Question 1

If a company offers several products that are similar in nature, how could the company increase sales while saving the consumer money?

Accepted Answer

A)  Use a bundling strategy 
B)  Incorporate dynamic pricing 
C)  Sell at a reverse auction 
D)  Use a penetration pricing strategy 
E)  Incorporate a price skimming option 
A)  Use a bundling strategy 
B)  Incorporate dynamic pricing 
C)  Sell at a reverse auction 
D)  Use a penetration pricing strategy 
E)  Incorporate a price skimming option

Question 2

Sears' Craftsman Tools is an example of a private brand.

Accepted Answer

A) True 
 B)False

Question 3

How can a firm increase the life of a product without involving product changes?

Accepted Answer

A)  Product extension 
B)  Product adaption 
C)  Rebranding 
D)  New product placement 
E)  Reintroduction 
A)  Product extension 
B)  Product adaption 
C)  Rebranding 
D)  New product placement 
E)  Reintroduction

Question 4

Variable costs of a product are those costs that change with the quantity of a product produced and sold.

Accepted Answer

A) True 
 B)False

Question 5

Packaging can serve as an in-store advertisement that makes the product attractive, displays the brand name, and identifies features and benefits.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following BEST describes product features?

Accepted Answer

A)  All attributes and features of the product taken together 
B)  Tangible and intangible quality built into the product 
C)  Intangible benefits that increase customer satisfaction 
D)  Speed and convenience of a buyer interaction 
E)  Benefits that are used directly in the conversion of a process 
A)  All attributes and features of the product taken together 
B)  Tangible and intangible quality built into the product 
C)  Intangible benefits that increase customer satisfaction 
D)  Speed and convenience of a buyer interaction 
E)  Benefits that are used directly in the conversion of a process

Question 7

Which of the following pricing strategies BEST describes price lining?

Accepted Answer

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

Question 8

The breakeven point is the price at which a company earns the maximum profits.

Accepted Answer

A) True 
 B)False

Question 9

What is the amount added by a retailer to an item's purchase cost needed to make a profit?

Accepted Answer

A)  Gross 
B)  Variable cost 
C)  Breakeven 
D)  Mark-up 
E)  Fixed cost 
A)  Gross 
B)  Variable cost 
C)  Breakeven 
D)  Mark-up 
E)  Fixed cost

Question 10

Why would a company use a bundling strategy when selling goods or services?

Accepted Answer

A)  To decrease packaging costs 
B)  To increase the sale of bundled items 
C)  To introduce a new product to the market 
D)  To offer all products at a limited range of prices 
E)  To take advantage of psychological pricing 
A)  To decrease packaging costs 
B)  To increase the sale of bundled items 
C)  To introduce a new product to the market 
D)  To offer all products at a limited range of prices 
E)  To take advantage of psychological pricing

Question 11

In the screening stage of product development, companies use market research to get consumers input about benefits and prices.

Accepted Answer

A) True 
 B)False

Question 12

Shopping goods are purchased more often than convenience goods.

Accepted Answer

A) True 
 B)False

Question 13

Differentiate between fixed costs and variable costs.

Accepted Answer

Fixed costs remain constant with varying

Question 14

Which of the following strategies is involved with penetration pricing?

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 15

What happens when companies extend their horizons and identify opportunities outside existing product lines?

Accepted Answer

A)  Disconnected product lines 
B)  Multiple product lines 
C)  Uniform product lines 
D)  Universal product lines 
E)  Tailored product lines 
A)  Disconnected product lines 
B)  Multiple product lines 
C)  Uniform product lines 
D)  Universal product lines 
E)  Tailored product lines

Question 16

For many companies, speed to market with a product is as important as care in developing it.

Accepted Answer

A) True 
 B)False

Question 17

Which defining word or phrase below BEST captures the meaning of capital items?

