Question 1

A firm makes bookcases,bicycles,soft drinks,armored cars,and novelty dishes.What do these items make up?

Accepted Answer

A)  product line 
B)  product variety 
C)  product assortment 
D)  product mix 
E)  product inventory 
A)  product line 
B)  product variety 
C)  product assortment 
D)  product mix 
E)  product inventory

Question 2

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 3

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 4

Piper & Son sells pickled peppers to stores for $3 per jar,and the stores sell each jar to consumers for $7.50.What is the markup percentage?

Accepted Answer

A)  40% 
B)  60% 
C)  67% 
D)  150% 
E)  250% 
A)  40% 
B)  60% 
C)  67% 
D)  150% 
E)  250%

Question 5

Companies using price lining offer all items in certain categories at a limited number of prices.

Accepted Answer

A) True 
 B)False

Question 6

Pet Care Pros has a strong reputation in caring for customers' dogs and cats.The owners want to develop a new service: pet sitting for reptiles.Their product development process should include development of a prototype.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

Firms set prices above the market price

Question 8

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 9

Which of the following gives the correct formula for calculating markup percentage?

Accepted Answer

A)  sales price/markup 
B)  sales price/fixed costs 
C)  fixed costs/variable costs 
D)  markup/sales price 
E)  sales price/variable costs 
A)  sales price/markup 
B)  sales price/fixed costs 
C)  fixed costs/variable costs 
D)  markup/sales price 
E)  sales price/variable costs

Question 10

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 11

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 12

Ginny and RJ are correct: ComicalYou becomes a hit with young people,even with a $5 per month subscription fee.Within two years,it becomes the number one online destination for people in their teens and twenties,and usage soars.An online social network introduces a comics creation tool to compete with ComicalYou for 10 cents per message.What marketing strategy is most appropriate for this stage of the product life cycle?

Accepted Answer

A)  Reintroduce the product in new markets to avoid the decline stage. 
B)  Reduce or end promotional support because people already know about ComicalYou. 
C)  Focus on making customers aware of the product and its benefits. 
D)  Lower prices slightly and continue promotional expenditures to keep demand growing. 
E)  Develop product adaptations to extend the product's life. 
A)  Reintroduce the product in new markets to avoid the decline stage. 
B)  Reduce or end promotional support because people already know about ComicalYou. 
C)  Focus on making customers aware of the product and its benefits. 
D)  Lower prices slightly and continue promotional expenditures to keep demand growing. 
E)  Develop product adaptations to extend the product's life.

Question 13

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 14

A highly successful bakery specializes in making cherry tarts.Which of the following costs at the bakery is NOT variable?

Accepted Answer

A)  cost of cherries 
B)  cost of flour 
C)  cost of wax paper liners 
D)  cost of the oven 
E)  cost of heating the oven 
A)  cost of cherries 
B)  cost of flour 
C)  cost of wax paper liners 
D)  cost of the oven 
E)  cost of heating the oven

Question 15

Extensive analysis reveals that if Personal Devices offered Indian customers products at multiple price points,the company would initially earn more profits but damage the brand in the long term.Which of the following,if true,would weaken the argument that Personal Devices should offer products at multiple price points?

Accepted Answer

A)  The Indian market is sufficiently large to support offerings at multiple price points. 
B)  Taiwanese manufacturers have focused on the low to medium end when selling to their domestic markets. 
C)  Brand image is the sum total of customer perceptions about a company. 
D)  Research shows that the average domestic consumer tends to associate price with quality. 
E)  Niche companies that try to be everything to everyone usually lose their edge in their core business. 
A)  The Indian market is sufficiently large to support offerings at multiple price points. 
B)  Taiwanese manufacturers have focused on the low to medium end when selling to their domestic markets. 
C)  Brand image is the sum total of customer perceptions about a company. 
D)  Research shows that the average domestic consumer tends to associate price with quality. 
E)  Niche companies that try to be everything to everyone usually lose their edge in their core business.

Question 16

ComicalYou is such a hit that the older generation joins the network,and most people agree that creating comics is going to replace traditional forms of communication for some time to come.Even businesses are considering how employees can be more creative if they share ideas in comic strips or panels.Ginny and RJ are thrilled to have revolutionized social media.With such a successful product,they believe ComicalYou can be profitable for the long term without further innovation.Discuss whether their opinion is correct.

Accepted Answer

It is highly unlikely they are correct,b

Question 17

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 has effective promotional tactics and marketing strategies. 
E)  The firm can effectively criticize its competitors' products. 
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 has effective promotional tactics and marketing strategies. 
E)  The firm can effectively criticize its competitors' products.

Question 18

A value package consists of an in-store advertisement that makes the product attractive and identifies features and benefits.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

A firm makes bookcases,bicycles,soft drinks,armored cars,and novelty dishes.What do these items make up?

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

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

Piper & Son sells pickled peppers to stores for $3 per jar,and the stores sell each jar to consumers for $7.50.What is the markup percentage?

Companies using price lining offer all items in certain categories at a limited number of prices.

Pet Care Pros has a strong reputation in caring for customers' dogs and cats.The owners want to develop a new service: pet sitting for reptiles.Their product development process should include development of a prototype.

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

Which of the following strategies is involved with price skimming?

Which of the following gives the correct formula for calculating markup percentage?

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?

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

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

A highly successful bakery specializes in making cherry tarts.Which of the following costs at the bakery is NOT variable?

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

A value package consists of an in-store advertisement that makes the product attractive and identifies features and benefits.

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

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?

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 for Producing Goods and Services

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

A firm makes bookcases,bicycles,soft drinks,armored cars,and novelty dishes.What do these items make up?

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

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

Piper & Son sells pickled peppers to stores for $3 per jar,and the stores sell each jar to consumers for $7.50.What is the markup percentage?

Companies using price lining offer all items in certain categories at a limited number of prices.

Pet Care Pros has a strong reputation in caring for customers' dogs and cats.The owners want to develop a new service: pet sitting for reptiles.Their product development process should include development of a prototype.

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

Which of the following strategies is involved with price skimming?

Which of the following gives the correct formula for calculating markup percentage?

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?

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

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

A highly successful bakery specializes in making cherry tarts.Which of the following costs at the bakery is NOT variable?

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

A value package consists of an in-store advertisement that makes the product attractive and identifies features and benefits.

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

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?

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 for Producing Goods and Services

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