Product Development and Management Flashcards

What does 'product line depth' refer to in a company's product mix?

Answer: The number of product variants or items within a specific product line

Product line depth refers to the number of distinct versions, sizes, or variants offered within a single product line, giving customers more choices within that category.

Which stage of the new product development funnel typically eliminates the greatest number of initial ideas?

Answer: Idea screening

Idea screening is the first major filter that quickly eliminates concepts that are not technically feasible, strategically aligned, or commercially promising, reducing hundreds of ideas to a manageable few.

A company adds a lower-priced product to its existing premium product line to appeal to budget-conscious consumers. This is an example of:

Answer: Line stretching downward

Downward line stretching adds lower-priced, simpler products to an established line to reach more price-sensitive market segments or to counter low-end competitor threats.

What is a 'product roadmap' primarily used for in product management?

Answer: Planning the sequence, priorities, and timeline of product development milestones

A product roadmap is a strategic planning document that communicates the vision, direction, priorities, and planned evolution of a product over a defined time horizon.

Which of the following best describes 'perceptual mapping' as used in product positioning?

Answer: A visual tool showing how consumers perceive competing products along key attribute dimensions

Perceptual maps plot consumer perceptions of competing products on axes representing key attributes such as price versus quality, revealing positioning opportunities and competitive gaps.

In a stage-gate product development process, what is the primary purpose of each 'gate'?

Answer: To evaluate progress and make a go, kill, hold, or redirect decision on the project

Gates are structured decision checkpoints where cross-functional management teams review project deliverables and criteria to decide whether to continue, modify, hold, or terminate the initiative.

What is the key principle behind 'co-creation' in product development?

Answer: Actively involving customers or external stakeholders in the product design and development process

Co-creation engages customers, users, or external partners as active contributors in the design process, resulting in products that more closely align with actual market needs and preferences.