Exam 12: Creating and Pricing Products That Satisfy Customers

Chris and Kimberly White decided to buy new furniture for their bedroom.They spent considerable time shopping around, comparing prices and styles.Bedroom furniture is best classified as a ____ product.

Your Way, Inc. Eric buys companies that are small or companies in financial trouble.He helps these companies turn around and develop a competitive advantage.The company that he recently purchased is called Your Way, Inc.The company sells men's clothing and accessories.Your Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling. After looking over the different products available, Eric realized that the company's previous owner was not aware of the product life cycle because the company kept items that were obviously too old and out of date.Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix.To move the company forward, Eric thought of the following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products. -Refer to Your Way, Inc.If Eric wanted to teach his employees about the stages of a product's life cycle, he should talk about all except which of the following?

A major drawback of price competition is that

Texaco, Exxon, and Ford are examples of a store brand.

In which order do the stages of the product life cycle occur?

The three levels of brand loyalty are preference, recognition, and insistence.

A hotel room in New Orleans during Mardi Gras costs considerably more than it would during the following week.This is an example of _____.

Which of the following best describes a typical scenario companies use in the commercialization phase?

A brand that is owned by a producer is called a _____.

Which of the following is considered a trade name?

A name, term, symbol, design, or any combination of these that identifies a product and distinguishes it from a competitor's product is called packaging.

The branding strategy in which a firm uses the same brand for all or most of its products is called individual branding.

Click It, Inc. Travis is a salesperson for Click It, Inc.Click It does not sell products with its own brand name.Instead, its products are created for different retail stores and carry the store brand.Travis thought that several changes needed to be made to a particular product, but Click It management reminded him that the stores, not Click It, owned the brand. However, because Click It had been concerned about dropping sales, management listened to Travis's concerns about the company's pricing.He suggested using a different pricing strategy.More specifically, he felt that the company should incorporate a multiple-unit pricing strategy because it would then allow Click It to set a single price for multiple units.This had the potential of increasing sales and therefore profits, so management agreed to consider Travis's suggestion. -Refer to Click It, Inc.Because Click It sells its products under different brand names, each product is a _____.

____ become(s) a part of the physical product and consist(s) of either finished items ready for assembly or products that need little processing before assembly.

When Polaroid comes out with a new model in a series, it sets an initial price, which is very high and then gradually lowers the price.Polaroid is initially using which pricing strategy?

A wrench used to make adjustments to machinery that produces copper wire is classified as a(n) _____.

Paper, pencils, oils, and ____ are examples of supplies.

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

The stage in the evolution of new products in which ideas that match company objectives are analyzed as to whether the firm has the required expertise for the product's development and marketing is called _____.

Entirely new products are innovations.