Exam 12: Creating and Pricing Products That Satisfy Customers

When Polaroid comes out with a new model in a series,it sets an initial price and then gradually lowers the price.Polaroid is initially using which pricing strategy?

Demand-based pricing,unlike cost-based pricing,places firms in a better position to

Kyla goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car,and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

In some cases,prices are assigned to goods on the basis of nothing more than customs and traditions.

For any product,the breakeven quantity is the

Why should companies develop and introduce new products?

Pricing strategies act as guides for achieving pricing objectives.

What are the major phases involved in the new product development process?

A number of federal regulations specify the information that must be included in labeling.Which of the following is not specified?

Harold is an accountant with Brain Industries and Matilda is in the marketing department.They are discussing the pricing strategy for a new product the company will soon release.Their recommendations will be presented to the board of directors at the next board meeting.Matilda has discussed profit maximization and market-sharing goals for the product.She asks Harold what product survival pricing entails and he explains it as well as return-on-investment pricing.Of the pricing strategies they have discussed,which one is not an obtainable goal?

What is brand equity? Describe the major factors that make up brand equity.

If the manager at Walmart puts a sign up next to a Sony television that reads,"Only $199.99! $58.01 less than Best Buy," this is an example of what type of pricing strategy?

Costs that depend on the number of units produced are called

All of the following are business products except

Which of the following types of brands are the least commonly purchased at grocery stores?

Buyers may relate price to quality.To such a buyer,a higher price for a product is an indicator of

Fixed costs are costs that depend on the number of units produced.

The product life-cycle stage in which there is a rapid sales increase,other firms have begun to market competing products,and lower unit costs and an overall tendency toward increased profit prevail is called

Once it becomes effective,a product mix for a given product remains effective for a long time.

Nate 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 Everyone's Way,Inc.The company sells men's clothing and accessories.Everyone's 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,Nate 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,Nate 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 Everyone's Way,Inc.Which of the following descriptions should Nate use to best explain the difference between the product line and product mix?