Chapter 1

1) Acquisition refers to the buying of a whole company, a patent, or a license to produce someone elses product a) Acquisition b) Merger c) Franchise 2) New product development refers to original products, product improvements, and new brands developed from the firms own research and development a) NPD b) Applied Research c) Basic Research 3) Employees are not the reason for new product failure. a) Poor design b) High price c) Employees 4) Systematic search for new product ideas are called Idea generation a) idea screening b) idea generation c) commercialization 5) Using Internal resources the company can find new ideas through formal R & D. a) external resources b) internal resources c) idea screening 6) Using sources outside the company like customers , competitors , distributors refers to External sources. a) Internal resources b) External resources c) Business analysis 7) Identifying good ideas and dropping poor ideas refers to Idea screening a) Idea screening b) Targeting c) Filtration

8) R-W-W screen framework refers to a) Real , Win , worth it b) Real, watchable, worthy c) Readable , win , worth it 9) Product idea is an idea for a possible product that the company can see itself offering to the market. a) Product idea b) Product concept. c) Product image 10) Product concept is a detailed version of the idea stated in meaningful consumer terms. a) Product idea b) Product concept. c) Product image 11) Product image is the way consumers perceive an actual or potential product . a) Product idea b) Product concept. c) Product image 12) Concept testing refers to testing new-product concepts with groups of target consumers. a) Concept testing b) Target market c) Market strategy 13) Marketing strategy development refers to the initial marketing strategy for introducing the product to the market a) Concept testing b) Marketing strategy and development c) Standard test market 14) Business analysis involves a review of the sales, costs, and profit projections to find out whether they satisfy the companys objectives a) Business analysis b) Commercialization c) Market strategy

15) Product development involves the creation and testing of one or more physical versions by the R&D or engineering departments a) Product development b) Applied research c) Market analysis 16) Test marketing is the stage at which the product and marketing program are introduced into more realistic marketing settings a) Standard test market b) Test marketing c) Controlled test marketing 17) Using a small number of representative test cities and conducting a full marketing strategy refers to Standard test Market a) Standard test market b) Controlled test marketing c) simulated test marketing 18) Introducing a new product into the market is Commercialization a) commercialization b) positioning c) test marketing 19) Customer-centered new product development focuses on finding new ways to solve customer problems and create more customer satisfying experiences . a) Customer-centered b) Systematic c) Team based 20) Sequential new-product development is a development approach where company departments work closely together individually to complete each stage of the process before passing it along to the next department or stage a) Sequential new-product development b) Customer centered c) Team based

21) Team-based new-product development is a development approach where company departments work closely together in cross-functional teams, overlapping in the product-development process to save time and increase effectiveness a) Team-based new-product development b) Sequential c) Customer centered 22) Systematic new-product development is an innovative development approach that collects, reviews, evaluates, and manages new-product ideas. a) Systematic new-product development b) Team based NPD c) Sequential NPD 23) Style is a basic and distinctive mode of expression. a) Style b) Fad c) Fashion 24) Fashion is a currently accepted popular style in a given field. a) Style b) Fad c) Fashion 25) Fads are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity a) Style b) Fad c) Fashion

Chapter 3
1. A. B. C. D. 2. A. B. C. D. 3. .is a commonly used word and yet not fully understood by all those who use it. Technology Science R&D All ABove .. is the purposeful and systematic use of scientific knowledge to improve mans lot even Though some of its manifestations do not meet universal approval Technology Science R&D Projects . pull together scientific knowledge from a wide variety of sources. A. Companies B. Universities C. Business manager D. All above There is no single best way to manage A. Process B. Knowledge C. R& D D. Technology

4.

5. R & D needs to be managed according to the specific heritage and .. of company in its competitive industry. A. Resources B. Knowledge C. Technology D. cash 6. The management of R & D in the aircraft industry is very .. from the textile industry. A. Similar B. Different C. Pararell D. All above

7. Some of the largest and most successful companies in the world spend money on R & D should not be taken as sign that they have mastered the process. It is important to acknowledge that R & D management, like innovation itself, is part art and part .. A. Technology B. Science C. Processes D. All above 8. Many studies have used the number of patents published as a .. A. Book B. Reference C. Guide D. None of above 9. Most companies would like to be able to correlate R & D expenditure with .. A. Annual budget B. Sales C. Revenue D. profitability 10. relationship between R & D expenditure and long -term growth. A. Negative B. Similar C. Positive D. inverse 11. R & D expenditure should be viewed as a long-tem investment. Reduce short-term .. 12. Cash 13. Sales 14. Revenue 15. profitability 16. Industry expectations of its own research expand to include the development of knowledge into .. A. Brands B. Products C. Markets D. All of aboce 17. It is also referred to as fundamental science and is usually only conducted in the laboratories of universal and large organizations. 18. Planning decisions are directed towards the future, which is why . is often considered to be as much an art as a science. A. Strategy B. R& D C. Technology D. products

19. The. of research and development needs to be fully integrated with the strategic management process of the business. A. Marketing B. Sales management C. Management D. strategy 20. From an R & D perspective the companys technology base can be categorized as follows: A. Core technologies B. Complementary technologies C. Peripheral technologies D. Emerging technologies E. All Above 21. A. B. C. D. The core technology is usually central to all or most of the companys .. Strategy R& D Technology products

22. Complementary technologies are ..technology that is essential in product development. A. Additional B. Necessary C. Temporary D. All above 23. .. technology is defined as technology that is not necessarily incorporated into the product but whose application contributes to the business. A. Art of B. Science of C. Peripheral D. R& D

MCQS from chapter # 3 R&D 1. It is sometimes difficult to determine when research ends and development begins. 2. The term know how has been used in management literature to describe a companys knowledge base, which includes its R&D capability 3. R&D is the purposeful and systematic use of scientific knowledge to improve mans lot even though some of its manifestations do not meet with universal approval 4. Technical development in industries such as chemicals, electronics, automotive and pharma led to the development of many new products, which produced rapid growth. 5. R&D needs to be managed according to the specific heritage and resources of the company in its competitive industry. 6. A study by Geroski et al. (1993) did reveal a positive relationship between R&D expenditure and long-term growth. 7. R&D as % of Sales = (R&D expenditure / total sales income x 100%) 8. It is important to acknowledge that R&D management like innovation itself is part art and part science. 9. On a global scale R&D investment has increased by an average of 23% from 1991- 2002. 10. R&D expenditure should be viewed as a long-term investment 11. Basic Research involves work of a general nature intended to apply to a broad range of uses or to new knowledge about an area. 12. Applied Research involves the use of existing scientific principles for the solution of a particular problem. It is sometimes referred to as the application of science. 13. Development is similar to applied research in that it involves the use of known scientific principles, but differs in that the activities centre on products. 14. It is argued that technologies have life cycles and that after a period further research produces negligible benefit. 15. The culture of the organization and its attitude to risk will influence decision making. Usually risk is spread over a portfolio of projects and will include some exploratory high-risk projects and some developmental low-risk ones. 16. It is well understood that technological developments can lead to improved products and processes, reduced costs and ultimately better performance. 17. The state of a business in terms of its markets, products and capabilities will largely determine the amount of research effort to be undertaken. 18. The core technology is usually central to all or most of the companys product. 19. Complementary technologies are additional technologies that are essential in product development. 20. A peripheral technology is defined as technology that is not necessarily incorporated into the product but whose application contributes to the business.