Question 1

An order of calculators with new features just arrived for the finance department of Nike. These calculators represent

Accepted Answer

A) major equipment. 
B) process materials. 
C) component parts. 
D) accessory equipment. 
E) office materials. 
A) major equipment. 
B) process materials. 
C) component parts. 
D) accessory equipment. 
E) office materials.

Question 2

Costs that depend on the number of units produced are called

Accepted Answer

A) markup. 
B) operational expenses. 
C) fixed costs. 
D) variable costs. 
E) overhead. 
A) markup. 
B) operational expenses. 
C) fixed costs. 
D) variable costs. 
E) overhead.

Question 3

Which of the following is considered a generic term?

Accepted Answer

A) Kleenex 
B) Q-tips 
C) Saran Wrap 
D) Thermos 
E) Jello 
A) Kleenex 
B) Q-tips 
C) Saran Wrap 
D) Thermos 
E) Jello

Question 4

Inside the packaging of a new bread machine she purchases, Ginger finds a paper stating, "All our products will be replaced within the first year if they fail to operate correctly. However, consumer misuse or abuse will effectively end this policy." This is a(n)

Accepted Answer

A) label. 
B) set of instructions for use. 
C) statement of guarantee. 
D) implied warranty. 
E) express warranty. 
A) label. 
B) set of instructions for use. 
C) statement of guarantee. 
D) implied warranty. 
E) express warranty.

Question 5

WD-40, Inc. markets only one product, its namesake chemical lubricant. The company offers the product in several different container sizes: smaller ones for household use, and larger ones for industrial use. WD-40 would be considered as having a

Accepted Answer

A) wide product mix. 
B) broad product line. 
C) narrow product mix. 
D) differentiated product line. 
E) brand name. 
A) wide product mix. 
B) broad product line. 
C) narrow product mix. 
D) differentiated product line. 
E) brand name.

Question 6

For a product such as staples, which of the following determines whether it is a consumer product or a business product?

Accepted Answer

A) Quantity purchased 
B) Use of the product 
C) Basic function the product provides 
D) Whether it is purchased for cash or credit 
E) Need satisfied 
A) Quantity purchased 
B) Use of the product 
C) Basic function the product provides 
D) Whether it is purchased for cash or credit 
E) Need satisfied

Question 7

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 develop a new product, he would begin with

Accepted Answer

A) concept testing. 
B) screening. 
C) product analysis. 
D) idea generation. 
E) marketing analysis. 
A) concept testing. 
B) screening. 
C) product analysis. 
D) idea generation. 
E) marketing analysis.

Question 8

In her local supermarket Susan purchases green beans in a white can simply labeled as green beans. This represents a(n) ____ brand.

Accepted Answer

A) private 
B) generic 
C) value 
D) manufacturer 
E) anonymous 
A) private 
B) generic 
C) value 
D) manufacturer 
E) anonymous

Question 9

A manager at JCPenney discovers that Dillard's has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy?

Accepted Answer

A) Secondary-market pricing 
B) Periodic discounting 
C) Reference pricing 
D) Random discounting 
E) Comparison discounting 
A) Secondary-market pricing 
B) Periodic discounting 
C) Reference pricing 
D) Random discounting 
E) Comparison discounting

Question 10

What is a status-quo pricing objective?

Accepted Answer

A status-quo pricing objective

Question 11

Are a product mix and a product line the same thing? Why or why not?

Accepted Answer

No, a product line is a group of similar

Question 12

A written explanation of the responsibilities of the producer in the event the product is found to be defective or otherwise unsatisfactory is called a(n)

Accepted Answer

A) Universal Product Code. 
B) label. 
C) express warranty. 
D) set of instructions. 
E) covenant. 
A) Universal Product Code. 
B) label. 
C) express warranty. 
D) set of instructions. 
E) covenant.

Question 13

William Clark wants to know his breakeven point. His selling price is $20 per unit, his fixed costs are $6,000, and the variable costs per unit are $6. What is his breakeven quantity?

Accepted Answer

A) 430 units 
B) 428.6 units 
C) 300 units 
D) 425.6 units 
E) 50 units 
A) 430 units 
B) 428.6 units 
C) 300 units 
D) 425.6 units 
E) 50 units

Question 14

Differential pricing means different buyers pay different prices for the same quality and quantity of a product.

Accepted Answer

A) True 
 B)False

Question 15

​UVW Industries is in a business in which competition demands little variance in pricing so it prices its products to stay at the same level of business it has enjoyed in order to maintain price stability. This is known as

Accepted Answer

A) ​status-quo pricing. 
B) ​target return on investment pricing. 
C) ​profit maximization. 
D) ​ground floor pricing. 
A) ​status-quo pricing. 
B) ​target return on investment pricing. 
C) ​profit maximization. 
D) ​ground floor pricing.

Question 16

Random discounting is often predictable so consumers wait to make purchases until they can benefit from the price reductions.

Accepted Answer

A) True 
 B)False

Question 17

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. What type of products is sold at Your Way?

