Unit 2 Enterprise Chapter Review Key Terms Checklist Using a pencil, place a ¸ in each box to indicate how
well you know and understand each Key Term. q I know and understand this Key Term. q I am still a bit uncertain about what this Key Term means. q I don’t understand this Key Term yet. When you revise each chapter, tick the boxes again to indicate how much you have learned.
1. 2.
3. 4. 5. 6.
7. 8.
9. 10.
11. 12.
Idea screening means sorting the promising ideas from the weak ideas.
Concept development involves taking a business idea and asking the important business questions before committing further time and energy to the idea.
A prototype is a sample product produced on an experimental basis to see if the idea works in practice.
Market research involves gathering and analysing information about the potential market for a product.
Desk research means accessing information that already exists.
Field research involves going into the market place (the field) to gather information directly about customers and competitors.
Observation research involves watching (observing) the behaviour of consumers.
Customer surveys involve using a questionnaire and asking consumers about their attitudes towards new product ideas or to existing goods and services.
Sampling refers to interviewing a small group of people who are representative of the larger target market.
Focus Groups involve gathering a group of customers together to discuss in detail their consumer attitudes, habits and behaviour.
Test marketing involves trying out the product or service on a small scale to evaluate customer reaction.
Franchising means setting up in business by renting a business name and idea that has already proven successful.
