Exam 11: Developing New Products

A newly opened supermarket offers vegetables at reduced prices so as to attract customers.The idea behind lowering the prices is that the customers who visit the supermarket to purchase these vegetables at lower costs are more likely to purchase other items offered in the supermarket.This pricing tactic is an example of:

A shoe manufacturer produces shoes for customers in the middle-range segment and the upper-range segment.It also has shoes in between these segments,at different prices,to represent distinct differences in quality.This is an example of:

Those expenses that remain essentially at the same level,regardless of any changes in the volume of production,are called:

A company launches a new car in the luxury segment.It studies the quality and price of other luxury cars available in the market and ensures that the price and features of the new launch are similar to the existing cars.The company's objectives are most likely to be:

Ben wants to open a restaurant in his hometown.What would be the fixed and variable costs that he would need to take care of while setting up the restaurant?

The document the shoe department gives to every customer who buys a pair of shoes is a:

A company selling air conditioners finds that sales begin to decrease at the end of summer.The company then reduces the price of air conditioners to get rid of the slow-moving merchandise.This is an example of a:

Snails Inc.,a 10-year-old bookstore situated in New York,recently launched an online store that offers uniform delivered pricing to all its customers across the globe.It also offers all the books from the previous year at a discount.Which of the following statements about Snails and its customers is true in this case?

The price reduction that Lee's offers for its air conditioners is an example of a:

A wealthy industrialist purchases a Van Gogh painting for his new home.He pays $140 million to procure this piece of work.In this case,the painting is an example of a(n):

Ryan owns a store that sells shoes and clothes.Explain how he could use price lining,price bundling,and leader pricing to attract customers.

A company manufactures tires that are sold to retailers as well as automobile companies.What kind of pricing tactics is likely to be advantageous for different customers?

A fall in the price of gas leads to an increased demand for cars in the market.In this context,gas and car are examples of:

Which of the following occurs when only a few firms providing a particular product or service dominate a market?

Explain the difference between predatory pricing and price discrimination.

A strategy of selling a new product or service at a high price that innovators and early adopters are willing to pay to obtain is called:

A situation in the market that occurs when two or more firms compete primarily by lowering their prices is referred to as:

Explain the difference between a cumulative quantity discount and a noncumulative quantity discount.

Which of the following is true of pricing based on competitor-oriented strategies?

Blue Corp.,a laptop manufacturer,introduces a new model in the market.Since the target audience for this product is students,Blue Corp.launches the model at a low price.The main objective of the company is to build sales and profits quickly.This is an example of: