CIPM () Exam | Questions and Verified Answers|
Graded A| 100% Correct
Product innovation charter - ANSWERis a plan for the firm's initiatives in new
product development. It provides the clarification of goals and a common language
for all personnel involved in new products.
Background - ANSWERkey ideas from the situation analysis, special forces such as
managerial dicta, reasons for preparing a new PIC.
Focus - ANSWERat least one clear technology dimension and one clear market
dimension. They match and have good potential.
Goals-Objectives - ANSWERWhat the project will accomplish, either short term as
objectives or longer term as goals. Evaluation measurements.
Guidelines - ANSWERAny requirements imposed by the situation or by the upper
management. Innovativeness, order of market entry, time/quality/cost,
miscellaneous.
Why is a PIC used? - ANSWERNPD is a cross-functional activity and the PIC helps
teams to stay on the same page.
PICs provide common language for members to follow.
Reduces the chances of scope creep and unstable product specifications.
Crawford and Di Benedetto 2008 - ANSWER86% of the best firms had a PIC as
opposed to only 69% for the rest.
Consumer involvement in the NPD - ANSWERInvolving consumers as active
participants in the NPD process proposed as a superior approach to arms length
research.
Consumers are more empowered so they are increasingly able to contribute to
marketing activities
It can be argued that ideas generated by consumers will more closely mirror
consumer needs.
How can consumers be involved in NPD - ANSWERConsumers can provide valuable
input at almost any stage of the NPD process.
There are a variety of approaches to consumer involvement e.g. crowdsourcing.
Different approaches will vary in their scope and intensity and may be more useful at
different stages of the NPD process.
How can firms encourage consumer involvement? - ANSWERThrough financial
incentives.
By providing social benefits or rewards.
Promoting the opportunity to gain technology/product knowledge.
,Promoting the enjoyment or psychological benefits likely to be gained.
Making clear what the objectives of the project are.
Risks of consumer involvement - ANSWERIncreased risk of information leakage.
A loss of control for the firm which could be dangerous regarding launch/
commercialisation/ communications.
Increased complexity in the NPD process so how can consumer involvement be
operationalised.
Potentially facilitate minor innovations at the expensive of more radical
opportunities.
Solomon 2013 - ANSWERPerceived risk is the belief that the product has potentially
negative consequences from using or not using the product or service.
Types of risk - ANSWERMonetary.
Functional.
Physical.
Social.
Psychological.
Time.
Monetary risk - ANSWERaka financial risk.
Associated with finances and costs.
Product associations.
Segment of consumer.
Cost vs value or affordability.
Reduction strategy
Functional risk - ANSWERProduct performance.
Product risk.
More complex or unfamiliar products.
Consumers affected.
Product types.
Physical risk - ANSWERWill the product prevent me from being hurt.
Product and service examples.
Consumers affected.
Safety of regulation.
Social risk - ANSWERPerception from others
Product associations
Consumers affected
Importance of reference groups such as Halloween costume.
Psychological risk - ANSWEREgo risk.
How the product makes me feel about myself.
Product associations
, Consumers affected
Negative aspect
Time risk - ANSWERIs a consumer's time well spent such as decision making.
Consequences.
Examples of reduce time.
Perceived risk - ANSWERVery personable.
Differs depending on what is being consumed.
Different degree of risks.
How consumers handle risk - ANSWERSeek information.
Seek reassurance.
Stay brand loyal.
Select brand image.
Rely on store image.
By the most expensive items.
Internet search.
How can retailers reduce risk - ANSWERExtending problem solving.
Experiential offering
Offering money back guarantees.
Offer performance warrantees.
Offering easy to return merchandise.
Online activity.
Rogers' S-Curve theory of diffusion - ANSWERInnovators.
Early adopters.
Early majority.
Late majority.
Lagards.
Innovators - ANSWERFirst group to try new products.
Specific characteristics are well educated, young, confident, financially strong.
Seek out new products.
Most risk taking consumers.
Approximately 2.5% of buying population.
Specialist distribution channels.
Early Adopters - ANSWERAccelerate adoption process.
13.5% of the market.
Less experience than innovators with finding information.
Specific characteristics are risk takers, youngest group, above average education,
financially stable, most communicative group.
Early Majority - ANSWERProduct moving into mass market.
