Deck 15: Product Development and Supply Chain Management

Question 1

Packaging has very little to do with increasing the value of the total product by creating a distinctive impression.

Answer 1

False

Question 2

In the physical development stage of the product development process, new products are analyzed resulting in ideas failing to show possible profitability being discarded.

Answer 2

False

Question 3

Innovative packaging is frequently a deciding factor for consumers.

Answer 3

True

Question 4

A small firm's "special signature" is called a logo.

Question 5

All small firms want to grow.

Question 6

It is important that small firms gain a competitive advantage which cannot be quickly imitated.

Question 7

Because growth in sales is perceived as good for business, no changes will be needed in personnel, operations, or management style.

Question 8

Small firms develop significantly more innovations than small companies.

Question 9

The product life cycle and competitive advantage life cycle differ in that the product life cycle reflects trends for a specific product or service, whereas the competitive advantage life cycle is based on multiple products or services.

Question 10

Labeling information can be limited to the minimum legal requirements as the warranty will cover the information.

Question 11

Because they have limited resources, small business need not formalize the product development process.

Question 12

Product testing is the last step in the product development process.

Question 13

If inventory needs grow with higher sales, the increase in accounts receivables will cover this cost.

Question 14

Celestina Pugliese, creator of Ready Check Glo, felt her product served an overlooked market.

Question 15

A growth trap occurs when more cash is needed for a company faster than can be generated in profits.

Question 16

A brand includes the verbal identification of a product, as well as symbols or other means of identifying a product.

Question 17

During the competitive advantage life cycle, firms can exploit a competitive advantage during the develop stage.

Question 18

A bed and breakfast inn that adds a restaurant that is open to the public is an example of unrelated product offerings.

Question 19

Strategies for goods marketing and services marketing are essentially identical.

Question 20

Trademarks and service marks are legal terms indicating the exclusive right to use a brand.

Question 21

A utility patent covers the appearance of a product and everything that is an inseparable part of the product.

Question 22

Thanks to national press, Wonderful Gifts has had 100% more orders placed than last quarter. The company could be caught in a ______ if proper planning does not occur.

A) growth net
B) growth trap
C) profit net
D) profit trap

Question 23

Growing quickly

A) is expected for most businesses.
B) can be stressful if the company is not prepared.
C) should be easy if the owner has the correct management style.
D) will keep most business functions the same, just larger in scope.

Question 24

A garden center selling two types of mint has one product item in two product lines.

Question 25

Which statement is true about company growth?

A) Successful growth occurs on it own.
B) A high-growth firm's need for additional financing may exceed its available resources, even though the venture is profitable.
C) Inventory needs will increase while account receivables will decrease with growth.
D) While rapid growth may stress personnel, the increase in pay will be sufficient.

Question 26

F.O.B. origin, freight collect, is a delivery term that shifts all responsibility for freight costs to the buyer.

Question 27

The three main considerations in structuring a channel of distribution are cost, coverage, and customer service.

Question 28

If a firm extends a janitorial cleanser from the industrial market to reach the home market, it is following a one product/multiple markets strategy.

Question 29

Physical distribution of products includes only transportation.

Question 30

Which statement is correct concerning the role of innovation for small businesses?

A) Inc. magazine reports that 13 of 30 company founders reported that their business turned out to be nothing like their original venture concept.
B) Studies have shown that small entrepreneurial firms produce 95% as many innovations per employee as large firms.
C) According to Clayton Christensen, 60% of all new products end up failing or performing well below expectations.
D) According to Clayton Christensen, 93 % of all innovations that eventually became successful started out in the wrong direction.

Question 31

Given the complexity of the task, entrepreneurs must use an attorney to conduct a trademark search.

Question 32

A direct channel of distribution is one that involves only one intermediary.

Question 33

Annabelle's company makes pottery. She would like to expand her business and is looking for ideas. What advice would you give her?

A) Think outside the box; go into a completely different line of products.
B) Pursue innovation that customers will perceive as adding excitement to their lives.
C) Base innovative efforts on her experience.
D) Focus on products or services offered by her largest competitors.

Question 34

Trade dress describes those elements of a firm's distinctive operating image that are specifically protected under a trademark, patent, or copyright.

Question 35

Distribution is essential for tangible goods, but not for intangible goods.

Question 36

Distribution includes only the physical movement of products.

Question 37

Shippers that own their own means of transport are called private carriers.

Question 38

According to the Food and Drug Administration regulations, food products must have a standard nutrition label listing the amount of calories, fat, salt, and nutrients in the product.

Question 39

Channel management is synonymous with the term logistics.

