Question 1

Pricing strategies act as guides for achieving pricing objectives.

Accepted Answer

A) True 
 B)False

Question 2

A brand that is owned by a producer is called a

Accepted Answer

A)  store brand. 
B)  generic mark. 
C)  manufacturer brand. 
D)  private brand. 
E)  dealer brand. 
A)  store brand. 
B)  generic mark. 
C)  manufacturer brand. 
D)  private brand. 
E)  dealer brand.

Question 3

Fixed costs are costs that depend on the number of units produced.

Accepted Answer

A) True 
 B)False

Question 4

Once it becomes effective, a product mix for a given product remains effective for a long time.

Accepted Answer

A) True 
 B)False

Question 5

The total amount received from the sales of a product is referred to as

Accepted Answer

A)  total revenue. 
B)  the breakeven quantity. 
C)  variable sales. 
D)  market revenue. 
E)  marginal revenue. 
A)  total revenue. 
B)  the breakeven quantity. 
C)  variable sales. 
D)  market revenue. 
E)  marginal revenue.

Question 6

The complete and legal name of an organisation, such as Walmart Stores, Incorporated, is called a

Accepted Answer

A)  trade name. 
B)  brand name. 
C)  brand mark. 
D)  store brand. 
E)  manufacturer brand. 
A)  trade name. 
B)  brand name. 
C)  brand mark. 
D)  store brand. 
E)  manufacturer brand.

Question 7

Demand-based pricing, unlike cost-based pricing, places firms in a better position to

Accepted Answer

A)  attain higher profit levels. 
B)  estimate demand easily and accurately. 
C)  perform breakeven analysis. 
D)  calculate price based on intangible benefits. 
E)  penetrate the market quickly. 
A)  attain higher profit levels. 
B)  estimate demand easily and accurately. 
C)  perform breakeven analysis. 
D)  calculate price based on intangible benefits. 
E)  penetrate the market quickly.

Question 8

In a meeting to generate new products, the advisory committee felt that it had come up with some excellent ideas.Now that there is a list of product ideas, the next step is

Accepted Answer

A)  business analysis. 
B)  product development. 
C)  screening. 
D)  test marketing. 
E)  commercialisation. 
A)  business analysis. 
B)  product development. 
C)  screening. 
D)  test marketing. 
E)  commercialisation.

Question 9

When price helps Josh decide to purchase a Mini Cooper Coupe instead of a Mercedes CLS-Class Coupe because he also wants a Harley-Davidson motorcycle, price serves the function of

Accepted Answer

A)  demander. 
B)  decision maker. 
C)  facilitator. 
D)  intermediation. 
E)  allocator. 
A)  demander. 
B)  decision maker. 
C)  facilitator. 
D)  intermediation. 
E)  allocator.

Question 10

Razor Company's blades are in the maturity stage of the product life-cycle.How can the company strengthen its market share?

Accepted Answer

A)  Eliminate less profitable versions of the product 
B)  Redesign the packaging 
C)  Make no style changes 
D)  Emphasise customer service 
E)  Watch for the early buying patterns 
A)  Eliminate less profitable versions of the product 
B)  Redesign the packaging 
C)  Make no style changes 
D)  Emphasise customer service 
E)  Watch for the early buying patterns

Question 11

The breakeven quantity is the number of units that must be sold to equal the projected total revenue for the period.

Accepted Answer

A) True 
 B)False

Question 12

In spite of the rigorous process for developing product ideas, the majority of new products

Accepted Answer

A)  require several months to gain market share. 
B)  yield high returns on R&D costs. 
C)  require several years to gain market share. 
D)  are copied by competitors. 
E)  end up as failures. 
A)  require several months to gain market share. 
B)  yield high returns on R&D costs. 
C)  require several years to gain market share. 
D)  are copied by competitors. 
E)  end up as failures.

Question 13

When Duracell came out with a new battery that significantly outlasted the company's earlier product, the battery had undergone a(n) ____ modification.

Accepted Answer

A)  Functional 
B)  Feature 
C)  Quality 
D)  aesthetic 
E)  Market 
A)  Functional 
B)  Feature 
C)  Quality 
D)  aesthetic 
E)  Market

Question 14

The redesign of a bicycle to improve its safety is an example of a(n) ____ modification.

Accepted Answer

A)  Visual 
B)  functional 
C)  Quality 
D)  aesthetic 
E)  Texture 
A)  Visual 
B)  functional 
C)  Quality 
D)  aesthetic 
E)  Texture

Question 15

A manager at JCPenney discovers that Burlington Coat Factory has reduced the price of its children's Levi's from €31.99 to €24.99, according to an advertisement in the Sunday newspaper.She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: €24.99." This is an example of what pricing strategy?

