Exam 12: Creating and Pricing Products That Satisfy Customers

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previous owner was not aware of the product life cycle because the company kept items that were obviously too old and out of date.Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line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two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.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 develop a new product, he would begin with _____.

All of the following except which are characteristics of the introduction stage of the product life cycle?

The strategy of setting a single price for two or more units is known as _____.

What do yo-yo, aspirin, and thermos all have in common in a marketing sense?

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previous owner was not aware of the product life cycle because the company kept items that were obviously too old and out of date.Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line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two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.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.The sewing machines are considered ____ for Your Way.

Candy bars, milk, and newspapers are all examples of convenience products.

The product life cycle stage in which there is a decrease in the rate of sales growth, the sales curve begins to decline, and dealers simplify their product lines is called _____.

What are the major phases involved in the new product development process?

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

When Pepsi introduced Mountain Dew Code Red, it was

Multiple-unit pricing is packaging together two or more complementary products and selling them for a single price.

Price differentiation is

The sum of the fixed costs and the variable costs attributed to the units produced is the selling price.

Price allocates goods and services among those who are willing and able to pay for them.

In cost-based pricing, a producer adds an amount to the total production cost to provide a profit.The amount added to the production cost is called a _____.

The label on a bag of Fritos is not required to describe the

Bread, gasoline, and ____ are examples of convenience products.

Generic brands are becoming more popular with today's price-conscious shoppers.

Give the characteristics of shopping products, specialty products, and convenience products.Illustrate those characteristics with examples of products that fit the categories.

The strategy of charging the highest possible price for a product during the introduction stage of its life cycle is called price skimming.