Question 1

Which of the following is not a step in defining what consumers' real needs are?

Accepted Answer

A)  Identifying any alternatives that might appear in the future. 
B)  Finding a solution to a problem. 
C)  Figuring out a problem. 
D)  Understanding how to satisfy the need. 
E)  Begin to advertise the new product. 
A)  Identifying any alternatives that might appear in the future. 
B)  Finding a solution to a problem. 
C)  Figuring out a problem. 
D)  Understanding how to satisfy the need. 
E)  Begin to advertise the new product. E

Question 2

Which type of cost becomes less per unit as the entrepreneur produces more of a product?

Accepted Answer

A)  Fixed cost. 
B)  Variable cost. 
C)  Hidden cost. 
D)  Costs of substitutes and complements. 
E)  All of the above. 
A)  Fixed cost. 
B)  Variable cost. 
C)  Hidden cost. 
D)  Costs of substitutes and complements. 
E)  All of the above. A

Question 3

Choosing the right customers is one of the toughest challenges for a new business.

Accepted Answer

A) True 
 B)False  True

Question 4

A stagnant market would offer more advantages to a new entrepreneur than would a growing market.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is least true about an entrepreneurial situation?

Accepted Answer

A)  It is important to gather and analyze information from customers before launching a new product. 
B)  Entrepreneurs are better off targeting established markets rather than new markets because it is difficult to predict the needs of new markets. 
C)  Entrepreneurs can design products that will have high appeal to potential customers through conjoint analysis. 
D)  Entrepreneurs assess customer preferences different when markets are new than when they were already established. 
E)  None of the Above 
A)  It is important to gather and analyze information from customers before launching a new product. 
B)  Entrepreneurs are better off targeting established markets rather than new markets because it is difficult to predict the needs of new markets. 
C)  Entrepreneurs can design products that will have high appeal to potential customers through conjoint analysis. 
D)  Entrepreneurs assess customer preferences different when markets are new than when they were already established. 
E)  None of the Above

Question 6

When entrepreneurs successfully move from selling to the early adopters to the early majority,they are said to be

Accepted Answer

A)  moving to fixed costs. 
B)  conducting perceptual mapping. 
C)  crossing the chasm. 
D)  doing the S curve. 
E)  None of the above. 
A)  moving to fixed costs. 
B)  conducting perceptual mapping. 
C)  crossing the chasm. 
D)  doing the S curve. 
E)  None of the above.

Question 7

Entrepreneurs are most successful when they start a company that meets a real need.

Accepted Answer

A) True 
 B)False

Question 8

Established firms will be at an advantage when offering products into existing markets where the customer problem and solution are known.

Accepted Answer

A) True 
 B)False

Question 9

An established business is thinking about introducing a new service and asks current customers for their views of the intended new service. The current customers report that they do not like the new service,primarily because they tend to interpret it from the perspective of the current service. This represent the idea of

Accepted Answer

A)  user myopia. 
B)  factorial design.. 
C)  S curve analysis. 
D)  conjoint analysis. 
E)  policy capturing. 
A)  user myopia. 
B)  factorial design.. 
C)  S curve analysis. 
D)  conjoint analysis. 
E)  policy capturing.

Question 10

To which customer groups does the entrepreneur have trouble selling enough to make the business worthwhile?

Accepted Answer

A)  Innovators and Early Majority 
B)  Early Majority and Late Majority 
C)  Innovators and Early Adopters 
D)  Early Adopters and Late Majority 
E)  None of the Above 
A)  Innovators and Early Majority 
B)  Early Majority and Late Majority 
C)  Innovators and Early Adopters 
D)  Early Adopters and Late Majority 
E)  None of the Above

Question 11

Established businesses tend to not compete with new products or services on the early part of the S curve.

Accepted Answer

A) True 
 B)False

Question 12

Suppose you are an entrepreneur and you sell TV's. When you first entered the market,TV's were in black and white and innovations were very slow. After about five years of time,TV innovations became more frequent with color,picture in picture,and TV/VCR combos. However,after about 10 more years,the innovations decreased again. This market behavior is known as what?

Accepted Answer

A)  The product development S-curve. 
B)  Product Cycle. 
C)  Improvement Curve. 
D)  Feature Cycle. 
E)  All of the Above. 
A)  The product development S-curve. 
B)  Product Cycle. 
C)  Improvement Curve. 
D)  Feature Cycle. 
E)  All of the Above.

