Exam 11: Developing New Products

What is implemented by firms that focus on the rate at which their profits are generated relative to their investments rather than the absolute level of profits?

In any given market,the firm that offers the lowest price tends to be the dominant brand.

Differentiate between an elastic and an inelastic market.

A car manufacturer offers cars in the luxury segment.It establishes a price floor and a price ceiling for its entire line of cars and then sets a few other price points in between to represent distinct differences in quality.It helps the manufacturer to satisfy a wide range of tastes and budgets.This is an example of:

When Clove decided to offer enrolment at a very low price,it was with an intention to drive its competitors out of business.This is an example of:

A company sells shoes at a price somewhere between the regular,nonsale price and the deep-discount sale prices that its competitors may offer.This is an example of:

A company specializing in bathroom fittings offers state-of-the-art products.The products are highly priced,and the company is aware that sales will be limited.The main objective is to enhance its reputation and image and thereby increase the company's value in the minds of consumers.This is an example of:

Laws against bait and switch practices are difficult to enforce because salespeople,simply as a function of their jobs,are always trying to get customers to trade up to a higher- priced model without necessarily deliberately baiting them.

Predatory pricing,although representative of a form of unfair competition,promotes free trade.

Which of the following approaches attempts to reflect how a firm wants consumers to interpret its products relative to the offerings of rival companies?

The maximizing profits strategy primarily relies on:

Which of the following shows how many units of a product or service consumers will request for during a specific period of time at different prices?

Ramsons manufactures binoculars.Although the binoculars are priced unreasonably high,Ramsons manages to sell a large number of units each year because Ramsons is the sole supplier of binoculars in the market.This is an example of:

Generally,a pricing tactic represents a long-term response to a competitive threat.

The expenses that change depending on production volume are called the:

Firms concerned with the absolute level of profits are most likely to employ target return pricing.

A confectionery company pays a fee to a retailer to place its products near the checkout counter.By doing so,the confectionery company hopes to tempt customers to make impulse purchases.In this example,the fee paid to the retailer is a(n):

A vegetable farm supplies vegetables to a supermarket in Pemberton.The vegetable vendor and the supermarket work together to control the prices passed on to consumers.This is an example of:

A supermarket offers a 1-litre milk carton,a 2-litre milk carton,and a 3-litre milk jug at $3.50,$6.25,and $9.00,respectively.Thus,the larger the quantity bought,the lower the cost.This is an example of a:

Which of the following is true of the break-even point?