Exam 9: Developing New Products and Managing the Product

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products,the manufacturer is able to reduce the main product's price to make it more competitive.

When entering a new market,a highly competitive discount retail chain often cuts prices so deeply that it sells at below its cost,effectively pushing smaller companies with less purchasing power out of the market.The firm is at risk of being accused of ________.

________ are the sum of the ________ and ________ for any given level of production.

Costs that do not vary with production or sales level are referred to as ________ costs.

With product bundle pricing,sellers can combine several products and offer the bundle ________.

A product or service's ________ is the sum of all the values that consumers give up to gain the benefits of having or using the product or service.

When companies set prices,the government and social concerns are two ________ affecting pricing decisions.

Pricing that involves setting prices based on competitors' strategies,costs,prices and market offerings is known as ________.

Target costing reverses the usual marketing process.

A(n)________ curve shows the number of units the market will buy in a given time period at different prices.

Under pure competition,the market consists of one or a few buyers and sellers.

When a firm varies its price by the season,month,day or even hour,it is using ________ pricing.

The illegal practice of selling below costs with the intention of punishing a competitor by driving a competitor out of business is known as ________ pricing.

When microwave ovens were being developed in the 1980s,they represented such a radical concept that the company was unsure about pricing.Early prototypes were large,cumbersome and would need a price tag of thousands of dollars simply to breakeven.With remarkable insight,a new divisional manager took over the project and issued the development team with a very clear design brief.The new microwave was to be shaped like an air-conditioner,should look like an oven,have buttons like an oven and be priced around the same as a conventional oven (at the time around $500).The company would not commercialise until the development team could design a microwave at this price.This is an example of which type of costing?

In two-part pricing,the price is broken down into a ________ fee plus a ________ ________ rate.

Which of the following would NOT support a market-skimming policy for a new product?

Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share.As a consultant,you should recommend a ________ pricing strategy.

In retail settings,________ involves charging a constant low price with few or no temporary price discounts.

In a pure monopoly,the market consists of one seller.

________ prices are the prices that a buyer carries in his or her mind and refers to when looking at a given product.