Deck 13: Product Development and Pricing Strategies

Question 1

Maturity is a stage in the product life cycle.

Answer 1

True

Question 2

Product labels enable consumers to always clearly understand what they are purchasing.

Answer 2

False

Question 3

An augmented product consists of the core product and the actual product plus other real or perceived benefits that provide additional value to the customer's purchase.

Answer 3

True

Question 4

A Ferrari sports car is an example of an unsought good.

Question 5

Use and convenience are unimportant when planning packaging for products.

Question 6

Developing quality products is a two-step process that requires a great investment of resources.

Question 7

Profit equals the price multiplied by the number of units sold or services performed.

Question 8

Consumers only need to consider tangible benefits when buying products.

Question 9

Brand awareness involves connecting a brand with other positive attributes.

Question 10

Business-to-business (B2B)products are goods and services purchased by households for personal consumption.

Question 11

The package design, shape, color, and texture all influence buyers' perceptions, but do not influence buying behavior.

Question 12

Branding increases the risks involved in some purchases for which buyers are unable to determine quality objectively.

Question 13

With toys, movies, amusement parks, TV shows, and more, Disney uses brand extension.

Question 14

Brand awareness refers to the extent to which a particular brand name is familiar within a particular product category.

Question 15

The fact that Bob will only buy Lands' End jeans is an example of brand loyalty.

Question 16

Customer input and feedback have no effect on how companies shape their products.

Question 17

At an auto repair shop, wrenches are an example of MRO products.

Question 18

Consumer products are goods and services that are purchased by businesses for further processing or resale or are used in facilitating business operations.

Question 19

Packaging milk in a sealed bag that does not require refrigeration is an example of creating new markets.

Question 20

During product development and concept testing, ideas that survive the screening and analysis steps are analyzed further.

Question 21

All the benefits associated with a good, service, or idea that affect a consumer's purchasing decision are known as the total ________.

A)product benefit
B)product package
C)market offer
D)product offer

Question 22

Rebates are partial refunds on what a customer has already paid for a product.

Question 23

The ________ product of a fast food meal is the calories and relief from hunger provided.

A)augmented
B)value
C)core
D)actual

Question 24

All of the following are aspects of a total product offering EXCEPT the ________ product.

A)core
B)value
C)actual
D)augmented

Question 25

Downloading a song from iTunes is an example of a(n)________ service.

A)convenience
B)shopping
C)specialty
D)unsought

Question 26

The process of distinguishing a product from its competition in real or perceived terms to attract customers is called product ________.

A)coring
B)differentiation
C)actualization
D)development

Question 27

The ________ product of a fast food meal is the sandwich, side dish, and drink.

A)augmented
B)value
C)core
D)actual

Question 28

Sheets of copper shipped to a factory for plumbing pipes are an example of ________.

A)raw and processed materials
B)component parts
C)MRO products
D)specialized professional services

Question 29

Product line length is the ________,

A)length in feet of a company's assembly line
B)average length in inches of a company's best-selling product
C)number of different product lines a company offers
D)number of items in any given product line

Question 30

A group of similar products marketed to one general market is called a product ________.

A)mix
B)length
C)line
D)width

Question 31

The many product lines at Procter & Gamble are an example of product ________.

A)mix width
B)line width
C)mix length
D)line width

Question 32

A consultation with a world-famous surgeon is an example of a(n)________ service.

A)specialty
B)unsought
C)convenience
D)shopping

Question 33

A dishwasher is an example of a(n)________ good.

A)convenience
B)shopping
C)specialty
D)unsought

Question 34

Demand-based pricing (sometimes called value-based pricing)is pricing a good or service based on the demand for the product or its perceived value.

Question 35

Which of the following is an example of a B2B product?

A)specialty goods
B)convenience services
C)component parts
D)shopping goods

Question 36

Which of the following is a consumer product classification?

A)raw and processed materials
B)MRO products
C)equipment
D)unsought goods and services

Question 37

Downloading a song for 99 cents is an example of psychological pricing.

Question 38

Ford offers several categories of vehicles: cars, minivans, trucks, and SUVs. All of these vehicles categories together make up Ford's product ________.

A)length
B)line
C)depth
D)mix

Question 39

A bulldozer is an example of ________.

A)raw and processed materials
B)equipment
C)component parts
D)MRO products

Question 40

If a company sets its price to increase its percentage of total industry sales, the company is using the pricing objective of maximizing profits.

Question 41

When companies respond to complaints that packaging is excessive and wasteful, which purpose of packaging is being considered?

A)to contain and protect the product
B)to be environmentally friendly
C)to facilitate use and convenience
D)to promote the product

Question 42

The blue Tiffany & Co. box is an example of which purpose of packaging?

A)to contain and protect the product
B)to facilitate use and convenience
C)to be environmentally friendly
D)to promote the product

Question 43

A package contains a snack food bag with a manufacturer's brand and a container of dip with the brand of a different manufacturer. This is an example of a(n)________ brand.

A)generic
B)private
C)individual
D)co-brand

Question 44

If a package prevents tampering with a product, which purpose of packaging is being performed?

A)to facilitate use and convenience
B)to contain and protect the product
C)to promote the product
D)to be environmentally friendly

Question 45

A bag of snack food says, "Walmart's Corn Chips." This is an example of a(n)________ brand.

A)generic
B)individual
C)family
D)private

Question 46

A brand can be any of the following EXCEPT a ________.

A)name
B)term
C)symbol
D)price

Question 47

Which of the following is a benefit of branding?

A)Well-recognized brands increase the shopping time necessary to find the quality and consistency buyers desire in a product.
B)Branding reduces the risks involved in some purchases for which buyers are unable to determine the quality objectively.
C)Brands communicate no information about the consumers who buy the brands.
D)Brands hide a product's special qualities.

Question 48

Outsourced accounting is an example of ________.

A)equipment
B)component parts
C)MRO products
D)specialized professional services

Question 49

A brand assigned to each product within a company's product mix is a(n)________ brand.

A)generic
B)individual
C)co-brand
D)family

Question 50

A whole shelf of snack food bags is marked, "Frito-Lay." This is an example of a(n)________ brand.

A)co-brand
B)individual
C)private
D)family

Question 51

A ________ prevents a brand from becoming generic and public property.

A)brand extension
B)private brand
C)trademark
D)license

Question 52

An agreement between the owner of a brand and another company or individual who pays a royalty for the use of the brand in association with a new product is brand ________.

A)extension
B)awareness
C)licensing
D)association

Question 53

The Fair Packaging and Labeling Act of 1966 requires companies to identify all of the following EXCEPT the ________.

A)product
B)name and place of business of the manufacturer
C)formula by which the product was manufactured
D)net quantity of the contents

Question 54

All of the following are degrees of brand loyalty EXCEPT brand ________.

A)recognition
B)preference
C)insistence
D)license

Question 55

A legally protected brand is called a(n)________.

A)equity
B)knockoff
C)trademark
D)recognized brand

Question 56

A snack food bag is white with plain black letters spelling, "Corn Chips." This is an example of a ________ brand.

A)family
B)generic
C)manufacturer's
D)co-brand

Question 57

If a label represents consistent quality and dependability, then the label can perpetuate a(n)________ brand-name image.

A)neutral
B)immeasurable
C)positive
D)negative

Question 58

Branding benefits ________.

A)both buyers and sellers
B)only buyers
C)only sellers
D)neither buyers nor sellers

Question 59

A bag of snack food is bright and colorful and says, "Fritos." This is an example of a(n)________ brand.

A)family
B)manufacturer's
C)individual
D)co-brand

Question 60

The two functions of labels are ________.

A)inform and facilitate use
B)inform and persuade
C)protect the product and persuade
D)facilitate use and be environmentally friendly

Question 61

A food manufacturer doing market research on the possible customer demand for a new fast food item is an example of ________.

A)idea generation
B)idea screening
C)product development and concept testing
D)commercialization

Question 62

A manufacturer produces 200 units of a product at a cost of $1,000. If the manufacturer wants to make a markup of 10 percent, the price would be ________.

A)$5.00
B)$5.50
C)$4.50
D)$0.50

Question 63

A fast food manufacturer estimating a new food item's production costs, selling price, and sales volume is an example of ________.

A)idea screening
B)product development and concept testing
C)product analysis
D)commercialization

Question 64

To avoid the declining stage of the product life cycle, a consumer electronics company used its smartphone technology to create a handheld computer. This can BEST be described as ________.

A)creating new markets
B)extending technology
C)creating a new use
D)repackaging

Question 65

A theoretical model describing a product's sales and profits over the course of its existence is known as the product ________.

A)lifetime
B)life cycle
C)pricing plan
D)rollout

Question 66

A store that sets its prices at the same level as the store across the mall is using the pricing objective of ________.

A)creating an image
B)status quo pricing
C)achieving greater market share
D)achieving social objectives

Question 67

All of the following are stages in the product life cycle EXCEPT ________.

A)packaging
B)growth
C)maturity
D)declining

Question 68

Salespeople bringing suggestions for a new fast food item to the headquarters of their food manufacturer is an example of ________.

A)product analysis
B)commercialization
C)idea generation
D)idea screening

Question 69

Price ________ involves charging a high price for a product initially, then lowering the price over time.

A)discrimination
B)penetrating
C)predation
D)skimming

Question 70

All of the following are steps in new product development EXCEPT ________.

A)product analysis
B)idea screening
C)brand awareness
D)commercialization

Question 71

The Crusher Corp. charges very low prices to drive its only competitor out of business. This is an example of ________ pricing.

A)demand-based
B)brand
C)predatory
D)penetration

Question 72

Charging different prices to different customers when these price differences are not a reflection of cost differences is called price ________.

A)discrimination
B)targeting
C)valuation
D)costing

Question 73

Total fixed costs are $300. The selling price is $15. Average variable costs are $5. The break-even volume of production is ________ units.

A)30
B)20
C)60
D)15

Question 74

A manufacturer of yachts sets its prices high above its competitors. This is an example of the pricing objective of ________.

A)achieving social objectives
B)creating an image
C)cutting costs to survive
D)building traffic

Question 75

In order for customers to acquire a total product offering, they must offer the ________.

A)distribution or place
B)product
C)promotion
D)price

Question 76

People selling stock operate in very competitive market and have little to no control over their prices. Such sellers are price- ________.

A)setters
B)takers
C)makers
D)strategizers

Question 77

The only revenue-generating component of the marketing mix is ________.

A)distribution
B)price
C)product
D)promotion

Question 78

A pricing strategy based on what the competition is charging is known as ________ -based pricing.

A)cost
B)demand
C)competition
D)supply

Question 79

A new freelance writer who sets a price at a level to generate just enough revenues to pay expenses is using the pricing objective of ________.

A)cutting costs to survive
B)creating an image
C)achieving social objectives
D)maximizing profits

Question 80

An advertising campaign that attempts to sell a product to a new subgroup of the existing market is an example of ________.

A)creating a new use
B)repackaging
C)repositioning
D)extended technology