NPDP Practice Questions

    1. The strategy defined by Miles and Snow for those companies that rapidly follow Prospector companies is________.

    a. Responder

    b. Defender

    c. Analyzer

    d. Reactor

    2. What quantitative market research tool should be used to identify a gap in the products offered to a market? Choose the best answer.

    a. Secondary research

    b. Lead users

    c. Any appropriate multivariate technique

    d. On-line forums

    3. Which pair of variables is NOT common in visual bubble chart displays of the balance of a portfolio?

    a. Risk versus reward

    b. Net present value versus return on investment

    c. Cost versus benefit

    d. Ease versus attractiveness

    4. Gates are defined as decision points based on deliverables, criteria, and outputs. Outputs include?

    a. Financial statements

    b. Yes or no decisions

    c. The highs and lows of impact and probability

    d. Go, kill, hold, recycle decisions

    5. Which of the following is the product life cycle stage when the company must make tough decisions about what to do with the product as sales decrease?

    a. Introduction

    b. Growth

    c. Maturity

    d. Decline

    6. One of the most commonly referred to success factors, relating to team formation, for product development projects is…

    a. Cross-functional representation

    b. Lots of creative team members

    c. A strong project leader

    d. Team members who enjoy each other’s’ company

    7. When developing metrics for a company, which of the following is a consideration in this process?

    a. The scope of the measurement (e.g. business unit-wide, project-wide)

    b. The time-frame of the measurement (e.g. past results, current performance)

    c. The audience for the measurement (e.g. executives, middle managers)

    d. All of the above

    8. Who should be involved in the application of scoring new product opportunities:

    a. a cross-functional team

    b. only the marketing manager

    c. only the new product manager

    d. only the Chief Executive

    9. A company has decided on a name for its new product. The company has done an extensive search and has established that no other company or product is using this name. What form of Intellectual Property right should that company apply for to register the name?

    a. Patent

    b. Trademark

    c. Copyright

    d. Trade secret

    10. Who is responsible for the strategic results of a new product development process in an organization?

    a. Stage-Gate manager

    b. Chief executive

    c. Process owner

    d. Scrum manager

    11. Key elements of Agile new product process includes the scrum, the scrum master, the scrum team, the sprint, the product backlog, and?

    a. Stakeholders

    b. Project manager

    c. Product owner

    d. Product champion

    12. In sustainable development to abbreviation D4E stands for…

    a. Design for Extinction

    b. Development for the Environment

    c. Design for Evolution

    d. Design for the Environment

    13. SWOT analysis can be used for ideation. What does SWOT address?

    a. Strengths, weaknesses, opportunities, and threats

    b. Strategy, willingness, organization, and teamwork

    c. Strategy, weakness, organization, and threat

    d. Strengths, willingness, opportunities, and teamwork.

    14. Secondary research should be conducted…

    a. mainly during the late stages of a project.

    b. when ethnographic research cannot be conducted.

    c. before primary research.

    d. after primary research.

    15. In considering your portfolio in terms of market risk and technology risk, which combination is usually most desirable?

    a. Low market risk, low technology risk

    b. Low market risk, high technology risk

    c. High market risk, low technology risk

    d. High market risk, high technology risk

    16. Most product development activity is focused on _______.

    a. New brands

    b. Line extensions

    c. Derivatives and product improvement

    d. New to world products

    17. A unit of work small enough to be completed by the team in one sprint iteration is called?

    a. Product backlog item

    b. Scrum

    c. Concept evaluation

    d. TPS

    18. The primary benefit of a Focus Group in marketing research is _____.

    a. The ability to develop broad insights

    b. Low cost

    c. Ease of execution

    d. Deep insights

    19. Elements of cost include all of the following except:

    a. fixed costs

    b. variable costs

    c. capital costs

    d. recurring costs

    20. A value proposition should focus on _____________, not ____________?

    a. Features, benefits

    b. Benefits, costs

    c. Revenue, costs

    d. Benefits, features


    Answer Key

    1. C
    2. C
    3. B
    4. D
    5. D
    6. A
    7. D
    8. A
    9. B
    10. C
    11. C
    12. D
    13. A
    14. C
    15. A
    16. C
    17. A
    18. D
    19. D
    20. D

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