Question 1

Which of the following assumptions is the strategy of pricing above the market based on?

Accepted Answer

A)  Higher price implies higher quality. 
B)  Higher price means higher customer support. 
C)  Higher prices mean higher customer satisfaction. 
D)  Higher price creates higher demand. 
E)  Higher price means easier distribution. 
A)  Higher price implies higher quality. 
B)  Higher price means higher customer support. 
C)  Higher prices mean higher customer satisfaction. 
D)  Higher price creates higher demand. 
E)  Higher price means easier distribution.

Question 2

What are the benefits and features associated with a product called?

Accepted Answer

A)  Product features 
B)  Benefits 
C)  Service 
D)  Convenience benefit 
E)  Value package 
A)  Product features 
B)  Benefits 
C)  Service 
D)  Convenience benefit 
E)  Value package

Question 3

After a product has been in the maturity stage for a few decades, marketers must accept that the product will begin to decline.

Accepted Answer

A) True 
 B)False

Question 4

How do customers most benefit from packaging design?

Accepted Answer

A)  Increased utility 
B)  In-store advertisements 
C)  Less spoilage 
D)  Reduced risk of dames 
E)  Less theft of the product 
A)  Increased utility 
B)  In-store advertisements 
C)  Less spoilage 
D)  Reduced risk of dames 
E)  Less theft of the product

Question 5

Which pricing objective has the goal of establishing market share?

Accepted Answer

A)  Market penetration 
B)  E-business 
C)  Brand recognition 
D)  Brand licensing 
E)  Profit-maximizing 
A)  Market penetration 
B)  E-business 
C)  Brand recognition 
D)  Brand licensing 
E)  Profit-maximizing

Question 6

During the product life cycle, when do sales begin to climb and the product begin to show profit?

Accepted Answer

A)  Ascending 
B)  Mature 
C)  Initial 
D)  Growth 
E)  Accelerated 
A)  Ascending 
B)  Mature 
C)  Initial 
D)  Growth 
E)  Accelerated

Question 7

A private brand is a brand name developed by a wholesaler or retailer for their product.

Accepted Answer

A) True 
 B)False

Question 8

How can a good or service provider stimulate demand during off-peak seasons?

Accepted Answer

A)  Price lining 
B)  Discounts 
C)  Skimming 
D)  Odd-even pricing 
E)  Bundling 
A)  Price lining 
B)  Discounts 
C)  Skimming 
D)  Odd-even pricing 
E)  Bundling

Question 9

What is the difference between a specialty good and a specialty service?

Accepted Answer

A)  A specialty service is an intangible item. 
B)  A specialty good costs more than a specialty service. 
C)  A specialty service is often compared to other services before purchase. 
D)  A specialty good can be compared to other items using the Internet. 
E)  A specialty service is purchased regularly. 
A)  A specialty service is an intangible item. 
B)  A specialty good costs more than a specialty service. 
C)  A specialty service is often compared to other services before purchase. 
D)  A specialty good can be compared to other items using the Internet. 
E)  A specialty service is purchased regularly.

Question 10

Which of the following options BEST describes an example of price lining?

Accepted Answer

A)  Having the price of each individual song on an online music store be determined by length of song 
B)  Having the price of each individual song on an online music store be determined by popularity of the band 
C)  Having the price of each individual song on an online music store be determined by user auction 
D)  Having the price of each individual song on an online music store be determined by reverse auction 
E)  Having the price of each individual song on an online music store be determined by which of several categories the song falls into 
A)  Having the price of each individual song on an online music store be determined by length of song 
B)  Having the price of each individual song on an online music store be determined by popularity of the band 
C)  Having the price of each individual song on an online music store be determined by user auction 
D)  Having the price of each individual song on an online music store be determined by reverse auction 
E)  Having the price of each individual song on an online music store be determined by which of several categories the song falls into

Question 11

Which of the following is a primary advantage for the consumer when using the internet for shopping?

Accepted Answer

A)  Objective customer reviews 
B)  Faster delivery 
C)  Elimination of added costs of wholesalers and retailers 
D)  Efficient use of corporate resources 
E)  Cost-oriented pricing 
A)  Objective customer reviews 
B)  Faster delivery 
C)  Elimination of added costs of wholesalers and retailers 
D)  Efficient use of corporate resources 
E)  Cost-oriented pricing

Question 12

Which of the following activities describes the development stage of commercialization?

Accepted Answer

A)  Building a prototype 
B)  Testing the product to see if it meets performance requirements 
C)  Selling the product on a trial basis in limited areas 
D)  Beginning full-scale production and marketing 
E)  Testing consumer reaction to the product in limited areas 
A)  Building a prototype 
B)  Testing the product to see if it meets performance requirements 
C)  Selling the product on a trial basis in limited areas 
D)  Beginning full-scale production and marketing 
E)  Testing consumer reaction to the product in limited areas

Question 13

When a wholesaler or retailer develops a brand name and has the manufacturer place that name on the product, what is that product name called?

