Exam 7: Product Design and Development

A fixed cost varies,in total,as the quantity of goods sold changes but stays constant on a per-unit basis.

Dan the Dog Groomer estimates that 600 poodle owners in Decatur will bring their dogs to his shop during his first year of business.Dan probably arrived at this number by trying to calculate his market share.

If you ordered french fries with your hamburger and were given a raw potato instead,the restaurant failed to provide you with form utility.

In an effort to make its food healthier,McDonald's changed the way it made its french fries.This is an example of a:

Most companies constantly look for ways to make ________improvements in existing products by adding features that will broaden their consumer appeal.

His job,according to Doug Hall,head of a Cincinnati-based idea factory,is to help executives get their creative juices flowing.

Connie’s is a regional chain of family style restaurants in the Midwest. Over the years, Connie Sedgewick has been an innovative, hard working businessperson who’s expanded her business to 15 locations in four states. A “calling card” of her restaurants is the superior customer service provided by the entire staff and the ability to add and change menu items for local customer preferences. Connie has a good working relationship with suppliers, employees, and customers and a good reputation in the communities where she does business. -Conceivably,Connie could get new product or service ideas from _____.

Breakeven point in units is the excess of revenue per unit over variable cost per unit.

You can protect the rights to your idea with a _____.

BetterBuilt Products, a large machine shop in the Pacific Northwest, employs 138 people in design, accounting, sales, purchasing, production, and delivery. The company’s machined products are of the highest quality, production almost always stays “on track,” and delivery generally meets or exceeds customer expectations. Management regularly looks for ways to improve effectiveness and efficiency of operations by reducing production/cycle time and cutting costs. -A project team is formed at BetterBuilt when management assembles personnel from different functional areas to work together throughout the product development process.

Individuals from various functional areas who work together to design a product are called _____.

For every successful product,a company has _____failures.

Let’s say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how many pairs of shoes you have to sell in the first year to break even (have no profit or loss). You also want to know what your profit will be in year two. You have been busy estimating some revenues and costs. Here is what you have so far: -If you end up selling 12,000 pairs of shoes the first year,how much profit will you make?

Your goal is to sell jogging shoes to those 65 and other who live in Florida. Here is some information you have collected: (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida. (3) Florida attracts 20% of all people who move when they retire. (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older. (5) You estimate that your sales will increase by 25% in year 2. -What is the estimated first-year demand for your jogging shoes?

Which of the following is a market segment?

To be protected from patent infringement in several countries outside the U.S. ,you have to apply for a U.S.patent as well as an international patent.

Peggy Deardon's DVDs classifies its rental movies according to categories such as "Action," "Comedy," "Foreign," "Children's," and so on.Which of the following is Peggy Deardon's primary standard for segmenting its market?

Talking to people in your prospective industry can be especially helpful if your proposed product is a service.

All of the following are reasons why product development is a risky proposition except:

Entrepreneur and marketing consultant Seth Goodin refers to truly remarkable products as _____.