Q&A Hero

Q: Frosty Products Inc. is coming out with a new type of computerized refrigerator with a flat panel display that accesses the Internet for recipes, nutrition information, etc. Which group (innovators, early adopters, early majority, late majority, or laggards) should the company target its promotion toward initially, and what type of message and medium should it use?

Q: Gerald Rupert is a retired race car driver. He is writing a book and planning a video release to share his racing experiences. He is trying to decide whether to market these items directly to consumers over the Internet or to use intermediaries. To make this decision, he needs to know the pros and cons of each route. Provide the necessary information and make a recommendation to him.

Q: When Pearl Soft Shampoo was released by Clary Laboratories Inc. in the late 1970s, it was an innovative hair care concept because it repaired split ends. Even though the new product was an improvement on the previous ones, Clary Laboratories entered the market with low prices and dealer incentives. Discuss the possible reasons for this marketing strategy.

Q: BioSense Prosthetics Inc. is a market leader in prosthetics and earns very high profits. The company has developed a computerized prosthetic arm and is trying to decide when to introduce it to the market. What options does it have?

Q: Preadvertised products that are not actually on the market yet and may not even exist are referred to as _____. A. substitute products B. value-added products C. consignments D. vaporware

Q: Which of the following statements is true of using marketing to shape perceptions and expectations? A. Preannouncements reduce excitement about a product before its release. B. A firm that aggressively promotes its products loses its actual installed base and its perceived installed base. C. A firm should avoid using vaporware if other vendors beat the firm to market and the firm fears that customers may select a dominant design. D. A firm can signal its commitment to an industry by making substantial investments that would be difficult to reverse.

Q: In the context of a firm's product diffusion curve, when there is a chasm between early adopters and early majority customers: A. the firm must reduce its production capacity. B. the firm should improve its efficiency to target the mass market. C. the early majority market becomes saturated. D. the early majority market is ready to buy the product.

Q: Which of the following statements is true of innovators and early adopters? A. They are unwilling to take risks and to pay high prices. B. They may demand considerable customization and technical support. C. They are more likely to respond to marketing that communicates the product's completeness. D. For this market segment, detailed technical information is not as important as using market channels with high reach and high credibility.

Q: _____ marketing is an attempt to capitalize on the social networks of individuals to stimulate word-of-mouth advertising. A. Ambush B. Viral C. Test D. Real-time

Q: In the forming of virtual teams, what criteria must be used to select team members?

Q: Describe project charter and contract book. Explain their purposes. How are they related to each other?

Q: The CEO of Bright Electronics Inc. has put together an autonomous new product development team. He is now trying to decide the type of leader who should be appointed to head the team. What should he look for in the leader of this team to improve its chances of success?

Q: Write a short note on functional teams.

Q: What are the advantages and disadvantages of having a heterogeneous new product development team?

Q: Members of a virtual team: A. must be located in the same office. B. may live great distances apart. C. are always collocated. D. must belong to the same country.

Q: Which of the following is a disadvantage associated with autonomous teams? A. The project manager of an autonomous team does not have any control over resources contributed from different functional departments. B. The autonomous team structure does not accommodate cross-functional integration. C. It is hard for autonomous teams to fold back into the parent organization when a project is completed. D. Autonomous teams do not have project managers, because of which they face a lot of coordination problems.

Q: Virtual teams are best defined as teams in which members: A. may be situated at a great distance from each other and collaborate intensively via advanced information technologies. B. are drawn from multiple functional areas in the firm such as R&D, marketing, manufacturing, and distribution, and they work at the company headquarters. C. have the tendency to cooperate only with people whom they perceive as being similar to themselves. D. have the tendency of shirking their responsibilities and blaming one another for their poor performance.

Q: Which of the following statements is true of the autonomous team structure? A. In autonomous teams, individuals may spend less than 10 percent of their time working on team-related activities. B. In autonomous teams, the potential for conflict between team and functions is very low. C. In autonomous teams, team members are collocated with a senior project manager. D. The project manager of an autonomous team is not given full control over resources.