Question 40

Delivery terms specify which party pays the freight costs, selects carriers, bears the risk of damage, and selects the modes of transport.

Question 41

Beatrice is contemplating whether to offer a warranty on her product. She should remember that warranties are important for products:

A) that are relatively inexpensive.
B) that are frequently purchased.
C) that are relatively complex to repair.
D) regardless of how they are positioned in the market.

Question 42

A legal term indicating the exclusive right of a firm to use a brand to identify a product is a

A) copy mark.
B) trademark.
C) service mark.
D) trade dress.

Question 43

The business analysis stage of new product development is critical since

A) one to three years may pass before profits are realized.
B) it is hard to attract the 10 percent of the total market that is needed for a new product success.
C) products often fail in laboratory and marketing testing.
D) All of the above support the importance of the business analysis stage.

Question 44

Furniture Shine is introducing an improved version of its existing wax targeted to owners of antiques. The firm has decided to leave the original wax in the mix aimed towards residential owners. Furniture Shine is employing a _____ product strategy.

A) multiple products/one market
B) multiple products/multiple markets
C) modified product/one market
D) modified product/multiple markets

Question 45

High performing companies

A) adjust strategies for changing customer needs before rivals.
B) downgrade capabilities as competitive advantages move into the decline stage.
C) hire people to drive new growth once the growth is identified.
D) All of the above are completed by high performing firms.

Question 46

Products must be carefully analyzed in terms of financial considerations in the _____ stage of the product development process.

A) business analysis
B) idea accumulation
C) product testing
D) physical product development

Question 47

Before a company's competitive advantage moves into the decline stage, it should

A) invest resources to develop a competitive advantage.
B) continue deploying the competitive advantage as long as it can.
C) slow the decline as much as possible.
D) implement previously developed plans for the hidden curves.

Question 48

Bagels Bagels Bagels, a small breakfast bagel bakery, has expanded into sandwiches for lunch using bagels. They are now employing a _____ product strategy.

A) one product/one market
B) one product/multiple markets
C) modified product/one market
D) modified product/multiple markets

Question 49

Judy is opening a small business producing high-quality paper products and has decided to place a green pine tree on all product boxes and on the sign outside the facilities to symbolize the business. At this point, the symbol is an example of a

A) brandmark.
B) brand name.
C) service mark.
D) trademark.

Question 50

Joe has redesigned an app that helps businesses organize their taxes after a rival gained market share. The IRS and the Society of Certified Public Accountants have said the app meets tax standards. The app would be considered a(n)

A) sustainable competitive advantage.
B) strategic alliance.
C) competitive adjustment.
D) business process reengineering.

Question 51

Coca-Cola produces and distributes products under the brand names Coke, Minute Made, Dasani, and many others. This collection of product lines within a Coca-Cola's ownership and control is referred to as the:

A) product depth.
B) product accumulation.
C) product line consistency.
D) product mix.

Question 52

The product life cycle, as opposed to the competitive advantage life cycle,

A) helps an entrepreneur visualize the sales and profits of a product from the time it is introduced until it is no longer on the market.
B) details when a strength can be used in the market and when not to attack a rival.
C) reflects sales trends for the company's multiple products or services.
D) is based on the overall sales of the total product or service line.

Question 53

A sustainable competitive advantage is

A) rarely appreciated by the firm's owners.
B) of little consequence to profitability.
C) an idealized position that is unachievable in reality.
D) a value-creating industry position that is likely to endure over time.

Question 54

Arden has designed an artistic design to complement his product's name to assist customers in identifying his product. These are commonly as referred to as a:

A) brand.
B) trademark.
C) service mark.
D) trade dress.

Question 55

To maintain performance, a small business must launch a new competitive advantage

A) and keep that competitive advantage alive.
B) and make adjustments to that competitive advantage over time.
C) that causes rival firms to respond.
D) before the current strategy has run its course.

Question 56

When a product line has more items, it is has greater

A) breath.
B) consistency.
C) depth.
D) lines.

Question 57

The profit curve is the highest in which stage of the product life cycle?

A) Decline
B) Growth
C) Introduction
D) Maturity

Question 58

Carrigan has just launched his new business. He has great plans for expansion later but for now, the most appropriate and effective product strategy to use in this stage of his small business is the _____ product strategy.

A) one product/one market
B) one product/multiple markets
C) multiple products/one market
D) The strategy depends on the product or service.

Question 59

iPad is a

A) brand.
B) label.
C) logo.
D) trademark.

