Question 1

Which of the following items is typically not included in a concept statement?
A) a description of the product or service being offered
B) a description of how the product or service will be sold and distributed
C) a description of how much money the new venture needs
D) the benefits of the product or service
E) the intended target market

Accepted Answer

A concept statement typically focuses on describing the product, its benefits, intended target market, and the strategy to sell and distribute it. The statement may briefly mention financial needs, but not specify an exact dollar amount as this is typically addressed in a separate section of a business plan.

Question 2

________ is the process of determining whether a business idea is viable.
A) Feasibility analysis
B) Opportunity recognition
C) Likelihood analysis
D) Achievability analysis
E) Scenario analysis

Accepted Answer

Feasibility analysis is the process of evaluating the feasibility or practicality of a business idea, including factors such as market demand, competition, resources required, and potential profitability. It helps entrepreneurs make informed decisions about whether to proceed with a new venture or abandon the idea. Option B, C, D, and E are not accurate descriptions of this process.

Question 3

Think Gum, the company profiled in the opening feature for Chapter 3, produces gum. The idea behind Think Gum is to produce a gum that includes ingredients that improve concentration and memory. Think Gum initial target market was:
A) electronic game enthusiasts
B) extreme sports enthusiasts
C) college students
D) athletics
E) business professionals

Accepted Answer

The opening feature of Chapter 3 discusses how Think Gum was initially marketed towards college students as a way to improve their focus and performance while studying. While the gum could potentially be beneficial for all of the listed target markets, college students were the primary focus at the start.

Question 4

The two components of product/service feasibility analysis are:
A) product/service desirability and product/service demand for similar products
B) product/service demand and total start-up cash needed
C) product/service desirability and management prowess
D) product/service desirability and product/service demand
E) product/service demand and target market attractiveness

Accepted Answer

The two components of product/service feasibility analysis are product/service desirability and product/service demand. These factors help determine whether there is a need or desire for the product/service in the market. By considering both factors, entrepreneurs can assess whether their product/service idea is viable and likely to succeed.

Question 5

A ________ survey is an instrument that is used to gauge customer interest in a product or service.
A) buying intentions
B) purchase intent
C) product demand
D) consumer interest
E) shopper intent

Accepted Answer

The answer of A ________ survey is an instrument that...

Question 6

According to the textbook, which is the proper sequence of events in developing successful business ideas?
A) opportunity recognition, feasibility analysis, development of a business plan
B) feasibility analysis, opportunity recognition, development of a business plan
C) development of a business plan, opportunity recognition, feasibility analysis
D) feasibility analysis, development of a business plan, opportunity recognition
E) development of a business plan, feasibility analysis, opportunity recognition

Accepted Answer

The first step in developing successful business ideas is to recognize opportunities in the market. Once an opportunity is identified, it is important to conduct a feasibility analysis to determine if the idea is viable. This analysis should examine factors such as the target market, competition, and potential costs and revenue. Finally, a business plan should be developed to outline the details of the business idea, including marketing strategies, financial projections, and operational plans. Therefore, the proper sequence is opportunity recognition, feasibility analysis, and development of a business plan.

Question 7

Brian James is in the process of developing an exciting new product in the electronic games industry. He'd like show a preliminary description of the product to industry experts and prospective customers to solicit their feedback. Brian should complete and distribute a:
A) perception statement
B) usability statement
C) early adopter statement
D) concept statement
E) adoption risk-reward statement

Accepted Answer

A concept statement is designed to provide a brief description of a product or service in development. It outlines the key features and benefits of the product and may include images or diagrams. Concept statements are often used to solicit feedback from industry experts and potential customers to refine the development process.

Question 8

Which of the following is not a part of assessing the product/service feasibility of a business idea?
A) buying intentions survey
B) gumshoe research
C) library research
D) assessment of total start-up cash needed
E) concept test

Accepted Answer

Assessing total start-up cash needed is a part of assessing financial feasibility, not product/service feasibility.

Question 9

Primary research is:
A) original research and is collected by the entrepreneur
B) research that is already collected and is available online
C) research that is stored in an official government depository
D) research that is collected by an impartial third party
E) research that is collected by an industry trade association

Accepted Answer

Primary research is original research that is collected by the entrepreneur themselves. This can include surveys, interviews, and observations conducted specifically for the purpose of answering specific research questions.

Question 10

Janice McDaniel recently surveyed 200 of her classmates to get a sense of the demand for a new software product she is working on. Collecting data via a survey you administer yourself is referred to as:
A) key research
B) principal research
C) primary research
D) secondary research
E) initial research

Accepted Answer

Primary research refers to data that is collected firsthand by the researcher, which is what Janice did by surveying her classmates. Choices A, B, D, and E are not the appropriate terms to describe this type of research.

Question 11

Which of the following is an incorrect approach to administering a concept test?
A) The concept statement shouldn't exceed one page.
B) After the concept statement is developed, it should be shown to at least 10 people.
C) The best candidates to distribute a concept statement to are family and friends.
D) If time permits, a concept statement should be used in a iterative manner and distributed to several groups of people.
E) A short survey should be attached to the concept statement to solicit feedback.

Accepted Answer

Family and friends are not necessarily representative of the target market or audience for the concept being tested. It is important to select participants who are representative of the target market or audience for the most accurate feedback.

