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Testbank questions

Chapter 10 Developing New Products and Services

Correct answers are indicated with a *

  1. A wide range of methods and techniques are available for identifying potential innovations in the external environment. Some of these are more suited to radical innovations than more routine product development. Which of the following techniques is least effective for identifying radical innovations:
  2. a) Lead user involvement.

*b) Market and customer segmentation.

  1. c) Focus groups.
  2. d) Scenario planning.
  1. Many factors contribute to the success or failure of a new product. One of the factors found to make a difference is:
  2. a) High expenditure on research and development.
  3. b) Significant customer involvement.
  4. c) Strong project management.

*d) Use of external technology.

  1. What of the following elements would you not expect to find in a stage-gate process for new product development?
  2. a) Clear criteria for passing through a gate.
  3. b) A specific number of stages and gates for different project types.

*c) Fewer stages and gates for more radical or risky projects.

  1. d) Fewer stages and gates for more incremental or lower risk projects.
  1. Which of the following is not a fundamental difference between manufacturing and service operations?
  2. a) Perceptions of performance and quality are more important in services.
  3. b) Many services demand high levels of contact between the operations and ultimate customer.
  4. c) Services are associated with higher levels of customer loyalty.
  5. d) The inability to store services can create problems with capacity management.
  1. The service–process matrix provides a useful way of identifying the key management challenges of an operation. The matrix classifies operations in terms of two dimensions. Which of the following is not true?

*a) Service shops have high customer interaction and high labour intensity.

b)Service factories have low customer interaction and low labour intensity.

  1. c) Mass services have low customer interaction, but high labour-intensity.
  2. d) Professional services have high customer interaction and high labour intensity.
  1. Which of the following factors generally does not positively influence new product success?
  2. a) Pre-development process.
  3. b) Marketing synergy.
  4. c) Early concept definition.

*d) Strong project management.

  1. Gary Lynn and Richard Reilly have tried to identify in a systematic way the most common factors that contribute to successful product development, focusing on what they call “blockbuster” products. Which of the following is not a predictor of success?
  2. a) Improvisation.

*b) First to market.

  1. c) Clear & stable vision.
  2. d) Collaboration under pressure.
  1. Studies of new product development suggest four main types of team structure. which of the following is not a valid description?
  2. a) Functional structure – a traditional hierarchical structure where communication between functional areas is largely handled by function managers and according to standard and codified procedures.
  3. b) Heavyweight product manager structure – essentially a matrix structure led by a product (project) manager with extensive influence over the functional personnel involved but also in strategic directions of the contributing areas critical to the project. By its nature this structure carries considerable organisational authority.

*c) Lightweight product manager structure – a project-based structure but where a project manager provides an over-arching functional expertise.

  1. d) Project execution teams – a full-time project team where functional staff leave their areas to work on the project, under project leader direction.
  1. Examination of the actual ways of organizing new product and service development suggests different organizational configurations provide several common elements. Which of these is generally not such an organizing factor?
  2. a) Shared knowledge and/or technical information base.
  3. b) Control mechanisms, either impersonal or inter-personal.

*c) Resource allocation and performance measurement.

  1. d) External linkages with customers, partners or suppliers.
  1. A simplified four-stage model is sufficient to discriminate between the various factors which must be managed at different stages of development. Which of the following is not normally a stage in this process?
  2. a) Concept generation – identifying the opportunities for new products and services.
  3. b) Product development- translating the selected concepts into a physical product.
  4. c) Project assessment and selection – screening and choosing projects which satisfy certain criteria.

*d) Production planning – manufacturing design and prototyping.

  1. Concept development can be supported by a number of tools and methods. Which of the following is not normally used to help concept development?

*a) Quality Function Deployment (QFD).

  1. b) Customer focus groups.
  2. c) Lead-users.
  3. d) Latent needs analysis.
  1. Which of the following would not normally be included in Quality Function Deployment (QFD)?
  2. a) Choose appropriate units of measurement and determine target values based on customer requirements and competitor benchmarks.
  3. b) Establish the relationship between the customer requirements and technical product characteristics.

*c) Market trials and prototyping.

  1. d) Identify customer requirements, primary and secondary, and any major dislikes.
  1. Which of the following techniques is the least popular?
  2. a) Prototyping.

*b) Lead-users.