Q: Which of the following is a defining characteristic of autonomous teams? A. Autonomous teams are not held accountable for the success of a project. B. Autonomous teams do not have a project manager, which leads to constant problems with coordination of activities. C. The degree of cross-functional integration is low in autonomous teams. D. Autonomous teams often do not conform to the operating procedures of the rest of the organization.

Q: Which of the following is an advantage of heavyweight teams? A. Heavyweight teams have strong cross-functional coordination. B. The team structure of heavyweight teams increases the possibility of social loafing. C. Heavyweight teams are typically permanent. D. The team structure of heavyweight teams decreases the cross-fertilization of ideas.

Q: Which of the following statements is true of heavyweight teams? A. Project managers of heavyweight teams lack the authority to command resources. B. Heavyweight teams are always temporary. C. In heavyweight teams, members are collocated with the project manager. D. Heavyweight teams are considered inappropriate for platform projects.

Q: Which of the following is an advantage of lightweight teams? A. Lightweight teams are more stable as they are permanent in nature. B. Lightweight teams do not have dedicated liaison personnel, and the members have more decision-making authority. C. The team structure of lightweight teams increases the possibility of homophily. D. It is easier to coordinate activities in a lightweight team than in a functional team.

Q: Which of the following statements is true of lightweight teams? A. Lightweight teams are typically permanent. B. Lightweight teams do not have dedicated liaison personnel. C. Lightweight teams are most appropriate for projects where high levels of coordination are required. D. Lightweight teams are comprised of members who still reside in their functional departments.

Q: Which of the following is an advantage of a functional team? A. The team structure of a functional team is straightforward to implement. B. The team structure of a functional team allows for greater cross-functional coordination. C. The team structure of a functional team increases the cross-fertilization of ideas. D. The team structure of a functional team increases the possibility of social loafing.

Q: Which of the following statements is true of functional teams? A. Functional teams consist of members from multiple areas in the firm such as R&D, marketing, manufacturing, distribution, and so on. B. The functional team structure provides little opportunity for cross-functional coordination. C. Functional teams are not appropriate for derivative projects that affect only a single function. D. Functional teams are usually permanent.

Q: Albert has put together a new product development team based on the functional team structure. Which of the following statements is most likely to be true about this team? A. Team members will spend up to 50 percent of their time on team-related activities. B. The team will typically require dedicated liaison personnel. C. The team will have a high degree of cross-functional integration. D. The team structure will be straightforward to implement.

Q: Ruth works in the advertising department of her company. It was observed that she interacted more frequently and more intensely with team members who shared her interests and social background, but ignored others. This phenomenon exhibited by Ruth is referred to as: A. free riding. B. social loafing. C. homophily. D. groupthink.

Q: June is a member of a new product development team. Her supervisor asks her about her experience in the team, and she replies, "Our team seems to be suffering from homophily." This statement means that: A. team members are not exerting the expected amount of effort. B. team members spend all their time chatting about their personal issues. C. team members are only interested in talking to people who are senior to them. D. team members only like other people whom they perceive as being similar to themselves.

Q: The vice president of Biomedics Inc. is trying to decide on the composition of a new product development team. If she chooses members from multiple functional areas in the firm, which of the following disadvantages is she most likely to experience? A. Increase in instances of whistle-blowing B. Increase in communication and coordination costs C. Lesser cross-fertilization of ideas D. Lesser instances of social loafing

Q: The vice president of Sunflower Computers Inc. is trying to decide on the composition of a new product development team. If he chooses members who are from different backgrounds, he is most likely to reap the benefits of: A. a broader knowledge base. B. lesser cross-fertilization of ideas. C. homophily. D. social loafing.

Q: Which of the following is an advantage typically associated with cross-functional teams? A. A cross-functional interface ensures that cross-fertilization of ideas is reduced. B. Cross-functional teams allow a project to draw on a wider mix of information sources in the environment. C. Cross-functional teams usually reduce coordination and communication costs. D. Cross-functional teams are most efficient in eradicating homophily.

Q: At Tech Edge Inc., a special team is set up for making a robot capable of assisting blind people in going about their daily activities. The members of the team are taken from various areas of the firm, including R&D, marketing, manufacturing, and distribution. The new team is put under the charge of a senior manager. This team is most accurately an example of a: A. cross-functional team. B. laggard team. C. homogenous team. D. self-directed work team.

