Question 1

Competition-based pricing is a strategy based on what all the other competitors are doing.

Accepted Answer

A) True 
 B)False

Question 2

A brand that has been given exclusive legal protection, such as the McDonald's golden arches, is a

Accepted Answer

A)  private brand. 
B)  promotional mark. 
C)  dealer brand. 
D)  trademark. 
A)  private brand. 
B)  promotional mark. 
C)  dealer brand. 
D)  trademark.

Question 3

The apple is Apple Computer's

Accepted Answer

A)  generic name. 
B)  label. 
C)  trademark. 
D)  brand. 
A)  generic name. 
B)  label. 
C)  trademark. 
D)  brand.

Question 4

Explanation: Nonprice competition is often used because prices are easy to match. Few competitors can match the image of a friendly, responsive, consumer-oriented company.
Difficulty: 2 Medium
Topic: Pricing Objectives and Strategies
Learning Objective: 14-07 Identify various pricing objectives and strategies.
Bloom's: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
-Which of the following statements about nonprice competition is most accurate?

Accepted Answer

A)  While still important, nonprice competition is becoming less critical as a result of the Internet. 
B)  Marketers often rely on nonprice differences in their competitive strategy to enhance a relatively homogeneous product. 
C)  Nonprice competition is much more important to large firms than it is to small firms. 
D)  As microeconomic theory suggests, firms have found that nonprice competition plays a secondary role that supplements the more important competition based on price. 
A)  While still important, nonprice competition is becoming less critical as a result of the Internet. 
B)  Marketers often rely on nonprice differences in their competitive strategy to enhance a relatively homogeneous product. 
C)  Nonprice competition is much more important to large firms than it is to small firms. 
D)  As microeconomic theory suggests, firms have found that nonprice competition plays a secondary role that supplements the more important competition based on price.

Question 5

Department stores often use ________ pricing in which they have regular prices which are relatively high, but offer special sales where prices are set lower than competitors.

Accepted Answer

A)  penetration 
B)  bundling 
C)  strategic 
D)  high-low 
A)  penetration 
B)  bundling 
C)  strategic 
D)  high-low

Question 6

Bennett has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This seems to represent a

Accepted Answer

A)  cost-based pricing strategy. 
B)  supply and demand formula. 
C)  demand-based pricing strategy. 
D)  price leadership pricing strategy. 
A)  cost-based pricing strategy. 
B)  supply and demand formula. 
C)  demand-based pricing strategy. 
D)  price leadership pricing strategy.

Question 7

Department store owner Brendan McGowan decided to make a gutsy move with his high-end Western Son stores. Rather than focus on the upscale, luxury market that the store attracted earlier in the decade, he focused on bringing in clothing with more mass appeal. The stores succeeded in turning around downward trending sales. In conjunction with your understanding of the product life cycle, which of the following statements summarizes the marketing strategy?

Accepted Answer

A)  Western Son recognized that it was not competing well with its traditional higher income market. It decided to change its product offering and price to appeal to a broader market and increase sales and profits. 
B)  Western Son stores recognized several markets that it could reach with its upscale clothing lines. 
C)  Western Son positioned itself against, rather than with, the competition. It decided to adhere to its price leadership position. 
D)  Western Son knew that in order to re-invent itself, it was going to have to practice the same marketing strategy followed by Walmart and other discount stores. It would make all marketing decisions based on cost. The price on an item need only exceed what it cost to make and ship it. Falling prices became the norm. 
A)  Western Son recognized that it was not competing well with its traditional higher income market. It decided to change its product offering and price to appeal to a broader market and increase sales and profits. 
B)  Western Son stores recognized several markets that it could reach with its upscale clothing lines. 
C)  Western Son positioned itself against, rather than with, the competition. It decided to adhere to its price leadership position. 
D)  Western Son knew that in order to re-invent itself, it was going to have to practice the same marketing strategy followed by Walmart and other discount stores. It would make all marketing decisions based on cost. The price on an item need only exceed what it cost to make and ship it. Falling prices became the norm.

Question 8

According to the Reaching Beyond Our Borders box, brand names must hold great meaning or customers will not acknowledge them.

Accepted Answer

A) True 
 B)False

Question 9

From a marketing management perspective, what is the meaning of a total product offer? What are the important elements in the total product offer of your college or university?

Accepted Answer

A total product offer consists of everyt

Question 10

Diego's company was bidding on the construction of a new penguin display at a zoo. When putting together his bid, Diego began by determining what the zoo would be willing to pay for the structure, and then subtracting a reasonable profit for the company. The result would be the cost of production. For example: If price to zoo = $8 million, and company profit margin = $3 million, the cost to produce cannot exceed $5 million. [$8 million - $3 million = $5 million.] The demand-based pricing strategy in this example is called

Accepted Answer

A)  target costing. 
B)  penetration pricing. 
C)  cost-based pricing. 
D)  volume pricing. 
A)  target costing. 
B)  penetration pricing. 
C)  cost-based pricing. 
D)  volume pricing.

Question 11

The target costing strategy establishes a selling price that consumers are willing to pay for a product, and then subtracts a desired profit margin to determine a target cost of production.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is considered a stage of the new-product development process?

Accepted Answer

A)  automation 
B)  media screening 
C)  commercialization 
D)  selective perception 
A)  automation 
B)  media screening 
C)  commercialization 
D)  selective perception

Question 13

A long-run pricing objective of almost all firms is to optimize profit.

Accepted Answer

A) True 
 B)False

Question 14

One function of effective packaging is to provide information regarding warranties, benefits, and uses of the good inside the package.

Accepted Answer

A) True 
 B)False

Question 15

NiceIce Meals designed a new type of packaging that significantly improves taste and texture of food when defrosted. Unfortunately, firms seldom find that improvements in packaging impact market share and profits.

Accepted Answer

A) True 
 B)False

Question 16

Sears sells batteries under its own Diehard brand name even though another company actually produces these batteries. This is an example of a

Accepted Answer

A)  knockoff brand. 
B)  generic brand. 
C)  dealer (private) brand. 
D)  brand association. 
A)  knockoff brand. 
B)  generic brand. 
C)  dealer (private) brand. 
D)  brand association.

Question 17

The job performed by brand managers

Accepted Answer

A)  is mainly concerned with the promotion of the entire product mix of their firm. 
B)  involves broad responsibilities for the marketing of a specific brand or product line. 
C)  is likely to become less important in firms that utilize the Internet. 
D)  focuses more on the pricing and promotion of established goods than on the development of new products. 
A)  is mainly concerned with the promotion of the entire product mix of their firm. 
B)  involves broad responsibilities for the marketing of a specific brand or product line. 
C)  is likely to become less important in firms that utilize the Internet. 
D)  focuses more on the pricing and promotion of established goods than on the development of new products.

Question 18

Newport Industries is one of the first producers of a unique consumer product. The company has chosen a low-price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Newport's approach to pricing is a classic example of the skimming strategy.

Accepted Answer

A) True 
 B)False

Question 19

Folgers's ________ allows customers to easily identify this product from other coffee products.

Accepted Answer

A)  patent 
B)  trade symbol 
C)  brand name 
D)  brand equity 
A)  patent 
B)  trade symbol 
C)  brand name 
D)  brand equity

Question 20

The product life cycle consists of ________ stages.

Accepted Answer

A)  3 
B)  4 
C)  5 
D)  6 
A)  3 
B)  4 
C)  5 
D)  6

Competition-based pricing is a strategy based on what all the other competitors are doing.

A brand that has been given exclusive legal protection, such as the McDonald's golden arches, is a

The apple is Apple Computer's

Department stores often use ________ pricing in which they have regular prices which are relatively high, but offer special sales where prices are set lower than competitors.

Bennett has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This seems to represent a

According to the Reaching Beyond Our Borders box, brand names must hold great meaning or customers will not acknowledge them.

From a marketing management perspective, what is the meaning of a total product offer? What are the important elements in the total product offer of your college or university?

The target costing strategy establishes a selling price that consumers are willing to pay for a product, and then subtracts a desired profit margin to determine a target cost of production.

Which of the following is considered a stage of the new-product development process?

A long-run pricing objective of almost all firms is to optimize profit.

One function of effective packaging is to provide information regarding warranties, benefits, and uses of the good inside the package.

NiceIce Meals designed a new type of packaging that significantly improves taste and texture of food when defrosted. Unfortunately, firms seldom find that improvements in packaging impact market share and profits.

Sears sells batteries under its own Diehard brand name even though another company actually produces these batteries. This is an example of a

The job performed by brand managers

Folgers's ________ allows customers to easily identify this product from other coffee products.

The product life cycle consists of ________ stages.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Working Within the Legal Environment

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

Filters

Exam 14: Developing and Pricing Goods and Services

Competition-based pricing is a strategy based on what all the other competitors are doing.

A brand that has been given exclusive legal protection, such as the McDonald's golden arches, is a

The apple is Apple Computer's

Department stores often use ________ pricing in which they have regular prices which are relatively high, but offer special sales where prices are set lower than competitors.

Bennett has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This seems to represent a

According to the Reaching Beyond Our Borders box, brand names must hold great meaning or customers will not acknowledge them.

From a marketing management perspective, what is the meaning of a total product offer? What are the important elements in the total product offer of your college or university?

The target costing strategy establishes a selling price that consumers are willing to pay for a product, and then subtracts a desired profit margin to determine a target cost of production.

Which of the following is considered a stage of the new-product development process?

A long-run pricing objective of almost all firms is to optimize profit.

One function of effective packaging is to provide information regarding warranties, benefits, and uses of the good inside the package.

NiceIce Meals designed a new type of packaging that significantly improves taste and texture of food when defrosted. Unfortunately, firms seldom find that improvements in packaging impact market share and profits.

Sears sells batteries under its own Diehard brand name even though another company actually produces these batteries. This is an example of a

The job performed by brand managers

Folgers's ________ allows customers to easily identify this product from other coffee products.

The product life cycle consists of ________ stages.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Working Within the Legal Environment

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

Filters