Accepted Answer

A)  Secondary-market pricing 
B)  Periodic discounting 
C)  Reference pricing 
D)  Random discounting 
E)  Comparison discounting 
A)  Secondary-market pricing 
B)  Periodic discounting 
C)  Reference pricing 
D)  Random discounting 
E)  Comparison discounting

Question 16

Car Tunes, a national car stereo retailer, markets stereos and speakers.The company will soon sell car alarms and mobile phones to ____ its product mix.

Accepted Answer

A)  Modify 
B)  Broaden 
C)  Narrow 
D)  customise 
E)  Adapt 
A)  Modify 
B)  Broaden 
C)  Narrow 
D)  customise 
E)  Adapt

Question 17

All of the following are characteristics of the maturity stage of the product life-cycle except

Accepted Answer

A)  a peak in the sales curve. 
B)  a decline in the sales curve. 
C)  simplification of product lines. 
D)  increased distribution. 
E)  increased price competition. 
A)  a peak in the sales curve. 
B)  a decline in the sales curve. 
C)  simplification of product lines. 
D)  increased distribution. 
E)  increased price competition.

Question 18

Borden, Inc., wants to develop a new line of great tasting, low-calorie, low-fat, and low-cholesterol processed cheese products.The managers are studying whether demand is strong enough and whether the new line will yield a favourable return on investment.The managers are currently in which phase of new product development?

Accepted Answer

A)  Idea generation 
B)  Product development 
C)  Test marketing 
D)  Screening 
E)  Business analysis 
A)  Idea generation 
B)  Product development 
C)  Test marketing 
D)  Screening 
E)  Business analysis

Question 19

A company's product mix usually must be changed to stay competitive.

Accepted Answer

A) True 
 B)False

Question 20

Lisa goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Accepted Answer

A)  Differential 
B)  Comprised 
C)  Negotiated 
D)  Reference 
E)  Secondary 
A)  Differential 
B)  Comprised 
C)  Negotiated 
D)  Reference 
E)  Secondary

Pricing strategies act as guides for achieving pricing objectives.

A brand that is owned by a producer is called a

Fixed costs are costs that depend on the number of units produced.

Once it becomes effective, a product mix for a given product remains effective for a long time.

The total amount received from the sales of a product is referred to as

The complete and legal name of an organisation, such as Walmart Stores, Incorporated, is called a

Demand-based pricing, unlike cost-based pricing, places firms in a better position to

In a meeting to generate new products, the advisory committee felt that it had come up with some excellent ideas.Now that there is a list of product ideas, the next step is

When price helps Josh decide to purchase a Mini Cooper Coupe instead of a Mercedes CLS-Class Coupe because he also wants a Harley-Davidson motorcycle, price serves the function of

Razor Company's blades are in the maturity stage of the product life-cycle.How can the company strengthen its market share?

The breakeven quantity is the number of units that must be sold to equal the projected total revenue for the period.

In spite of the rigorous process for developing product ideas, the majority of new products

When Duracell came out with a new battery that significantly outlasted the company's earlier product, the battery had undergone a(n) ____ modification.

The redesign of a bicycle to improve its safety is an example of a(n) ____ modification.

Car Tunes, a national car stereo retailer, markets stereos and speakers.The company will soon sell car alarms and mobile phones to ____ its product mix.

All of the following are characteristics of the maturity stage of the product life-cycle except

A company's product mix usually must be changed to stay competitive.

Lisa goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Introduction to Business

Responsible Business

Global Business

Types of Business Ownership

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters

Exam 12: Aproduct Development and Pricing Strategies

Pricing strategies act as guides for achieving pricing objectives.

A brand that is owned by a producer is called a

Fixed costs are costs that depend on the number of units produced.

Once it becomes effective, a product mix for a given product remains effective for a long time.

The total amount received from the sales of a product is referred to as

The complete and legal name of an organisation, such as Walmart Stores, Incorporated, is called a

Demand-based pricing, unlike cost-based pricing, places firms in a better position to

In a meeting to generate new products, the advisory committee felt that it had come up with some excellent ideas.Now that there is a list of product ideas, the next step is

When price helps Josh decide to purchase a Mini Cooper Coupe instead of a Mercedes CLS-Class Coupe because he also wants a Harley-Davidson motorcycle, price serves the function of

Razor Company's blades are in the maturity stage of the product life-cycle.How can the company strengthen its market share?

The breakeven quantity is the number of units that must be sold to equal the projected total revenue for the period.

In spite of the rigorous process for developing product ideas, the majority of new products

When Duracell came out with a new battery that significantly outlasted the company's earlier product, the battery had undergone a(n) ____ modification.

The redesign of a bicycle to improve its safety is an example of a(n) ____ modification.

Car Tunes, a national car stereo retailer, markets stereos and speakers.The company will soon sell car alarms and mobile phones to ____ its product mix.

All of the following are characteristics of the maturity stage of the product life-cycle except

A company's product mix usually must be changed to stay competitive.

Lisa goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Introduction to Business

Responsible Business

Global Business

Types of Business Ownership

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters