Exam 12: Creating and Pricing Products That Satisfy Customers

Would a new car equipped with a bumper jack, jack handle, spare tire, and warranty be the same product as the same car without these features? Explain.

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

A deduction from the price of an item is called a

A brand mark is the part of a brand that consists of a symbol or distinctive design.

When a product experiences sales revenue and profit increases, reaches a peak, and then declines, it goes through what is called

The breakeven quantity is the number of units that must be sold to equal the projected total revenue for the period.

The Morton's Salt Girl, the Pillsbury Dough Boy, and Planters' Mr. Peanut are all examples of

Consumers would most likely treat personal computers as ____ products.

Your Way, Inc. Eric buys companies that are small or companies in financial troubl After looking over the different products available, Eric realized that the company's previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out-of-dat -Refer to Your Way, Inc. If Eric wanted to teach his employees about the stages of a product's life-cycle, he should talk about all of the following except

The strategy of developing a large market share for a new product by setting a very low price is called penetration pricing.

Click It, Inc. Travis is a salesperson for Click It, Inc. Click It does not sell products with its own brand nam However, because Click It had been concerned about dropping sales, management listened to Travis'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 Click It to set a single price for multiple units. This had the potential of increasing sales and therefore profits, so management agreed to consider Travis's suggestion. -Refer to Click It, Inc. When Travis thinks of products and brands adding value to the company that sells them, which concept is he referring to?

Which of the following best describes a typical scenario companies use in the commercialization phase?

Identify and describe the major stages of the product life-cycle.

What do yo-yo, aspirin, and thermos all have in common in a marketing sense?

Borden, Inc. wants to develop a new line of great tasting, low-calorie, low-fat, and low-cholesterol processed cheese products. The managers are studying whether demand is strong enough and whether the new line will yield a favorable return on investment. The managers are currently in which phase of new product development?

​Jerszy's Smoothie Bar has decided to set its pricing structure based on an annual percentage of the amount earned as a result of financial investment as a quantifiable means to gauge the success of their pricing. This pricing structure is known as

A men's clothing store sells ties only at $20 and $35. This type of pricing strategy is known as price lining.

The three levels of brand loyalty are preference, recognition, and insistence.

The number of units that must be sold for the total revenue to equal the total cost is called the ____ quantity.

The width of a product mix is a measure of the number of individual products within each line.