Question 1

Profit equals the price multiplied by the number of units sold or services performed.

Accepted Answer

A) True 
 B)False

Question 2

Product line length is the ________,

Accepted Answer

A) length in feet of a company's assembly line 
B) average length in inches of a company's best-selling product 
C) number of different product lines a company offers 
D) number of items in any given product line 
A) length in feet of a company's assembly line 
B) average length in inches of a company's best-selling product 
C) number of different product lines a company offers 
D) number of items in any given product line

Question 3

How does convenient packaging affect sales?

Accepted Answer

Packages that are convenient to use and

Question 4

A group of similar products marketed to one general market is called a product ________.

Accepted Answer

A) mix 
B) length 
C) line 
D) width 
A) mix 
B) length 
C) line 
D) width

Question 5

Everyday low pricing is a strategy of ________.

Accepted Answer

A) charging inexpensive prices with few, if any, special promotional sales 
B) determining prices directly between the seller and buyer 
C) combining two or more complementary products into a single package 
D) providing partial refunds on what a customer has already paid for a product 
A) charging inexpensive prices with few, if any, special promotional sales 
B) determining prices directly between the seller and buyer 
C) combining two or more complementary products into a single package 
D) providing partial refunds on what a customer has already paid for a product

Question 6

Why is labeling important to establishing a brand image?

Accepted Answer

Labels are used to promote and to persua

Question 7

Downloading a song for 99 cents is an example of psychological pricing.

Accepted Answer

A) True 
 B)False

Question 8

Sheets of copper shipped to a factory for plumbing pipes are an example of ________.

Accepted Answer

A) raw and processed materials 
B) component parts 
C) MRO products 
D) specialized professional services 
A) raw and processed materials 
B) component parts 
C) MRO products 
D) specialized professional services

Question 9

The Crusher Corp. charges very low prices to drive its only competitor out of business. This is an example of ________ pricing.

Accepted Answer

A) demand-based 
B) brand 
C) predatory 
D) penetration 
A) demand-based 
B) brand 
C) predatory 
D) penetration

Question 10

Give an example of a loss leader.

Accepted Answer

Student answers will vary. A l

Question 11

To avoid the declining stage of the product life cycle, a consumer electronics company used its smartphone technology to create a handheld computer. This can BEST be described as ________.

Accepted Answer

A) creating new markets 
B) extending technology 
C) creating a new use 
D) repackaging 
A) creating new markets 
B) extending technology 
C) creating a new use 
D) repackaging

Question 12

A dishwasher is an example of a(n)________ good.

Accepted Answer

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

Question 13

The blue Tiffany & Co. box is an example of which purpose of packaging?

Accepted Answer

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

Question 14

What are the benefits of branding?

Accepted Answer

For buyers, well-recognized brands reduc

Question 15

A pricing strategy based on what the competition is charging is known as ________ -based pricing.

Accepted Answer

A) cost 
B) demand 
C) competition 
D) supply 
A) cost 
B) demand 
C) competition 
D) supply

Question 16

Consumer products are goods and services that are purchased by businesses for further processing or resale or are used in facilitating business operations.

Accepted Answer

A) True 
 B)False

Question 17

Describe a product that is sold in both consumer and B2B markets.

Accepted Answer

Student answers will vary. The

Question 18

Salespeople bringing suggestions for a new fast food item to the headquarters of their food manufacturer is an example of ________.

Accepted Answer

A) product analysis 
B) commercialization 
C) idea generation 
D) idea screening 
A) product analysis 
B) commercialization 
C) idea generation 
D) idea screening

Question 19

The two functions of labels are ________.

Accepted Answer

A) inform and facilitate use 
B) inform and persuade 
C) protect the product and persuade 
D) facilitate use and be environmentally friendly 
A) inform and facilitate use 
B) inform and persuade 
C) protect the product and persuade 
D) facilitate use and be environmentally friendly

Question 20

Charging different prices to different customers when these price differences are not a reflection of cost differences is called price ________.

Accepted Answer

A) discrimination 
B) targeting 
C) valuation 
D) costing 
A) discrimination 
B) targeting 
C) valuation 
D) costing

Exam 13: Product Development and Pricing Strategies

Profit equals the price multiplied by the number of units sold or services performed.

Product line length is the ________,

How does convenient packaging affect sales?

A group of similar products marketed to one general market is called a product ________.

Everyday low pricing is a strategy of ________.

Why is labeling important to establishing a brand image?

Downloading a song for 99 cents is an example of psychological pricing.

Sheets of copper shipped to a factory for plumbing pipes are an example of ________.

The Crusher Corp. charges very low prices to drive its only competitor out of business. This is an example of ________ pricing.

Give an example of a loss leader.

To avoid the declining stage of the product life cycle, a consumer electronics company used its smartphone technology to create a handheld computer. This can BEST be described as ________.

A dishwasher is an example of a(n)________ good.

The blue Tiffany & Co. box is an example of which purpose of packaging?

What are the benefits of branding?

A pricing strategy based on what the competition is charging is known as ________ -based pricing.

Consumer products are goods and services that are purchased by businesses for further processing or resale or are used in facilitating business operations.

Describe a product that is sold in both consumer and B2B markets.

Salespeople bringing suggestions for a new fast food item to the headquarters of their food manufacturer is an example of ________.

The two functions of labels are ________.

Charging different prices to different customers when these price differences are not a reflection of cost differences is called price ________.

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