Question 1

When might a firm use a price-skimming strategy? When might it use penetration pricing? Describe each strategy.

Accepted Answer

Price skimming is the strategy of chargi

Question 2

Price differentiation attempts to sell

Accepted Answer

A) different products with different features at the same price. 
B) identical products at different times at different prices. 
C) products at lower prices, due to economies of scale unintentionally resulting in lower net income for the company. 
D) products to customers based on their ability to pay. 
E) all products at different prices. 
A) different products with different features at the same price. 
B) identical products at different times at different prices. 
C) products at lower prices, due to economies of scale unintentionally resulting in lower net income for the company. 
D) products to customers based on their ability to pay. 
E) all products at different prices.

Question 3

The stage in the evolution of new products in which the product is introduced in a limited way to determine buyers' reactions is called

Accepted Answer

A) test marketing. 
B) screening. 
C) business analysis. 
D) commercialization. 
E) product development. 
A) test marketing. 
B) screening. 
C) business analysis. 
D) commercialization. 
E) product development.

Question 4

____ become(s) a part of the physical product and consist(s) of either finished items ready for assembly or products that need little processing before assembly.

Accepted Answer

A) Process materials 
B) Supplies 
C) Accessory equipment 
D) Component parts 
E) Major equipment 
A) Process materials 
B) Supplies 
C) Accessory equipment 
D) Component parts 
E) Major equipment

Question 5

When Pepsi introduced Mountain Dew Code Red, it was

Accepted Answer

A) expanding the width of its marketing mix. 
B) increasing the depth of a product mix. 
C) making minor modifications that did not broaden the marketing mix. 
D) narrowing its marketing mix. 
E) replacing poorly performing products. 
A) expanding the width of its marketing mix. 
B) increasing the depth of a product mix. 
C) making minor modifications that did not broaden the marketing mix. 
D) narrowing its marketing mix. 
E) replacing poorly performing products.

Question 6

Automobile fenders are an example of

Accepted Answer

A) accessory equipment. 
B) raw materials. 
C) process materials. 
D) component parts. 
E) supplies. 
A) accessory equipment. 
B) raw materials. 
C) process materials. 
D) component parts. 
E) supplies.

Question 7

The Arizona Jean Co. brand of jeans, owned by JCPenney, is a(n) ____ brand.

Accepted Answer

A) generic 
B) private 
C) national 
D) individual 
E) manufacturer 
A) generic 
B) private 
C) national 
D) individual 
E) manufacturer

Question 8

Michael is opening a tire store. He intends to set the price of tires based on determining the total cost of his purchase of one tire and then adding an amount to cover additional costs and profits. Michael is using ___ pricing.​

Accepted Answer

A) ​cost-based 
B) ​additional markup 
C) ​floor establishment 
D) ​survival 
A) ​cost-based 
B) ​additional markup 
C) ​floor establishment 
D) ​survival

Question 9

The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle is known as

Accepted Answer

A) penetration pricing. 
B) price skimming. 
C) prestige pricing. 
D) sample pricing. 
E) odd pricing. 
A) penetration pricing. 
B) price skimming. 
C) prestige pricing. 
D) sample pricing. 
E) odd pricing.

Question 10

The product life-cycle stage in which consumer awareness and acceptance of the product are low, there are few competitors, and there is a gradual rise in sales because of promotion is called

Accepted Answer

A) extension. 
B) introduction. 
C) growth. 
D) decline. 
E) maturity. 
A) extension. 
B) introduction. 
C) growth. 
D) decline. 
E) maturity.

Question 11

The maker of Oral-B toothbrushes is introducing a new electric plaque remover and expects considerable competition. What pricing strategy would be appropriate for this maker to choose?

Accepted Answer

A) Price skimming 
B) Penetration pricing 
C) Odd-even pricing 
D) Prestige pricing 
E) Psychological pricing 
A) Price skimming 
B) Penetration pricing 
C) Odd-even pricing 
D) Prestige pricing 
E) Psychological pricing

Question 12

An early-bird special offered by a restaurant during off-peak hours is an example of a secondary-market pricing strategy.

Accepted Answer

A) True 
 B)False

Question 13

Costs that are incurred no matter how many units of a product are produced or sold are called

Accepted Answer

A) operating expenses. 
B) overhead. 
C) variable costs. 
D) fixed costs. 
E) inflexible costs. 
A) operating expenses. 
B) overhead. 
C) variable costs. 
D) fixed costs. 
E) inflexible costs.

Question 14

At a busy intersection in Atlanta, there are four competing gas stations. Each of the stations charges about the same for each gallon of gasoline. The pricing objectives of these firms is

Accepted Answer

A) survival. 
B) market-share goals. 
C) status-quo pricing. 
D) profit maximization. 
E) competitive. 
A) survival. 
B) market-share goals. 
C) status-quo pricing. 
D) profit maximization. 
E) competitive.

Question 15

The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the

Accepted Answer

A) revenue. 
B) income. 
C) discount. 
D) price. 
E) breakeven quantity. 
A) revenue. 
B) income. 
C) discount. 
D) price. 
E) breakeven quantity.

Question 16

Price allocates goods and services among those who are willing and able to pay for them.

