Test Bank for Operations
Management 3rd Edition By
Gerard Cachon, Christian
Terwiesch (All Chapters 1-20,
100% Original Verified, A+
Grade)
All Chapters Arranged Reverse:
20-1
Answers at The End of Each
Chapter.
This is the Original Test Bank
for 3rd Edition, All Other Files
in the Market are Wrong/Old
Questions.
,Chapter 20
Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Innovations only create financial value.
⊚ true
⊚ false
2) A product development process translates an opportunity into a new product or service.
⊚ true
⊚ false
3) The primary needs of a product or service are the most important needs of the consumer.
⊚ true
⊚ false
4) The fidelity of prototypes tends to increase as the product development process unfolds.
⊚ true
⊚ false
5) Avoiding failure should be the main focus in new product development.
⊚ true
⊚ false
6) The actual probability of purchase of a new product is often lower than the percentage of
customers who respond positively to the purchase intent survey.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
7) An innovation is a/an _________ between customer needs and solutions in the form of
physical goods or services.
A) novel match
B) existing match
C) unoriginal mismatch
D) novel mismatch
Version 1 1
,Chapter 20
8) Twitter as a new social media platform provided a novel _________ to an _________.
A) solution, existing user need
B) need, existing product
C) solution, unmet user need
D) need, unmet product
9) Besides being a novel match between a _________ and a solution, an innovation should also
create _________.
A) cost, a fad
B) cost, value
C) need, a fad
D) need, value
10) A new product or service creates a _________ value if it costs _________ to supply the new
product or service than customers are willing to pay.
A) social, more
B) social, less
C) financial, more
D) financial, less
11) A key function for a business development or R&D unit in an organization is to identify a/an
_________.
A) opportunity
B) problem
C) operation
D) purpose
12) Which of the following statements about innovations is TRUE?
A) The novelty associated with an innovation can only come from the demand side.
B) The novelty associated with an innovation can only come from the supply side.
C) All innovations are incremental.
D) Innovations can be refinements of existing solutions.
13) _________ innovations tend to serve _________ customers.
A) Incremental, new
B) Incremental, existing
C) Internal, new
D) Internal, existing
Version 1 2
, Chapter 20
14) Which of the following is TRUE concerning a horizon 3 innovation?
A) It is incremental with a lot of novelty.
B) It is incremental with little novelty.
C) It is radical with a lot of novelty.
D) It is radical with little novelty.
15) A firm can innovate in many ways EXCEPT _________.
A) creating new production processes
B) creating new products or services
C) creating new markets
D) creating new problems
16) An opportunity is a new product or service at the _________ state.
A) completion
B) embryonic
C) advanced
D) stable
17) Which of the following is TRUE concerning a horizon 1 innovation?
A) It is incremental with a lot of novelty.
B) It is incremental with little novelty.
C) It is radical with a lot of novelty.
D) It is radical with little novelty.
18) A product development process involves all of the following activities EXCEPT _________.
A) opportunity identification
B) sales forecasting
C) needs identification
D) concepts generation
19) Which of the following is an input to a product development process?
A) Opportunity identification
B) Sales forecasting
C) Needs identification
D) Concepts generation
Version 1 3
Management 3rd Edition By
Gerard Cachon, Christian
Terwiesch (All Chapters 1-20,
100% Original Verified, A+
Grade)
All Chapters Arranged Reverse:
20-1
Answers at The End of Each
Chapter.
This is the Original Test Bank
for 3rd Edition, All Other Files
in the Market are Wrong/Old
Questions.
,Chapter 20
Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Innovations only create financial value.
⊚ true
⊚ false
2) A product development process translates an opportunity into a new product or service.
⊚ true
⊚ false
3) The primary needs of a product or service are the most important needs of the consumer.
⊚ true
⊚ false
4) The fidelity of prototypes tends to increase as the product development process unfolds.
⊚ true
⊚ false
5) Avoiding failure should be the main focus in new product development.
⊚ true
⊚ false
6) The actual probability of purchase of a new product is often lower than the percentage of
customers who respond positively to the purchase intent survey.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
7) An innovation is a/an _________ between customer needs and solutions in the form of
physical goods or services.
A) novel match
B) existing match
C) unoriginal mismatch
D) novel mismatch
Version 1 1
,Chapter 20
8) Twitter as a new social media platform provided a novel _________ to an _________.
A) solution, existing user need
B) need, existing product
C) solution, unmet user need
D) need, unmet product
9) Besides being a novel match between a _________ and a solution, an innovation should also
create _________.
A) cost, a fad
B) cost, value
C) need, a fad
D) need, value
10) A new product or service creates a _________ value if it costs _________ to supply the new
product or service than customers are willing to pay.
A) social, more
B) social, less
C) financial, more
D) financial, less
11) A key function for a business development or R&D unit in an organization is to identify a/an
_________.
A) opportunity
B) problem
C) operation
D) purpose
12) Which of the following statements about innovations is TRUE?
A) The novelty associated with an innovation can only come from the demand side.
B) The novelty associated with an innovation can only come from the supply side.
C) All innovations are incremental.
D) Innovations can be refinements of existing solutions.
13) _________ innovations tend to serve _________ customers.
A) Incremental, new
B) Incremental, existing
C) Internal, new
D) Internal, existing
Version 1 2
, Chapter 20
14) Which of the following is TRUE concerning a horizon 3 innovation?
A) It is incremental with a lot of novelty.
B) It is incremental with little novelty.
C) It is radical with a lot of novelty.
D) It is radical with little novelty.
15) A firm can innovate in many ways EXCEPT _________.
A) creating new production processes
B) creating new products or services
C) creating new markets
D) creating new problems
16) An opportunity is a new product or service at the _________ state.
A) completion
B) embryonic
C) advanced
D) stable
17) Which of the following is TRUE concerning a horizon 1 innovation?
A) It is incremental with a lot of novelty.
B) It is incremental with little novelty.
C) It is radical with a lot of novelty.
D) It is radical with little novelty.
18) A product development process involves all of the following activities EXCEPT _________.
A) opportunity identification
B) sales forecasting
C) needs identification
D) concepts generation
19) Which of the following is an input to a product development process?
A) Opportunity identification
B) Sales forecasting
C) Needs identification
D) Concepts generation
Version 1 3
