Exam 10: Product Design and Development

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 would be used to forecast your demand for year 1

Which of the following is a market segment

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

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

All of the following are types of utility that customers value except _____.

To research an industry, you begin by looking at smaller sectors of the industry.

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

An idea turns into business success when it has commercial potential.

What is the purpose of a patent?

Which of the following statement(s) about entrepreneurs is true

In coming up with a product idea, you should ask "what do I want to sell."

Describe breakeven analysis.

All of the following are necessary criteria for obtaining a patent except:

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

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

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: Cost (to you) per pair of shoes \8 0 Sales commission per pair of shoes \1 0 Managers’ Salaries \4 20,000 Rent \1 20,000 Advertising \2 0,000 Insurance \1 6,000 Miscellaneous fixed costs \2 4,000 Selling price per pair of shoes \1 60 -What is the breakeven point in units

Identify and describe the four major types of product development. Provide an example of each.

Those costs that don't vary with quantity of goods sold are called ______.

For every successful product, a company has _____failures.

Variable costs don't change when the amount of goods sold changes.