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?

For any product, the breakeven quantity is the

Raw materials are an example of a firm's ____ costs.

Describe the three major pricing methods that firms employ.

Brands help reduce a consumer's perceived risk of purchase.

The redesign of a bicycle to improve its safety is an example of a(n) ____ modification.

Why should companies develop and introduce new products?

Price leaders

When price helps Josh decide to purchase a Chevrolet Cavalier instead of a Mercedes because he also wants a Harley-Davidson motorcycle, price serves the function of

Costs that depend on the number of units produced are called variable costs.

If a customer has moderate loyalty toward Heinz ketchup, she likely will

General Mills has been able to extend the life of Bisquick baking mix by

Multiple-unit pricing is packaging together two or more complementary products and selling them for a single price.

Appliances, men's suits, and ____ are examples of shopping products.

For product modification to be effective, all but which of the following conditions must be met?

A product mix is a combination of all the information a producer uses to sell its product to the public.

​Fernand's Fabrics has a large inventory of fabric for home crafters and seamstresses but carries very few craft supplies and is finding it difficult to compete with the large chain fabric stores as a result. In order to bring more customers into the store, Fernand lowers the price of fabric below his cost for a month, hoping that once customers come to his store, they will return. This is called ___ pricing.

The stage in the evolution of new products in which ideas that match company objectives are analyzed as to whether the firm has the required expertise for the product's development and marketing is called

The presentation of information on a product or its package is known as

Candy bars, milk, and newspapers are all examples of convenience products.