Question 1

The strategy of setting a low price for a new product to gain a large market share for the product quickly is called

Accepted Answer

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

Question 2

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 3

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 4

If Tiger Mart advertises a 2-liter bottle of Pepsi for $1.29 cents to generate store traffic that will increase the purchasing of other items at regular prices, the grocer is using

Accepted Answer

A)  reference pricing. 
B)  a price leader. 
C)  special-event pricing. 
D)  comparison discounting. 
E)  professional pricing. 
A)  reference pricing. 
B)  a price leader. 
C)  special-event pricing. 
D)  comparison discounting. 
E)  professional pricing.

Question 5

Under what circumstances might a firm use survival pricing objectives? How would a firm implement such a strategy?

Accepted Answer

A firm might use survival pricing object

Question 6

If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on

Accepted Answer

A)  cash flow. 
B)  market share. 
C)  survival. 
D)  return on investment. 
E)  dollar sales volume. 
A)  cash flow. 
B)  market share. 
C)  survival. 
D)  return on investment. 
E)  dollar sales volume.

Question 7

A pricing strategy in which a manufacturer pays for the shipping cost of its merchandise to the wholesaler is called ____ pricing.

Accepted Answer

A)  geographic 
B)  FOB origin 
C)  trade discount 
D)  FOB destination 
E)  postage-stamp 
A)  geographic 
B)  FOB origin 
C)  trade discount 
D)  FOB destination 
E)  postage-stamp

Question 8

Razor Company's blades are in the maturity stage of the product life-cycle. How can the company strengthen its market share?

Accepted Answer

A)  Eliminate less profitable versions of the product 
B)  Redesign the packaging 
C)  Make no style changes 
D)  Emphasize customer service 
E)  Watch for the early buying patterns 
A)  Eliminate less profitable versions of the product 
B)  Redesign the packaging 
C)  Make no style changes 
D)  Emphasize customer service 
E)  Watch for the early buying patterns

Question 9

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. As Click It managers considers the pricing issues, they should know that all of the following are major pricing objectives except

Accepted Answer

A)  status-quo pricing. 
B)  market-share goals. 
C)  survival. 
D)  profit minimization. 
E)  target return on investment. 
A)  status-quo pricing. 
B)  market-share goals. 
C)  survival. 
D)  profit minimization. 
E)  target return on investment.

Question 10

Is McDonald's "golden arches" symbol a brand name or a brand mark? Define each term, and state how they differ.

Accepted Answer

The McDonald's "golden arches" symbol is

Question 11

Price differentiation attempts to sell

Accepted Answer

A)  different products with different features at the same price. 
B)  identical products at different times at different prices. 
C)  products at lower prices, due to economies of scale unintentionally resulting in lower net income for the company. 
D)  products to customers based on their ability to pay. 
E)  all products at different prices. 
A)  different products with different features at the same price. 
B)  identical products at different times at different prices. 
C)  products at lower prices, due to economies of scale unintentionally resulting in lower net income for the company. 
D)  products to customers based on their ability to pay. 
E)  all products at different prices.

Question 12

A brand that is owned by a producer is called a

Accepted Answer

A)  store brand. 
B)  generic mark. 
C)  manufacturer brand. 
D)  private brand. 
E)  dealer brand. 
A)  store brand. 
B)  generic mark. 
C)  manufacturer brand. 
D)  private brand. 
E)  dealer brand.

Question 13

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.

Accepted Answer

A)  raw materials 
B)  accessory equipment 
C)  component parts 
D)  process material 
E)  major equipment 
A)  raw materials 
B)  accessory equipment 
C)  component parts 
D)  process material 
E)  major equipment

Question 14

If Tyson, a poultry producer, decided to start producing veggie burgers, this would be an example of

Accepted Answer

A)  developing an entirely new product line. 
B)  expanding the depth of the marketing mix. 
C)  extending an existing product line. 
D)  an aesthetic product modification. 
E)  narrowing the marketing mix. 
A)  developing an entirely new product line. 
B)  expanding the depth of the marketing mix. 
C)  extending an existing product line. 
D)  an aesthetic product modification. 
E)  narrowing the marketing mix.

Question 15

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 16

Price competition occurs when a seller emphasizes the

Accepted Answer

A)  low price of a product. 
B)  high price of a product. 
C)  quality of a product. 
D)  quality of the customer service. 
E)  importance of the product. 
A)  low price of a product. 
B)  high price of a product. 
C)  quality of a product. 
D)  quality of the customer service. 
E)  importance of the product.

Question 17

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

Accepted Answer

A)  They were all once brand names that have since been declared generic terms. 
B)  They are all heavily promoted during daytime television. 
C)  They are examples of functional product modification. 
D)  They have extremely high brand loyalty. 
E)  They are all examples of private-label brands. 
A)  They were all once brand names that have since been declared generic terms. 
B)  They are all heavily promoted during daytime television. 
C)  They are examples of functional product modification. 
D)  They have extremely high brand loyalty. 
E)  They are all examples of private-label brands.

Question 18

To promote an overall company image, Borden dairy products are packaged in similar designs and colors. This approach is known as

Accepted Answer

A)  product grouping. 
B)  family packaging. 
C)  brand managing. 
D)  line consistency. 
E)  family branding. 
A)  product grouping. 
B)  family packaging. 
C)  brand managing. 
D)  line consistency. 
E)  family branding.

Question 19

At a busy intersection in Atlanta, there are four competing gas stations. Each of the stations charges about the same for each gallon of gasoline. The pricing objectives of these firms is

Accepted Answer

A)  survival. 
B)  market share goals. 
C)  status-quo pricing. 
D)  profit maximization. 
E)  competitive. 
A)  survival. 
B)  market share goals. 
C)  status-quo pricing. 
D)  profit maximization. 
E)  competitive.

Question 20

If a customer has moderate loyalty toward Heinz ketchup, she likely will

Accepted Answer

A)  buy the product in greater quantities. 
B)  shop around for the best price for that good. 
C)  perceive the product as having the same quality level as competitive brands. 
D)  never buy another brand of ketchup. 
E)  purchase other products that carry the Heinz name. 
A)  buy the product in greater quantities. 
B)  shop around for the best price for that good. 
C)  perceive the product as having the same quality level as competitive brands. 
D)  never buy another brand of ketchup. 
E)  purchase other products that carry the Heinz name.

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

The strategy of setting a low price for a new product to gain a large market share for the product quickly is called

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?

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

If Tiger Mart advertises a 2-liter bottle of Pepsi for $1.29 cents to generate store traffic that will increase the purchasing of other items at regular prices, the grocer is using

Under what circumstances might a firm use survival pricing objectives? How would a firm implement such a strategy?

If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on

A pricing strategy in which a manufacturer pays for the shipping cost of its merchandise to the wholesaler is called ____ pricing.

Razor Company's blades are in the maturity stage of the product life-cycle. How can the company strengthen its market share?

Is McDonald's "golden arches" symbol a brand name or a brand mark? Define each term, and state how they differ.

Price differentiation attempts to sell

A brand that is owned by a producer is called a

If Tyson, a poultry producer, decided to start producing veggie burgers, this would be an example of

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

Price competition occurs when a seller emphasizes the

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

To promote an overall company image, Borden dairy products are packaged in similar designs and colors. This approach is known as

At a busy intersection in Atlanta, there are four competing gas stations. Each of the stations charges about the same for each gallon of gasoline. The pricing objectives of these firms is

If a customer has moderate loyalty toward Heinz ketchup, she likely will

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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