Question 1

Use and convenience are unimportant when planning packaging for products.

Accepted Answer

A) True 
 B)False

Question 2

Why is setting the right price a challenge to marketers?

Accepted Answer

Trying to set the right price can be a r

Question 3

Demand-based pricing (sometimes called value-based pricing)is pricing a good or service based on the demand for the product or its perceived value.

Accepted Answer

A) True 
 B)False

Question 4

A fast food manufacturer estimating a new food item's production costs,selling price,and sales volume is an example of ________.

Accepted Answer

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

Question 5

A brand assigned to each product within a company's product mix is a(n)________ brand.

Accepted Answer

A)  generic 
B)  individual 
C)  co-brand 
D)  family 
E)  manufacturer's 
A)  generic 
B)  individual 
C)  co-brand 
D)  family 
E)  manufacturer's

Question 6

Total fixed costs are $300.The selling price is $15.Average variable costs are $5.The break-even volume of production is ________ units.

Accepted Answer

A)  60 
B)  40 
C)  30 
D)  20 
E)  15 
A)  60 
B)  40 
C)  30 
D)  20 
E)  15

Question 7

An augmented product consists of the core product and the actual product plus other real or perceived benefits that provide additional value to the customer's purchase.

Accepted Answer

A) True 
 B)False

Question 8

What are the seven steps in new product development?

Accepted Answer

The seven steps in new product developme

Question 9

The Crusher Corp.charges very low prices to drive its only competitor out of business.This is an example of ________ pricing.

Accepted Answer

A)  demand-based 
B)  brand 
C)  predatory 
D)  penetration 
E)  loss leader 
A)  demand-based 
B)  brand 
C)  predatory 
D)  penetration 
E)  loss leader

Question 10

A new freelance writer who sets a price at a level to generate just enough revenues to pay expenses is using the pricing objective of ________.

Accepted Answer

A)  covering costs to survive 
B)  creating an image 
C)  achieving social objectives 
D)  maximizing profits 
E)  matching the status quo prices 
A)  covering costs to survive 
B)  creating an image 
C)  achieving social objectives 
D)  maximizing profits 
E)  matching the status quo prices

Question 11

During product development and concept testing,ideas that survive the screening and analysis steps are analyzed further.

Accepted Answer

A) True 
 B)False

Question 12

A dishwasher is an example of a(n)________ good.

Accepted Answer

A)  convenience 
B)  shopping 
C)  specialty 
D)  unsought 
E)  maintenance, repair, and operating 
A)  convenience 
B)  shopping 
C)  specialty 
D)  unsought 
E)  maintenance, repair, and operating

Question 13

Developing quality products is a two-step process that requires a great investment of resources.

Accepted Answer

A) True 
 B)False

Question 14

A theoretical model describing a product's sales and profits over the course of its existence is known as the product ________.

Accepted Answer

A)  lifetime 
B)  life cycle 
C)  pricing plan 
D)  rollout 
E)  concept analysis 
A)  lifetime 
B)  life cycle 
C)  pricing plan 
D)  rollout 
E)  concept analysis

Question 15

All of the following are stages in the product life cycle EXCEPT ________.

Accepted Answer

A)  packaging 
B)  growth 
C)  maturity 
D)  decline 
E)  introduction 
A)  packaging 
B)  growth 
C)  maturity 
D)  decline 
E)  introduction

Question 16

What is brand equity?

Accepted Answer

Strong brand loyalty contributes to bran

Question 17

A company that announces a manufacturer's suggested retail price and then offers a discount off that price is using ________ pricing.

Accepted Answer

A)  psychological 
B)  dynamic 
C)  reference 
D)  prestige 
E)  loss leader 
A)  psychological 
B)  dynamic 
C)  reference 
D)  prestige 
E)  loss leader

Question 18

Brand awareness involves connecting a brand with other positive attributes.

Accepted Answer

A) True 
 B)False

Question 19

A consultation with a world-famous surgeon is an example of a(n)________ service.

Accepted Answer

A)  specialty 
B)  unsought 
C)  convenience 
D)  shopping 
E)  dynamic 
A)  specialty 
B)  unsought 
C)  convenience 
D)  shopping 
E)  dynamic

Question 20

A snack food bag is white with plain black letters spelling,"Corn Chips." This is an example of a ________ brand.

Accepted Answer

A)  family 
B)  generic 
C)  manufacturer's 
D)  co-brand 
E)  private 
A)  family 
B)  generic 
C)  manufacturer's 
D)  co-brand 
E)  private

Exam 13: Product Development and Pricing Strategies

Use and convenience are unimportant when planning packaging for products.

Why is setting the right price a challenge to marketers?

Demand-based pricing (sometimes called value-based pricing)is pricing a good or service based on the demand for the product or its perceived value.

A fast food manufacturer estimating a new food item's production costs,selling price,and sales volume is an example of ________.

A brand assigned to each product within a company's product mix is a(n)________ brand.

Total fixed costs are $300.The selling price is $15.Average variable costs are $5.The break-even volume of production is ________ units.

An augmented product consists of the core product and the actual product plus other real or perceived benefits that provide additional value to the customer's purchase.

What are the seven steps in new product development?

The Crusher Corp.charges very low prices to drive its only competitor out of business.This is an example of ________ pricing.

A new freelance writer who sets a price at a level to generate just enough revenues to pay expenses is using the pricing objective of ________.

During product development and concept testing,ideas that survive the screening and analysis steps are analyzed further.

A dishwasher is an example of a(n)________ good.

Developing quality products is a two-step process that requires a great investment of resources.

A theoretical model describing a product's sales and profits over the course of its existence is known as the product ________.

All of the following are stages in the product life cycle EXCEPT ________.

What is brand equity?

A company that announces a manufacturer's suggested retail price and then offers a discount off that price is using ________ pricing.

Brand awareness involves connecting a brand with other positive attributes.

A consultation with a world-famous surgeon is an example of a(n)________ service.

A snack food bag is white with plain black letters spelling,"Corn Chips." This is an example of a ________ brand.

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