Business Mgmt Ch 19 Review

Businesses are constantly trying to find better ways to please customers.

• True

• False

Answer explanation

True is the correct answer because businesses continuously seek ways to enhance customer satisfaction, which is essential for their success and competitiveness.

Spending large amounts of money on new product research leads to successful new products.

• True

• False

Answer explanation

Spending large amounts of money does not guarantee success in new product research. Effective strategies, market understanding, and innovation are crucial for developing successful products, making the statement false.

The first step in product development is designing a new or improved product.

• True

• False

Answer explanation

The first step in product development is typically identifying a market need or opportunity, not designing the product itself. Therefore, the statement is false.

A company’s customers are a very good source of new product ideas.

• True

• False

Answer explanation

True. Customers provide valuable insights and feedback that can inspire new product ideas, making them a crucial resource for innovation.

A consumer panel consists of people who have bought or are likely to buy a company’s products and who offer opinions about a product or service.

• True

• False

Answer explanation

True. A consumer panel is indeed made up of individuals who have purchased or are likely to purchase a company's products, providing valuable feedback on those products or services.

Applied research is research done without a specific product in mind.

• True

• False

Answer explanation

Applied research is focused on practical applications and often aims to develop specific products or solutions. Therefore, the statement is false.

Pure research studies existing product problems or possible design improvements for current products.

• True

• False

Answer explanation

The statement is false because pure research focuses on gaining knowledge without immediate application, rather than addressing existing product problems or design improvements.

All of the major units in a business—including production, finance, human resources, and marketing—should be involved in planning a new product.

• True

• False

Answer explanation

True. Involving all major units—production, finance, human resources, and marketing—in product planning ensures a comprehensive approach, leveraging diverse expertise for successful product development.

Manufacturing is a special form of production in which raw and semifinished materials are processed, assembled, or converted into finished products.

• True

• False

Answer explanation

The statement accurately describes manufacturing as a process where raw and semifinished materials are transformed into finished products, confirming that the answer is True.

A custom manufacturer works with a customer to develop a unique product.

• True

• False

Answer explanation

A custom manufacturer collaborates with customers to create tailored products, making the statement true.