Question 1

All of the following are functions of packaging except

Accepted Answer

A)  consumer convenience. 
B)  product protection. 
C)  entertainment. 
D)  promotion. 
E)  added benefits. 
A)  consumer convenience. 
B)  product protection. 
C)  entertainment. 
D)  promotion. 
E)  added benefits.

Question 2

The maker of Oral-B toothbrushes is introducing a new electric plaque remover and expects considerable competition. What pricing strategy would be appropriate for this maker to choose?

Accepted Answer

A)  Price skimming 
B)  Penetration pricing 
C)  Odd-even pricing 
D)  Prestige pricing 
E)  Psychological pricing 
A)  Price skimming 
B)  Penetration pricing 
C)  Odd-even pricing 
D)  Prestige pricing 
E)  Psychological pricing

Question 3

A deduction from the price of an item is called a

Accepted Answer

A)  discount. 
B)  variable reduction. 
C)  trade-in. 
D)  line. 
E)  concession remittance. 
A)  discount. 
B)  variable reduction. 
C)  trade-in. 
D)  line. 
E)  concession remittance.

Question 4

GE, Kellogg's, Mercedes, and Dell are all examples of

Accepted Answer

A)  trade characters. 
B)  brand marks. 
C)  brands. 
D)  trade symbols. 
E)  private brands. 
A)  trade characters. 
B)  brand marks. 
C)  brands. 
D)  trade symbols. 
E)  private brands.

Question 5

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 6

The Morton's Salt Girl, the Pillsbury Dough Boy, and Planters' Mr. Peanut are all examples of

Accepted Answer

A)  trade names. 
B)  brand names. 
C)  brand marks. 
D)  store brands. 
E)  manufacturer brands. 
A)  trade names. 
B)  brand names. 
C)  brand marks. 
D)  store brands. 
E)  manufacturer brands.

Question 7

Consumers would most likely treat candy bars as ____ products.

Accepted Answer

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

Question 8

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

Question 9

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

Accepted Answer

A)  penetration pricing. 
B)  price skimming. 
C)  sample pricing. 
D)  multiple-unit pricing. 
E)  odd pricing. 
A)  penetration pricing. 
B)  price skimming. 
C)  sample pricing. 
D)  multiple-unit pricing. 
E)  odd pricing.

Question 10

The complete and legal name of an organization, such as Walmart Stores, Incorporated, is called a

Accepted Answer

A)  trade name. 
B)  brand name. 
C)  brand mark. 
D)  store brand. 
E)  manufacturer brand. 
A)  trade name. 
B)  brand name. 
C)  brand mark. 
D)  store brand. 
E)  manufacturer brand.

Question 11

Which of the following is not generally considered to be a stage in the product life-cycle?

Accepted Answer

A)  Introduction 
B)  Growth 
C)  Maturity 
D)  Transition 
E)  Decline 
A)  Introduction 
B)  Growth 
C)  Maturity 
D)  Transition 
E)  Decline

Question 12

Chris and Kimberly White decided to buy new furniture for their bedroom. They spent considerable time shopping around, comparing prices and styles. Bedroom furniture is best classified as a ____ product.

Accepted Answer

A)  convenience 
B)  business 
C)  shopping 
D)  specialty 
E)  major equipment 
A)  convenience 
B)  business 
C)  shopping 
D)  specialty 
E)  major equipment

Question 13

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

Accepted Answer

A)  producer 
B)  individual 
C)  unity 
D)  family 
E)  promotion 
A)  producer 
B)  individual 
C)  unity 
D)  family 
E)  promotion

Question 14

Click It, Inc.
Travis is a salesperson for Click It, Inc. Click It does not sell products with its own brand name. Instead, its products are created for different retail stores and carry the store brand. Travis thought that several changes needed to be made to a particular product, but Click It management reminded him that the stores, not Click It, owned the brand.
However, because Click It had been concerned about dropping sales, management listened to Travis's concerns about the company's pricing. He suggested using a different pricing strategy. More specifically, he felt that the company should incorporate a multiple-unit pricing strategy because it would then allow Click It to set a single price for multiple units. This had the potential of increasing sales and therefore profits, so management agreed to consider Travis's suggestion.
-Refer to Click It, Inc. When Travis thinks of products and brands adding value to the company that sells them, which concept is he referring to?