Q: Karen's supervisor, while discussing about her participation in a new product development team, tells her that she has been engaging in social loafing. This means that Karen: A. has been involved in whistle-blowing activities. B. has been discriminating against colleagues belonging to minority groups. C. has not been putting much effort into the team's work. D. has stolen office property.

Q: In the context of product development teams, which of the following statements is true? A. The larger a team is, the easier it is to foster a shared sense of identity among team members. B. As the size of a team increases, the potential for social loafing increases. C. Formation of cross-functional teams hinders the cross-fertilization of ideas. D. Increasing the diversity of team members eliminates the possibility of homophily.

Q: Proximity and frequent interaction help teams to develop shared norms and a dialect for communicating about a project.

Q: A contract book is an important mechanism for establishing team commitment to a project and a sense of ownership over the project.

Q: A contract book must be developed before a project charter can be written.

Q: Project managers of heavyweight teams are typically junior managers.

Q: Heavyweight teams are suitable for platform projects.

Q: Heavyweight teams are typically permanent in nature.

Q: In heavyweight teams, the long-term career development of individual members rests with their project managers rather than their functional managers.

Q: Lightweight teams are appropriate for derivative projects where high levels of coordination and communication are not required.

Q: Managers of lightweight teams are normally junior or middle management employees.

Q: Functional teams typically have a project manager or dedicated liaison personnel.

Q: In a functional team approach to new product development, team members remain in their functional departments and may meet periodically to discuss the project.

Q: Homogeneous teams should possess more information, on average, than heterogeneous groups.

Q: A cross-functional team is one that has members of different ethnic backgrounds in a single functional area.

Q: A lack of cross-functional communication can lead to a poor fit between product attributes and customer requirements.

Q: As the size of a team increases, the potential for social loafing decreases.

Q: What is quality function deployment (QFD)? What are its advantages?

Q: Explain the function of the go/kill gate in the stage-gate process for project development.

Q: Delta Cleaning Equipment Corp. is experimenting with a faster and quieter machine to polish floors. To develop this concept, the company is contemplating using the lead user method of concept development. How does this method work? What are its advantages?

Q: What are the risks of championing?

Q: What is a partly parallel development process? Is it universally used?

Q: Which of the following measures assesses the ratio of a firm's total profits from new products to its total expenditures? A. Return on innovation B. Average cycle time of the innovation C. Percentage of development projects meeting deadlines D. Percentage of development projects within the estimated budget

Q: Additive manufacturing refers to: A. printing a design by laying down thin horizontal cross sections of material. B. manually printing a new design that converges with an old design by adding details. C. constructing a model by injection molding. D. constructing a model by machining a mold.

Q: In the context of failure modes and effects analysis, which of the following formulas is used to calculate the risk priority number? A. Risk priority number = total profits from new products/total expenditures B. Risk priority number = total profits from new products - total expenditures C. Risk priority number = successful projects/total project portfolio D. Risk priority number = severity likelihood of occurrence inability of controls to detect

Q: Jupiter Tech Inc. has conducted a failure modes and effects analysis of a digital identification system that it developed. The scores are as follows: Severity = 4 Likelihood of occurrence = 2 Inability of controls to detect it = 3 What is the risk priority number of the digital identification system? A. 24 B. 6 C. 2.67 D. 9

Q: Which of the following statements is true of design for manufacturing (DFM) methods? A. It lengthens the development cycle time for products. B. It increases the cost of production by reducing the number of parts involved in the manufacturing process. C. It is a method of facilitating integration between engineering and manufacturing. D. It is a method by which firms identify potential failures in a system and classify them according to their severity.

Q: Omega Cleaning Corp. wants to use the house of quality matrix in designing and developing a new vacuum cleaner. The use of house of quality is most likely to: A. provide a common language and framework for members of a project team to use. B. blur the relationship between product attributes and customer requirements. C. conceal the competitive shortcomings of the company's existing products. D. hide design trade-offs.

