Question 1

For product modification to be effective, all but which of the following conditions must be met?

Accepted Answer

A)  The modification should make the product more consistent with consumers' desires. 
B)  The product must be modifiable. 
C)  Consumers must be able to perceive that a modification has been made. 
D)  Modification should allow the product to provide greater satisfaction. 
E)  The product must be an appliance. 
A)  The modification should make the product more consistent with consumers' desires. 
B)  The product must be modifiable. 
C)  Consumers must be able to perceive that a modification has been made. 
D)  Modification should allow the product to provide greater satisfaction. 
E)  The product must be an appliance.

Question 2

The largest number of product ideas are rejected during the ____ stage of new product development.

Accepted Answer

A)  screening 
B)  test marketing 
C)  idea generation 
D)  business analysis 
E)  pricing 
A)  screening 
B)  test marketing 
C)  idea generation 
D)  business analysis 
E)  pricing

Question 3

When price helps Josh decide to purchase a Chevrolet Cavalier instead of a Mercedes 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 4

A men's clothing store sells ties only at $20 and $35.This type of pricing strategy is known as price lining.

Accepted Answer

A) True 
 B)False

Question 5

A product mix is a combination of all the information a producer uses to sell its product to the public.

Accepted Answer

A) True 
 B)False

Question 6

Price competition occurs when a seller makes its product stand out from the competition by distinctive product quality and customer service.

Accepted Answer

A) True 
 B)False

Question 7

The strategy of charging the highest possible price for a product during the introduction stage of its life cycle is known as _____.

Accepted Answer

A)  penetration pricing 
B)  price skimming 
C)  prestige pricing 
D)  sample pricing 
E)  odd pricing 
A)  penetration pricing 
B)  price skimming 
C)  prestige pricing 
D)  sample pricing 
E)  odd pricing

Question 8

Raw materials are an example of a firm's ____ costs.

Accepted Answer

A)  selling 
B)  operating 
C)  fixed 
D)  overhead 
E)  variable 
A)  selling 
B)  operating 
C)  fixed 
D)  overhead 
E)  variable

Question 9

Packages have marketing value but no functional value.

Accepted Answer

A) True 
 B)False

Question 10

Discounts given to customers who buy in large amounts are called ____ discounts.

Accepted Answer

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

Question 11

Koolers Incorporated feels that at its current stage-growth stage-it needs to meet its competition.It can best do this by all except which of the following means?

Accepted Answer

A)  initiating product improvements 
B)  expanding the product line to appeal to specialized market segments 
C)  lowering prices 
D)  emphasizing customer service and prompt credit for defective products 
E)  eliminating less profitable versions of the product 
A)  initiating product improvements 
B)  expanding the product line to appeal to specialized market segments 
C)  lowering prices 
D)  emphasizing customer service and prompt credit for defective products 
E)  eliminating less profitable versions of the product

Question 12

If Macy's department store managers looked at Dillard's department store prices for identical national brands and, based on that information, decided to advertise a sale on those products, they would be exercising which pricing method?

Accepted Answer

A)  competition-based 
B)  demand-based 
C)  cost-based 
D)  premium 
E)  penetration 
A)  competition-based 
B)  demand-based 
C)  cost-based 
D)  premium 
E)  penetration

Question 13

Three types of product-line pricing are price leaders, special-event pricing, and comparison discounting.

Accepted Answer

A) True 
 B)False

Question 14

Buyers may relate price to quality.To such a buyer, a higher price for a product is an indicator of

Accepted Answer

A)  suspicious pricing. 
B)  higher quality. 
C)  product availability. 
D)  poor image. 
E)  greater quantity. 
A)  suspicious pricing. 
B)  higher quality. 
C)  product availability. 
D)  poor image. 
E)  greater quantity.

Question 15

Identify and describe the major stages of the product life cycle.

Accepted Answer

The answer of Identify and describe the major stages of...

Question 16

What is a status-quo pricing objective?

Accepted Answer

A status-quo pricing objective is a pric

Question 17

Differential pricing means different buyers pay different prices for the same quality and quantity of a product.