Question 13

According to the authors of the textbook,which of the following is the first thing an entrepreneur needs to do when deciding to start a new business?

Accepted Answer

A)  Design the package for the new product. 
B)  Make sure there is a real need for the new product. 
C)  Start advertising before the product is designed. 
D)  Decide the salary to be paid to people in the business. 
E)  Decide how many people to hire for the business. 
A)  Design the package for the new product. 
B)  Make sure there is a real need for the new product. 
C)  Start advertising before the product is designed. 
D)  Decide the salary to be paid to people in the business. 
E)  Decide how many people to hire for the business.

Question 14

AT&T originally required special phone jacks to be installed in each customer's house. After the Carterfone Law was passed,all telephone companies had to use standard jacks like AT&T's. This market structure is known as

Accepted Answer

A)  Technical Standard. 
B)  Dominant Design. 
C)  Standard Feature. 
D)  Carterfone Structure. 
E)  None of the Above. 
A)  Technical Standard. 
B)  Dominant Design. 
C)  Standard Feature. 
D)  Carterfone Structure. 
E)  None of the Above.

Question 15

Approximately 68% of product users fall into which categories?

Accepted Answer

A)  Early Adopters and Early Majority. 
B)  Early Majority and Late Majority. 
C)  Innovators, Early Adopters, and Laggards. 
D)  Late Majority and Laggards. 
E)  Innovators and Laggards. 
A)  Early Adopters and Early Majority. 
B)  Early Majority and Late Majority. 
C)  Innovators, Early Adopters, and Laggards. 
D)  Late Majority and Laggards. 
E)  Innovators and Laggards.

Question 16

Which of the following statements,addressing the adoption of new products,is not true?

Accepted Answer

A)  Most customers adopt new products in the middle of the adoption cycle. 
B)  Different groups adopt products for different reasons. 
C)  Early adopters tend to buy the product before any marketing has occurs. 
D)  Few customers buy at the beginning or end of the cycle. 
E)  None of the Above. 
A)  Most customers adopt new products in the middle of the adoption cycle. 
B)  Different groups adopt products for different reasons. 
C)  Early adopters tend to buy the product before any marketing has occurs. 
D)  Few customers buy at the beginning or end of the cycle. 
E)  None of the Above.

Question 17

Which of the following might suggest that an established firm chooses to improve its current products rather than adopt a new product?

Accepted Answer

A)  Technology and investments. 
B)  New products generally begin with inferior performance to their existing products. 
C)  Managers believe that by improving current products, they will compete with entrepreneur's new products. 
D)  Human resource investments. 
E)  All of the Above. 
A)  Technology and investments. 
B)  New products generally begin with inferior performance to their existing products. 
C)  Managers believe that by improving current products, they will compete with entrepreneur's new products. 
D)  Human resource investments. 
E)  All of the Above.

Question 18

Which of the following is an example of a complimentary products?

Accepted Answer

A)  Beef and chicken. 
B)  Personal computers and laptops. 
C)  CD players and cassette players. 
D)  Coffee and coffee filters. 
E)  Choices A, B, and C are all correct.. 
A)  Beef and chicken. 
B)  Personal computers and laptops. 
C)  CD players and cassette players. 
D)  Coffee and coffee filters. 
E)  Choices A, B, and C are all correct..

Question 19

Which classification of product adopters are not comfortable with new products and will wait for the product to become well-established before purchasing it? Moreover,only when they are shown that the value outweighs the costs do they adopt the product.

Accepted Answer

A)  Innovators. 
B)  Early Adopters. 
C)  Early Majority. 
D)  Late Majority. 
E)  None of the above. 
A)  Innovators. 
B)  Early Adopters. 
C)  Early Majority. 
D)  Late Majority. 
E)  None of the above.

Question 20

It usually is suggested that to be successful,a business should stay close to its customers;to focus on their needs. Is it possible for a business to stay too close to its customers? Explain why it might cause serious problems for a business if it does focus closely on its customers.

Accepted Answer

While it is very good,or necessary,for a

Which of the following is not a step in defining what consumers' real needs are?

Which type of cost becomes less per unit as the entrepreneur produces more of a product?

Choosing the right customers is one of the toughest challenges for a new business.

A stagnant market would offer more advantages to a new entrepreneur than would a growing market.

Which of the following statements is least true about an entrepreneurial situation?

When entrepreneurs successfully move from selling to the early adopters to the early majority,they are said to be

Entrepreneurs are most successful when they start a company that meets a real need.

