Deck 15: New Product Development

Question 1

product development is a high-risk endeavor, since many new products and services fail.

Answer 1

True

Question 2

companies are less bureaucratic and can react quickly to market changes.

Answer 2

True

Question 3

factors for the success of a new product include satisfying a need, getting quality and pricing right the first time, and using the right distribution channels.

Answer 3

True

Question 4

factors for the success of a new product include doing adequate market research and having a low product advantage.

Question 5

wholesaler is not a type of distribution channel.

Question 6

choosing a distribution channel an entrepreneur should use the same channels as competitors.

Question 7

slotting fee is a fee paid to a wholesaler for transportation costs.

Question 8

year, more than 5,000 entrepreneurs are successful in licensing a product.

Question 9

patent is a grant of a property right.

Question 10

A utility patent is granted for any product in the electric or gas utility industry.

Question 11

A nondisclosure document states that the person signing the document will not look at details inside the business plan.

Question 12

A design patent is granted for unique works of art.

Question 13

If an invention has been described in a printed publication anywhere in the world a patent cannot be obtained.

Question 14

Competitors cannot circumvent patents by making minor changes in the design of the patented product.

Question 15

With certain exceptions only the inventor may apply for a patent.

Question 16

The United States Patent and Trademark Office has full texts of patents on the Internet.

Question 17

A copyright registration is necessary before an infringement suit is filed in court.

Question 18

A trademark is a word, symbol, name, or device that a business uses to identify its goods and distinguish them from others.

Question 19

Trademark law is often vague and confusing.

Question 20

There is no federal law prohibiting the theft of a trade secret.

Question 21

Which of the following is true?

A) Many new products and services fail.
B) Small companies are less bureaucratic and can react quickly to market changes.
C) Small businesses are hindered in new product development because of limited financial resources.
D) All of the above.

Question 22

Which of the following is true?

A) There are many ways to brainstorm to develop new products.
B) In order to be successful, a new product must have the right channel of distribution.
C) New products may obtain legal protection through a patent, copyright, trademark, or trade secret.
D) All of the above.

Question 23

There are differing statistics concerning the failure rate for new products because

A) some studies count all new product ideas under development and others count only those that are test-marketed.
B) not all distribution channels are included in the studies.
C) products without legal protection are not included in the studies.
D) there are disagreements as to what constitutes a "new" product.

Question 24

One of the biggest weaknesses of small businesses in developing new products is

A) too much bureaucracy.
B) limited financial resources.
C) limited ability to innovate.
D) limited awareness of customer needs.

Question 25

The process of combining two different industries to create a new industry is known as

A) need recognition.
B) high product advantage.
C) blurring boundaries.
D) industry redefinition.

Question 26

In order to succeed, which of the following must be correct when the product is first introduced?

A) Quality
B) Pricing
C) Customer experience
D) All of the above

Question 27

There are many ways to brainstorm to create new products. Which of the following is not one of those ways?

A) Recognize trends
B) Question assumptions
C) Improve existing products
D) All of the above

Question 28

Nolan Bushnell created the first home video game by

A) combining his knowledge of the amusement industry with computers.
B) copying a similar product that was not yet on the market.
C) finding a new channel of distribution.
D) looking at trends in Europe.

Question 29

There are may ways to brainstorm to create new products. Which of the following is not one of those ways?

A) be aware of everything
B) change distribution channels
C) name it first, then develop it
D) All of the above are ways to develop new products.

Question 30

A successful new product or service must

A) satisfy a customer need.
B) use distribution channels similar to the competition.
C) combine industries.
D) all of the above.

Question 31

Manufacturers with 500 employees or less tend to

A) avoid market research.
B) spend 5 percent of their sales volume on market research.
C) hire large market research firms.
D) research pricing and the competition prior to introducing a new product.

Question 32

If a product has a high product advantage, it

A) has a higher price.
B) is similar to the competitors' products.
C) has higher quality and new features.
D) is introduced into the marketplace without advertising.

Question 33

Marketing institutions and interrelationships are responsible for the physical and title flow of goods and services from producers to consumer or industrial user. This is the definition of

A) manufacturers representatives.
B) wholesalers.
C) distribution channels.
D) agent wholesalers.

Question 34

Companies such as Avon, Mary Kay Cosmetics, and Amway are examples of

A) direct marketing.
B) agent wholesalers.
C) intangible marketing.
D) contact marketing.

Question 35

Self-employed individuals who sell others' products to wholesalers or retailers are called

A) direct marketers.
B) merchant wholesalers.
C) manufacturers' representatives.
D) institutional marketers.

Question 36

Catalogs such as L. L. Bean and Lillian Vernon are examples of

A) intangible marketing.
B) agent wholesalers.
C) direct marketing.
D) contact marketing.

Question 37

In the consumer goods industry the typical flow of goods would be as follows:

A) producer to wholesaler to retailer to consumer.
B) agent wholesaler to producer to retailer to consumer.
C) manufacturer's representatives to producer to retailer to consumer.
D) producer to agent to wholesaler to consumer.

Question 38

When products are produced by a large number of small businesses it is common for the industry to use

A) producers.
B) agent wholesalers.
C) slotting fees.
D) nondisclosure documents.

Question 39

Direct marketing, wholesalers, and agents are different types of

A) legal protection.
B) dealer promotions.
C) distribution channels.
D) departmentalization.

