Question 1

If a package prevents tampering with a product, which purpose of packaging is being performed?

Accepted Answer

A) to facilitate use and convenience 
B) to contain and protect the product 
C) to promote the product 
D) to be environmentally friendly 
A) to facilitate use and convenience 
B) to contain and protect the product 
C) to promote the product 
D) to be environmentally friendly B

Question 2

A fast food manufacturer estimating a new food item's production costs, selling price, and sales volume is an example of ________.

Accepted Answer

A) idea screening 
B) product development and concept testing 
C) product analysis 
D) commercialization 
A) idea screening 
B) product development and concept testing 
C) product analysis 
D) commercialization C

Question 3

What is penetration pricing? Give an example.

Accepted Answer

Student answers will vary. Penetration pricing is a strategy of charging the lowest possible price for a new product. This pricing strategy is designed to build market share for the product quickly. If the increased production to satisfy growing sales results in lower per unit costs, then profits can actually rise even though the price is lower. Penetration pricing is appropriate during the growth stage of a product's life cycle and when customers are price sensitive. It may also create goodwill among consumers and inhibit competitors from entering the market.

Question 4

A brand assigned to each product within a company's product mix is a(n)________ brand.

Accepted Answer

A) generic 
B) individual 
C) co-brand 
D) family 
A) generic 
B) individual 
C) co-brand 
D) family

Question 5

All the benefits associated with a good, service, or idea that affect a consumer's purchasing decision are known as the total ________.

Accepted Answer

A) product benefit 
B) product package 
C) market offer 
D) product offer 
A) product benefit 
B) product package 
C) market offer 
D) product offer

Question 6

The ________ product of a fast food meal is the sandwich, side dish, and drink.

Accepted Answer

A) augmented 
B) value 
C) core 
D) actual 
A) augmented 
B) value 
C) core 
D) actual

Question 7

Consumers only need to consider tangible benefits when buying products.

Accepted Answer

A) True 
 B)False

Question 8

What are the tangible and intangible benefits of a spring break vacation?

Accepted Answer

Student answers will vary. Pos

Question 9

A bag of snack food says, "Walmart's Corn Chips." This is an example of a(n)________ brand.

Accepted Answer

A) generic 
B) individual 
C) family 
D) private 
A) generic 
B) individual 
C) family 
D) private

Question 10

List five methods for extending a product life cycle.

Accepted Answer

Five methods for extending a p

Question 11

A bag of snack food is bright and colorful and says, "Fritos." This is an example of a(n)________ brand.

Accepted Answer

A) family 
B) manufacturer's 
C) individual 
D) co-brand 
A) family 
B) manufacturer's 
C) individual 
D) co-brand

Question 12

What is brand equity?

Accepted Answer

Strong brand loyalty contributes to bran

Question 13

Downloading a song from iTunes is an example of a(n)________ service.

Accepted Answer

A) convenience 
B) shopping 
C) specialty 
D) unsought 
A) convenience 
B) shopping 
C) specialty 
D) unsought

Question 14

Which of the following is a consumer product classification?

Accepted Answer

A) raw and processed materials 
B) MRO products 
C) equipment 
D) unsought goods and services 
A) raw and processed materials 
B) MRO products 
C) equipment 
D) unsought goods and services

Question 15

A snack food bag is white with plain black letters spelling, "Corn Chips." This is an example of a ________ brand.

Accepted Answer

A) family 
B) generic 
C) manufacturer's 
D) co-brand 
A) family 
B) generic 
C) manufacturer's 
D) co-brand

Question 16

Each of the following is a form of discount EXCEPT ________.

Accepted Answer

A) packaging discounts 
B) cash discounts 
C) seasonal discounts 
D) quantity discounts 
A) packaging discounts 
B) cash discounts 
C) seasonal discounts 
D) quantity discounts

Question 17

If a label represents consistent quality and dependability, then the label can perpetuate a(n)________ brand-name image.

Accepted Answer

A) neutral 
B) immeasurable 
C) positive 
D) negative 
A) neutral 
B) immeasurable 
C) positive 
D) negative

Question 18

Demand-based pricing (sometimes called value-based pricing)is pricing a good or service based on the demand for the product or its perceived value.

Accepted Answer

A) True 
 B)False

Question 19

Branding increases the risks involved in some purchases for which buyers are unable to determine quality objectively.

Accepted Answer

A) True 
 B)False

Question 20

An augmented product consists of the core product and the actual product plus other real or perceived benefits that provide additional value to the customer's purchase.

Accepted Answer

A) True 
 B)False

Exam 13: Product Development and Pricing Strategies

If a package prevents tampering with a product, which purpose of packaging is being performed?

A fast food manufacturer estimating a new food item's production costs, selling price, and sales volume is an example of ________.

What is penetration pricing? Give an example.

A brand assigned to each product within a company's product mix is a(n)________ brand.

All the benefits associated with a good, service, or idea that affect a consumer's purchasing decision are known as the total ________.

The ________ product of a fast food meal is the sandwich, side dish, and drink.

Consumers only need to consider tangible benefits when buying products.

What are the tangible and intangible benefits of a spring break vacation?

A bag of snack food says, "Walmart's Corn Chips." This is an example of a(n)________ brand.

List five methods for extending a product life cycle.

A bag of snack food is bright and colorful and says, "Fritos." This is an example of a(n)________ brand.

What is brand equity?

Downloading a song from iTunes is an example of a(n)________ service.

Which of the following is a consumer product classification?

A snack food bag is white with plain black letters spelling, "Corn Chips." This is an example of a ________ brand.

Each of the following is a form of discount EXCEPT ________.

If a label represents consistent quality and dependability, then the label can perpetuate a(n)________ brand-name image.

Demand-based pricing (sometimes called value-based pricing)is pricing a good or service based on the demand for the product or its perceived value.

Branding increases the risks involved in some purchases for which buyers are unable to determine quality objectively.

An augmented product consists of the core product and the actual product plus other real or perceived benefits that provide additional value to the customer's purchase.

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