Question 1

Which of the following is considered a generic term?

Accepted Answer

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

Question 2

A good or service that is intended primarily for personal or household use is called a(n) ____ product.

Accepted Answer

A)  convenience 
B)  Business 
C)  Specialty 
D)  consumer 
E)  organisational

Question 3

If a company invests €1,000,000 to develop and market a new product with a goal of earning €1,200,000 on the product by the end of the year, it will price the product based on

Accepted Answer

A)  profit expectations. 
B)  market share goals. 
C)  return on investment goals. 
D)  survival goals. 
E)  objectives.

Question 4

The Glo-Brite Company is considering development of a new children's toothpaste in fun-shaped dispensers.Before performing any business analysis on the product, Glo-Brite would like an initial response from potential customers to determine interest in a toothpaste of this type.Glo-Brite will begin ____ to gather the information.

Accepted Answer

A)  idea generation 
B)  screening 
C)  test marketing 
D)  product development 
E)  concept testing

Question 5

Your Way, Inc.
Eric buys companies that are small or companies in financial trouble.He helps these companies turn around and develop a competitive advantage.The company that he recently purchased is called Your Way, Inc.The company sells men's clothing and accessories.Your Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling.
After looking over the different products available, Eric realised 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previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out of date.Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix.To move the company forward, Eric thought of the following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.
-Refer to Your Way, Inc.The sewing machines are considered ____ for Your Way.

Accepted Answer

A)  raw materials 
B)  accessory equipment 
C)  component parts 
D)  process material 
E)  major equipment

Question 6

Some pricing objectives include surviving, maximising profit, obtaining market- share goals, and maintaining status quo.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The legality of uniform geographic pricing has been challenged and so its use has been abandoned.

Accepted Answer

A) True 
 B)False

Question 9

AT&T charges different rates for long-distance service depending on time of day and distance of the call.This pricing method is called ____ pricing.

Accepted Answer

A)  geographic 
B)  Odd 
C)  discriminatory 
D)  demand-based 
E)  segmented

Question 10

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.

Question 11

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 12

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

Accepted Answer

A)  significantly improving the product's formulation. 
B)  providing good customer service. 
C)  including recipes in the box. 
D)  improved advertising. 
E)  using personal selling.

Question 13

Your Way, Inc.
Eric buys companies that are small or companies in financial trouble.He helps these companies turn around and develop a competitive advantage.The company that he recently purchased is called Your Way, Inc.The company sells men's clothing and accessories.Your Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling.
After looking over the different products available, Eric realised 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 date.Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix.To move the company forward, Eric thought of the following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.
-Refer to Your Way, Inc.Which of the following descriptions should Eric use to best explain the difference between the product line and product mix?

Accepted Answer

A)  The product line is a group of similar products that differ only in relatively minor characteristics, whereas product mix is all the products a firm offers for sale. 
B)  The product mix is a group of similar products that differ only in relatively minor characteristics, whereas product line is all the products a firm offers for sale. 
C)  The product line is a group of unrelated products, whereas product mix is all the products a firm offers for sale. 
D)  The product line is a group of similar products, whereas product mix is all products that are different. 
E)  There is no difference between a product line and product mix.

Question 14

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

Accepted Answer

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

Question 15

If company A references company B in determining what price to sell its own product at, it exercises which pricing objective?

Accepted Answer

A)  Target market share 
B)  Survival 
C)  Revenue maximisation 
D)  Profit maximisation 
E)  Status-quo

Question 16

The same price will be charged no matter what pricing objective is used.

Accepted Answer

A) True 
 B)False

Question 17

If Macy's department store managers looked at Dillard's department store prices for identical national brands and, based on that information, decided to advertise a sale on those products, they would be exercising which pricing method?

Accepted Answer

A)  Competition-based 
B)  Demand-based 
C)  Cost-based 
D)  Premium 
E)  Penetration

Question 18

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 line. 
C)  making minor modifications that did not broaden the marketing mix. 
D)  narrowing its marketing mix. 
E)  replacing poorly performing products.

Question 19

Craftsman and Kenmore are examples of a store brand.

Accepted Answer

A) True 
 B)False

Question 20

Inside the packaging of a Calphalon coffee maker, 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.

Exam 12: Aproduct Development and Pricing Strategies

Which of the following is considered a generic term?

A good or service that is intended primarily for personal or household use is called a(n) ____ product.

If a company invests €1,000,000 to develop and market a new product with a goal of earning €1,200,000 on the product by the end of the year, it will price the product based on

Some pricing objectives include surviving, maximising profit, obtaining market- share goals, and maintaining status quo.

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

The legality of uniform geographic pricing has been challenged and so its use has been abandoned.

AT&T charges different rates for long-distance service depending on time of day and distance of the call.This pricing method is called ____ pricing.

Costs that depend on the number of units produced are called

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

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

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

If company A references company B in determining what price to sell its own product at, it exercises which pricing objective?

The same price will be charged no matter what pricing objective is used.

If Macy's department store managers looked at Dillard's department store prices for identical national brands and, based on that information, decided to advertise a sale on those products, they would be exercising which pricing method?

When Pepsi introduced Mountain Dew Code Red, it was

Craftsman and Kenmore are examples of a store brand.

Inside the packaging of a Calphalon coffee maker, 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)