Accepted Answer

A) Shopping products 
B) Business products 
C) Specialty products 
D) Convenience products 
E) Unique products 
A) Shopping products 
B) Business products 
C) Specialty products 
D) Convenience products 
E) Unique products

Question 18

​Janice is starting a new business and is confused about how to determine the price to set for her product. She comes to you for advice and you tell her, correctly, that the two factors that determine the price at which a product will sell are

Accepted Answer

A) ​the market and the awareness that costs and expected sales can be used only to establish a price floor. 
B) ​the market and status-quo. 
C) ​the cost of production and maximum price that can be charged. 
D) ​the competition price point and product demand. 
A) ​the market and the awareness that costs and expected sales can be used only to establish a price floor. 
B) ​the market and status-quo. 
C) ​the cost of production and maximum price that can be charged. 
D) ​the competition price point and product demand.

Question 19

All of the following are functions of packaging except

Accepted Answer

A) consumer convenience. 
B) product protection. 
C) entertainment. 
D) promotion. 
E) added benefits. 
A) consumer convenience. 
B) product protection. 
C) entertainment. 
D) promotion. 
E) added benefits.

Question 20

Which of the following is a manufacturer brand?

Accepted Answer

A) Sam's Choice soft drinks 
B) Kenmore appliances 
C) Diehard batteries 
D) Gap clothing 
E) Doritos chips 
A) Sam's Choice soft drinks 
B) Kenmore appliances 
C) Diehard batteries 
D) Gap clothing 
E) Doritos chips

An order of calculators with new features just arrived for the finance department of Nike. These calculators represent

Costs that depend on the number of units produced are called

Which of the following is considered a generic term?

Inside the packaging of a new bread machine she purchases, Ginger finds a paper stating, "All our products will be replaced within the first year if they fail to operate correctly. However, consumer misuse or abuse will effectively end this policy." This is a(n)

WD-40, Inc. markets only one product, its namesake chemical lubricant. The company offers the product in several different container sizes: smaller ones for household use, and larger ones for industrial use. WD-40 would be considered as having a

For a product such as staples, which of the following determines whether it is a consumer product or a business product?

In her local supermarket Susan purchases green beans in a white can simply labeled as green beans. This represents a(n) ____ brand.

What is a status-quo pricing objective?

Are a product mix and a product line the same thing? Why or why not?

A written explanation of the responsibilities of the producer in the event the product is found to be defective or otherwise unsatisfactory is called a(n)

William Clark wants to know his breakeven point. His selling price is $20 per unit, his fixed costs are $6,000, and the variable costs per unit are $6. What is his breakeven quantity?

Differential pricing means different buyers pay different prices for the same quality and quantity of a product.

UVW Industries is in a business in which competition demands little variance in pricing so it prices its products to stay at the same level of business it has enjoyed in order to maintain price stability. This is known as

Random discounting is often predictable so consumers wait to make purchases until they can benefit from the price reductions.

Janice is starting a new business and is confused about how to determine the price to set for her product. She comes to you for advice and you tell her, correctly, that the two factors that determine the price at which a product will sell are

All of the following are functions of packaging except

Which of the following is a manufacturer brand?

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

An order of calculators with new features just arrived for the finance department of Nike. These calculators represent

Costs that depend on the number of units produced are called

Which of the following is considered a generic term?

Inside the packaging of a new bread machine she purchases, Ginger finds a paper stating, "All our products will be replaced within the first year if they fail to operate correctly. However, consumer misuse or abuse will effectively end this policy." This is a(n)

WD-40, Inc. markets only one product, its namesake chemical lubricant. The company offers the product in several different container sizes: smaller ones for household use, and larger ones for industrial use. WD-40 would be considered as having a

For a product such as staples, which of the following determines whether it is a consumer product or a business product?

In her local supermarket Susan purchases green beans in a white can simply labeled as green beans. This represents a(n) ____ brand.

What is a status-quo pricing objective?

Are a product mix and a product line the same thing? Why or why not?

A written explanation of the responsibilities of the producer in the event the product is found to be defective or otherwise unsatisfactory is called a(n)

William Clark wants to know his breakeven point. His selling price is $20 per unit, his fixed costs are $6,000, and the variable costs per unit are $6. What is his breakeven quantity?

Differential pricing means different buyers pay different prices for the same quality and quantity of a product.

​UVW Industries is in a business in which competition demands little variance in pricing so it prices its products to stay at the same level of business it has enjoyed in order to maintain price stability. This is known as

Random discounting is often predictable so consumers wait to make purchases until they can benefit from the price reductions.

​Janice is starting a new business and is confused about how to determine the price to set for her product. She comes to you for advice and you tell her, correctly, that the two factors that determine the price at which a product will sell are

All of the following are functions of packaging except

Which of the following is a manufacturer brand?

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

UVW Industries is in a business in which competition demands little variance in pricing so it prices its products to stay at the same level of business it has enjoyed in order to maintain price stability. This is known as

Janice is starting a new business and is confused about how to determine the price to set for her product. She comes to you for advice and you tell her, correctly, that the two factors that determine the price at which a product will sell are