Chapter 11, 12, 13

Question 1

Development cycle time

Answer 1

The time elapsed from project initiation to product launch, usually measured in months or years.

Question 2

Partly parallel development process

Answer 2

A development process in which some (or all) of the development activities at least partially overlap. That is, if activity A would precede activity B in a partly parallel development process, activity B might commence before activity A is completed.

Question 3

Concurrent engineering

Answer 3

A design method in which stages of product development (e.g., concept development, product design, and process design) and planning for later stages of the product lifecycle (e.g., maintenance, disposal, and recycling) occur simultaneously.

Question 4

Lead users

Answer 4

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.

Question 5

Crowdsourcing

Answer 5

A distributed problem-solving model whereby a design problem or production task is presented to a group of people who voluntarily contribute their ideas and effort in exchange for compensation, intrinsic rewards, or a combination thereof

Question 6

Go/kill decision points

Answer 6

Gates established in the development process where managers must evaluate whether or not to kill the project or allow it to proceed.

Question 7

Social loafing

Answer 7

When an individual in a team does not exert the expected amount of effort and relies instead on the work of other team members.

Question 8

Cross-functional teams

Answer 8

Teams whose members are drawn from multiple functional areas in the firm such as R&D, marketing, manufacturing, distribution, and so on.

Question 9

Homophily

Answer 9

The tendency for individuals to like other people whom they perceive as being similar to themselves.

Question 10

Cannibalization

Answer 10

When a firm’s sales of one product (or at one location) diminish its sales of another of its products (or at another of its locations).

Question 11

Backward compatible

Answer 11

When products of a technological generation can work with products of a previous generation. For example, a computer is backward compatible if it can run the same software as a previous generation of the computer.

Question 12

Penetration pricing

Answer 12

When the price of a good is set very low (or free) to maximize the good’s market share.

Question 13

Freemium

Answer 13

A pricing model where a base product or service is offered for free, but a premium is charged for additional features or service.

Question 14

Wholesalers

Answer 14

Companies that buy manufacturer’s products in bulk, and then resell them (often in smaller or more diverse bundles) to other supply channel members such as retailers.

Question 15

Retailers

Answer 15

Companies that sell goods to the public.

Question 16

Original Equipment Manufactures (OEM) (or Value Added Resellers (VAR))

Answer 16

A company that buys products (or components of products) from other manufacturers and assembles them or customizes them into a product that is then sold under the OEM’s own name and often provides marketing and service support for the product.

Question 17

Viral marketing

Answer 17

Sending information directly to targeted individuals in effort to stimulate word-of-mouth advertising. Individuals are typically chosen on the basis of their position or role in particular social networks.