Q: Sigma Cleaning Inc. wants to use the house of quality matrix in designing and developing a new vacuum cleaner. What is the last step that Sigma Cleaning will have to take? A. Determination of the relative value or weight of customer requirements B. Creation of a new design based on the design targets C. Identification of the engineering attributes that determine the performance of the vacuum cleaner D. Evaluation of the competing products to determine how well they meet customer needs

Q: Theta Cleaning Corp. wants to use the house of quality matrix in designing and developing a new vacuum cleaner. What is the first step that Theta Cleaning should take? A. Identification of customer requirements B. Determination of the relative value or weight of customer requirements C. Identification of the engineering attributes that determine the performance of the vacuum cleaner D. Evaluation of the competing products to determine how well they meet customer needs

Q: According to the stage-gate process developed by Robert G. Cooper, _____ are the results of the previous stage and are the inputs for the gate review. A. criteria B. outputs C. deliverables D. beta versions

Q: Beta Cleaning Equipment Corp. has started the actual design and development of a new floor buffing machine. It has the details of manufacturing, marketing, and operations of the new product as well. According to the stage-gate process, what is the next stage of this project? A. Launch of the product by producing it commercially and selling it B. Verification and validation of the new product, and its marketing and production C. Formation a focus group to make sure the product meets user expectations D. Development of a business case to justify the project

Q: _____ is a distributed problem-solving model whereby a design problem or production task is presented to people who voluntarily contribute their ideas and effort in exchange for compensation, intrinsic rewards, or a combination thereof. A. Championing B. Crowdsourcing C. Partly parallel development D. Sequential development

Q: Customers who face the same general needs of the marketplace but are likely to experience them months or years earlier than the rest of the market and stand to benefit disproportionately from solutions to those needs are referred to as _____. A. laggards B. intrapreneurs C. early followers D. lead users

Q: Astech Inc. has been developing a new graphic design software. The firm has released a functional version of the software and has sent it to several lead users for testing. Based on the feedback from the lead users, the firm is going to improve the design of the product and begin commercial production. This initial version of the product is referred to as the _____. A. spiral model B. substitute product C. beta version D. theta model

Q: A _____ of a product is an early working prototype of the product released to users for testing and feedback. A. beta version B. substitute C. spiral model D. sigma model

Q: In the context of project development, an "antichampion" is: A. a person who wishes to sabotage a new project. B. a person who plays the role of the "devil's advocate." C. a person who uses subjective criteria to evaluate a new project. D. a person in a competing firm who sabotages market tests by promoting his company's products more heavily than normal.

Q: Josh is the executive vice president of a bank. The president of the bank has recently asked Josh to use his influence to ensure that the bank's online banking project is developed and implemented. Paul has been asked to be a(n): A. devil's advocate. B. project champion. C. entrepreneur. D. mentor.

Q: Which of the following statements is true of partly parallel development processes? A. It enhances the probability that R&D will design products that are difficult to manufacture. B. It requires costly iterations between design stages. C. It shortens overall cycle time. D. It initiates product design after concept development is complete.

Q: Trekker Inc. has developed a product with a very short product development cycle. Which of the following can it typically expect? A. The product's sales will be slow as consumers would already be committed to other products. B. It will be able to provide complementary goods to enhance the attractiveness of its product. C. It will be unable to fully amortize the fixed costs of development before the product becomes obsolete. D. It will not be able to upgrade its product.

Q: Which of the following statements is true about a firm with a long development cycle time? A. It can quickly revise or upgrade its product offering. B. It is more likely to have a high cost of capital. C. It can take advantage of both first-mover and second-mover advantages. D. It is more likely to be able to fully amortize the fixed costs of development before that generation becomes obsolete.

Q: The time elapsed from project initiation to product launch, usually measured in months or years, is referred to as _____. A. diffusion of innovation time B. technology trajectory C. development cycle time D. the Six Sigma period

Q: Three-dimensional printing can generate a model in a few hours.

Q: Computer-aided manufacturing (CAM) is faster and more flexible than traditional methods of manufacturing.

Q: Using computer-aided design (CAD) to build and test product design increases cycle time.

Q: In failure modes and effects analysis (FMEA), potential problems in a system are classified according to the time at which they occurred.

Q: In the context of design rules for fabricated assembly products, minimizing the number of parts for a product reduces direct labor and material handling costs.

Q: In the product development process, expenditures increase as uncertainty increases.