Accepted Answer

A) True 
 B)False

Question 18

If a company invests $1,000,000 to develop and market a new product with a goal of earning $1,200,000 on the product by the end of the year, it will price the product based on

Accepted Answer

A)  profit expectations. 
B)  market share goals. 
C)  return on investment goals. 
D)  survival goals. 
E)  objectives. 
A)  profit expectations. 
B)  market share goals. 
C)  return on investment goals. 
D)  survival goals. 
E)  objectives.

Question 19

The sum of the fixed costs and the variable costs of producing a certain number of units is called the _____.

Accepted Answer

A)  cost of goods sold 
B)  equilibrium cost 
C)  total cost 
D)  breakeven cost 
E)  total operating expense 
A)  cost of goods sold 
B)  equilibrium cost 
C)  total cost 
D)  breakeven cost 
E)  total operating expense

Question 20

The first stage of the product life cycle is the ____ stage.

Accepted Answer

A)  inventive 
B)  launching 
C)  discovery 
D)  introduction 
E)  growth 
A)  inventive 
B)  launching 
C)  discovery 
D)  introduction 
E)  growth

For product modification to be effective, all but which of the following conditions must be met?

The largest number of product ideas are rejected during the ____ stage of new product development.

When price helps Josh decide to purchase a Chevrolet Cavalier instead of a Mercedes because he also wants a Harley-Davidson motorcycle, price serves the function of _____.

A men's clothing store sells ties only at $20 and $35.This type of pricing strategy is known as price lining.

A product mix is a combination of all the information a producer uses to sell its product to the public.

Price competition occurs when a seller makes its product stand out from the competition by distinctive product quality and customer service.

The strategy of charging the highest possible price for a product during the introduction stage of its life cycle is known as _____.

Raw materials are an example of a firm's ____ costs.

Packages have marketing value but no functional value.

Discounts given to customers who buy in large amounts are called ____ discounts.

Koolers Incorporated feels that at its current stage-growth stage-it needs to meet its competition.It can best do this by all except which of the following means?

If Macy's department store managers looked at Dillard's department store prices for identical national brands and, based on that information, decided to advertise a sale on those products, they would be exercising which pricing method?

Three types of product-line pricing are price leaders, special-event pricing, and comparison discounting.

Buyers may relate price to quality.To such a buyer, a higher price for a product is an indicator of

Identify and describe the major stages of the product life cycle.

What is a status-quo pricing objective?

Differential pricing means different buyers pay different prices for the same quality and quantity of a product.

If a company invests $1,000,000 to develop and market a new product with a goal of earning $1,200,000 on the product by the end of the year, it will price the product based on

The sum of the fixed costs and the variable costs of producing a certain number of units is called the _____.

The first stage of the product life cycle is the ____ stage.

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

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Exam 12: Creating and Pricing Products That Satisfy Customers

For product modification to be effective, all but which of the following conditions must be met?

The largest number of product ideas are rejected during the ____ stage of new product development.

When price helps Josh decide to purchase a Chevrolet Cavalier instead of a Mercedes because he also wants a Harley-Davidson motorcycle, price serves the function of _____.

A men's clothing store sells ties only at $20 and $35.This type of pricing strategy is known as price lining.

A product mix is a combination of all the information a producer uses to sell its product to the public.

Price competition occurs when a seller makes its product stand out from the competition by distinctive product quality and customer service.

The strategy of charging the highest possible price for a product during the introduction stage of its life cycle is known as _____.

Raw materials are an example of a firm's ____ costs.

Packages have marketing value but no functional value.

Discounts given to customers who buy in large amounts are called ____ discounts.

Koolers Incorporated feels that at its current stage-growth stage-it needs to meet its competition.It can best do this by all except which of the following means?

If Macy's department store managers looked at Dillard's department store prices for identical national brands and, based on that information, decided to advertise a sale on those products, they would be exercising which pricing method?

Three types of product-line pricing are price leaders, special-event pricing, and comparison discounting.

Buyers may relate price to quality.To such a buyer, a higher price for a product is an indicator of

Identify and describe the major stages of the product life cycle.

What is a status-quo pricing objective?

Differential pricing means different buyers pay different prices for the same quality and quantity of a product.

If a company invests $1,000,000 to develop and market a new product with a goal of earning $1,200,000 on the product by the end of the year, it will price the product based on

The sum of the fixed costs and the variable costs of producing a certain number of units is called the _____.

The first stage of the product life cycle is the ____ stage.

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