Question 1

Which of the following pricing strategies is used by many e-tailers in order to provide flexibility between buyers and sellers in setting a price?

Accepted Answer

A)  Penetration pricing 
B)  Psychological pricing 
C)  Breakeven pricing 
D)  Fixed pricing 
E)  Dynamic pricing 
A)  Penetration pricing 
B)  Psychological pricing 
C)  Breakeven pricing 
D)  Fixed pricing 
E)  Dynamic pricing

Question 2

What is the grouping of products available for sale by a company called?

Accepted Answer

A)  Product line 
B)  Capital mix 
C)  Goods and services 
D)  Specialty goods 
E)  Product mix 
A)  Product line 
B)  Capital mix 
C)  Goods and services 
D)  Specialty goods 
E)  Product mix

Question 3

Why do firms conduct product testing?

Accepted Answer

A)  To determine potential profitability of the product 
B)  To allow for gradual commercialization over time 
C)  To ensure the prototype meets performance requirements 
D)  To determine how well the product fits in with the goals of the organization 
E)  To determine the potential reaction of consumers 
A)  To determine potential profitability of the product 
B)  To allow for gradual commercialization over time 
C)  To ensure the prototype meets performance requirements 
D)  To determine how well the product fits in with the goals of the organization 
E)  To determine the potential reaction of consumers

Question 4

Consumers will often spend a great deal of time and money to find a specialty good and will generally not accept a substitute.

Accepted Answer

A) True 
 B)False

Question 5

Consumers often spend a great deal of time and money doing research to purchase a specific service. These consumer products are referred to as

Accepted Answer

A)  production services. 
B)  specialty services. 
C)  convenience services. 
D)  industrial services. 
E)  shopping services. 
A)  production services. 
B)  specialty services. 
C)  convenience services. 
D)  industrial services. 
E)  shopping services.

Question 6

Which of the following pricing strategies has stimulation of sales as a higher priority than maximization of profits?

Accepted Answer

A)  Price fixing 
B)  Penetration pricing 
C)  Price skimming 
D)  Price pointing 
E)  Price lining 
A)  Price fixing 
B)  Penetration pricing 
C)  Price skimming 
D)  Price pointing 
E)  Price lining

Question 7

Describe three ways to extend a product's life as it nears the end of the maturity stage.

Accepted Answer

With product extension, the marketer off

Question 8

One advantage to marketers of selling online is that it is easier for sellers to hide prices and enjoy a large markup.

Accepted Answer

A) True 
 B)False

Question 9

Describe the three types of brand names and give an example of each.

Accepted Answer

Brand names may be national brands, lice

Question 10

Products priced above the market play on the common assumption that a higher price means higher quality.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following best describes pricing objectives?

Accepted Answer

A)  The need for the company to compete 
B)  An indication of the company's social and ethical concerns 
C)  A reflection of the company's image 
D)  The ability of a firm to generate revenue 
E)  The goals of the seller achieved by pricing products 
A)  The need for the company to compete 
B)  An indication of the company's social and ethical concerns 
C)  A reflection of the company's image 
D)  The ability of a firm to generate revenue 
E)  The goals of the seller achieved by pricing products

Question 12

What is involved in service process design?

Accepted Answer

The design involves three parts. First,

Question 13

How has e-business contributed to lower prices?

Accepted Answer

Doing business online can lower the cost

Question 14

How can a company establish market leadership for a product?

Accepted Answer

A)  Introduce the product with a lower price than competitors. 
B)  Do not introduce the product until success is certain. 
C)  Be sure the product supports the overall goals and strategies of the organization. 
D)  Introduce the product before competitors. 
E)  Introduce a product that supports the rest of the product line. 
A)  Introduce the product with a lower price than competitors. 
B)  Do not introduce the product until success is certain. 
C)  Be sure the product supports the overall goals and strategies of the organization. 
D)  Introduce the product before competitors. 
E)  Introduce a product that supports the rest of the product line.

Question 15

What can a company do to offset the consequences of slow sales in a product line?

Accepted Answer

A)  Limit the use of capital items. 
B)  Diversify the product line. 
C)  Add convenience goods. 
D)  Increase the use of shopping goods available to consumers. 
E)  Reclassify specialty products as convenience products. 
A)  Limit the use of capital items. 
B)  Diversify the product line. 
C)  Add convenience goods. 
D)  Increase the use of shopping goods available to consumers. 
E)  Reclassify specialty products as convenience products.

