Deck 15: Product Development and Supply Chain Management

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

All small firms want to grow.

Question 9

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

Question 10

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

Question 11

Strategies for goods marketing and services marketing are essentially identical.

Question 12

Innovative packaging is frequently a deciding factor for consumers.

Question 13

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

Question 14

Small firms develop significantly more innovations than small companies.

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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 21

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

A)Fortune magazine reports that 93 percent of 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 percent as many innovations per employee as large firms.
C)According to Clayton Christensen,60 percent of all new products end up failing or performing well below expectations.
D)Small entrepreneurial firms produce twice as many innovations per employee as large firms.

Question 22

Channel management is synonymous with the term logistics.

Question 23

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

Question 24

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 25

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

Question 26

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

Question 27

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

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

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

Question 30

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

Question 31

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

Question 32

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

Question 33

Physical distribution of products includes only transportation.

Question 34

Distribution includes only the physical movement of products.

Question 35

3PLs are considered more cost effective by many small businesses because it allows the company to focus on the primary operations and outsource the accounting challenges to another company.

Question 36

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 37

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

Question 38

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

Question 39

Successful growth

A)happens on its own.
B)occurs only when certain factors are carefully considered and well managed.
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 40

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 41

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 42

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 43

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 44

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 45

When a product mix has more product lines,it is has greater

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

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

Amazon.com is a

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

Question 48

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 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

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 51

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 52

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 53

Pepsico produces and distributes products under the brand names Pepsi,Quaker,Frito-Lay,and many others.This collection of product lines within Pepsico's ownership and control is referred to as the:

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

Question 54

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 55

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 toward 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 56

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 57

The profit curve is the lowest 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

Beatrice is comtemplating 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 60

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 61

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 62

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 63

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 64

The activities of physically moving a product is

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

Question 65

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 66

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 67

Intermediaries exist because

A)they provide more efficient means of distrubtion 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 68

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 69

Will,Max and Isaac are brothers and owners of Wood Toys of Yesterday,a company specializing in handmade wood toys typical of the late 1800's.The business had been a part-time enterprise when a national magazine did an October cover story on the company and sales rose by 200% over their normal holiday increase.Make suggestions to them for the company to survive this rapid increase in growth especially considering the nature of their business and the timing of the increase.

Question 70

Small businesses should view distribution costs as

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

Question 71

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 72

Since Love Languages has decided to sell its tutoring service on CDs 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 73

The intermediary relationship in which ownership is transferred is

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

Question 74

How can a successfully growing firm fall into a growth trap?

Question 75

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 76

Erica has registered protection for 14 years that covers a new process she has designed.Erica owns a:

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

Question 77

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 78

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 79

Love Languages is introducing an improved version of its tutoring targeted to students who want 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 80

Buzz-Buzz Express is a small firm that sells honey bees domestically.Once purchased,the bees are flown using FedEx.Buzz-Buzz Express uses a

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