Question 1

Describe the three major pricing methods that firms employ.

Accepted Answer

The three major pricing methods that fir

Question 2

Martin always chooses Colgate toothpaste at his local drug store. However, when the store occasionally runs out of Colgate, he will purchase Crest or Mentadent. What level of brand loyalty does Martin have to Colgate?

Accepted Answer

A)  Awareness 
B)  Insistence 
C)  Preference 
D)  Resistance 
E)  Partiality 
A)  Awareness 
B)  Insistence 
C)  Preference 
D)  Resistance 
E)  Partiality

Question 3

TCBY wants to expand its line of food products. The company sent surveys to consumers to determine which food items would appeal to them for dessert or snacks. The company is in which phase of new product development?

Accepted Answer

A)  Idea generation 
B)  Product development 
C)  Test marketing 
D)  Screening 
E)  Business analysis 
A)  Idea generation 
B)  Product development 
C)  Test marketing 
D)  Screening 
E)  Business analysis

Question 4

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

Accepted Answer

A)  usually, a low profit or even a loss. 
B)  the appearance on the market of refinements or extensions of the original product. 
C)  relatively few competitors. 
D)  often, high price. 
E)  low consumer awareness and acceptance of the product. 
A)  usually, a low profit or even a loss. 
B)  the appearance on the market of refinements or extensions of the original product. 
C)  relatively few competitors. 
D)  often, high price. 
E)  low consumer awareness and acceptance of the product.

Question 5

Costs that are incurred no matter how many units of a product are produced or sold are called

Accepted Answer

A)  operating expenses. 
B)  overhead. 
C)  variable costs. 
D)  fixed costs. 
E)  inflexible costs. 
A)  operating expenses. 
B)  overhead. 
C)  variable costs. 
D)  fixed costs. 
E)  inflexible costs.

Question 6

Sheet steel to be used in making automobile fenders is an example of

Accepted Answer

A)  raw materials. 
B)  supplies. 
C)  component parts. 
D)  accessory equipment. 
E)  process materials. 
A)  raw materials. 
B)  supplies. 
C)  component parts. 
D)  accessory equipment. 
E)  process materials.

Question 7

The redesign of a bicycle to improve its safety is an example of a(n) ____ modification.

Accepted Answer

A)  visual 
B)  functional 
C)  quality 
D)  aesthetic 
E)  texture 
A)  visual 
B)  functional 
C)  quality 
D)  aesthetic 
E)  texture

Question 8

A written explanation of the responsibilities of the producer in the event the product is found to be defective or otherwise unsatisfactory is called a(n)

Accepted Answer

A)  Universal Product Code. 
B)  label. 
C)  express warranty. 
D)  set of instructions. 
E)  covenant. 
A)  Universal Product Code. 
B)  label. 
C)  express warranty. 
D)  set of instructions. 
E)  covenant.

Question 9

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 10

The part of a brand that can be spoken―letters, words, numbers, and/or pronounceable symbols―is called a

Accepted Answer

A)  trademark. 
B)  brand mark. 
C)  brand name. 
D)  brand. 
E)  generic mark. 
A)  trademark. 
B)  brand mark. 
C)  brand name. 
D)  brand. 
E)  generic mark.

Question 11

A brand is all of the following except a(n)

Accepted Answer

A)  name. 
B)  term. 
C)  symbol. 
D)  item usually owned by the producer or manufacturer. 
E)  design. 
A)  name. 
B)  term. 
C)  symbol. 
D)  item usually owned by the producer or manufacturer. 
E)  design.

Question 12

Multiple packaging does not work well for

Accepted Answer

A)  infrequently used products. 
B)  products that are easy to store. 
C)  aiding consumer acceptance. 
D)  two-for-one price offers. 
E)  shelf-space maximization. 
A)  infrequently used products. 
B)  products that are easy to store. 
C)  aiding consumer acceptance. 
D)  two-for-one price offers. 
E)  shelf-space maximization.