Finished product.
Graded A| 100% Correct
Product innovation charter - ANSWERis a plan for the firm's initiatives in new
product development. It provides the clarification of goals and a common language
for all personnel involved in new products.
Background - ANSWERkey ideas from the situation analysis, special forces such as
managerial dicta, reasons for preparing a new PIC.
Focus - ANSWERat least one clear technology dimension and one clear market
dimension. They match and have good potential.
Goals-Objectives - ANSWERWhat the project will accomplish, either short term as
objectives or longer term as goals. Evaluation measurements.
Guidelines - ANSWERAny requirements imposed by the situation or by the upper
management. Innovativeness, order of market entry, time/quality/cost,
miscellaneous.
Why is a PIC used? - ANSWERNPD is a cross-functional activity and the PIC helps
teams to stay on the same page.
PICs provide common language for members to follow.
Reduces the chances of scope creep and unstable product specifications.
Crawford and Di Benedetto 2008 - ANSWER86% of the best firms had a PIC as
opposed to only 69% for the rest.
Consumer involvement in the NPD - ANSWERInvolving consumers as active
participants in the NPD process proposed as a superior approach to arms length
research.
Consumers are more empowered so they are increasingly able to contribute to
marketing activities
It can be argued that ideas generated by consumers will more closely mirror
consumer needs.
How can consumers be involved in NPD - ANSWERConsumers can provide valuable
input at almost any stage of the NPD process.
There are a variety of approaches to consumer involvement e.g. crowdsourcing.
Different approaches will vary in their scope and intensity and may be more useful at
different stages of the NPD process.
How can firms encourage consumer involvement? - ANSWERThrough financial
incentives.
By providing social benefits or rewards.
Promoting the opportunity to gain technology/product knowledge.
,Promoting the enjoyment or psychological benefits likely to be gained.
Making clear what the objectives of the project are.
Risks of consumer involvement - ANSWERIncreased risk of information leakage.
A loss of control for the firm which could be dangerous regarding launch/
commercialisation/ communications.
Increased complexity in the NPD process so how can consumer involvement be
operationalised.
Potentially facilitate minor innovations at the expensive of more radical
opportunities.
Solomon 2013 - ANSWERPerceived risk is the belief that the product has potentially
negative consequences from using or not using the product or service.
Types of risk - ANSWERMonetary.
Functional.
Physical.
Social.
Psychological.
Time.
Monetary risk - ANSWERaka financial risk.
Associated with finances and costs.
Product associations.
Segment of consumer.
Cost vs value or affordability.
Reduction strategy
Functional risk - ANSWERProduct performance.
Product risk.
More complex or unfamiliar products.
Consumers affected.
Product types.
Physical risk - ANSWERWill the product prevent me from being hurt.
Product and service examples.
Consumers affected.
Safety of regulation.
Social risk - ANSWERPerception from others
Product associations
Consumers affected
Importance of reference groups such as Halloween costume.
Psychological risk - ANSWEREgo risk.
How the product makes me feel about myself.
Product associations
, Consumers affected
Negative aspect
Time risk - ANSWERIs a consumer's time well spent such as decision making.
Consequences.
Examples of reduce time.
Perceived risk - ANSWERVery personable.
Differs depending on what is being consumed.
Different degree of risks.
How consumers handle risk - ANSWERSeek information.
Seek reassurance.
Stay brand loyal.
Select brand image.
Rely on store image.
By the most expensive items.
Internet search.
How can retailers reduce risk - ANSWERExtending problem solving.
Experiential offering
Offering money back guarantees.
Offer performance warrantees.
Offering easy to return merchandise.
Online activity.
Rogers' S-Curve theory of diffusion - ANSWERInnovators.
Early adopters.
Early majority.
Late majority.
Lagards.
Innovators - ANSWERFirst group to try new products.
Specific characteristics are well educated, young, confident, financially strong.
Seek out new products.
Most risk taking consumers.
Approximately 2.5% of buying population.
Specialist distribution channels.
Early Adopters - ANSWERAccelerate adoption process.
13.5% of the market.
Less experience than innovators with finding information.
Specific characteristics are risk takers, youngest group, above average education,
financially stable, most communicative group.
Early Majority - ANSWERProduct moving into mass market.
Finished product.
