Question 1

Once it becomes effective,a product mix for a given product remains effective for a long time.

Accepted Answer

A) True 
 B)False

Question 2

What is brand equity? Describe the major factors that make up brand equity.

Accepted Answer

Brand equity is the marketing and financ...

Question 3

For any product,the breakeven quantity is the

Accepted Answer

A)   number sold over fifty units.
B)   number sold such that costs equal revenues.
C)   total number produced to equal the total resources available to the producer.
D)   number of products needed to be sold in order to make a reasonable profit.
E)   dollar volume of total sales.F) A) and B)
G) A) and D)

Question 4

Nate buys companies that are small or companies in financial trouble.He helps these companies turn around and develop a competitive advantage.The company that he recently purchased is called Everyone's Way,Inc.The company sells men's clothing and accessories.Everyone's Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling.
After looking over the different products available,Nate realized that the company's previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out-of-date.Also,because of the high turnover,employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix.To move the company forward,Nate thought of the following two measures: first,developing a new product to incorporate into the product mix;and second,eliminating the out-of-date products.
-Refer to Everyone's Way,Inc.Which of the following descriptions should Nate use to best explain the difference between the product line and product mix?

Accepted Answer

A)   The product line is a group of similar products that differ only in relatively minor characteristics,whereas product mix is all the products a firm offers for sale.
B)   The product mix is a group of similar products that differ only in relatively minor characteristics,whereas product line is all the products a firm offers for sale.
C)   The product line is a group of unrelated products,whereas product mix is all the products a firm offers for sale.
D)   The product line is a group of similar products,whereas product mix is all products that are different.
E)   There is no difference between a product line and product mix.F) All of the above
G) A) and E)

Question 5

Pricing strategies act as guides for achieving pricing objectives.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following types of brands are the least commonly purchased at grocery stores?

Accepted Answer

A)   Producer
B)   Store
C)   Generic
D)   Manufacturer
E)   PrivateF) B) and C)
G) A) and C)

Question 7

In some cases,prices are assigned to goods on the basis of nothing more than customs and traditions.

Accepted Answer

A) True 
 B)False

Question 8

Fixed costs are costs that depend on the number of units produced.

Accepted Answer

A) True 
 B)False

Question 9

Costs that depend on the number of units produced are called

Accepted Answer

A)   markup.
B)   operational expenses.
C)   fixed costs.
D)   variable costs.
E)   overhead.F) B) and E)
G) C) and E)

Question 10

Kyla goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car,and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Accepted Answer

A)   differential
B)   comprised
C)   negotiated
D)   reference
E)   secondaryF) C) and E)
G) D) and E)

Question 11

If the manager at Walmart puts a sign up next to a Sony television that reads,"Only $199.99! $58.01 less than Best Buy," this is an example of what type of pricing strategy?

Accepted Answer

A)   Random discounting
B)   Periodic discounting
C)   Comparison discounting
D)   Penetration discounting
E)   Everyday low pricesF) A) and B)
G) A) and C)

Question 12

Demand-based pricing,unlike cost-based pricing,places firms in a better position to

Accepted Answer

A)   attain higher profit levels.
B)   estimate demand easily and accurately.
C)   perform breakeven analysis.
D)   calculate price based on intangible benefits.
E)   penetrate the market quickly.F) C) and E)
G) A) and D)

Question 13

Harold is an accountant with Brain Industries and Matilda is in the marketing department.They are discussing the pricing strategy for a new product the company will soon release.Their recommendations will be presented to the board of directors at the next board meeting.Matilda has discussed profit maximization and market-sharing goals for the product.She asks Harold what product survival pricing entails and he explains it as well as return-on-investment pricing.Of the pricing strategies they have discussed,which one is not an obtainable goal?

Accepted Answer

A)   Product survival
B)   Profit maximization
C)   Return on investment
D)   Market-sharing goalE) B) and C)
F) None of the above

Question 14

When Polaroid comes out with a new model in a series,it sets an initial price and then gradually lowers the price.Polaroid is initially using which pricing strategy?

Accepted Answer

A)   Penetration pricing
B)   Prestige pricing
C)   Price lining
D)   Premium pricing
E)   Price skimmingF) A) and E)
G) C) and D)

Question 15

What are the major phases involved in the new product development process?

Accepted Answer

The phases of new-product deve...

Question 16

Buyers may relate price to quality.To such a buyer,a higher price for a product is an indicator of

Accepted Answer

A)   suspicious pricing.
B)   higher quality.
C)   product availability.
D)   poor image.
E)   greater quantity.F) B) and D)
G) D) and E)

Question 17

All of the following are business products except

Accepted Answer

A)   color televisions in the electronics department of a large retail store.
B)   iron ore in a steel plant.
C)   small hand tools in an automobile repair shop.
D)   toner cartridges in the supply closet of a word processing center.
E)   a new appliance in someone's home.F) A) and C)
G) A) and D)

Question 18

A number of federal regulations specify the information that must be included in labeling.Which of the following is not specified?