Established firms will be at an advantage when offering products into existing markets where the customer problem and solution are known.

To which customer groups does the entrepreneur have trouble selling enough to make the business worthwhile?

Established businesses tend to not compete with new products or services on the early part of the S curve.

According to the authors of the textbook,which of the following is the first thing an entrepreneur needs to do when deciding to start a new business?

AT&T originally required special phone jacks to be installed in each customer's house. After the Carterfone Law was passed,all telephone companies had to use standard jacks like AT&T's. This market structure is known as

Approximately 68% of product users fall into which categories?

Which of the following statements,addressing the adoption of new products,is not true?

Which of the following might suggest that an established firm chooses to improve its current products rather than adopt a new product?

Which of the following is an example of a complimentary products?

Which classification of product adopters are not comfortable with new products and will wait for the product to become well-established before purchasing it? Moreover,only when they are shown that the value outweighs the costs do they adopt the product.

It usually is suggested that to be successful,a business should stay close to its customers;to focus on their needs. Is it possible for a business to stay too close to its customers? Explain why it might cause serious problems for a business if it does focus closely on its customers.

Entrepreneurship:: A Field, an Activity - and a Way of Life

Entrepreneurial Opportunities: Their Origins, Forms, and Suitability For New Ventures

Cognitive Foundations of Entrepreneurship: Creativity and Opportunity Recognition

What Entrepreneurs Need to Know Before They Start: Acquiring and Interpreting Information About Markets Competitors and Government

Assembling the Team: Acquiring and Utilizing Essential Human Capital

Financial Resources For New Ventures: How To Get Them, How To Manage Them

Writing An Effective Business Plan: Building A Road Map to Success

Legal Issues Relating To New Ventures: Protecting Your Reputation, Your Assets, And Your Ideas

Strategy: Planning For Competitive Advantage

Preparing For And Attaining Growth: Strategies For Building Lasting Success

Managing New Ventures For Growth

Exit Strategies For Entrepreneurs: The Concluding Act

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Exam 9: Marketing in a New Venture

Which of the following is not a step in defining what consumers' real needs are?

Which type of cost becomes less per unit as the entrepreneur produces more of a product?

Choosing the right customers is one of the toughest challenges for a new business.

A stagnant market would offer more advantages to a new entrepreneur than would a growing market.

Which of the following statements is least true about an entrepreneurial situation?

When entrepreneurs successfully move from selling to the early adopters to the early majority,they are said to be

Entrepreneurs are most successful when they start a company that meets a real need.

Established firms will be at an advantage when offering products into existing markets where the customer problem and solution are known.

To which customer groups does the entrepreneur have trouble selling enough to make the business worthwhile?

Established businesses tend to not compete with new products or services on the early part of the S curve.

According to the authors of the textbook,which of the following is the first thing an entrepreneur needs to do when deciding to start a new business?

AT&T originally required special phone jacks to be installed in each customer's house. After the Carterfone Law was passed,all telephone companies had to use standard jacks like AT&T's. This market structure is known as

Approximately 68% of product users fall into which categories?

Which of the following statements,addressing the adoption of new products,is not true?

Which of the following might suggest that an established firm chooses to improve its current products rather than adopt a new product?

Which of the following is an example of a complimentary products?

Which classification of product adopters are not comfortable with new products and will wait for the product to become well-established before purchasing it? Moreover,only when they are shown that the value outweighs the costs do they adopt the product.

It usually is suggested that to be successful,a business should stay close to its customers;to focus on their needs. Is it possible for a business to stay too close to its customers? Explain why it might cause serious problems for a business if it does focus closely on its customers.

Entrepreneurship:: A Field, an Activity - and a Way of Life

Entrepreneurial Opportunities: Their Origins, Forms, and Suitability For New Ventures

Cognitive Foundations of Entrepreneurship: Creativity and Opportunity Recognition

What Entrepreneurs Need to Know Before They Start: Acquiring and Interpreting Information About Markets Competitors and Government

Assembling the Team: Acquiring and Utilizing Essential Human Capital

Financial Resources For New Ventures: How To Get Them, How To Manage Them

Writing An Effective Business Plan: Building A Road Map to Success

Legal Issues Relating To New Ventures: Protecting Your Reputation, Your Assets, And Your Ideas

Strategy: Planning For Competitive Advantage

Preparing For And Attaining Growth: Strategies For Building Lasting Success

Managing New Ventures For Growth

Exit Strategies For Entrepreneurs: The Concluding Act

Filters