Question 13

A product usually declines because of technological advances or environmental factors or because

Accepted Answer

A)  the item is very popular. 
B)  the price is too low. 
C)  consumers have switched to competing brands. 
D)  the price is too high. 
E)  no ads or sales incentives have been used. 
A)  the item is very popular. 
B)  the price is too low. 
C)  consumers have switched to competing brands. 
D)  the price is too high. 
E)  no ads or sales incentives have been used.

Question 14

A good or service intended primarily for use in producing other goods or services is a ____ product.

Accepted Answer

A)  production 
B)  business 
C)  specialty 
D)  component 
E)  supply 
A)  production 
B)  business 
C)  specialty 
D)  component 
E)  supply

Question 15

Why should companies develop and introduce new products?

Accepted Answer

A)  To keep their product designers busy 
B)  Because failing to do so can threaten the future success of the firm 
C)  Because it is relatively inexpensive and therefore worth the time 
D)  To replace deleted products so the broadness of the marketing mix remains unchanged 
E)  Because new products are almost always successful 
A)  To keep their product designers busy 
B)  Because failing to do so can threaten the future success of the firm 
C)  Because it is relatively inexpensive and therefore worth the time 
D)  To replace deleted products so the broadness of the marketing mix remains unchanged 
E)  Because new products are almost always successful

Question 16

What is a status-quo pricing objective?

Accepted Answer

A status-quo pricing objective is a pric

Question 17

Which of the following is considered a trade name?

Accepted Answer

A)  Tide laundry detergent 
B)  GE 
C)  General Motors Corp. 
D)  Coke 
E)  Adidas's three stripes 
A)  Tide laundry detergent 
B)  GE 
C)  General Motors Corp. 
D)  Coke 
E)  Adidas's three stripes

Question 18

The fact that senior citizens are charged a lower price at movie theaters than are younger adults is an example of ____ pricing.

Accepted Answer

A)  price-lining 
B)  promotional 
C)  professional 
D)  differential 
E)  psychological 
A)  price-lining 
B)  promotional 
C)  professional 
D)  differential 
E)  psychological

Question 19

HP considers its extensive line of printers to be superior to other brands. To communicate the product's superior quality, which price may be appropriate for their printers?

Accepted Answer

A)  Low 
B)  Average 
C)  Premium 
D)  Discount 
E)  Prevailing 
A)  Low 
B)  Average 
C)  Premium 
D)  Discount 
E)  Prevailing

Question 20

If Texas Instruments hires an accounting firm to compute the company's taxes, the accounting firm is providing a(n) ____ service.

Accepted Answer

A)  business 
B)  governmental 
C)  institutional 
D)  tangible 
E)  mandatory 
A)  business 
B)  governmental 
C)  institutional 
D)  tangible 
E)  mandatory

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

Describe the three major pricing methods that firms employ.

Martin always chooses Colgate toothpaste at his local drug store. However, when the store occasionally runs out of Colgate, he will purchase Crest or Mentadent. What level of brand loyalty does Martin have to Colgate?

TCBY wants to expand its line of food products. The company sent surveys to consumers to determine which food items would appeal to them for dessert or snacks. The company is in which phase of new product development?

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

Costs that are incurred no matter how many units of a product are produced or sold are called

Sheet steel to be used in making automobile fenders is an example of

The redesign of a bicycle to improve its safety is an example of a(n) ____ modification.

A written explanation of the responsibilities of the producer in the event the product is found to be defective or otherwise unsatisfactory is called a(n)

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

The part of a brand that can be spoken―letters, words, numbers, and/or pronounceable symbols―is called a

A brand is all of the following except a(n)

Multiple packaging does not work well for

A product usually declines because of technological advances or environmental factors or because

A good or service intended primarily for use in producing other goods or services is a ____ product.

Why should companies develop and introduce new products?

What is a status-quo pricing objective?

Which of the following is considered a trade name?

The fact that senior citizens are charged a lower price at movie theaters than are younger adults is an example of ____ pricing.

HP considers its extensive line of printers to be superior to other brands. To communicate the product's superior quality, which price may be appropriate for their printers?

If Texas Instruments hires an accounting firm to compute the company's taxes, the accounting firm is providing a(n) ____ service.

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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