Question 12

The What Went Wrong feature in Chapter 3 is titled "eBay Drop-Off Stores: How Feasible Were They? What was it about the potential feasibility of eBay Drop-Off stores that worried skeptics from the beginning?
A) That the stores would not have enough "quality" merchandise to sell on eBay and that the variety of items the stores would be asked to sell would be too broad.
B) That consumers were losing interest in eBay and that the stores would not have enough "quality" merchandise to sell on eBay.
C) That eBay was attracting too many competitors and that consumers were becoming increasing Internet savvy making it easier for them to sell items online auctions themselves rather than relying on an intermediary like an eBay Drop Off store.
D) That the variety of items the stores would be asked to sell would be too broad and that consumers were losing interest in online auctions.
E) That consumers were losing interest in online auctions and that eBay was declining in terms of its popularity.

Accepted Answer

Skeptics were concerned that eBay Drop-Off stores might struggle to obtain enough quality merchandise and that the range of items they would need to handle could be too diverse, making operations challenging.

Question 13

________ feasibility is an assessment of the overall appeal of the product or service being proposed.
A) Consumer
B) Industry/market segment
C) Industry/market
D) Product/service
E) Purchaser/end-user

Accepted Answer

The answer of ________ feasibility is an assessment of the...

Question 14

Which of the following is not one of the four areas of feasibility analysis discussed in the textbook?
A) product/service feasibility
B) financial feasibility
C) institutional feasibility
D) organizational feasibility
E) industry/market feasibility

Accepted Answer

The four areas of feasibility analysis discussed in the textbook are product/service feasibility, financial feasibility, organizational feasibility, and industry/market feasibility. Institutional feasibility is not one of the four areas.

Question 15

Jennifer Burroughs is thinking about starting a firm in the upscale fashion industry. To get a full appreciation of the competitive nature of the industry, and how she might position her products, Jennifer has spent considerable time looking at industry-related publications, Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues. Jennifer is conducting:
A) primary research
B) secondary research
C) action research
D) temporary research
E) purposeful research

Accepted Answer

Jennifer is conducting secondary research by reviewing industry-related publications, using Hoover's Online, and accessing ABI-Inform. Secondary research involves gathering data from existing sources rather than directly from primary sources.

Question 16

Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of:
A) secondary research
B) action research
C) principal research
D) legacy research
E) vertical research

Accepted Answer

These sources are all examples of secondary research, which means that they are information that has already been gathered and published by someone else. Secondary research can be a valuable first step in conducting research because it can provide a wealth of background information, data, and insights at a relatively low cost. Other types of research include primary research (research that is conducted firsthand) and exploratory research (research that is aimed at gaining a better understanding of a problem or phenomenon).

Question 17

The two components of product/service feasibility analysis are product/service desirability and:
A) product/service value
B) product/service durability
C) market timeliness
D) product/service affordability
E) product/service demand

Accepted Answer

Product/service feasibility analysis involves assessing both the desirability and demand for the product/service to ensure there is a market need and interest.

Question 18

A ________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent.
A) concept test
B) product/service statement
C) impression test
D) idea prospectus
E) idea test

Accepted Answer

A concept test involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent. The other options either do not accurately describe this process, or are not commonly used terms within marketing and product development.

Question 19

Tim Hughes is distributing an instrument, which includes a concept statement with a short survey attached, to try to gauge customer interest in a product he is developing. Tim is distributing a:
A) shopper intent survey
B) consumer interest survey
C) product demand survey
D) buying intentions survey
E) purchase intent survey

Accepted Answer

The survey being distributed by Tim Hughes is focused on the customer's buying intentions or purchasing plans for the product he is developing, which makes it a buying intentions survey.

Question 20

Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environmental trend, solve a problem, or fill a gap in the marketplace? These are the types of questions asked during the ________ component of a compete feasibility analysis.
A) financial feasibility
B) industry/target market feasibility
C) organizational feasibility
D) concept feasibility
E) product/service feasibility

Accepted Answer

These questions are typically asked during the product/service feasibility component, which assesses whether a product or service is viable and appealing to consumers, and if it addresses a market need or trend.

Quiz 3: Feasibility Analysis

Which of the following items is typically not included in a concept statement?

________ is the process of determining whether a business idea is viable.

Think Gum, the company profiled in the opening feature for Chapter 3, produces gum. The idea behind Think Gum is to produce a gum that includes ingredients that improve concentration and memory. Think Gum initial target market was:

The two components of product/service feasibility analysis are:

A ________ survey is an instrument that is used to gauge customer interest in a product or service.

According to the textbook, which is the proper sequence of events in developing successful business ideas?

Brian James is in the process of developing an exciting new product in the electronic games industry. He'd like show a preliminary description of the product to industry experts and prospective customers to solicit their feedback. Brian should complete and distribute a:

Which of the following is not a part of assessing the product/service feasibility of a business idea?

Primary research is:

Janice McDaniel recently surveyed 200 of her classmates to get a sense of the demand for a new software product she is working on. Collecting data via a survey you administer yourself is referred to as:

Which of the following is an incorrect approach to administering a concept test?

The What Went Wrong feature in Chapter 3 is titled "eBay Drop-Off Stores: How Feasible Were They? What was it about the potential feasibility of eBay Drop-Off stores that worried skeptics from the beginning?

________ feasibility is an assessment of the overall appeal of the product or service being proposed.

Which of the following is not one of the four areas of feasibility analysis discussed in the textbook?

Trade journals, industry-related publications, government statistics, and competitors' Web sites are examples of:

The two components of product/service feasibility analysis are product/service desirability and:

A ________ involves showing a preliminary description of a product or service idea to prospective customers to gauge customer interest, desirability, and purchase intent.

Tim Hughes is distributing an instrument, which includes a concept statement with a short survey attached, to try to gauge customer interest in a product he is developing. Tim is distributing a:

Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environmental trend, solve a problem, or fill a gap in the marketplace? These are the types of questions asked during the ________ component of a compete feasibility analysis.