Question 1

According to the Small Business Administration, 10% of all new product innovations come from small businesses.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  outstanding products 
B)  cash cows 
C)  winners 
D)  purple cows

Question 3

The product development team will rely on feedback to decide what a product will look like.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The majority of product ideas come from _____.

Accepted Answer

A)  medium-size organizations 
B)  large organizations 
C)  marketing consultants 
D)  small businesses and entrepreneurs

Question 6

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:
$
\begin{array}{ll}
\text{Cost (to you) per pair of shoes}&	\$80\
\text{Sales commission per pair of shoes}&	\$10\
\text{Managers’ Salaries}	&\$420,000\
\text{Rent	}&\$120,000\
\text{Advertising}&	\$20,000\
\text{Insurance	}&\$16,000\
\text{Miscellaneous fixed costs}&	\$24,000\
\text{Selling price per pair of shoes}&	\$160
\end{array}$
-How much is the variable cost per unit

Accepted Answer

A)  $80 
B)  $10 
C)  $250 
D)  $90

Question 7

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

Accepted Answer

A)  150,000 pairs of shoes 
B)  15,000 pairs of shoes 
C)  3,000 pairs of shoes 
D)  75,000 pairs of shoes

Question 8

A(n) _____ team consists of individuals from different functional areas assigned to work together throughout the product development process.

Accepted Answer

A)  operations 
B)  project 
C)  product 
D)  functional

Question 9

A company plans to forecast its sales for high-end kitchen appliances sold wholesale to home remodeler contractors in the Lehigh Valley. What would their expected annual sales be based on the following information: 150,000 existing households and 20,000 new construction; average remolded home spends $3000 in appliances; company expects 10% of the households to perform a kitchen remodel project in the next 12 months with 50% using a contractor and 50% doing it themselves. The company hopes to capture a 10% market share their first year.

Accepted Answer

A)  $2,550,000 
B)  $4,500,000 
C)  $9,000,000 
D)  $2,250,000

Question 10

By making Christmas decorations available the day after Thanksgiving, Holly's Holiday Shop is offering customers what kind of utility

Accepted Answer

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

Question 11

Woody Allen once said, "If you're not failing every now and again, it's a sign you're not going to be very profitable."

Accepted Answer

A) True 
 B)False

Question 12

Businesses in the same industry don't generally compete with each other.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  Psychographic 
B)  Geographic 
C)  Income 
D)  Demographic

Question 14

Products are either physical goods or services and can't be both.

Accepted Answer

A) True 
 B)False

Question 15

Individuals from different functional areas who are assigned to work together throughout the product development process are known as the operations team.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Taking an online course gives you which type of utility

Accepted Answer

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

Question 18

Once you receive your patent from the U.S. Patent and Trademark Office, it is good around the world.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  segment your market 
B)  identify your competitors 
C)  analyze your market 
D)  hire the right employees

Question 20

Its market share is a whole industry's portion of its target market.

Accepted Answer

A) True 
 B)False

Exam 10: Product Design and Development

According to the Small Business Administration, 10% of all new product innovations come from small businesses.

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

The product development team will rely on feedback to decide what a product will look like.

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

The majority of product ideas come from _____.

A(n) _____ team consists of individuals from different functional areas assigned to work together throughout the product development process.

By making Christmas decorations available the day after Thanksgiving, Holly's Holiday Shop is offering customers what kind of utility

Woody Allen once said, "If you're not failing every now and again, it's a sign you're not going to be very profitable."

Businesses in the same industry don't generally compete with each other.

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

Products are either physical goods or services and can't be both.

Individuals from different functional areas who are assigned to work together throughout the product development process are known as the operations team.

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

Taking an online course gives you which type of utility

Once you receive your patent from the U.S. Patent and Trademark Office, it is good around the world.

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

Its market share is a whole industry's portion of its target market.