Question 1

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)  emphasize 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)  emphasize customer service 
E)  watch for the early buying patterns

Question 2

Brand names such as Tide, Surf, Biz, and Wisk are effective names because they

Accepted Answer

A)  suggest special characteristics and benefits of the product. 
B)  are easy for customers to say, spell, and recall. 
C)  are generic terms for detergent. 
D)  indicate the products' uses. 
E)  blend with competing brand names. 
A)  suggest special characteristics and benefits of the product. 
B)  are easy for customers to say, spell, and recall. 
C)  are generic terms for detergent. 
D)  indicate the products' uses. 
E)  blend with competing brand names.

Question 3

The part of the package that contains the presentation of information on a product is called a _____.

Accepted Answer

A)  brand 
B)  trademark 
C)  label 
D)  Universal Product Code 
E)  warranty statement 
A)  brand 
B)  trademark 
C)  label 
D)  Universal Product Code 
E)  warranty statement

Question 4

Brand equity refers to making all of a company's brands approximately equal with respect to brand loyalty.

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

Even if a grocery item is a generic product, a consumer can tell who produced it by examining the package carefully.

Accepted Answer

A) True 
 B)False

Question 7

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 8

The quantity of a product that buyers are willing to purchase at each of various prices is called _____.

Accepted Answer

A)  breakeven quantity 
B)  supply 
C)  distended supply 
D)  inventory 
E)  demand 
A)  breakeven quantity 
B)  supply 
C)  distended supply 
D)  inventory 
E)  demand

Question 9

If a customer has moderate loyalty toward Heinz ketchup, she likely will

Accepted Answer

A)  buy the product in greater quantities. 
B)  shop around for the best price for that good. 
C)  perceive the product as having the same quality level as competitive brands. 
D)  never buy another brand of ketchup. 
E)  purchase other products that carry the Heinz name. 
A)  buy the product in greater quantities. 
B)  shop around for the best price for that good. 
C)  perceive the product as having the same quality level as competitive brands. 
D)  never buy another brand of ketchup. 
E)  purchase other products that carry the Heinz name.

Question 10

Discounts from the list price offered to intermediaries are called ____ discounts.

Accepted Answer

A)  trade 
B)  quantity 
C)  wholesale 
D)  cash 
E)  preferential 
A)  trade 
B)  quantity 
C)  wholesale 
D)  cash 
E)  preferential

Question 11

A trademark is legally protected from use by anyone except its owner.

Accepted Answer

A) True 
 B)False

Question 12

The strategy of developing a large market share for a new product by setting a very low price is called penetration pricing.

Accepted Answer

A) True 
 B)False

Question 13

The part of a brand that can be spoken-letters, words, numbers, and/or pronounceable symbols-is called a _____.

Accepted Answer

A)  trademark 
B)  brand mark 
C)  brand name 
D)  brand 
E)  generic mark 
A)  trademark 
B)  brand mark 
C)  brand name 
D)  brand 
E)  generic mark

Question 14

Competition-based pricing is

Accepted Answer

A)  used when costs and revenues are considered secondary to competitors' prices. 
B)  not useful as a method of increasing or maintaining market share. 
C)  of little use if the competing products are homogeneous. 
D)  not able to increase sales. 
E)  most often used when competing products are homogeneous. 
A)  used when costs and revenues are considered secondary to competitors' prices. 
B)  not useful as a method of increasing or maintaining market share. 
C)  of little use if the competing products are homogeneous. 
D)  not able to increase sales. 
E)  most often used when competing products are homogeneous.

Question 15

The Arizona Jean Co.brand of jeans, owned by JCPenney, is a(n) ____ brand.

Accepted Answer

A)  generic 
B)  private 
C)  national 
D)  individual 
E)  manufacturer 
A)  generic 
B)  private 
C)  national 
D)  individual 
E)  manufacturer

Question 16

When a product experiences sales revenue and profit increases, reaches a peak, and then declines, it goes through what is called _____.

Accepted Answer

A)  cyclical phases 
B)  roller coaster revenue 
C)  product stages 
D)  product growth and decline 
E)  product life cycle 
A)  cyclical phases 
B)  roller coaster revenue 
C)  product stages 
D)  product growth and decline 
E)  product life cycle

Question 17

If the manager at Best Buy puts a sign up next to a Pioneer stereo that reads, "Only $199.99! $58.01 less than Circuit City," this is an example of what type of pricing strategy?