Question 40

When choosing a distribution channel, which of the following should be considered?

A) Will the product be sold in the consumer or industrial market?
B) What is the geographic location and number of customers?
C) What are the product characteristics?
D) All of the above.

Question 41

Most industrial products are sold through

A) direct sales.
B) retailers.
C) producers.
D) computer networks.

Question 42

If a small company has limited financial resources it is most likely to use

A) its own sales force.
B) direct marketing.
C) computer networks.
D) marketing intermediaries.

Question 43

Marketing intermediaries may be reluctant to sell a new product if it

A) is a consumer product.
B) is an industrial product.
C) decreases sales of products they currently sell.
D) none of the above.

Question 44

Entrepreneurs may find it difficult to secure a distribution channel because

A) retailers often do not want to stock a product unless there is proof of demand.
B) direct marketing channels may require a minimum inventory level.
C) retailers may require a minimum advertising level.
D) all of the above.

Question 45

Entrepreneurs may find it difficult to secure a distribution channel due to

A) minimum inventory requirements.
B) minimum advertising requirements.
C) slotting fees.
D) all of the above.

Question 46

When retailers charge a fee for carrying new products this is called a

A) merchant fee.
B) slotting fee.
C) wholesaling fee.
D) dealer fee.

Question 47

A slotting fee is a fee

A) charged by retailers to carry a new item.
B) charged to get a product on computer networks.
C) paid by wholesalers to sell a manufacturer's item.
D) paid to get a patent.

Question 48

If an entrepreneur develops a new product, but does not have the time or the funds to manufacture and distribute the product, the entrepreneur could benefit from a

A) copyright.
B) trade secret.
C) licensing arrangement.
D) trademark.

Question 49

If an entrepreneur gives another company the rights to manufacture and sell his or her product in exchange for a fee it is known as

A) a slotting fee.
B) high-product advantage.
C) licensing.
D) agent wholesaling.

Question 50

A nondisclosure document is a document that states the signator will not

A) look at the patent application.
B) discuss the idea with anyone else or use it for personal gain.
C) use a manufacturers; representative to sell the product.
D) use the idea outside the industry stated in the document.

Question 51

If an entrepreneur is developing a new product and must discuss the idea with someone, he or she may ask that person to sign a(n)

A) nondisclosure document.
B) copyright.
C) industry agreement.
D) agreement of understanding.

Question 52

A U.S. patent prevents others from _________ the same invention in the United States.

A) making
B) using
C) selling
D) all of the above

Question 53

Which of the following is not a type of patent?

A) Utility
B) Design
C) Plant
D) All of the above

Question 54

Patents cannot be obtained for

A) ideas.
B) a new, useful process.
C) varieties of plants.
D) Patents can be obtained for all of the above.

Question 55

A patent granted for any new useful process, machine, article of manufacture or useful improvements is known as a(n)

A) design patent.
B) plant patent.
C) utility patent.
D) production patent.

Question 56

A utility patent might be granted for

A) a new process.
B) a new design of a manufactured article.
C) a new type of plant.
D) all of the above.

Question 57

Which of the following is FALSE?

A) A patent protects the inventor from claims that his/her product infringes on an existing patent.
B) A patent search may not identify patents that are pending.
C) A United States patent does not provide protection in foreign countries.
D) None of the above.

Question 58

A patent of importation may provide temporary protection for a product

A) in a foreign country.
B) that is not yet developed.
C) does not have obvious improvements.
D) that cannot get a permanent patent.

Question 59

Literary, dramatic, and musical works are protected by

A) patents.
B) copyrights.
C) trademarks.
D) trade secrets.

Question 60

For any works created after January 1, 1978, copyrights are granted for

A) 14 years.
B) 17 years.
C) the life of the author.
D) the life of the author plus seventy years.

Question 61

If the author of a written document is anonymous a copyright

A) cannot be granted.
B) is granted for ten years.
C) is granted for 95 or 120 years.
D) There are no laws for this situation.

Question 62

Which of the following is FALSE?

A) A copyright is secured automatically when the work is created.
B) Before an infringement suit may be filed in court, a copyright registration must be filed with the Register of Copyrights.
C) The court case against Napster's free online music was over copyright infringement.
D) None of the above.

Question 63

A word, name, symbol, or device used to identify a company's goods is a

A) trademark.
B) copyright.
C) patent.
D) trade secret.

Question 64

A trademark is granted when the

A) registration is filed.
B) design is used.
C) design has been used for at least six months.
D) design has been used for at least one year.

Question 65

Which is not a benefit of registering a trademark with the Patent and Trademark Office?

A) it provides notice of the trademark owner's claim.
B) jurisdiction of federal courts may be invoked.
C) the trademark cannot be used until it is registered.
D) All of the above.

Question 66

A trademark is

A) a word, symbol, name or device that a business uses to identify its goods.
B) a legal protection for information on foreign products.
C) legal protection for intellectual works.
D) legal protection for a U.S. product exported to another country.

Question 67

Legal protection for information that cannot be patented, copyrighted, or trademarked may be obtained through

A) slotting fees.
B) documents of restriction.
C) trade secrets.
D) jurisdiction documents.

Question 68

The Economic Espionage Act of 1996 made theft of a trade secret

A) legal.
B) a state misdemeanor.
C) a federal criminal offense.
D) a violation of international law.