Accepted Answer

A)  National brand 
B)  Private brand 
C)  Luxury brand 
D)  Licensed brand 
E)  Manufacturer brand 
A)  National brand 
B)  Private brand 
C)  Luxury brand 
D)  Licensed brand 
E)  Manufacturer brand

Question 14

During which step of the product development stage does a company conduct market research on benefits and prices?

Accepted Answer

A)  Screening 
B)  Concept testing 
C)  Prototype development 
D)  Benefits analysis 
E)  Product idea 
A)  Screening 
B)  Concept testing 
C)  Prototype development 
D)  Benefits analysis 
E)  Product idea

Question 15

Product X is just beginning to generate a profit for the first time as the manufacturer lowers prices slightly and sees a significant increase in sales. At what stage in the product life cycle is Product X?

Accepted Answer

It is entering the growth stag

Question 16

Why is speed to market critical to market demand?

Accepted Answer

A)  It reduces overall cost of product development. 
B)  It allows more time for product recalls. 
C)  It allows the company to conduct more concept testing. 
D)  It produces stronger outcomes on the business analysis process. 
E)  It allows the company to become entrenched in the marketplace. 
A)  It reduces overall cost of product development. 
B)  It allows more time for product recalls. 
C)  It allows the company to conduct more concept testing. 
D)  It produces stronger outcomes on the business analysis process. 
E)  It allows the company to become entrenched in the marketplace.

Question 17

Product placement includes showing actors on television shows using a name-brand product.

Accepted Answer

A) True 
 B)False

Question 18

What is one of the key benefits to successful branding?

Accepted Answer

A)  Brand extension 
B)  Brand loyalty 
C)  Preferred product placement 
D)  Ease of licensing 
E)  Ease in adaptation 
A)  Brand extension 
B)  Brand loyalty 
C)  Preferred product placement 
D)  Ease of licensing 
E)  Ease in adaptation

Question 19

With product adaptation, the product is modified for greater appeal in different countries.

Accepted Answer

A) True 
 B)False

Question 20

Why would a firm want to set its price above competitors' prices?

Accepted Answer

Firms set prices above the market price

Which of the following assumptions is the strategy of pricing above the market based on?

What are the benefits and features associated with a product called?

After a product has been in the maturity stage for a few decades, marketers must accept that the product will begin to decline.

How do customers most benefit from packaging design?

Which pricing objective has the goal of establishing market share?

During the product life cycle, when do sales begin to climb and the product begin to show profit?

A private brand is a brand name developed by a wholesaler or retailer for their product.

How can a good or service provider stimulate demand during off-peak seasons?

What is the difference between a specialty good and a specialty service?

Which of the following options BEST describes an example of price lining?

Which of the following is a primary advantage for the consumer when using the internet for shopping?

Which of the following activities describes the development stage of commercialization?

When a wholesaler or retailer develops a brand name and has the manufacturer place that name on the product, what is that product name called?

During which step of the product development stage does a company conduct market research on benefits and prices?

Product X is just beginning to generate a profit for the first time as the manufacturer lowers prices slightly and sees a significant increase in sales. At what stage in the product life cycle is Product X?

Why is speed to market critical to market demand?

Product placement includes showing actors on television shows using a name-brand product.

What is one of the key benefits to successful branding?

With product adaptation, the product is modified for greater appeal in different countries.

Why would a firm want to set its price above competitors' prices?

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

Which of the following assumptions is the strategy of pricing above the market based on?

What are the benefits and features associated with a product called?

After a product has been in the maturity stage for a few decades, marketers must accept that the product will begin to decline.

How do customers most benefit from packaging design?

Which pricing objective has the goal of establishing market share?

During the product life cycle, when do sales begin to climb and the product begin to show profit?

A private brand is a brand name developed by a wholesaler or retailer for their product.

How can a good or service provider stimulate demand during off-peak seasons?

What is the difference between a specialty good and a specialty service?

Which of the following options BEST describes an example of price lining?

Which of the following is a primary advantage for the consumer when using the internet for shopping?

Which of the following activities describes the development stage of commercialization?

When a wholesaler or retailer develops a brand name and has the manufacturer place that name on the product, what is that product name called?

During which step of the product development stage does a company conduct market research on benefits and prices?

Product X is just beginning to generate a profit for the first time as the manufacturer lowers prices slightly and sees a significant increase in sales. At what stage in the product life cycle is Product X?

Why is speed to market critical to market demand?

Product placement includes showing actors on television shows using a name-brand product.

What is one of the key benefits to successful branding?

With product adaptation, the product is modified for greater appeal in different countries.

Why would a firm want to set its price above competitors' prices?

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