Exam 10: Product Design and Development

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

By making liquid refreshment available when it's needed, a concessionaire selling bottled water at a summer concert is creating place utility.

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

Which of the following is the smallest division of customers

SCENARIO-BASED 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

SCENARIO-BASED 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. -Which of the following piece(s) of information would be used to forecast your demand for year 2

The product development process results in the generation of new business ideas.

His job, according to Doug Hall, head of a Cincinnatibased idea factory, is to turn old goods into new services.

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

Most entrepreneurial decision making can be improved by using knowledge gained from personal experience.

You can even get a patent on something that is useless.

A physical model of a product is called a ramp-up.

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

Of the following, _____ is the best example of a company's proprietary information.

Getting feedback to refine the product concept is one of the seven steps in the _____ process.

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

To come up with good businesses ideas you should do all of the following except _____.

When Just Born reduced the piece size, added some new ingredients, and put its Mike & Ike's in pouches, this was an extension to an existing product.

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

When you buy a product and get a receipt, you are receiving a form of ownership utility.