Question 1

A store that sells all of its men's gloves for $9.95 and $15.00 is practicing price lining.

Accepted Answer

A) True 
 B)False  True

Question 2

Non-price competition can be used effectively when a seller does all but which one of the fol-lowing?

Accepted Answer

A)  Makes distinctions in product quality 
B)  Differs in customer service 
C)  Uses an attractive promotional strategy 
D)  Creates an appealing package 
E)  Lowers prices 
A)  Makes distinctions in product quality 
B)  Differs in customer service 
C)  Uses an attractive promotional strategy 
D)  Creates an appealing package 
E)  Lowers prices E

Question 3

How Should We Price It?
-In the time allotted to you, identify the pricing strategies used in each of the situations described below.
a. Hyundai prices its newest model lower than the price of competing brands.
b. A high-quality men's shirt has a suggested retail price of $59.95 instead of $60.
c. A restaurant lowers the price of its corned beef and cabbage plate during the week before St. Patrick's Day.
d. For years, the price of a candy bar was 25 cents and rarely did a manufacturer charge more.
e. A supermarket prices its eggs, bread, and milk below cost.

Accepted Answer

a. Hyundai prices its newest model lower than the price of competing brands. (penetration)
b. A high-quality men's shirt has a suggested retail price of $59.95 instead of $60. (odd-number)
c. A restaurant lowers the price of its corned beef and cabbage plate during the week before St. Patrick's Day. (special-event)
d. For years, the price of a candy bar was 25 cents and rarely did a manufacturer charge more. (customary)
e. A supermarket prices its eggs, bread, and milk below cost. (price leader)

Question 4

To maintain an effective product mix, a firm often must eliminate some products. This process is called

Accepted Answer

A)  quality modifications. 
B)  functional modifications. 
C)  aesthetics. 
D)  product deletion. 
E)  product modification. 
A)  quality modifications. 
B)  functional modifications. 
C)  aesthetics. 
D)  product deletion. 
E)  product modification.

Question 5

Generally, the product life-cycle consists of five stages: development, introduction, growth, maturity, and decline.

Accepted Answer

A) True 
 B)False

Question 6

A narrow product mix allows a firm to gain stability by concentrating on just a few markets.

Accepted Answer

A) True 
 B)False

Question 7

A product with no brand at all is called a

Accepted Answer

A)  discount product. 
B)  factory second. 
C)  maverick product. 
D)  generic product. 
E)  plain-package product. 
A)  discount product. 
B)  factory second. 
C)  maverick product. 
D)  generic product. 
E)  plain-package product.

Question 8

All of the following are characteristics of the decline stage of the product life-cycle except

Accepted Answer

A)  a sharp decrease in sales volume. 
B)  a decline in the number of competing firms. 
C)  increased consumer awareness of the product. 
D)  the removal of less profitable versions from the product line. 
E)  increased importance of production and marketing costs in determining profit. 
A)  a sharp decrease in sales volume. 
B)  a decline in the number of competing firms. 
C)  increased consumer awareness of the product. 
D)  the removal of less profitable versions from the product line. 
E)  increased importance of production and marketing costs in determining profit.

Question 9

A Product by Any Name
-In the next five minutes, list as many names as you can think of that fit each criterion.
a. Easy to say, spell, and recall
b. Communicates major product benefits
c. Suggests product uses or special features
d. Distinctive enough to set the product apart from competing brands

Accepted Answer

a. Easy to say, spell, and recall (Tide

Question 10

A manufacturer of cameras and film may price a camera at a low price to attract customers, but price the film at a relatively high price because customers must continue to purchase film in or-der to use their cameras. This type of pricing strategy is known as

Accepted Answer

A)  captive pricing. 
B)  premium pricing. 
C)  price lining. 
D)  special-event pricing. 
E)  customary pricing. 
A)  captive pricing. 
B)  premium pricing. 
C)  price lining. 
D)  special-event pricing. 
E)  customary pricing.

Question 11

Competition-based pricing results in a high price when product demand is strong and a low price when demand is weak.

Accepted Answer

A) True 
 B)False

Question 12

A product's classification largely determines the appropriate marketing strategy.

Accepted Answer

A) True 
 B)False

Question 13

If a firm is using cost-based pricing, it considers costs and revenue secondary to competitors' prices.

Accepted Answer

A) True 
 B)False

Question 14

A "2/10, net 30" invoice feature is an example of a __________ discount.

Accepted Answer

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

Question 15

The most important element in the success of a branded product is consumers' confidence in the product.

