Question 1

A company plans to forecast its sales for high-end kitchen appliances sold wholesale to home remodeler contractors in the Lehigh Valley.What would their expected annual sales be based on the following information: 150,000 existing households and 20,000 new construction;average remolded home spends $3000 in appliances;company expects 10% of the households to perform a kitchen remodel project in the next 12 months with 50% using a contractor and 50% doing it themselves.The company hopes to capture a 10% market share their first year.

Accepted Answer

The answer of A company plans to forecast its sales...

Question 2

Connie’s is a regional chain of family style restaurants in the Midwest. Over the years, Connie Sedgewick has been an innovative, hard working businessperson who’s expanded her business to 15 locations in four states. A “calling card” of her restaurants is the superior customer service provided by the entire staff and the ability to add and change menu items for local customer preferences. Connie has a good working relationship with suppliers, employees, and customers and a good reputation in the communities where she does business.
-In such activities as greeting customers,seating them,taking their orders,cooking their food,and serving them,Connie's staff is providing _____.

Accepted Answer

The activities described, such as greeting customers, seating them, taking their orders, cooking their food, and serving them, are all part of the service provided by the restaurant staff to the customers. These are services because they involve actions performed for the benefit of the customers.

Question 3

Your goal is to sell jogging shoes to those 65 and other who live in Florida.  Here is some information you have collected:  (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida.  (3) Florida attracts 20% of all people who move when they retire.  (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older.  (5) You estimate that your sales will increase by 25% in year 2.
-Which of the following piece(s)of information would be used to forecast your demand for year 2?

Accepted Answer

To forecast demand for year 2, you need to know your initial capture rate (2 percent of Florida joggers) and the expected growth rate (25% increase in year 2).

Question 4

Your goal is to sell jogging shoes to those 65 and other who live in Florida.  Here is some information you have collected:  (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida.  (3) Florida attracts 20% of all people who move when they retire.  (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older.  (5) You estimate that your sales will increase by 25% in year 2.
-Which piece(s)of information is/are irrelevant to the problem?

Accepted Answer

The relevant information for selling jogging shoes to those 65 and older in Florida focuses on the specific population in Florida (600,000 joggers) and the expected market capture and growth rates. The percentage of retirees moving to Florida (20%) and the total number of joggers 65 and older in the U.S. (3 million) are not directly relevant to calculating sales in Florida.

Question 5

Of the following,_____ is the best example of a company's proprietary information.

Accepted Answer

The answer of Of the following,_____ is the best example...

Question 6

On the surface,data published by industry associations seems helpful in estimating sales for your proposed business.But the data is often old and not very helpful.

Accepted Answer

The answer of On the surface,data published by industry associations...

Question 7

Your product idea is to offer cruises for college students.Your market niche is:

Accepted Answer

The correct answer is D) college students who take cruises because it specifically targets the niche market of college students interested in taking cruises, combining both the product (cruises) and the specific demographic (college students).

Question 8

Connie’s is a regional chain of family style restaurants in the Midwest. Over the years, Connie Sedgewick has been an innovative, hard working businessperson who’s expanded her business to 15 locations in four states. A “calling card” of her restaurants is the superior customer service provided by the entire staff and the ability to add and change menu items for local customer preferences. Connie has a good working relationship with suppliers, employees, and customers and a good reputation in the communities where she does business.
-The food and beverages that Connie's serves are best classified as _____.

Accepted Answer

The food and beverages served by Connie's are tangible items that are sold to customers, which classifies them as products.

Question 9

After identifying a group of potential customers,your next step is to _____.

Accepted Answer

Finding out what potential customers think of your product idea is crucial for refining the product and ensuring it meets market needs before moving forward with more resource-intensive steps like manufacturing or seeking funding.

Question 10

Which of the following is/are approaches used to forecast demand for a product?

Accepted Answer

All of these approaches (reviewing industry data on the internet, speaking with competitors, and speaking with potential customers) are valid methods to forecast demand for a product. Each provides valuable insights from different perspectives, contributing to a more comprehensive understanding of market demand.

