The process of developing new market offerings begins with:
a) Idea generation
b) Product testing
c) Commercialization
d) Market segmentation
Answer: a) Idea generation

According to Kotler, the primary goal of new product development is to:
a) Gain quick profits
b) Satisfy customer needs and create value
c) Reduce production costs
d) Minimize marketing effort
Answer: b) Satisfy customer needs and create value

The term “new product” includes:
a) Original products, product improvements, and brand extensions
b) Only completely new inventions
c) Only upgraded products
d) Only rebranded items
Answer: a) Original products, product improvements, and brand extensions

The first step in the new product development process is:
a) Idea generation
b) Market testing
c) Concept development
d) Product design
Answer: a) Idea generation

Idea screening is conducted to:
a) Eliminate poor ideas early
b) Launch new products faster
c) Increase market share
d) Improve packaging
Answer: a) Eliminate poor ideas early

Which of the following is NOT a major source of new product ideas?
a) Internal R&D
b) Customers
c) Government regulations
d) Random advertising
Answer: d) Random advertising

Concept testing is used to:
a) Evaluate customer reactions to product concepts
b) Test physical prototypes
c) Analyze supply chain efficiency
d) Estimate production cost
Answer: a) Evaluate customer reactions to product concepts

The main purpose of business analysis in new product development is to:
a) Estimate sales, costs, and profits
b) Test advertising effectiveness
c) Design promotional tools
d) Create prototypes
Answer: a) Estimate sales, costs, and profits

Which stage follows product development?
a) Market testing
b) Idea screening
c) Concept generation
d) Brainstorming
Answer: a) Market testing

Commercialization involves:
a) Launching the new product in the market
b) Developing initial concepts
c) Conducting customer surveys
d) Generating ideas
Answer: a) Launching the new product in the market

A successful new product strategy must align with:
a) The company’s overall objectives and capabilities
b) Competitors’ strategies
c) Supplier preferences
d) Market rumors
Answer: a) The company’s overall objectives and capabilities

Which factor most influences new product success?
a) Understanding customer needs
b) Low production cost
c) Celebrity endorsement
d) Minimal research
Answer: a) Understanding customer needs

“Crowdsourcing” refers to:
a) Inviting the public to contribute ideas for products
b) Using large warehouses
c) Outsourcing manufacturing
d) Hiring consultants
Answer: a) Inviting the public to contribute ideas for products

Which of the following best describes a product concept?
a) A detailed version of the idea in consumer terms
b) The prototype model
c) The marketing slogan
d) The distribution plan
Answer: a) A detailed version of the idea in consumer terms

Prototype testing is part of which stage?
a) Product development
b) Idea generation
c) Commercialization
d) Market testing
Answer: a) Product development

Test marketing helps firms to:
a) Evaluate real-market performance before full launch
b) Reduce marketing budget
c) Skip R&D
d) Avoid competitors
Answer: a) Evaluate real-market performance before full launch

The major risk in new product development is:
a) Product failure in the market
b) High advertising cost
c) Employee turnover
d) Low production efficiency
Answer: a) Product failure in the market

Which approach encourages rapid development of products through cross-functional collaboration?
a) Concurrent engineering
b) Sequential design
c) Cost leadership
d) Randomized testing
Answer: a) Concurrent engineering

Kotler suggests that companies innovate by:
a) Offering new customer value
b) Copying competitors
c) Reducing prices only
d) Expanding distribution
Answer: a) Offering new customer value

Disruptive innovation typically:
a) Creates new markets and displaces existing leaders
b) Focuses only on luxury products
c) Reduces product quality
d) Relies on imitation
Answer: a) Creates new markets and displaces existing leaders

The diffusion process explains how:
a) New products spread through the market
b) Prices fluctuate in the market
c) Advertising impacts loyalty
d) Costs are shared with suppliers
Answer: a) New products spread through the market

Early adopters are important because:
a) They influence later buyers
b) They resist change
c) They avoid risk
d) They buy only discounted items
Answer: a) They influence later buyers

A company’s innovation pipeline refers to:
a) A flow of ideas and products under development
b) The product distribution network
c) The marketing channel strategy
d) The sales funnel
Answer: a) A flow of ideas and products under development

Which of the following is an internal source of new ideas?
a) Employee suggestions and R&D
b) Customer complaints
c) Competitor analysis
d) Supplier feedback
Answer: a) Employee suggestions and R&D

Which of these is a key success factor in product innovation?
a) Strong leadership and market focus
b) Weak team structure
c) Ignoring user feedback
d) High prices
Answer: a) Strong leadership and market focus