Accepted Answer

A) True 
 B)False

Question 16

A consumer product for which buyers will expend effort or planning, that is purchased infre-quently, and that is usually purchased only after being compared with competing products is a __________ product.

Accepted Answer

A)  luxury 
B)  specialty 
C)  convenience 
D)  shopping 
E)  business 
A)  luxury 
B)  specialty 
C)  convenience 
D)  shopping 
E)  business

Question 17

If a company needs to obtain cash quickly to pay its bills, it may opt for a pricing strategy that achieves which goal?

Accepted Answer

A)  Market share increase 
B)  Status quo 
C)  ROI target 
D)  Maximization of profit 
E)  Survival 
A)  Market share increase 
B)  Status quo 
C)  ROI target 
D)  Maximization of profit 
E)  Survival

Question 18

A group of similar products that differ only in relatively minor characteristics is called a

Accepted Answer

A)  product. 
B)  product line. 
C)  generic product. 
D)  product differentiation. 
E)  product mix. 
A)  product. 
B)  product line. 
C)  generic product. 
D)  product differentiation. 
E)  product mix.

Question 19

Some firms set an annual percentage ROI (return on investment) as their pricing goal.

Accepted Answer

A) True 
 B)False

A store that sells all of its men's gloves for $9.95 and $15.00 is practicing price lining.

Non-price competition can be used effectively when a seller does all but which one of the fol-lowing?

To maintain an effective product mix, a firm often must eliminate some products. This process is called

Generally, the product life-cycle consists of five stages: development, introduction, growth, maturity, and decline.

A narrow product mix allows a firm to gain stability by concentrating on just a few markets.

A product with no brand at all is called a

All of the following are characteristics of the decline stage of the product life-cycle except

A Product by Any Name -In the next five minutes, list as many names as you can think of that fit each criterion. a. Easy to say, spell, and recall b. Communicates major product benefits c. Suggests product uses or special features d. Distinctive enough to set the product apart from competing brands

A manufacturer of cameras and film may price a camera at a low price to attract customers, but price the film at a relatively high price because customers must continue to purchase film in or-der to use their cameras. This type of pricing strategy is known as

Competition-based pricing results in a high price when product demand is strong and a low price when demand is weak.

A product's classification largely determines the appropriate marketing strategy.

If a firm is using cost-based pricing, it considers costs and revenue secondary to competitors' prices.

A "2/10, net 30" invoice feature is an example of a __________ discount.

The most important element in the success of a branded product is consumers' confidence in the product.

A consumer product for which buyers will expend effort or planning, that is purchased infre-quently, and that is usually purchased only after being compared with competing products is a __________ product.

If a company needs to obtain cash quickly to pay its bills, it may opt for a pricing strategy that achieves which goal?

A group of similar products that differ only in relatively minor characteristics is called a

Some firms set an annual percentage ROI (return on investment) as their pricing goal.

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

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

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

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Exam 12: Creating and Pricing Products That Satisfy Customers

A store that sells all of its men's gloves for $9.95 and $15.00 is practicing price lining.

Non-price competition can be used effectively when a seller does all but which one of the fol-lowing?

To maintain an effective product mix, a firm often must eliminate some products. This process is called

Generally, the product life-cycle consists of five stages: development, introduction, growth, maturity, and decline.

A narrow product mix allows a firm to gain stability by concentrating on just a few markets.

A product with no brand at all is called a

All of the following are characteristics of the decline stage of the product life-cycle except

A Product by Any Name -In the next five minutes, list as many names as you can think of that fit each criterion. a. Easy to say, spell, and recall b. Communicates major product benefits c. Suggests product uses or special features d. Distinctive enough to set the product apart from competing brands

A manufacturer of cameras and film may price a camera at a low price to attract customers, but price the film at a relatively high price because customers must continue to purchase film in or-der to use their cameras. This type of pricing strategy is known as

Competition-based pricing results in a high price when product demand is strong and a low price when demand is weak.

A product's classification largely determines the appropriate marketing strategy.

If a firm is using cost-based pricing, it considers costs and revenue secondary to competitors' prices.

A "2/10, net 30" invoice feature is an example of a __________ discount.

The most important element in the success of a branded product is consumers' confidence in the product.

A consumer product for which buyers will expend effort or planning, that is purchased infre-quently, and that is usually purchased only after being compared with competing products is a __________ product.

If a company needs to obtain cash quickly to pay its bills, it may opt for a pricing strategy that achieves which goal?

A group of similar products that differ only in relatively minor characteristics is called a

Some firms set an annual percentage ROI (return on investment) as their pricing goal.

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

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

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Filters