Chapter 8: New Product Development

Question 1

offering

Answer 1

A generic term often used by marketers to denote the broad range of possibilities of product attributes and sources of the product value.

Question 2

core product

Answer 2

All the benefits the product will provide for consumers or business customers.

Question 3

actual product

Answer 3

The physical good or the delivered service that supplies the desired benefit.

Question 4

augmented product

Answer 4

The actual product plus other supporting features, such as a warranty, credit, delivery, installation, and repair service after the sale.

Question 5

design thinking

Answer 5

process that draws upon logic, imagination, intuition, and systemic reasoning to explore possibilities of what could be—and to create desired outcomes that benefit the end user (the consumer). Design thinking is also referred to as human-centered design.

Question 6

ideation

Answer 6

Idea generation is characterized by alternating divergent and convergent thinking, typical of the design-thinking process.

Question 7

divergent thinking

Answer 7

Coming up with as many new ideas as possible and exploring new “out-of-the-box” alternatives.

Question 8

convergent thinking

Answer 8

After successful divergent thinking, convergent thinking moves toward analyzing the different ideas to come to a decision on the best choice.

Question 9

innovators

Answer 9

The first segment (roughly 2.5 percent) of a population to adopt a new product.

Question 10

continuous innovation

Answer 10

a modification to an existing product, such as when Samsung and others reinvigorated the TV market by offering thinner sets that featured high-definition viewing.

Question 11

dynamically continuous innovation

Answer 11

a pronounced modification to an existing product that requires a modest amount of learning or change in behavior to use it.

Question 12

disruptive innovation

Answer 12

which refers to an innovation that creates a new market and value chain and eventually disrupts an existing market and value chain, displacing established market-leading firms, products, and alliances.

Question 13

discontinuous innovation

Answer 13

the product must create major changes in the way we live.

Question 14

early adaptors

Answer 14

are concerned about social acceptance, so they tend to gravitate toward products they believe will make others think they are cutting-edge or fashionable.

Question 15

early majority

Answer 15

They are typically middle-class consumers and are deliberate and cautious. The early majority of consumers have slightly above-average education and income

Question 16

late majority

Answer 16

The adopters who are willing to try new products when there is little or no risk associated with the purchase, when the purchase becomes an economic necessity, or when there is social pressure to purchase.

Question 17

laggards

Answer 17

The last consumers to adopt an innovation.

Question 18

adoption pyramid

Answer 18

Reflects how a person goes from being unaware of innovation through stages from the bottom up of awareness, interest, evaluation, trial, adoption, and confirmation.

Question 19

maintenance, repair, and operating products

Answer 19

Goods that a business customer consumes relatively quickly.

Question 20

prototypes

Answer 20

Test versions of a proposed product

Question 21

market test/test market

Answer 21

Testing the complete marketing plan in a small geographic area that is similar to the larger market the firm hopes to enter.

Question 22

commercialization

Answer 22

The final step in the product development process is launching a new product into the market.

Question 23

disruptive innovation

Answer 23

An innovation that creates a new market and value chain and eventually disrupts an existing market and value chain, displacing established market-leading firms, products, and alliances.

Question 24

first mover advantage

Answer 24

Being the first firm to enter a market with a new product, perhaps as a disruptive innovator.

Question 25

research and development

Answer 25

A well-defined and systematic approach to how innovation is done within the firm.

Question 26

new product development

Answer 26

The phases by which firms develop new products, including idea generation, product concept development and screening, marketing strategy development, business analysis, technical development, test marketing, and commercialization.

Question 27

value co-creation

Answer 27

The process when a company and its customers work together to create a product.