In the PLC (Product Life Cycle), innovation is most needed during:
a) Maturity and decline stages
b) Growth stage only
c) Introduction stage only
d) Decline stage only
Answer: a) Maturity and decline stages

The term “new market offering” refers to:
a) A new or improved product created to meet unmet needs
b) An existing product in a shrinking market
c) A cost-cutting initiative
d) A change in logo design
Answer: a) A new or improved product created to meet unmet needs

Open innovation is defined as:
a) Collaborating with external partners for new ideas
b) Developing products internally only
c) Keeping R&D confidential
d) Outsourcing all marketing
Answer: a) Collaborating with external partners for new ideas

Product development costs include:
a) R&D, design, and testing costs
b) Only promotional costs
c) Only logistics costs
d) After-sales costs
Answer: a) R&D, design, and testing costs

Kotler identifies which factor as critical for innovation success?
a) Top management commitment
b) Advertising spend
c) Product size
d) Market monopoly
Answer: a) Top management commitment

During concept development, companies must:
a) Turn product ideas into detailed consumer-focused concepts
b) Launch directly into markets
c) Skip testing
d) Cut marketing costs
Answer: a) Turn product ideas into detailed consumer-focused concepts

Test marketing is least necessary when:
a) The product is simple and low-cost
b) The market is new
c) The investment is high
d) The product is complex
Answer: a) The product is simple and low-cost

Commercialization decisions include:
a) Timing and geographic rollout
b) Pricing only
c) Packaging only
d) Product naming
Answer: a) Timing and geographic rollout

Kotler suggests continuous innovation leads to:
a) Sustainable competitive advantage
b) Market instability
c) Reduced customer loyalty
d) Overproduction
Answer: a) Sustainable competitive advantage

Which of the following is an example of product line extension?
a) Adding a new flavor to an existing brand
b) Creating an entirely new brand
c) Changing the company name
d) Reducing product range
Answer: a) Adding a new flavor to an existing brand

Idea generation through suppliers is valuable because:
a) They understand material and production capabilities
b) They control pricing
c) They influence consumers
d) They handle marketing
Answer: a) They understand material and production capabilities

Screening ideas is important because:
a) It prevents waste of resources on weak ideas
b) It increases product variety
c) It speeds up commercialization
d) It replaces testing
Answer: a) It prevents waste of resources on weak ideas

A prototype is created to:
a) Test technical and market feasibility
b) Replace finished products
c) Avoid market testing
d) Reduce research cost
Answer: a) Test technical and market feasibility

Which product adopter group is most price-sensitive?
a) Late majority
b) Early adopters
c) Innovators
d) Early majority
Answer: a) Late majority

Product innovation helps firms to:
a) Differentiate from competitors and grow market share
b) Lower customer expectations
c) Reduce brand visibility
d) Avoid R&D investments
Answer: a) Differentiate from competitors and grow market share

The product development process aims to:
a) Reduce risk through systematic stages
b) Replace marketing functions
c) Focus on pricing strategy only
d) Shorten product life cycles
Answer: a) Reduce risk through systematic stages

Which of the following is a market entry strategy for new offerings?
a) Market penetration
b) Price dumping
c) Market withdrawal
d) Product contraction
Answer: a) Market penetration

Kotler identifies that innovation success depends on:
a) Cross-functional teamwork
b) Minimal R&D investment
c) Delayed launches
d) Top-down decisions only
Answer: a) Cross-functional teamwork

An example of disruptive innovation is:
a) Smartphones replacing basic phones
b) Adding new colors to packaging
c) Introducing discounts
d) Rebranding an old logo
Answer: a) Smartphones replacing basic phones

Which of the following best describes incremental innovation?
a) Small improvements to existing products
b) Creation of entirely new markets
c) Major technological breakthroughs
d) Radical shifts in industry standards
Answer: a) Small improvements to existing products

The “fuzzy front end” of product development refers to:
a) The early, uncertain stages of idea generation
b) The commercialization phase
c) The final testing
d) The production launch
Answer: a) The early, uncertain stages of idea generation

What is the final step of the new product development process?
a) Commercialization
b) Idea generation
c) Screening
d) Testing
Answer: a) Commercialization

Companies can reduce innovation risk by:
a) Conducting thorough market research
b) Ignoring customer feedback
c) Launching without testing
d) Avoiding external collaboration
Answer: a) Conducting thorough market research

Continuous improvement is central to:
a) Total Quality Management (TQM)
b) Price wars
c) Market penetration
d) Sales promotions
Answer: a) Total Quality Management (TQM)

The ultimate aim of developing new market offerings is to:
a) Create superior customer value and sustainable growth
b) Increase short-term sales only
c) Lower brand reputation
d) Minimize innovation cost
Answer: a) Create superior customer value and sustainable growth

