Question 1

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

Accepted Answer

PepsiCo's collection of product lines is referred to as its product mix. The product mix includes all of the product lines and individual products that a company offers for sale.

Question 2

A sustainable competitive advantage is

Accepted Answer

A sustainable competitive advantage is essentially a value-creating position that can withstand competitors' attempts to erode it. Such a position can provide long-term profitability to the firm that possesses it. Thus, option D is the correct answer. The other options are incorrect; owners typically place a premium on sustainable competitive advantages, it is crucial to profitability, and while challenging, a sustainable competitive advantage can be achieved by building and fortifying market dominance over the long term.

Question 3

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)

Accepted Answer

The fact that the app meets tax standards as approved by the IRS and Society of Certified Public Accountants gives it a sustainable competitive advantage over its rival, as it can now offer a more reliable and trustworthy service to businesses in need of tax organization.

Question 4

High-performing companies

Accepted Answer

High-performing companies are proactive in their strategic planning and are able to adjust their strategies in response to changing customer needs before their competitors. This allows them to stay ahead of the curve and maintain a competitive advantage. Downgrading capabilities and hiring people for growth are not necessarily traits of high-performing companies, as these actions may indicate a reactive approach to the market rather than a proactive one.

Question 5

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

Accepted Answer

To maintain performance over time, a small firm must continuously adapt and innovate to remain relevant in the market. This requires a willingness to change and reinvent oneself, rather than relying solely on past strategies or retaining the same personnel. Therefore, the most essential factor for a small firm to maintain its performance over time is to continue to reinvent itself.

Question 6

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

Accepted Answer

The business analysis stage of new product development is where the financial considerations of a product are analyzed. This includes calculating costs, potential profits, return on investment, and break-even points. It is important for a company to carefully consider the financial aspects of a product before moving forward with development and launch.

Question 7

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

Accepted Answer

During the Introduction stage, profits are typically the lowest as the product is being introduced to the market, costs are high, and sales volume is low.

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

Implementing previously developed plans for the hidden curves allows the company to adapt and potentially extend its competitive advantage by anticipating changes and preparing for them in advance.

Question 10

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

Accepted Answer

The one product/one market strategy is the most appropriate for a new small business. It allows the business to focus its resources on perfecting one product for one specific market before expanding to other products or market segments. This helps to ensure that the product is well received and successful before investing in additional products or markets.

Question 11

Judy is opening a small business that will produce 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

Accepted Answer

A brandmark is a symbol, design, or distinctive coloring or lettering that identifies a brand. In this case, the green pine tree serves as the symbol to identify the business and its paper products.

Question 12

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

Accepted Answer

The product life cycle helps an entrepreneur to understand the sales and profits of a product from its introduction to its decline, while the competitive advantage life cycle focuses on the strengths and weaknesses of a product in relation to its competitors. Therefore, option A is the best choice as it describes the purpose of the product life cycle.

Question 13

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

Accepted Answer

The term "breadth" refers to the number of product lines that a company offers. Therefore, having more product lines increases the breadth of the product mix.

Question 14

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

Accepted Answer

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

Question 15

Which of the following brands generates trust in the minds of buyers by conveying to them a sense of happiness?

Accepted Answer

Coca-Cola is known for its bright red packaging, classic logo, and cheerful advertising campaigns that convey a sense of happiness and positive emotions to consumers. This, in turn, generates trust in the minds of buyers who associate the brand with positive experiences and emotions.

Question 16

The business analysis stage of the new product development process is critical because

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 17

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

Accepted Answer

Warranties are important for products that are relatively complex to repair. This is because such products may require specialized expertise and expensive repair services, which could deter customers from buying them unless they are assured of a warranty that covers these costs. Additionally, warranties can help build customer trust and loyalty, which can benefit the company in the long run.

Question 18

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

Accepted Answer

Bagels Bagels Bagels is using its bagels (one product) in a new way by expanding into sandwiches for lunch, thereby targeting both breakfast and lunch customers (multiple markets).

Question 19

A legal term indicating that a firm has exclusive rights to use a brand to represent a product is a

Accepted Answer

A trademark is a legal term indicating that a firm has exclusive rights to use a brand to represent a product. A copy mark does not exist as a legal term, while a service mark is a type of trademark used to represent a service rather than a product. Trade dress refers to the visual appearance of a product and can also be protected under trademark law, but it is not the term used to specifically indicate that a firm has exclusive rights to use a brand to represent a product.

Question 20

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.

Accepted Answer

Furniture Shine is modifying its product (improved wax) for a specific market segment (owners of antiques) while keeping the original product for another market segment (residential owners), thus targeting multiple markets.

Quiz 15: Product Development and Supply Chain Management