Question 1

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.

Accepted Answer

The answer of Annabelle's company makes pottery.She would like to...

Question 2

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.

Accepted Answer

The redesigned app gives Joe's business a sustainable competitive advantage over the rival by meeting tax standards and improving the app's overall functionality.

Question 3

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.

Accepted Answer

A sustainable competitive advantage is a position a firm holds that is not easily replicated by competitors, which creates value and is likely to continue over time. This advantage can come from a unique product or service, brand recognition, proprietary technology or processes, economies of scale, or other factors that allow the firm to outperform its rivals. Such advantages are highly valued by the firm's owners as they contribute significantly to its profitability and long-term success.

Question 4

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.

Accepted Answer

To maintain performance over time, a small firm must continually adapt and innovate to stay ahead of the competition. This means reinventing themselves and extending their competitive advantage.

Question 5

When a product mix has more product lines,it is has greater
A)breadth.
B)consistency.
C)depth.
D)lines.

Accepted Answer

Breadth refers to the number of product lines offered by a company. Therefore, a product mix with more product lines would have greater breadth.

Question 6

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

Accepted Answer

The business analysis stage involves evaluating the feasibility of bringing the product to market, including assessing the financial viability by analyzing costs, potential revenue, and profit margins.

Question 7

Amazon.com is a
A)brand.
B)label.
C)logo.
D)trademark.

Accepted Answer

Amazon.com is a trademark, as it is a unique identifier for the company's products and services and is legally protected. While Amazon.com also uses a brand, label, and logo in its marketing and branding, these terms do not fully capture the legal protections and distinctiveness of a trademark.

Question 8

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.

Accepted Answer

The answer of Before a company's competitive advantage moves into...

Question 9

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.

Accepted Answer

A brandmark is a symbol or logo that represents a company or product. In this case, the green pine tree is being used as a symbol to represent Judy's paper products business.

Question 10

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.

Accepted Answer

The answer of To maintain performance,a small business must launch...

Question 11

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.

Accepted Answer

The product life cycle helps an entrepreneur understand how sales and profits will evolve over time with introduction of the product until it is taken off the market. It does not focus on attacking rivals or reflect sales trends for multiple products.

Question 12

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.

Accepted Answer

The business analysis stage is critical because it involves assessing the financial viability of the new product, including the time it may take to realize profits, which can be one to three years.

Question 13

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.

Accepted Answer

Pepsico's collection of product lines under their ownership and control is referred to as the product mix. The product mix includes all the product lines produced and distributed by a company.

Question 14

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.

Accepted Answer

High performing companies are able to adjust their strategies and offerings to meet changing customer needs before their rivals, giving them a competitive advantage. This requires agility and the ability to quickly adapt to changes in the market. Downgrading capabilities and hiring people for growth are not necessarily actions taken by all high performing companies, and are dependent on the specific circumstances of each organization.

Question 15

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

Accepted Answer

The answer of Furniture Shine is introducing an improved version...

Question 16

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.

Accepted Answer

The answer of Arden has designed an artistic design to...

Question 17

The profit curve is the lowest in which stage of the product life cycle?
A)Decline
B)Growth
C)Introduction
D)Maturity

Accepted Answer

In the Introduction stage, costs are high due to product development and marketing, while sales are low, leading to the lowest profit or even losses.

Question 18

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.

Accepted Answer

In the initial stage of a small business, it is important to focus on one product and one market. This strategy will allow the business to establish a strong foothold in a particular market segment by offering a product that meets the specific needs of that market. Carrigan can then use the feedback and experience gained from this initial launch to refine and improve the product before expanding to multiple markets or launching multiple products. This approach also allows for a narrower focus, which can help to conserve resources and reduce the risk of spreading the business too thin.

Question 19

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.

Accepted Answer

Warranties are more important for products that are relatively complex to repair as the cost of repairs could be significantly higher, making customers hesitant to purchase without a warranty.

Question 20

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.

Accepted Answer

A trademark is a legal term indicating the exclusive right of a firm to use a brand to identify a product. A copy mark is not a recognized legal term, a service mark is a type of trademark that identifies a service rather than a product, and trade dress refers to the overall appearance and image of a product, rather than just the brand name.

Quiz 15: Product Development and Supply Chain Management

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

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 is

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

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

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

Amazon.com is a

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

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

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

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

The business analysis stage of new product development is critical since

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:

High performing companies

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.

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:

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

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.

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

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