development projects, _______, is the total cost of the product to the supplier, including all costs it incurs in marketing, sales, and support services (which are part of the purchase price customers pay). a. development speed b. product cost c. product performance d. development program expense (b; Moderate; p. 235; Reflective Thinking) 9. The key objective in managing individual development projects, _______, is how well the product meets the requirements and preferences that target customers have specified development speed. a. development speed b. product cost c. product performance d. development program expense (c; Moderate; p. 235; Reflective Thinking) 10. The key objective in managing individual development projects, _______, consists of all the one-time development costs a specific project incurs development speed. a. development speed b. product cost c. product performance d. development program expense (d; Moderate; p. 235; Reflective Thinking)

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11. _______ is when a new offering takes a portion of its sales from an existing offering of the firm. a. Cannibalization b. Newness map c. Newness of project d. Newness of market (a; Easy; p. 235; Reflective Thinking) 12. _______ is a mechanism to ensure that the collective set of projects will accomplish the development goals and objectives and build the organizational capabilities needed for ongoing development success. a. Aggregate project plan b. Derivative project c. Breakthrough project d. Platform project (a; Moderate; p. 236; Reflective Thinking) 13. _______ generate new core products and processes that are fundamentally different from previous generations. a. Aggregate project plans b. Derivative projects c. Breakthrough projects d. Platform projects (c; Moderate; p. 237; Reflective Thinking) 14. _______ are initiatives that realize small advances in the firm’s current offerings or production processes, such as making cost reductions in existing products, providing product line extensions by adding or subtracting secondary features, and devising incremental improvements for an existing production process. a. Aggregate project plans b. Derivative projects c. Breakthrough projects d. Platform projects (b; Moderate; p. 236; Reflective Thinking) 15. _______ represent the natural starting point for the core product part of flexible market offerings. They are the naked solution for the product component for the target market segments and customers. a. Aggregate project plans b. Derivative projects c. Breakthrough projects d. Platform projects (d; Moderate; p. 237, 240; Reflective Thinking)

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16. _______ aim at inventing new science or capturing new know-how so that required knowledge will be available for application in specific development projects. a. Alliances and partnership projects b. Research and advanced development projects c. Breakthrough projects d. Platform projects (b; Moderate; p. 241-242; Reflective Thinking) 17. _______ are those done in conjunction with one or more outside firms. a. Alliances and partnership projects b. Derivative projects c. Breakthrough projects d. Platform projects (a; Moderate; p. 242; Reflective Thinking) 18. Cooper has proposed a next-generation product development process that is different from stage-gate models of the realization process because of ________. that is, it is fluid and adaptable, with overlapping and fluid stages for greater speed. a. fluidity b. fuzzy gates c. focused d. flexible (a; Easy; p. 260; Reflective Thinking) 19. Cooper has proposed a next-generation product development process that is different from stage-gate models of the realization process because of ________. that is, it features conditional Go decisions (rather than absolute ones), which are dependent on the situation. a. fluidity b. fuzzy gates c. focused d. flexible (b; Moderate; p. 260; Reflective Thinking) 20. The _______ are current or prospective customers who are experiencing problems or needs that will become widespread in the market in the foreseeable future. They would derive significant value immediately from an innovative solution. a. lead-users b. leap-froggers c. alpha-testers d. prototypes (b; Easy; p. 267-288; Reflective Thinking)

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True/False Questions 21. Sequential engineering is where firms work on the process for making a product while they are still in the process of designing it.

(False; Difficult; p. 243; Reflective Thinking) 22. Prototypes are a research tool that allows selected customers to experience in a rough form the functionality or performance of a new offering and give feedback to the project team.

(True; Easy; p. 269; Reflective Thinking) 23. A firm can use alpha testing, where individuals within the firm simulate the target customer’s use of a nearly realized product. After making any necessary adjustments or refinements, the firm proceeds with beta testing, where the firm provides select customers with the new offering and gains feedback on it from the customers’ experiences.

(True; Difficult; p. 269; Reflective Thinking) 24. Wheelwright and Clark provide a model which emphasizes cross-functional integration and provides the primary activities of engineering, marketing, and manufacturing for each development phase.

(True; Difficult; p. 258; Reflective Thinking) 25. A volume discount is a pricing tactic that is an invoice reduction used to encourage prospective customers to try an offering that is new to them. The offering’s actual price is listed on the invoice, then reduced by the incentive to change, with the notation “initial use discount.”

(False; Easy; p. 273; Reflective Thinking) Essay Questions 26. Explain derivative projects.

Answer: Derivative projects are initiatives that realize small advances in the firm’s current offerings or production processes, such as making cost reductions in existing products, providing product line extensions by adding or subtracting secondary features, and devising incremental improvements for an existing production process.

Derivative projects have shorter durations and require relatively little management involvement or other realization resources. However, they can produce profitable products and enhance the firm’s capabilities.

(Moderate; p. 236; Reflective Thinking)

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27. Explain breakthrough projects.

Answer: Breakthrough projects generate new core products and processes that are fundamentally different from previous generations. Breakthrough products create new markets or are in response to nascent markets with unique requirements.

(Easy; p. 237; Reflective Thinking) 28. Explain briefly the Wheelwright and Clark general realization process model discussed in the text, Answer: The general realization process model emphasizes cross-functional integration and provides the primary activities of engineering, marketing, and manufacturing for each development phase. Wheelwright and Clark broadly define these functional areas, intending marketing to include market research and sales, and manufacturing to include process development, manufacturing engineering, and plant operations. This model also specifies the key milestones and key decisions for each phase. Because approval acts as a “gate” through which a project must pass to progress to the next development phase or “stage,” this kind of model of the realization process is called a stage-gate model.

(Moderate; p. 258; Reflective Thinking) 29. How can positioning statements aid in focusing a project team throughout the realization process?

Answer: Positioning statements can assist in focusing a project team on the market throughout the realization process. At each phase, senior management should require the project team to provide a positioning statement as part of its review materials. Each positioning statement would contain the three critical components : target, offering concept, and value proposition. Although the team might state elements of the positioning statement in broad or coarse terms in the initial phases, senior management would expect to see refinement and greater specificity as the project moves through the realization process. This expectation pushes the team to think about the characteristics of target customers, the essential attributes of the offering for customers, and the worth of the new offering to the customer. To reach this specificity, the team would have to translate customer requirements and preferences into design specifications and conduct value assessments with target customers.

(Difficult; p. 267; Analytic Skills)

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30. Explain lead-user customers.

Answer: Lead-user customers are often sources of innovation to supplier firms. Lead-users are current or prospective customers who are experiencing problems or needs that will become widespread in the market in the foreseeable future. They would derive significant value immediately from an innovative solution. Such customers may have begun problem-solving activities themselves. Studies have shown how lead users also are often connected with other innovative users in user networks that can exert enormous influence in the design, development, and diffusion of an innovation, as in the case of open-source software (OSS). Finally, firms can also use lead-users to help relaunch failed products by using the lead users to teach the firm about possible userdefined and new-to-the-firm uses or applications of the product.

(Moderate; p. 267-268; Reflective Thinking)

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