Accepted Answer

A)   Fabric content
B)   Safety precautions
C)   Ingredient content
D)   Packaging content to indicate whether the package is recyclable
E)   Fabric cleaning instructionsF) A) and E)
G) A) and D)

Question 19

Why should companies develop and introduce new products?

Accepted Answer

A)   To keep their product designers busy
B)   Because failing to do so can threaten the future success of the firm
C)   Because it is relatively inexpensive and therefore worth the time
D)   To replace deleted products so the broadness of the marketing mix remains unchanged
E)   Because new products are almost always successfulF) C) and D)
G) C) and E)

Question 20

The product life-cycle stage in which there is a rapid sales increase,other firms have begun to market competing products,and lower unit costs and an overall tendency toward increased profit prevail is called

Accepted Answer

A)   growth.
B)   extension.
C)   introduction.
D)   decline.
E)   maturity.F) B) and E)
G) All of the above

Exam 12: Creating and Pricing Products That Satisfy Customers

Correct Answer
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Correct Answer
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What is brand equity? Describe the major factors that make up brand equity.

Correct Answer
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Brand equity is the marketing and financ...
View Answer

Why should companies develop and introduce new products?

Correct Answer
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When Polaroid comes out with a new model in a series,it sets an initial price and then gradually lowers the price.Polaroid is initially using which pricing strategy?

Correct Answer
verified

Fixed costs are costs that depend on the number of units produced.

Correct Answer
verified

In some cases,prices are assigned to goods on the basis of nothing more than customs and traditions.

Correct Answer
verified

Demand-based pricing,unlike cost-based pricing,places firms in a better position to

Correct Answer
verified

What are the major phases involved in the new product development process?

Correct Answer
verified
The phases of new-product deve...
View Answer

Which of the following types of brands are the least commonly purchased at grocery stores?

Correct Answer
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The product life-cycle stage in which there is a rapid sales increase,other firms have begun to market competing products,and lower unit costs and an overall tendency toward increased profit prevail is called

Correct Answer
verified

Once it becomes effective,a product mix for a given product remains effective for a long time.

Correct Answer
verified

For any product,the breakeven quantity is the

Correct Answer
verified

All of the following are business products except

Correct Answer
verified

If the manager at Walmart puts a sign up next to a Sony television that reads,"Only $199.99! $58.01 less than Best Buy," this is an example of what type of pricing strategy?

Correct Answer
verified

Costs that depend on the number of units produced are called

Correct Answer
verified

Pricing strategies act as guides for achieving pricing objectives.

Correct Answer
verified

Buyers may relate price to quality.To such a buyer,a higher price for a product is an indicator of

Correct Answer
verified

Kyla goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car,and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Correct Answer
verified

A number of federal regulations specify the information that must be included in labeling.Which of the following is not specified?

Correct Answer
verified

Exam 12: Creating and Pricing Products That Satisfy Customers

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is brand equity? Describe the major factors that make up brand equity.

Correct AnswerverifiedBrand equity is the marketing and financ...View AnswerShow Answer

Why should companies develop and introduce new products?

Correct AnswerverifiedShow Answer

When Polaroid comes out with a new model in a series,it sets an initial price and then gradually lowers the price.Polaroid is initially using which pricing strategy?

Correct AnswerverifiedShow Answer

Fixed costs are costs that depend on the number of units produced.

Correct AnswerverifiedShow Answer

In some cases,prices are assigned to goods on the basis of nothing more than customs and traditions.

Correct AnswerverifiedShow Answer

Demand-based pricing,unlike cost-based pricing,places firms in a better position to

Correct AnswerverifiedShow Answer

What are the major phases involved in the new product development process?

Correct AnswerverifiedThe phases of new-product deve...View AnswerShow Answer

Which of the following types of brands are the least commonly purchased at grocery stores?

Correct AnswerverifiedShow Answer

The product life-cycle stage in which there is a rapid sales increase,other firms have begun to market competing products,and lower unit costs and an overall tendency toward increased profit prevail is called

Correct AnswerverifiedShow Answer

Once it becomes effective,a product mix for a given product remains effective for a long time.

Correct AnswerverifiedShow Answer

For any product,the breakeven quantity is the

Correct AnswerverifiedShow Answer

All of the following are business products except

Correct AnswerverifiedShow Answer

If the manager at Walmart puts a sign up next to a Sony television that reads,"Only $199.99! $58.01 less than Best Buy," this is an example of what type of pricing strategy?

Correct AnswerverifiedShow Answer

Costs that depend on the number of units produced are called

Correct AnswerverifiedShow Answer

Pricing strategies act as guides for achieving pricing objectives.

Correct AnswerverifiedShow Answer

Buyers may relate price to quality.To such a buyer,a higher price for a product is an indicator of

Correct AnswerverifiedShow Answer

Kyla goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car,and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Correct AnswerverifiedShow Answer

A number of federal regulations specify the information that must be included in labeling.Which of the following is not specified?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Brand equity is the marketing and financ...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The phases of new-product deve...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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