  1. c) Segmentation.
  2. d) Experimentation.
  1. Research confirms that the most effective organization of development depends on the novelty of the project. Which of the following is not true?

*a) Less novel projects have a greater involvement of lead users.

  1. b) Heavyweight project managers and cross-functional teams are a more effective combination for high novelty projects.
  2. c) Customers are more likely to be involved in the development and commercialisation of novel products and services.
  3. d) More novel projects involve more market experimentation and external experts.
  1. Potential projects can be assessed by a number of criteria. Which of the following is not commonly used?
  2. a) Core competencies.
  3. b) Risk of technical failure.
  4. c) Risk of market failure.

*d) Strategic clusters.

Testbank questions

Chapter 11 Developing Business and Talent through Corporate Venturing

Correct answers are indicated with a *

  • Which of the following is not a common trigger for the creation of a new venture?
  1. a) Significant event at home or work.
  2. b) Age, education and relevant work experience.

*c) Government policy and support.

  1. d) Recognition of an opportunity.
  • Which of the following is not one of the three basic types of entrepreneur?

*a) Wealth.

  1. b) Lifestyle.
  2. c) Innovative.
  3. d) Growth.
  • What is not a common characteristic of an entrepreneur?

*a) Highly reflective and rigorous.

  1. b) Highly disciplined and focused.
  2. c) Emphasis on action and execution.
  3. d) Emphasis on involvement and relationships.
  • A typical psychological profile of an entrepreneur would not necessarily include:
  1. a) High need for achievement.
  2. b) High need for challenging goals.
  3. c) High need for feedback on personal performance.

*d) High need for personal wealth.

  • Social entrepreneurs are different from conventional commercial entrepreneurs in many respects. Which of the following is not a significant difference between the two types?

*a) Personal passion and drive.

  1. b) Motives to create a new venture.
  2. c) Timeframes for development.
  3. d) Resource employed to achieve change.
  • Technology entrepreneurs are different to conventional entrepreneurs in all but which of the following ways:
  1. a) Education.
  2. b) Experience.
  3. c) Age.

*d) Motives.

  • The technology clusters in Silicon Valley and Boston in the USA are attributable to a number of historical factors. Which of the follow is not a significant explanatory factor?
  1. a) Close to world-class technological universities.
  2. b) Availability of private venture capital and expertise.

*c) Direct government support for industry and innovation clusters.

  1. d) Indirect government support for related industries and research.
  • Which of the following is not typically associated with innovation by smaller firms:
  1. a) Increased external links.
  2. b) Increased exports.

*c) Increased profitability.

  1. d) Increased employment.
  • A business plan for a new venture has many components. Which of the following would you not expect to be a significant component in a business plan?

*a) Demonstration of technological merit and novelty.

  1. b) Identification of the key markets and customers.
  2. c) Assessment of potential competitors and barriers.
  3. d) Estimations of cash-flow and financial requirements.
  • Which of the following is not a common source of initial funding for a new venture?
  1. a) Family or friends.
  2. b) Business angels.
  3. c) Venture capitalists.

*d) Personal savings or borrowings.

  • Almost two-thirds of new ventures fail within the first two years. Which of the following is not a common reason for failure?

*a) Weak business concept.

  1. b) No strategy for growth.
  2. c) Little management ability or experience.
  3. d) Poor financial control.
  • Successful high-growth new ventures are associated with all but which of the following characteristics?
  1. a) Strong external links and relations.
  2. b) International and export markets.

*c) Expenditure on research and technology.

  1. d) Expenditure on design and innovation.
  • For an academic entrepreneur based in a university, licensing-out a technology to a commercial partner may be more appropriate than forming a spin-out venture because:
  1. a) the potential for profit is greater.
  2. b) the degree of personal control is greater.
  3. c) it is more appropriate for enabling technologies.

*d) it facilitates dual academic and commercial development.

  • Listing on the Alternative Investment Market (AIM) in London is more attractive to many new ventures because of a number factors. Which of the following is not a common benefit?
  1. a) Lighter regulatory requirements.
  2. b) Lower cost compared to the main financial exchanges.

*c) Access to venture capital.

  1. d) Support of nominated professional advisors.
  • Which of the following stages of funding of a new venture attract the least investment and interest from venture capitalists?

*a) Start-up.

  1. b) Expansion.
  2. c) Management buy-in (MBI).
  3. d) Management buy-out (MBO).



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