Question 16

What is the practice of selling products in a foreign market for less than in its home country?

Accepted Answer

A)  Countervailing duties 
B)  Skimming 
C)  Odd-even pricing 
D)  Dumping 
E)  Price lining 
A)  Countervailing duties 
B)  Skimming 
C)  Odd-even pricing 
D)  Dumping 
E)  Price lining

Question 17

Which of the following represents the sales volume where total costs equal total revenue?

Accepted Answer

A)  Fixed costs 
B)  Pricing analysis 
C)  Skimming 
D)  Variable costs 
E)  Breakeven 
A)  Fixed costs 
B)  Pricing analysis 
C)  Skimming 
D)  Variable costs 
E)  Breakeven

Question 18

When a consumer knows what they want to buy and is not willing to accept a substitute, what type of consumer product is being sought?

Accepted Answer

A)  Production goods 
B)  Shopping goods 
C)  Convenience goods 
D)  Expense goods 
E)  Specialty goods 
A)  Production goods 
B)  Shopping goods 
C)  Convenience goods 
D)  Expense goods 
E)  Specialty goods

Question 19

Companies who price their product low enough to attract a large number of buyers are most likely pursuing which of the following objectives?

Accepted Answer

A)  Stable market pricing 
B)  High profits 
C)  Stable market activity 
D)  Low market volatility 
E)  High market share 
A)  Stable market pricing 
B)  High profits 
C)  Stable market activity 
D)  Low market volatility 
E)  High market share

Question 20

During the product life cycle, when do sales begin to slow down even though profit levels are high?

Accepted Answer

A)  Decline 
B)  Maturity 
C)  Introduction 
D)  Growth 
E)  Promotion 
A)  Decline 
B)  Maturity 
C)  Introduction 
D)  Growth 
E)  Promotion

Which of the following pricing strategies is used by many e-tailers in order to provide flexibility between buyers and sellers in setting a price?

What is the grouping of products available for sale by a company called?

Why do firms conduct product testing?

Consumers will often spend a great deal of time and money to find a specialty good and will generally not accept a substitute.

Consumers often spend a great deal of time and money doing research to purchase a specific service. These consumer products are referred to as

Which of the following pricing strategies has stimulation of sales as a higher priority than maximization of profits?

Describe three ways to extend a product's life as it nears the end of the maturity stage.

One advantage to marketers of selling online is that it is easier for sellers to hide prices and enjoy a large markup.

Describe the three types of brand names and give an example of each.

Products priced above the market play on the common assumption that a higher price means higher quality.

Which of the following best describes pricing objectives?

What is involved in service process design?

How has e-business contributed to lower prices?

How can a company establish market leadership for a product?

What can a company do to offset the consequences of slow sales in a product line?

What is the practice of selling products in a foreign market for less than in its home country?

Which of the following represents the sales volume where total costs equal total revenue?

When a consumer knows what they want to buy and is not willing to accept a substitute, what type of consumer product is being sought?

Companies who price their product low enough to attract a large number of buyers are most likely pursuing which of the following objectives?

During the product life cycle, when do sales begin to slow down even though profit levels are high?

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 pricing strategies is used by many e-tailers in order to provide flexibility between buyers and sellers in setting a price?

What is the grouping of products available for sale by a company called?

Why do firms conduct product testing?

Consumers will often spend a great deal of time and money to find a specialty good and will generally not accept a substitute.

Consumers often spend a great deal of time and money doing research to purchase a specific service. These consumer products are referred to as

Which of the following pricing strategies has stimulation of sales as a higher priority than maximization of profits?

Describe three ways to extend a product's life as it nears the end of the maturity stage.

One advantage to marketers of selling online is that it is easier for sellers to hide prices and enjoy a large markup.

Describe the three types of brand names and give an example of each.

Products priced above the market play on the common assumption that a higher price means higher quality.

Which of the following best describes pricing objectives?

What is involved in service process design?

How has e-business contributed to lower prices?

How can a company establish market leadership for a product?

What can a company do to offset the consequences of slow sales in a product line?

What is the practice of selling products in a foreign market for less than in its home country?

Which of the following represents the sales volume where total costs equal total revenue?

When a consumer knows what they want to buy and is not willing to accept a substitute, what type of consumer product is being sought?

Companies who price their product low enough to attract a large number of buyers are most likely pursuing which of the following objectives?

During the product life cycle, when do sales begin to slow down even though profit levels are high?

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