developing new products

Question 1

what % of new products are successful

Answer 1

10%

Question 2

Ansoff matrix four components

Answer 2

market penetration
product development
market development
diversification

Question 3

why do firms create new products (5)

Answer 3

market saturation
managing risk through diversity
fashion cycles
improving business relationships
changing customer needs

Question 4

diffusion of innovation curve segments (5)

Answer 4

innovators
early adopters
early majority
late majority
laggards

Question 5

what main factors does the diffusion of innovation theory influence (4)

Answer 5

relative advantage
compatibility
observability
complexity and trialability

Question 6

6 steps how firms develop new products

Answer 6

idea generation
concept development
product development
market testing 
product launch
evaluation of results

Question 7

idea generation: sources of ideas (7)

Answer 7

internal R&D
R&D consortia
licensing
brainstorming
outsourcing
competitors products
customer input

Question 8

concept development

Answer 8

developing product ideas into alternatives, concept testing

Question 9

product developing: Alpha and Beta Testing

Answer 9

Alpha testing: firm attempts to determine whether the product will perform according to its design and if it will satisfy its intended need
Beta testing: uses potential consumers who examine the prototype in a real use setting, determines functionality

Question 10

premarket testing

Answer 10

simulated test market
exposed
surveyed
make decision

Question 11

test marketing

Answer 11

controlled test market
mini product launch
more expensive
demand is estimated

Question 12

product launch (4)

Answer 12

promotion
place
price
timing

Question 13

product life cycle 4 stages

Answer 13

introduction
growth
maturity
decline

Question 14

characteristics of stages of PLC (4)

Answer 14

sales
profits
typical consumers
competitors