Accepted Answer

A)  random discounting 
B)  periodic discounting 
C)  comparison discounting 
D)  penetration discounting 
E)  everyday low prices 
A)  random discounting 
B)  periodic discounting 
C)  comparison discounting 
D)  penetration discounting 
E)  everyday low prices

Question 18

Appliances, stereos, and furniture are all considered specialty products.

Accepted Answer

A) True 
 B)False

Question 19

Martin always chooses Colgate toothpaste at his local drug store.However, when the store occasionally runs out of Colgate, he will purchase Crest or Mentadent.What level of brand loyalty does Martin have to Colgate?

Accepted Answer

A)  awareness 
B)  insistence 
C)  preference 
D)  resistance 
E)  partiality 
A)  awareness 
B)  insistence 
C)  preference 
D)  resistance 
E)  partiality

Question 20

Management must set pricing objectives based on the primary objective of making a profit.

Accepted Answer

A) True 
 B)False

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

Brand names such as Tide, Surf, Biz, and Wisk are effective names because they

The part of the package that contains the presentation of information on a product is called a _____.

Brand equity refers to making all of a company's brands approximately equal with respect to brand loyalty.

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

Even if a grocery item is a generic product, a consumer can tell who produced it by examining the package carefully.

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

The quantity of a product that buyers are willing to purchase at each of various prices is called _____.

If a customer has moderate loyalty toward Heinz ketchup, she likely will

Discounts from the list price offered to intermediaries are called ____ discounts.

A trademark is legally protected from use by anyone except its owner.

The strategy of developing a large market share for a new product by setting a very low price is called penetration pricing.

The part of a brand that can be spoken-letters, words, numbers, and/or pronounceable symbols-is called a _____.

Competition-based pricing is

The Arizona Jean Co.brand of jeans, owned by JCPenney, is a(n) ____ brand.

When a product experiences sales revenue and profit increases, reaches a peak, and then declines, it goes through what is called _____.

If the manager at Best Buy puts a sign up next to a Pioneer stereo that reads, "Only $199.99! $58.01 less than Circuit City," this is an example of what type of pricing strategy?

Appliances, stereos, and furniture are all considered specialty products.

Martin always chooses Colgate toothpaste at his local drug store.However, when the store occasionally runs out of Colgate, he will purchase Crest or Mentadent.What level of brand loyalty does Martin have to Colgate?

Management must set pricing objectives based on the primary objective of making a profit.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Distributing and Promoting Products

Understanding Information and E-Business

Using Accounting Information

Mastering Financial Management

Filters

Exam 12: Creating and Pricing Products That Satisfy Customers

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

Brand names such as Tide, Surf, Biz, and Wisk are effective names because they

The part of the package that contains the presentation of information on a product is called a _____.

Brand equity refers to making all of a company's brands approximately equal with respect to brand loyalty.

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

Even if a grocery item is a generic product, a consumer can tell who produced it by examining the package carefully.

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

The quantity of a product that buyers are willing to purchase at each of various prices is called _____.

If a customer has moderate loyalty toward Heinz ketchup, she likely will

Discounts from the list price offered to intermediaries are called ____ discounts.

A trademark is legally protected from use by anyone except its owner.

The strategy of developing a large market share for a new product by setting a very low price is called penetration pricing.

The part of a brand that can be spoken-letters, words, numbers, and/or pronounceable symbols-is called a _____.

Competition-based pricing is

The Arizona Jean Co.brand of jeans, owned by JCPenney, is a(n) ____ brand.

When a product experiences sales revenue and profit increases, reaches a peak, and then declines, it goes through what is called _____.

If the manager at Best Buy puts a sign up next to a Pioneer stereo that reads, "Only $199.99! $58.01 less than Circuit City," this is an example of what type of pricing strategy?

Appliances, stereos, and furniture are all considered specialty products.

Martin always chooses Colgate toothpaste at his local drug store.However, when the store occasionally runs out of Colgate, he will purchase Crest or Mentadent.What level of brand loyalty does Martin have to Colgate?

Management must set pricing objectives based on the primary objective of making a profit.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Distributing and Promoting Products

Understanding Information and E-Business

Using Accounting Information

Mastering Financial Management

Filters