Accepted Answer

A)  Equilibrium brand 
B)  Brand extension 
C)  Generic name 
D)  Brand demand 
E)  Brand equity 
A)  Equilibrium brand 
B)  Brand extension 
C)  Generic name 
D)  Brand demand 
E)  Brand equity

Question 15

In spite of the rigorous process for developing product ideas, the majority of new products

Accepted Answer

A)  require several months to gain market share. 
B)  yield high returns on R&D costs. 
C)  require several years to gain market share. 
D)  are copied by competitors. 
E)  end up as failures. 
A)  require several months to gain market share. 
B)  yield high returns on R&D costs. 
C)  require several years to gain market share. 
D)  are copied by competitors. 
E)  end up as failures.

Question 16

All of the activities involved in developing and providing a container for a product are called

Accepted Answer

A)  packaging. 
B)  advertising. 
C)  labeling. 
D)  containerization. 
E)  parceling. 
A)  packaging. 
B)  advertising. 
C)  labeling. 
D)  containerization. 
E)  parceling.

Question 17

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

Accepted Answer

Sales volume tends to decrease sharply d

Question 18

A hotel room in New Orleans during Mardi Gras costs considerably more than it would during the following week. This is an example of

Accepted Answer

A)  status-quo pricing. 
B)  cost-based pricing. 
C)  price differentiation. 
D)  variable pricing. 
E)  price adjustment. 
A)  status-quo pricing. 
B)  cost-based pricing. 
C)  price differentiation. 
D)  variable pricing. 
E)  price adjustment.

Question 19

When Pepsi introduced Mountain Dew Code Red, it was

Accepted Answer

A)  expanding the width of its marketing mix. 
B)  increasing the depth of a product line. 
C)  making minor modifications that did not broaden the marketing mix. 
D)  narrowing its marketing mix. 
E)  replacing poorly performing products. 
A)  expanding the width of its marketing mix. 
B)  increasing the depth of a product line. 
C)  making minor modifications that did not broaden the marketing mix. 
D)  narrowing its marketing mix. 
E)  replacing poorly performing products.

Question 20

Which of the following constitutes an ROI?

Accepted Answer

A)  Amount earned from sales before taxes 
B)  Amount realized from cutting production costs 
C)  Amount earned as a result of a return on investment 
D)  Amount, or ratio, that represents rate of investment 
E)  Amount earned as gross income 
A)  Amount earned from sales before taxes 
B)  Amount realized from cutting production costs 
C)  Amount earned as a result of a return on investment 
D)  Amount, or ratio, that represents rate of investment 
E)  Amount earned as gross income

Exam 13: A: Creating and Pricing Products That Satisfy Customers

All of the following are functions of packaging except

The maker of Oral-B toothbrushes is introducing a new electric plaque remover and expects considerable competition. What pricing strategy would be appropriate for this maker to choose?

A deduction from the price of an item is called a

GE, Kellogg's, Mercedes, and Dell are all examples of

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

The Morton's Salt Girl, the Pillsbury Dough Boy, and Planters' Mr. Peanut are all examples of

Consumers would most likely treat candy bars as ____ products.

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

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

The complete and legal name of an organization, such as Walmart Stores, Incorporated, is called a

Which of the following is not generally considered to be a stage in the product life-cycle?

Chris and Kimberly White decided to buy new furniture for their bedroom. They spent considerable time shopping around, comparing prices and styles. Bedroom furniture is best classified as a ____ product.

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

In spite of the rigorous process for developing product ideas, the majority of new products

All of the activities involved in developing and providing a container for a product are called

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

A hotel room in New Orleans during Mardi Gras costs considerably more than it would during the following week. This is an example of

When Pepsi introduced Mountain Dew Code Red, it was

Which of the following constitutes an ROI?

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: 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

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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