Exam 12: Creating and Pricing Products That Satisfy Customers

During which phase of the product development process can marketers experiment with advertising, pricing, and packaging in different geographic areas?

What type of product modification is likely to make the greatest impact on a food product?

Entirely new products are called _____.

The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the _____.

Costs incurred regardless of how many units of a product are produced or sold are called fixed costs.

How does product differentiation allow a firm to exert some control over a product's price?

BMW's acquisition of the British automaker Rover provides BMW with instant entry into the growing sport-utility vehicle market with the legendary Range Rover line.BMW's purchase is an attempt to widen its product mix.

If Tiger Mart advertises a 2-liter bottle of Pepsi for 89 cents to generate store traffic that will increase the purchasing of other items at regular prices, the grocer is using _____.

The price floor is the lowest price at which a producer can sell its product without incurring a loss.

WD-40, Inc.markets only one product, its namesake chemical lubricant.The company offers the product in several different container sizes: smaller ones for household use, and larger ones for industrial use.WD-40 would be considered as having a _____.

General Mills has been able to extend the life of Bisquick baking mix by

At what stage in the product life cycle would sales volume tend to decrease sharply? Why?

Seasonal discounts provide price incentives to customers during peak selling seasons.

To promote an overall company image, Borden dairy products are packaged in similar designs and colors.This approach is known as _____.

Which of the following is considered a generic term?

When a company changes one or more of a product's characteristics to manage its product mix, it is engaging in ____ modification.

Which of the following is an example of a raw material that would be used in the production of a physical product?

Manufacturers, wholesalers, and retailers do not use negotiated pricing strategies.

A branding strategy in which a firm uses a different brand for each of its products is called ____ branding.

Is McDonald's "golden arches" symbol a brand name or a brand mark? Define each term, and state how they differ.