A new product development strategy should start with:
a) Customer needs and market trends
b) Competitor pricing
c) Advertising plans
d) Production volume
Answer: a) Customer needs and market trends

Which of the following is a primary internal source for new ideas?
a) R&D department
b) Customers
c) Government agencies
d) Market intermediaries
Answer: a) R&D department

What is the purpose of the innovation funnel?
a) To filter and refine new ideas systematically
b) To accelerate marketing promotions
c) To expand distribution channels
d) To identify competitors
Answer: a) To filter and refine new ideas systematically

The “voice of the customer” is most critical during:
a) Concept development
b) Commercialization
c) Market rollout
d) Pricing strategy
Answer: a) Concept development

What is the best indicator of market readiness for a new product?
a) Consumer adoption intent
b) Production efficiency
c) Distribution reach
d) Advertising cost
Answer: a) Consumer adoption intent

The main objective of idea generation is to:
a) Capture as many new product ideas as possible
b) Reduce R&D cost
c) Design packaging
d) Plan distribution
Answer: a) Capture as many new product ideas as possible

Brainstorming sessions help firms to:
a) Generate creative ideas collaboratively
b) Select final designs
c) Determine pricing
d) Conduct testing
Answer: a) Generate creative ideas collaboratively

The key output of concept testing is:
a) Consumer reactions and acceptance potential
b) Production feasibility
c) Design blueprint
d) Promotional plan
Answer: a) Consumer reactions and acceptance potential

Which of the following can be a barrier to innovation?
a) Rigid corporate culture
b) Market research
c) Customer engagement
d) Open collaboration
Answer: a) Rigid corporate culture

What does a “product concept statement” describe?
a) The core benefits the product will deliver
b) The ad campaign plan
c) Distribution channels
d) Production cost
Answer: a) The core benefits the product will deliver

During the idea screening stage, the focus is on:
a) Selecting ideas that fit company strategy
b) Market positioning
c) Branding decisions
d) Testing advertisements
Answer: a) Selecting ideas that fit company strategy

What does “time to market” mean in product development?
a) The time from concept to commercialization
b) The duration of advertising campaigns
c) Product shelf life
d) Lead time in delivery
Answer: a) The time from concept to commercialization

The biggest risk of skipping market testing is:
a) Launching a product that fails customer expectations
b) Lower R&D cost
c) Higher awareness
d) Faster approval
Answer: a) Launching a product that fails customer expectations

New product adoption by consumers is fastest when:
a) The relative advantage is high
b) The product is complex
c) Switching cost is high
d) The product is expensive
Answer: a) The relative advantage is high

In developing new offerings, ‘compatibility’ means:
a) How well the product fits with existing habits and values
b) The strength of the packaging
c) The promotional frequency
d) The number of sales channels
Answer: a) How well the product fits with existing habits and values

What is the purpose of the “beta testing” phase?
a) To gather user feedback on near-final products
b) To finalize the packaging
c) To test pricing models
d) To launch the product
Answer: a) To gather user feedback on near-final products

A company pursuing continuous innovation focuses on:
a) Regularly improving existing products
b) Avoiding product change
c) Entering unrelated markets
d) Reducing prices
Answer: a) Regularly improving existing products

The most critical success factor in new product launches is:
a) Market understanding and timing
b) Internal politics
c) Random testing
d) Heavy advertising
Answer: a) Market understanding and timing

Product lifecycle management (PLM) supports:
a) Managing the entire product journey from concept to decline
b) Only initial design
c) Marketing alone
d) Post-sales service
Answer: a) Managing the entire product journey from concept to decline

What is a brand extension?
a) Using an existing brand name for a new product
b) Creating a new brand for the same product
c) Merging with another company
d) Launching a new firm
Answer: a) Using an existing brand name for a new product

Cross-functional teams in innovation are formed to:
a) Speed up coordination between departments
b) Replace project managers
c) Focus only on R&D
d) Reduce workforce
Answer: a) Speed up coordination between departments

The PLC curve for new products typically starts with:
a) Introduction stage
b) Maturity
c) Growth
d) Decline
Answer: a) Introduction stage

Which of the following reduces innovation risk?
a) Co-creation with customers
b) Limited feedback
c) Narrow focus groups
d) Poor testing
Answer: a) Co-creation with customers

First-mover advantage refers to:
a) The benefits of being the first to enter a market
b) Imitating successful competitors
c) Delayed market entry
d) Late product introduction
Answer: a) The benefits of being the first to enter a market

Why do many new products fail?
a) Poor market research or product-market fit
b) High advertising
c) Strong competition
d) Fast development
Answer: a) Poor market research or product-market fit

