Question 1

Speed to market increases the chance that a new product will survive.

Accepted Answer

A) True 
 B)False  True

Question 2

How does a product mix differ from a product line?

Accepted Answer

A product mix is the group of products that a firm makes available for sale. A product line is a group of similar products intended for a similar group of buyers who will use the product in similar ways. A company will have only one product mix but may have multiple product lines.

Question 3

In which of the following ways is product development different for services than for physical goods?

Accepted Answer

A)  Instead of gathering product ideas, the company goes immediately to the testing phase. 
B)  Instead of screening ideas, the company tests all of them, since no prototype is needed. 
C)  Instead of creating a prototype, the company develops a service process design. 
D)  The business analysis step is not needed, since there are no production costs with services. 
E)  The commercialization step is gradual for services, but rapid for physical goods. 
A)  Instead of gathering product ideas, the company goes immediately to the testing phase. 
B)  Instead of screening ideas, the company tests all of them, since no prototype is needed. 
C)  Instead of creating a prototype, the company develops a service process design. 
D)  The business analysis step is not needed, since there are no production costs with services. 
E)  The commercialization step is gradual for services, but rapid for physical goods. C

Question 4

The sales price of a product is given as the product's cost to the seller plus which of the following quantities?

Accepted Answer

A)  Breakeven price 
B)  Revenues 
C)  Variable price 
D)  Fixed point 
E)  Markup 
A)  Breakeven price 
B)  Revenues 
C)  Variable price 
D)  Fixed point 
E)  Markup

Question 5

Which of the following includes the tangible and intangible features that characterize a service?

Accepted Answer

A)  Process selection 
B)  Service process design 
C)  Product life cycle 
D)  Benefits 
E)  Service value package 
A)  Process selection 
B)  Service process design 
C)  Product life cycle 
D)  Benefits 
E)  Service value package

Question 6

If prices are set too high, the company will make a large profit on each item, but will sell fewer units.

Accepted Answer

A) True 
 B)False

Question 7

Assuming a company has been gathering ideas for new products, what is the next step in the development process?

Accepted Answer

A)  Test marketing 
B)  Prototype development 
C)  Business analysis 
D)  Concept testing 
E)  Screening 
A)  Test marketing 
B)  Prototype development 
C)  Business analysis 
D)  Concept testing 
E)  Screening

Question 8

Using symbols and names to communicate the qualities of a product is a function of what?

Accepted Answer

A)  Awareness 
B)  Reintroduction 
C)  Product adaptation 
D)  Product extension 
E)  Branding 
A)  Awareness 
B)  Reintroduction 
C)  Product adaptation 
D)  Product extension 
E)  Branding

Question 9

Which of the following indicated a firm sold the rights to put their name on a product not produced by them?

Accepted Answer

A)  Asset brands 
B)  National brands 
C)  Licensed brands 
D)  Private brands 
E)  Private labels 
A)  Asset brands 
B)  National brands 
C)  Licensed brands 
D)  Private brands 
E)  Private labels

Question 10

Using the odd-even psychological pricing strategy, a restaurant would price an entree at $10.00 rather than $9.95.

Accepted Answer

A) True 
 B)False

Question 11

In addition to cost, how are industrial products divided into product categories?

Accepted Answer

A)  What area of the organization will use them 
B)  Competitive nature of acquiring the item 
C)  Availability 
D)  How they will be used 
E)  How easily the item can be turned into a consumable good 
A)  What area of the organization will use them 
B)  Competitive nature of acquiring the item 
C)  Availability 
D)  How they will be used 
E)  How easily the item can be turned into a consumable good

Question 12

On average, how many new product ideas are needed to generate one that reaches the consumer market?

Accepted Answer

A)  25 
B)  50 
C)  75 
D)  100 
E)  500 
A)  25 
B)  50 
C)  75 
D)  100 
E)  500

Question 13

Which of the following best defines fixed costs?

Accepted Answer

A)  Costs that are needed to acquire a fixed market share 
B)  Costs that are needed to acquire fixed profits 
C)  Costs that are unaffected by the number of goods sold by the firm 
D)  Costs that remain the same from year to year 
E)  Costs that remain the same across all products 
A)  Costs that are needed to acquire a fixed market share 
B)  Costs that are needed to acquire fixed profits 
C)  Costs that are unaffected by the number of goods sold by the firm 
D)  Costs that remain the same from year to year 
E)  Costs that remain the same across all products

Question 14

Price skimming occurs when a company sets an initially low price to establish a new product in the market.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following strategies is involved with price skimming?

