Question 1

Give an example of a loss leader.

Accepted Answer

Student answers will vary.A lo

Question 2

Which of the following is a consumer product classification?

Accepted Answer

A)  raw and processed materials 
B)  MRO products 
C)  equipment 
D)  unsought goods and services 
E)  component parts 
A)  raw and processed materials 
B)  MRO products 
C)  equipment 
D)  unsought goods and services 
E)  component parts

Question 3

An agreement between the owner of a brand and another company or individual who pays a royalty for the use of the brand in association with a new product is brand ________.

Accepted Answer

A)  extension 
B)  awareness 
C)  licensing 
D)  association 
E)  privatizing 
A)  extension 
B)  awareness 
C)  licensing 
D)  association 
E)  privatizing

Question 4

Sheets of copper shipped to a factory for plumbing pipes are an example of ________.

Accepted Answer

A)  raw and processed materials 
B)  component parts 
C)  MRO products 
D)  specialized professional services 
E)  equipment 
A)  raw and processed materials 
B)  component parts 
C)  MRO products 
D)  specialized professional services 
E)  equipment

Question 5

Branding benefits ________.

Accepted Answer

A)  both buyers and sellers 
B)  only buyers 
C)  only sellers 
D)  only resellers 
E)  neither buyers nor sellers 
A)  both buyers and sellers 
B)  only buyers 
C)  only sellers 
D)  only resellers 
E)  neither buyers nor sellers

Question 6

All of the following are perceptions of brand EXCEPT brand ________.

Accepted Answer

A)  recognition 
B)  preference 
C)  insistence 
D)  license 
E)  association 
A)  recognition 
B)  preference 
C)  insistence 
D)  license 
E)  association

Question 7

A pricing strategy based on what rival businesses are charging is known as ________ -based pricing.

Accepted Answer

A)  cost 
B)  demand 
C)  competition 
D)  supply 
E)  psychological 
A)  cost 
B)  demand 
C)  competition 
D)  supply 
E)  psychological

Question 8

List five methods for extending a product life cycle.

Accepted Answer

Five methods for extending a product lif

Question 9

Why is labeling important to establishing a brand image?

Accepted Answer

Labels are used to promote and to persua

Question 10

Consumer products are goods and services that are purchased by businesses for further processing or resale or are used in facilitating business operations.

Accepted Answer

A) True 
 B)False

Question 11

The two functions of labels are ________.

Accepted Answer

A)  inform and facilitate use 
B)  inform and persuade 
C)  protect the product and persuade 
D)  facilitate use and be environmentally friendly 
E)  to entice and mislead 
A)  inform and facilitate use 
B)  inform and persuade 
C)  protect the product and persuade 
D)  facilitate use and be environmentally friendly 
E)  to entice and mislead

Question 12

How does convenient packaging affect sales?

Accepted Answer

Packages that are convenient to use and

Question 13

If a package prevents tampering with a product,which purpose of packaging is being performed?

Accepted Answer

A)  to facilitate use and convenience 
B)  to contain and protect the product 
C)  to promote the product 
D)  to be environmentally friendly 
E)  to appeal to the consumer's aesthetics 
A)  to facilitate use and convenience 
B)  to contain and protect the product 
C)  to promote the product 
D)  to be environmentally friendly 
E)  to appeal to the consumer's aesthetics

Question 14

Brand awareness refers to the extent to which a particular brand name is familiar within a particular product category.

Accepted Answer

A) True 
 B)False

Question 15

A food manufacturer doing market research on the possible customer demand for a new fast food item is an example of ________.

Accepted Answer

A)  idea generation 
B)  idea screening 
C)  product development and concept testing 
D)  commercialization 
E)  market testing 
A)  idea generation 
B)  idea screening 
C)  product development and concept testing 
D)  commercialization 
E)  market testing

Question 16

What are the benefits of branding?

Accepted Answer

For buyers,well-recognized brands reduce

Question 17

A legally protected brand is called a(n)________.

Accepted Answer

A)  equity 
B)  knockoff 
C)  trademark 
D)  recognized brand 
E)  log 
A)  equity 
B)  knockoff 
C)  trademark 
D)  recognized brand 
E)  log

Question 18

At an auto repair shop,wrenches are an example of MRO products.

Accepted Answer

A) True 
 B)False

Question 19

Consumers only need to consider tangible benefits when buying products.

Accepted Answer

A) True 
 B)False

Question 20

A manufacturer of yachts sets its prices high above its competitors.This is an example of the pricing objective of ________.

Accepted Answer

A)  achieving social objectives 
B)  creating an image 
C)  cutting costs to survive 
D)  building traffic 
E)  maximizing sales 
A)  achieving social objectives 
B)  creating an image 
C)  cutting costs to survive 
D)  building traffic 
E)  maximizing sales

Exam 13: Product Development and Pricing Strategies

Give an example of a loss leader.

Which of the following is a consumer product classification?

An agreement between the owner of a brand and another company or individual who pays a royalty for the use of the brand in association with a new product is brand ________.

Sheets of copper shipped to a factory for plumbing pipes are an example of ________.

Branding benefits ________.

All of the following are perceptions of brand EXCEPT brand ________.

A pricing strategy based on what rival businesses are charging is known as ________ -based pricing.

List five methods for extending a product life cycle.

Why is labeling important to establishing a brand image?

Consumer products are goods and services that are purchased by businesses for further processing or resale or are used in facilitating business operations.

The two functions of labels are ________.

How does convenient packaging affect sales?

If a package prevents tampering with a product,which purpose of packaging is being performed?

Brand awareness refers to the extent to which a particular brand name is familiar within a particular product category.

A food manufacturer doing market research on the possible customer demand for a new fast food item is an example of ________.

What are the benefits of branding?

A legally protected brand is called a(n)________.

At an auto repair shop,wrenches are an example of MRO products.

Consumers only need to consider tangible benefits when buying products.

A manufacturer of yachts sets its prices high above its competitors.This is an example of the pricing objective of ________.

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