Question 60

If a small firm is to maintain its performance over time, it is essential to

A) continue to reinvent themselves.
B) extend the competitive advantage of the firm.
C) replicate the strategies that have led to success in the past.
D) retain the personnel who made the firm successful in the first place.

Question 61

A product strategy that includes a new product that is quite different from existing products

A) can be more challenging to manage.
B) is often used by small businesses.
C) will likely determine the future direction of the firm.
D) is encouraged, as long as it represents no more than half of the firm's product offerings.

Question 62

The intermediary relationship that involves the transfer of ownership is

A) agents.
B) brokers.
C) merchant middlemen.
D) supply chain managers.

Question 63

A copyright provides protection for the duration of the creator's life, plus

A) 25 years.
B) 70 years.
C) 75 years.
D) 100 years.

Question 64

Euginie has written a poem that she plans to print inside the greeting cards she will publish. Her work is automatically protected but Euginie should include on the back of her greeting cards

A) the symbol ©.
B) the date the work was published.
C) the name of the copyright owner's company.
D) a listing of all other copyrights held by the owner.

Question 65

Love Languages is introducing an improved version of its tutoring targeted to students wanting more in-depth assistance using a CD format. The company has decided to continue to offer their original tutoring package and aim the new product at the original target market; therefore they are employing a ____ product strategy.

A) multiple products/one market
B) multiple products/multiple markets
C) modified product/one market
D) modified product/multiple markets

Question 66

The three considerations in building a channel of distribution are

A) cost, coverage, and control.
B) cost, coverage, and compatibility.
C) coverage, control, and compatibility.
D) cost, control, and compatibility.

Question 67

Both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of the products are included in

A) channels.
B) distribution.
C) intermediaries.
D) logistics.

Question 68

When Gavin sells his product to a ____, the storage function is transferred to the intermediary.

A) agents
B) brokers
C) common carriers
D) wholesalers

Question 69

The distinctive operating image of a product, including features such as size, shape, color or color combinations, texture, graphics, or even particular sales techniques, can be protected

A) by copyright.
B) by patent.
C) as trade dress.
D) as a registered concept.

Question 70

Franklin sells his product in a bricks-and-mortar store and online. Franklin is using:

A) channel integration.
B) dual distribution.
C) intermediary replication.
D) multiple distribution.

Question 71

Small businesses should view distribution costs as

A) prohibitive.
B) sunk costs.
C) an investment.
D) Two of the above are true.

Question 72

Match the term with its definition.
a.Brand
g.Indirect channel
b.Brand image
h.Patent
c.Brand name
i.Service mark
d.Brandmark
j.Trade dress
e.Design patent
k.Trademark
f.Direct channel
l.Utility patent
A distribution system without intermediaries

Question 73

The activities of physically moving a product is

A) channel management.
B) distribution.
C) logistics.
D) supply chain management.

Question 74

Since Love Languages has decided to sell its tutoring service on CD's through an online site as well as the traditional format of personal tutors, they are relying on

A) a direct channel of distribution.
B) an indirect channel of distribution.
C) a dual distribution channel.
D) a multiple-outlet distribution channel.

Question 75

Intermediaries exist because

A) they provide more efficient means of distribution than the product producer.
B) they are able to reach geographic areas with much less expense.
C) they have lower risk levels since they don't have ownership of the goods.
D) they specialize in products for specific customer needs.

Question 76

Match the term with its definition.
a.Brand
g.Indirect channel
b.Brand image
h.Patent
c.Brand name
i.Service mark
d.Brandmark
j.Trade dress
e.Design patent
k.Trademark
f.Direct channel
l.Utility patent
The overall perception of a brand

Question 77

Match the term with its definition.
a.Brand
g.Indirect channel
b.Brand image
h.Patent
c.Brand name
i.Service mark
d.Brandmark
j.Trade dress
e.Design patent
k.Trademark
f.Direct channel
l.Utility patent
A legal term indicating that a company has the exclusive right to use a brand to identify a service

Question 78

Cooking for Collin, a small manufacturer of holiday cakes, sells its product through independent retailers and mail-order marketing. Cooking for Collin is relying on

A) a direct channel of distribution.
B) an indirect channel of distribution.
C) a dual distribution channel.
D) a multiple-outlet distribution channel.

Question 79

Devon has registered protection for 14 years that covers his product's inseparable parts. Devon owns a:

A) design patent.
B) plant patent.
C) utility patent.
D) Two of the above are correct.

Question 80

Equine Express, a small firm that transports horses both domestically and internationally, flies the horses it purchases on one of two company-owned planes. Equine Express operates as a

A) common carrier.
B) public carrier.
C) private carrier.
D) contract carrier.