Accepted Answer

A)  Bulk loads 
B)  Directly used in the production process 
C)  To the consumer within a year 
D)  Longer lasting 
E)  Governmental purchase 
A)  Bulk loads 
B)  Directly used in the production process 
C)  To the consumer within a year 
D)  Longer lasting 
E)  Governmental purchase

Question 18

A company that buys products to use to produce or create other goods or services is a(n)

Accepted Answer

A)  convenience buyer. 
B)  consumer. 
C)  industrial buyer. 
D)  capital buyer. 
E)  rebrander. 
A)  convenience buyer. 
B)  consumer. 
C)  industrial buyer. 
D)  capital buyer. 
E)  rebrander.

Question 19

Which of the following scenarios would allow a firm to price below prevailing market price and still succeed?

Accepted Answer

A)  The public does not learn that the firm's product is indeed inferior. 
B)  The firm can offer a product of acceptable quality. 
C)  The firm can offer an entirely new product. 
D)  The firm can effectively copy competitors' promotional tactics and marketing strategies. 
E)  The firm can effectively criticize its competitors' products and quality. 
A)  The public does not learn that the firm's product is indeed inferior. 
B)  The firm can offer a product of acceptable quality. 
C)  The firm can offer an entirely new product. 
D)  The firm can effectively copy competitors' promotional tactics and marketing strategies. 
E)  The firm can effectively criticize its competitors' products and quality.

Question 20

Which of the following costs refers specifically to those that are unaffected by the quantity of a product sold or produced?

Accepted Answer

A)  Annual costs 
B)  Variable costs 
C)  Fixed costs 
D)  Marginal costs 
E)  Market-adjusted costs 
A)  Annual costs 
B)  Variable costs 
C)  Fixed costs 
D)  Marginal costs 
E)  Market-adjusted costs

If a company offers several products that are similar in nature, how could the company increase sales while saving the consumer money?

Sears' Craftsman Tools is an example of a private brand.

How can a firm increase the life of a product without involving product changes?

Variable costs of a product are those costs that change with the quantity of a product produced and sold.

Packaging can serve as an in-store advertisement that makes the product attractive, displays the brand name, and identifies features and benefits.

Which of the following BEST describes product features?

Which of the following pricing strategies BEST describes price lining?

The breakeven point is the price at which a company earns the maximum profits.

What is the amount added by a retailer to an item's purchase cost needed to make a profit?

Why would a company use a bundling strategy when selling goods or services?

In the screening stage of product development, companies use market research to get consumers input about benefits and prices.

Shopping goods are purchased more often than convenience goods.

Differentiate between fixed costs and variable costs.

Which of the following strategies is involved with penetration pricing?

What happens when companies extend their horizons and identify opportunities outside existing product lines?

For many companies, speed to market with a product is as important as care in developing it.

Which defining word or phrase below BEST captures the meaning of capital items?

A company that buys products to use to produce or create other goods or services is a(n)

Which of the following scenarios would allow a firm to price below prevailing market price and still succeed?

Which of the following costs refers specifically to those that are unaffected by the quantity of a product sold or produced?

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

If a company offers several products that are similar in nature, how could the company increase sales while saving the consumer money?

Sears' Craftsman Tools is an example of a private brand.

How can a firm increase the life of a product without involving product changes?

Variable costs of a product are those costs that change with the quantity of a product produced and sold.

Packaging can serve as an in-store advertisement that makes the product attractive, displays the brand name, and identifies features and benefits.

Which of the following BEST describes product features?

Which of the following pricing strategies BEST describes price lining?

The breakeven point is the price at which a company earns the maximum profits.

What is the amount added by a retailer to an item's purchase cost needed to make a profit?

Why would a company use a bundling strategy when selling goods or services?

In the screening stage of product development, companies use market research to get consumers input about benefits and prices.

Shopping goods are purchased more often than convenience goods.

Differentiate between fixed costs and variable costs.

Which of the following strategies is involved with penetration pricing?

What happens when companies extend their horizons and identify opportunities outside existing product lines?

For many companies, speed to market with a product is as important as care in developing it.

Which defining word or phrase below BEST captures the meaning of capital items?

A company that buys products to use to produce or create other goods or services is a(n)

Which of the following scenarios would allow a firm to price below prevailing market price and still succeed?

Which of the following costs refers specifically to those that are unaffected by the quantity of a product sold or produced?

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