Exam Study Guide Flashcards
IDEA-QOL Framework
No Answer
What are the six types of products ranked by their risk level?
What are the two sources of NPD risk?
- New to the World
- New to the Company
- Cost Reduction
- Line Extension, Repositioning (tie)
- Product Improvement (remember: product improvements are done to retain customers)
The two sources of NPD risk are Product Risk (whether product can deliver on its promise) and Customer Acceptance Risk.
What is the key difference in the strategic goals of lines extensions and repositionings?
- What are the five phases/stages of NPD?
- First 3 phases of NPD are called Creative-front End of NPD. Do you know why?
Line extensions seek to acquire periphery/almost there customers near the company’s customer base (hence the term extension) for whom some attributes are missing. Repositionings seek to apply the same product to a different use.
The fives phases/stages of NPD are Opportunity Identification/Selection, Concept Generation, Concept/Project Evaluation, Development, Launch.
The product concept is still fuzzy (but it should be much clearer by the end of the project).
What is the connection between new products and financial performance of a firm?
Ask Professor Chitturi
Can we use the NPD process for service development?
Yes, most successful new products tend to come from firms that use a systematic process. Additionally, iterations may be more frequent since they are less expensive.
Inputs into Business Opportunity Identification (4)
- Corporate Planning: All data from sources within a firm
- Market Planning: All data from sources outside a firm
- Special Opportunity Analysis: New resources from M&A
- Surplus resources such as manufacturing capacity
What is the Output from Business Opportunity Identification (Phase 1 of NPD)?
PIC
What is the relationship between time, knowledge, and creativity?
There is a negative relationship between time and knowledge and breakthrough creativity, but there is a positive relationship with incremental creativity.
Additionally, there are two types of creativity: breakthrough and incremental creativity.
- Line extension is a type of incremental creativity.
Additionally, as well, you want people who are smart but unaware of the problem area you’re trying to solve.
What is the input and the output in the phase I of the NPD process?
Input: Market Planning, Corporate Planning, Special Opportunity Information/Analysis, Surplus Resources
Output: PIC which details Background, Focus, Goals and Objectives, Guidelines (that state no corporate mandates are violated, such as environmental mandates)
What is the input and the output in the phase I of the NPD process?
Input: Market Planning, Corporate Planning, Special Opportunity Information/Analysis
Output: PIC which details Background, Focus, Goals and Objectives, Guidelines (that state no corporate mandates are violated, such as environmental mandates)
- Uniqueness of New Product
- Determinant attributes
- Gap analysis helps you identify gaps in the market by drawing perceptual gap maps of determinant attributes
- Determinant attributes: these are attributes that are used by consumers in making product purchase decisions
Gap maps and what they are based on:
- Determinant gap map: Mangerial input
- Attribute rating (AR) gap map: Customer survey
- Overall similarities (OS) gap map: Pairwise prototype comparisons
No Answer
- Fit between product and customer wants and needs
Conjoint Analysis helps us determine the most desirable combination of the levels of each determinant attribute. By improving the fit between the product and the customer wants and needs; and by increasing the uniqueness of the product simultaneously, we can increase the probability of New Product Success.
What is the difference between tradeoff and conjoint analysis?
Both are used in the NPD phase of Concept Generation. Tradeoff analysis looks at the process by which customers evaluate their choices, while conjoint analysis is a tool to assess tradeoffs (thus, tradeoff analysis is a broader term). Conjoint analysis looks at the optimal levels of determinant attributes. Gap analysis can be used to determine the determinant attributes used in conjoint analysis.