Question 11

Dan the Dog Groomer estimates that 600 poodle owners in Decatur will bring their dogs to his shop during his first year of business.Dan probably arrived at this number by trying to calculate his market share.

Accepted Answer

Dan likely estimated the number of poodle owners who would bring their dogs to his shop by calculating his expected market share based on the total number of poodle owners in Decatur and how much of that market he believes he can capture.

Question 12

Connie’s is a regional chain of family style restaurants in the Midwest. Over the years, Connie Sedgewick has been an innovative, hard working businessperson who’s expanded her business to 15 locations in four states. A “calling card” of her restaurants is the superior customer service provided by the entire staff and the ability to add and change menu items for local customer preferences. Connie has a good working relationship with suppliers, employees, and customers and a good reputation in the communities where she does business.
-A family style,dine-in restaurant is best characterized as a _____ business.

Accepted Answer

Connie's restaurants offer both the service of dining (including superior customer service) and products (the food items, which are also tailored to local preferences), making it a combined service/product business.

Question 13

Talking to people in your prospective industry can be especially helpful if your proposed product is a service.

Accepted Answer

Talking to people in your prospective industry can provide valuable insights into the market, customer needs, and potential challenges, which is especially beneficial when your product is a service that may require a deep understanding of customer expectations and industry standards.

Question 14

If your proposed business was a frozen yogurt store in Michigan,you could get an estimate of the number of customers you might have if you asked those leaving a bakery in California if they'd buy frozen yogurt in the winter.

Accepted Answer

The preferences and behaviors of customers in California may not accurately reflect those of potential customers in Michigan, especially considering differences in climate, regional tastes, and local competition.

Question 15

To estimate sales of jogging shoes to joggers over age 65 living in Florida,you would determine your share of the athletic shoes sold in the U.S.

Accepted Answer

To accurately estimate sales of jogging shoes to joggers over age 65 living in Florida, you would need to analyze more specific data, such as the number of joggers over age 65 in Florida, their purchasing habits, and preferences, rather than determining your share of the athletic shoes sold in the entire U.S., which would be too broad and not directly relevant to the specific demographic in question.

Question 16

____ is one of the hardest tasks in business.

Accepted Answer

Forecasting demand for a proposed product is considered one of the hardest tasks in business because it involves predicting future market conditions and consumer preferences, which are inherently uncertain and subject to many unpredictable factors.

Question 17

Psychographics is an essential part of sales forecasting.

Accepted Answer

Psychographics is not an essential part of sales forecasting. Sales forecasting is primarily based on historical data, market trends, and economic indicators. Psychographics, which involves understanding consumer personality traits, values, and lifestyles, is more relevant for marketing and advertising campaigns.

Question 18

Connie’s is a regional chain of family style restaurants in the Midwest. Over the years, Connie Sedgewick has been an innovative, hard working businessperson who’s expanded her business to 15 locations in four states. A “calling card” of her restaurants is the superior customer service provided by the entire staff and the ability to add and change menu items for local customer preferences. Connie has a good working relationship with suppliers, employees, and customers and a good reputation in the communities where she does business.
-Conceivably,Connie could get new product or service ideas from _____.

Accepted Answer

Given Connie's good working relationships with suppliers, employees, and customers, as well as her adaptability to local preferences, she could potentially get new product or service ideas from all these sources.

Question 19

To get some idea of the total market for products like the one you want to launch,you could begin by _____.

Accepted Answer

Examining pertinent industry research provides a comprehensive and data-driven understanding of the market, trends, and consumer preferences, which is essential for assessing the total market for a product.

Question 20

Your goal is to sell jogging shoes to those 65 and other who live in Florida.  Here is some information you have collected:  (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida.  (3) Florida attracts 20% of all people who move when they retire.  (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older.  (5) You estimate that your sales will increase by 25% in year 2.
-Which of the following would be used to forecast your demand for year 1?

Accepted Answer

To forecast demand for year 1, you would focus on the specific target market, which is joggers who are 65 and older and live in Florida. This is because your goal is to sell jogging shoes to this specific group in Florida, making the 600,000 figure directly relevant to your initial sales estimation.

Quiz 7: Product Design and Development