Accepted Answer

A) True 
 B)False

Question 17

A major reason why retailers use markup pricing is because it is easy to apply.

Accepted Answer

A) True 
 B)False

Question 18

____ competition is competition based on factors such as product quality, promotion, customer service, and packaging.

Accepted Answer

A) Product or brand 
B) Price 
C) Image 
D) Non-price 
E) Strategic 
A) Product or brand 
B) Price 
C) Image 
D) Non-price 
E) Strategic

Question 19

Rose is starting to notice some wrinkles around her eyes and mouth. She has decided to purchase some age-defying wrinkle cream but is unfamiliar with available brands. At the store, she picks out a brand because she remembers a clever advertisement about it on television. What level of brand loyalty does this describe?

Accepted Answer

A) Preference 
B) Ignorance 
C) Insistence 
D) Acceptance 
E) Recognition 
A) Preference 
B) Ignorance 
C) Insistence 
D) Acceptance 
E) Recognition

Question 20

Chris and Kimberly White decided to buy new furniture for their bedroom. They spent considerable time shopping around, comparing prices and styles. Bedroom furniture is best classified as a ____ product.

Accepted Answer

A) convenience 
B) business 
C) shopping 
D) specialty 
E) major equipment 
A) convenience 
B) business 
C) shopping 
D) specialty 
E) major equipment

When might a firm use a price-skimming strategy? When might it use penetration pricing? Describe each strategy.

Price differentiation attempts to sell

The stage in the evolution of new products in which the product is introduced in a limited way to determine buyers' reactions is called

____ become(s) a part of the physical product and consist(s) of either finished items ready for assembly or products that need little processing before assembly.

When Pepsi introduced Mountain Dew Code Red, it was

Automobile fenders are an example of

The Arizona Jean Co. brand of jeans, owned by JCPenney, is a(n) ____ brand.

Michael is opening a tire store. He intends to set the price of tires based on determining the total cost of his purchase of one tire and then adding an amount to cover additional costs and profits. Michael is using ___ pricing.

The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle is known as

The product life-cycle stage in which consumer awareness and acceptance of the product are low, there are few competitors, and there is a gradual rise in sales because of promotion is called

The maker of Oral-B toothbrushes is introducing a new electric plaque remover and expects considerable competition. What pricing strategy would be appropriate for this maker to choose?

An early-bird special offered by a restaurant during off-peak hours is an example of a secondary-market pricing strategy.

Costs that are incurred no matter how many units of a product are produced or sold are called

At a busy intersection in Atlanta, there are four competing gas stations. Each of the stations charges about the same for each gallon of gasoline. The pricing objectives of these firms is

The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the

Price allocates goods and services among those who are willing and able to pay for them.

A major reason why retailers use markup pricing is because it is easy to apply.

____ competition is competition based on factors such as product quality, promotion, customer service, and packaging.

Chris and Kimberly White decided to buy new furniture for their bedroom. They spent considerable time shopping around, comparing prices and styles. Bedroom furniture is best classified as a ____ product.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Distributing and Promoting Products

Understanding Social Media and E-Business

Using Management Information Systems and Accounting Information

Mastering Financial Management

Filters

Exam 12: Creating and Pricing Products That Satisfy Customers

When might a firm use a price-skimming strategy? When might it use penetration pricing? Describe each strategy.

Price differentiation attempts to sell

The stage in the evolution of new products in which the product is introduced in a limited way to determine buyers' reactions is called

____ become(s) a part of the physical product and consist(s) of either finished items ready for assembly or products that need little processing before assembly.

When Pepsi introduced Mountain Dew Code Red, it was

Automobile fenders are an example of

The Arizona Jean Co. brand of jeans, owned by JCPenney, is a(n) ____ brand.

Michael is opening a tire store. He intends to set the price of tires based on determining the total cost of his purchase of one tire and then adding an amount to cover additional costs and profits. Michael is using ___ pricing.​

The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle is known as

The product life-cycle stage in which consumer awareness and acceptance of the product are low, there are few competitors, and there is a gradual rise in sales because of promotion is called

The maker of Oral-B toothbrushes is introducing a new electric plaque remover and expects considerable competition. What pricing strategy would be appropriate for this maker to choose?

An early-bird special offered by a restaurant during off-peak hours is an example of a secondary-market pricing strategy.

Costs that are incurred no matter how many units of a product are produced or sold are called

At a busy intersection in Atlanta, there are four competing gas stations. Each of the stations charges about the same for each gallon of gasoline. The pricing objectives of these firms is

The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the

Price allocates goods and services among those who are willing and able to pay for them.

A major reason why retailers use markup pricing is because it is easy to apply.

____ competition is competition based on factors such as product quality, promotion, customer service, and packaging.

Chris and Kimberly White decided to buy new furniture for their bedroom. They spent considerable time shopping around, comparing prices and styles. Bedroom furniture is best classified as a ____ product.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Distributing and Promoting Products

Understanding Social Media and E-Business

Using Management Information Systems and Accounting Information

Mastering Financial Management

Filters

Michael is opening a tire store. He intends to set the price of tires based on determining the total cost of his purchase of one tire and then adding an amount to cover additional costs and profits. Michael is using ___ pricing.