Exam 7: Product Design and Development

If you've concluded that you have a potential product for which people will pay money,your next step is to _____.

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: -What is the breakeven point in units?

The majority of product ideas come from entrepreneurs and small business owners.

A _____ is a narrowly defined group of potential customers with a fairly specific set of needs.

All of the following are characteristics of a typical entrepreneurial start-up except:

The goal of the "design with manufacturing in mind" step in the product development process is to:

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. -The product development process at BetterBuilt begins and ends with the evaluation of opportunities and selection of the best product ideas.

During the _____ stage,employees are trained in manufacturing and products are carefully inspected for residual flaws.

A niche is a widely defined group of potential customers with a fairly broad set of needs.

The breakeven point in units is calculated using this formula: fixed costs divided by contribution margin per unit.

To be granted a patent,a product must have some value.

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 second-year demand for your jogging shoes?

A _____ business offers such products as haircuts or taxi rides.

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. -In such activities as greeting customers,seating them,taking their orders,cooking their food,and serving them,Connie's staff is providing _____.

An example of a "new-to-the-company" product sold by Just Born is _____.

A product is something that can be marketed to customers because it provides them with a benefit and satisfies a need.

A street vendor selling hotdogs outside an office building is creating place utility.

All of the following can make product development a risky proposition except _____.

The product concept describes what the product might look like and how it might work.

You should document your idea as soon as you think of it.This can be done by filling out a form,stating the purpose of your invention and the current date,and then sign it and have someone else witness it.