A firm can use test markets to:
a) Forecast demand before full-scale launch
b) Increase ad reach
c) Cut production cost
d) Avoid promotions
Answer: a) Forecast demand before full-scale launch

Product development speed is increased through:
a) Agile and iterative development models
b) Sequential approval chains
c) Extended reviews
d) Bureaucratic control
Answer: a) Agile and iterative development models

In Kotler’s view, innovation thrives in organizations with:
a) Open communication and collaboration
b) Strict hierarchies
c) Low employee engagement
d) Isolated teams
Answer: a) Open communication and collaboration

What type of innovation modifies existing products for new segments?
a) Adaptive innovation
b) Disruptive innovation
c) Radical innovation
d) Incremental innovation
Answer: a) Adaptive innovation

Which stage involves prototype creation and testing?
a) Product development
b) Commercialization
c) Idea screening
d) Market analysis
Answer: a) Product development

A strong go-to-market strategy ensures:
a) A successful product launch and adoption
b) Reduced advertising costs
c) Slower time to market
d) Less competition
Answer: a) A successful product launch and adoption

A new product’s pricing strategy must consider:
a) Perceived customer value
b) Competitor slogans
c) Supplier preferences
d) Employee count
Answer: a) Perceived customer value

Trialability in innovation means:
a) Customers can experiment with the product before purchase
b) High switching costs
c) Immediate mass production
d) Complex usage
Answer: a) Customers can experiment with the product before purchase

Which adopter group is most skeptical about innovations?
a) Laggards
b) Early adopters
c) Innovators
d) Early majority
Answer: a) Laggards

The diffusion of innovation model was introduced by:
a) Everett Rogers
b) Philip Kotler
c) Peter Drucker
d) Theodore Levitt
Answer: a) Everett Rogers

Kotler states that innovation success depends on:
a) Customer focus and internal commitment
b) Large advertising budgets
c) High product margins
d) Market monopoly
Answer: a) Customer focus and internal commitment

Open innovation contrasts with closed innovation by:
a) Using external ideas and collaboration
b) Keeping R&D internal only
c) Ignoring customer input
d) Reducing transparency
Answer: a) Using external ideas and collaboration

Product design plays a key role in:
a) User satisfaction and brand differentiation
b) Advertising frequency
c) Pricing discounts
d) Reducing promotion
Answer: a) User satisfaction and brand differentiation

A “minimum viable product” (MVP) refers to:
a) The simplest version that satisfies early users
b) The final commercial version
c) The cheapest prototype
d) The product with full features
Answer: a) The simplest version that satisfies early users

Which test predicts long-term product success best?
a) Market acceptance testing
b) Lab experiment
c) Price sensitivity test
d) Brand recall test
Answer: a) Market acceptance testing

A strong innovation culture includes:
a) Rewarding creativity and experimentation
b) Avoiding risks
c) Strict approval chains
d) Centralized decision-making
Answer: a) Rewarding creativity and experimentation

The term “product architecture” refers to:
a) The design structure and functional layout of a product
b) The marketing channel
c) The promotional calendar
d) The cost breakdown
Answer: a) The design structure and functional layout of a product

Customer-driven innovation depends heavily on:
a) Continuous feedback loops
b) Low R&D investment
c) Advertising frequency
d) Competitor imitation
Answer: a) Continuous feedback loops

Which of the following increases new product success probability?
a) Market-oriented development
b) Imitation
c) Random experimentation
d) Price cutting
Answer: a) Market-oriented development

Brand equity can accelerate:
a) New product acceptance and diffusion
b) Market saturation
c) Advertising cost
d) Competitive imitation
Answer: a) New product acceptance and diffusion

Companies practicing design thinking focus on:
a) Human-centered innovation
b) Manufacturing cost
c) Channel efficiency
d) Promotion timing
Answer: a) Human-centered innovation

Innovations that improve existing processes are:
a) Process innovations
b) Product innovations
c) Radical innovations
d) Marketing innovations
Answer: a) Process innovations

Market development involves:
a) Introducing existing products into new markets
b) Developing new brands
c) Reducing market scope
d) Limiting innovation
Answer: a) Introducing existing products into new markets

Product testing ensures:
a) Product meets technical and customer requirements
b) Increased advertising
c) Lower competition
d) Faster decline
Answer: a) Product meets technical and customer requirements

Innovation ecosystems are created when:
a) Firms collaborate with customers, suppliers, and partners
b) Companies operate in isolation
c) Only R&D is involved
d) Marketing is outsourced
Answer: a) Firms collaborate with customers, suppliers, and partners