Exam 12: Creating and Pricing Products That Satisfy Customers

Give the characteristics of shopping products,specialty products,and convenience products.Illustrate those characteristics with examples of products that fit the categories.

Entirely new products are innovations.

Toyota has made Corollas for many years.Each year it comes out with a new model of the same basic vehicle but with new features,a few upgrades,better sound system,and more computer systems to make the vehicle seem new.What was it doing to extend the life of the Corolla?

Consumer products can be divided into the following three categories:

Slick It,Inc. ​Render is a salesperson for Slick It,Inc.Slick It does not sell products with its own brand name.Instead,its products are created for different retail stores and carry the store brand.Render thought that several changes needed to be made to a particular product,but Slick It management reminded him that the stores,not Slick It,owned the brand. ​However,because Slick It had been concerned about dropping sales,management listened to Render'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 Slick It to set a single price for multiple units.This had the potential of increasing sales and therefore profits,so management agreed to consider Render's suggestion. -Refer to Slick It,Inc.When Render thinks of products and brands adding value to the company that sells them,which concept is he referring to?

Brand names such as Tide,Surf,Biz,and Wisk are effective names because they

In her local supermarket Lizzy purchases green beans in a white can simply labeled as green beans.This represents a(n)____ brand.

In spite of the rigorous process for developing product ideas,the majority of new products

When Pepsi introduced Mountain Dew Code Red,it was

A trade discount is the price producers set to draw the public's attention to new products.

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

​____ is a pricing goal that is impossible to achieve.

The Glo-Brite Company is considering development of a new children's toothpaste in fun-shaped dispensers.Before performing any business analysis on the product,Glo-Brite would like an initial response from potential customers to determine interest in a toothpaste of this type.Glo-Brite will begin ____ to gather the information.

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

The stage of new product development in which potential customers are presented with a written or oral description of the product to determine their initial attitudes and buying intentions is called

Slick It,Inc. ​Render is a salesperson for Slick It,Inc.Slick It does not sell products with its own brand name.Instead,its products are created for different retail stores and carry the store brand.Render thought that several changes needed to be made to a particular product,but Slick It management reminded him that the stores,not Slick It,owned the brand. ​However,because Slick It had been concerned about dropping sales,management listened to Render'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 Slick It to set a single price for multiple units.This had the potential of increasing sales and therefore profits,so management agreed to consider Render's suggestion. -Refer to Slick It,Inc.As Slick It management considers the pricing issues,they should know that all of the following are major pricing objectives except

Which of the following is not a phase in the new product development process?

Bread,gasoline,and ____ are examples of convenience products.

XYZ Industries is in a business in which competition demands little variance in pricing so it prices its products to stay at the same level of business it has enjoyed in order to maintain price stability.This is known as

All of the following are functions of packaging except