Question 1

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

Accepted Answer

A) the product idea has profit potential 
B) the product idea is new 
C) the product idea is not obvious 
D) the product idea has utility

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The key to coming up with a great product idea is finding a product you are passionate about.

Accepted Answer

A) True 
 B)False

Question 5

To decide what new products to come out with or what old products to improve,businesses rely on:

Accepted Answer

A) marketing consultants. 
B) a team of individuals from inside the company that reviews and evaluates the potential ideas. 
C) the opinion of the company's CEO. 
D) the heads of the marketing and accounting departments.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Using _____ analysis allows you to determine the level of sales that you must reach in order to avoid losing money.

Accepted Answer

A) receivership 
B) breakeven 
C) equity 
D) revenue

Question 8

The ramp-up stage of the product development process is used to identify any needed design changes.

Accepted Answer

A) True 
 B)False

Question 9

If your proposed business was a frozen yogurt store in Michigan,you could get an estimate of the number of customers you might have if you asked those leaving a bakery in California if they'd buy frozen yogurt in the winter.

Accepted Answer

A) True 
 B)False

Question 10

An industry is a group of related businesses.

Accepted Answer

A) True 
 B)False

Question 11

An idea turns into a business opportunity when:

Accepted Answer

A) people like the product. 
B) it is a quality product. 
C) it can be made cheaply. 
D) it has commercial potential.

Question 12

Seth Gordon,marketing consultant and author,refers to truly remarkable products as "jackpots."

Accepted Answer

A) True 
 B)False

Question 13

After identifying a group of potential customers,your next step is to _____.

Accepted Answer

A) find out what they think of your product idea 
B) find funding for your product 
C) manufacture a prototype 
D) collate the industry data that you've collected

Question 14

When a Domino's delivery person brings a pepperoni pizza to your dorm room,this is an example of _____.

Accepted Answer

A) Time utility 
B) Ownership utility 
C) Form utility 
D) Place utility

Question 15

Which of the following is not an approach commonly used by medium and large organizations to identify product development opportunities?

Accepted Answer

A) Establish entrepreneurial units in their organizations 
B) Hire "creativity" consultants 
C) Talk with potential customers 
D) All of the above are approaches used to identify product opportunities

Question 16

Contribution margin per unit is the excess of revenue per unit over fixed cost per unit.

Accepted Answer

A) True 
 B)False

Question 17

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.
-The food and beverages that Connie's serves are best classified as _____.

Accepted Answer

A) services 
B) products 
C) combination services/products 
D) amenities

Question 18

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

Accepted Answer

A) have lots of ideas 
B) ask yourself what you want to sell 
C) be creative 
D) seek product ideas from people inside your organization

Question 19

Which of the following is not a risk in developing a profitable product.

Accepted Answer

A) Need to make many trade-offs (often between quality and cost) 
B) Must make hundreds of decisions under extreme time pressure 
C) Being the first to market (which is vital)requires large sums of money 
D) All of the above are true

Question 20

The selling price per unit minus the variable cost per unit is called _____.

Accepted Answer

A) contribution margin per unit 
B) the breakeven point in units 
C) survival price 
D) fixed price

Exam 7: Product Design and Development

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

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

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

The key to coming up with a great product idea is finding a product you are passionate about.

To decide what new products to come out with or what old products to improve,businesses rely on:

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

Using _____ analysis allows you to determine the level of sales that you must reach in order to avoid losing money.

The ramp-up stage of the product development process is used to identify any needed design changes.

If your proposed business was a frozen yogurt store in Michigan,you could get an estimate of the number of customers you might have if you asked those leaving a bakery in California if they'd buy frozen yogurt in the winter.

An industry is a group of related businesses.

An idea turns into a business opportunity when:

Seth Gordon,marketing consultant and author,refers to truly remarkable products as "jackpots."

After identifying a group of potential customers,your next step is to _____.

When a Domino's delivery person brings a pepperoni pizza to your dorm room,this is an example of _____.

Which of the following is not an approach commonly used by medium and large organizations to identify product development opportunities?

Contribution margin per unit is the excess of revenue per unit over fixed cost per unit.

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

Which of the following is not a risk in developing a profitable product.

The selling price per unit minus the variable cost per unit is called _____.