Accepted Answer

A)  Setting an initial low price to establish a new product in the market 
B)  Setting an initial low price to cover new product costs and still generate a profit 
C)  Setting a limited number of prices for certain categories or products 
D)  Setting an initial high price to establish a new product in the market 
E)  Setting an initial high price to cover new product costs and still generate a profit 
A)  Setting an initial low price to establish a new product in the market 
B)  Setting an initial low price to cover new product costs and still generate a profit 
C)  Setting a limited number of prices for certain categories or products 
D)  Setting an initial high price to establish a new product in the market 
E)  Setting an initial high price to cover new product costs and still generate a profit

Question 16

The marketing process to the consumer is significantly different than the marketing process for the industrial buyer.

Accepted Answer

A) True 
 B)False

Question 17

A doctor's office buys a multifunction printer. This purchase is an example of a capital item.

Accepted Answer

A) True 
 B)False

Question 18

Most ideas for new products eventually reach the market.

Accepted Answer

A) True 
 B)False

Question 19

What type of consumer good is more expensive and therefore receives more evaluation of alternatives before the purchase is made?

Accepted Answer

A)  Specialty goods 
B)  Production items 
C)  Shopping goods 
D)  Expense items 
E)  Capital items 
A)  Specialty goods 
B)  Production items 
C)  Shopping goods 
D)  Expense items 
E)  Capital items

Question 20

Describe a situation in which a company might adopt a pricing objective other than profit maximization.

Accepted Answer

Sometimes a firm may value establishing

Speed to market increases the chance that a new product will survive.

How does a product mix differ from a product line?

In which of the following ways is product development different for services than for physical goods?

The sales price of a product is given as the product's cost to the seller plus which of the following quantities?

Which of the following includes the tangible and intangible features that characterize a service?

If prices are set too high, the company will make a large profit on each item, but will sell fewer units.

Assuming a company has been gathering ideas for new products, what is the next step in the development process?

Using symbols and names to communicate the qualities of a product is a function of what?

Which of the following indicated a firm sold the rights to put their name on a product not produced by them?

Using the odd-even psychological pricing strategy, a restaurant would price an entree at $10.00 rather than $9.95.

In addition to cost, how are industrial products divided into product categories?

On average, how many new product ideas are needed to generate one that reaches the consumer market?

Which of the following best defines fixed costs?

Price skimming occurs when a company sets an initially low price to establish a new product in the market.

Which of the following strategies is involved with price skimming?

The marketing process to the consumer is significantly different than the marketing process for the industrial buyer.

A doctor's office buys a multifunction printer. This purchase is an example of a capital item.

Most ideas for new products eventually reach the market.

What type of consumer good is more expensive and therefore receives more evaluation of alternatives before the purchase is made?

Describe a situation in which a company might adopt a pricing objective other than profit maximization.

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters

Exam 12: Developing and Pricing Products

Speed to market increases the chance that a new product will survive.

How does a product mix differ from a product line?

In which of the following ways is product development different for services than for physical goods?

The sales price of a product is given as the product's cost to the seller plus which of the following quantities?

Which of the following includes the tangible and intangible features that characterize a service?

If prices are set too high, the company will make a large profit on each item, but will sell fewer units.

Assuming a company has been gathering ideas for new products, what is the next step in the development process?

Using symbols and names to communicate the qualities of a product is a function of what?

Which of the following indicated a firm sold the rights to put their name on a product not produced by them?

Using the odd-even psychological pricing strategy, a restaurant would price an entree at $10.00 rather than $9.95.

In addition to cost, how are industrial products divided into product categories?

On average, how many new product ideas are needed to generate one that reaches the consumer market?

Which of the following best defines fixed costs?

Price skimming occurs when a company sets an initially low price to establish a new product in the market.

Which of the following strategies is involved with price skimming?

The marketing process to the consumer is significantly different than the marketing process for the industrial buyer.

A doctor's office buys a multifunction printer. This purchase is an example of a capital item.

Most ideas for new products eventually reach the market.

What type of consumer good is more expensive and therefore receives more evaluation of alternatives before the purchase is made?

Describe a situation in which a company might adopt a pricing objective other than profit maximization.

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters