Question 1

Multiple-unit packaging does not work well for

Accepted Answer

A)  infrequently used products. 
B)  products that are easy to store. 
C)  aiding consumer acceptance. 
D)  two-for-one price offers. 
E)  shelf-space maximization.

Question 2

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.

Question 3

Which of the following is not generally considered to be a stage in the product life-cycle?

Accepted Answer

A)  Introduction 
B)  Growth 
C)  Maturity 
D)  Transition 
E)  Decline

Question 4

Describe the three major pricing methods that firms employ.

Accepted Answer

The answer of Describe the three major pricing methods that...

Question 5

Developing new products is risky,time consuming,and expensive with a high rate of failure.Nevertheless,"failing to introduce new products can be just as hazardous." What is meant by this quote?

Accepted Answer

The answer of Developing new products is risky,time consuming,and expensive...

Question 6

BMW's acquisition of the British automaker Rover provides BMW with instant entry into the growing sport-utility vehicle market with the legendary Range Rover line.BMW's purchase is an attempt to widen its product mix.

Accepted Answer

A) True 
 B)False

Question 7

Equate,a brand of health and beauty care products,is available only at Target stores.Equate is a ____ brand.

Accepted Answer

A)  producer 
B)  private 
C)  distributor 
D)  generic 
E)  conglomerate

Question 8

Price differentiation is

Accepted Answer

A)  a form of competition-based pricing. 
B)  a form of cost-based pricing. 
C)  a form of demand-based pricing. 
D)  focused on achieving fewer sales but at higher prices. 
E)  focused on selling different goods for different prices.

Question 9

The stage in the evolution of new products in which the product is introduced in a limited way to determine buyers' reactions is called

Accepted Answer

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

Question 10

David and Andy White decided to buy new furniture for their bedroom.They spent considerable time shopping around,comparing prices and styles.Bedroom furniture is best classified as a ____ product.

Accepted Answer

A)  convenience 
B)  business 
C)  shopping 
D)  specialty 
E)  major equipment

Question 11

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 12

Lever Brothers is considering an idea for a new liquid laundry detergent that contains a whitening agent.The company presented its proposed new product to a group of potential customers in the form of a short explanation and questionnaire.Lever Brothers is conducting

Accepted Answer

A)  a business analysis. 
B)  concept testing. 
C)  screening. 
D)  pricing. 
E)  idea generation.

Question 13

Product ideas are transformed into prototypes during which stage of the product development process?

Accepted Answer

A)  Business analysis 
B)  Test marketing 
C)  Commercialization 
D)  Product development 
E)  Concept testing

Question 14

Philip James asks you to calculate the breakeven point for him.You need which information from him to do so?

Accepted Answer

A)  Dollar values for all assets and owners' equity 
B)  Fixed costs,operating expenses,and net income 
C)  Dollar values for all assets and all liabilities 
D)  Unit costs and fixed costs 
E)  Variable costs per unit,fixed costs,and unit selling price

Question 15

Seasonal discounts provide price incentives to customers during peak selling seasons.

Accepted Answer

A) True 
 B)False

Question 16

If a manager designs the shoe department in a manner that one of its private-label pairs of shoes,priced at $39.99,is positioned next to a well-known national brand of shoes priced at $69.99,what strategy is the manager attempting to accomplish?

Accepted Answer

A)  Everyday low price 
B)  Odd-even pricing 
C)  Prestige pricing 
D)  Special-event pricing 
E)  Reference pricing

Question 17

Gigi Smith wanted to buy a new car.She visited several dealers to compare prices,styles,and dealer reputations.Finally,she bought a car from a local dealer.The purchase of a car is an example of a

Accepted Answer

A)  convenience product. 
B)  specialty product. 
C)  business product. 
D)  shopping product. 
E)  major equipment item.

Question 18

How does product differentiation allow a firm to exert some control over a product's price?

Accepted Answer

The answer of How does product differentiation allow a firm...

Question 19

In cost-based pricing,a producer adds an amount to the total production cost to provide a profit.The amount added to the production cost is called a

Accepted Answer

A)  discount. 
B)  markup. 
C)  variable cost. 
D)  differentiation. 
E)  price line.

Question 20

Kerry would like to buy a new electric bicycle.He has reviewed them in Bicycling Magazine as well as looked at them in stores.He goes to his local bicycle store and asks about two bikes that he is interested in.The owner shows him the two he is interest in then shows him a bike that is getting good reviews,has been promoted extensively by the manufacturer and has been widely distributed.This model was not reported on in Bicycling Magazine so Kerry was unaware of it,but after reviewing the literature about it and test-riding it,he realizes it is better than the two older models he read about in Bicycling Magazine and took for test drives.What stage of the product life-cycle is this bicycle most likely in?

Accepted Answer

A)  Introduction 
B)  Growth 
C)  Maturity 
D)  Decline

Exam 12: Creating and Pricing Products That Satisfy Customers

Multiple-unit packaging does not work well for

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)

Which of the following is not generally considered to be a stage in the product life-cycle?

Describe the three major pricing methods that firms employ.

Developing new products is risky,time consuming,and expensive with a high rate of failure.Nevertheless,"failing to introduce new products can be just as hazardous." What is meant by this quote?

BMW's acquisition of the British automaker Rover provides BMW with instant entry into the growing sport-utility vehicle market with the legendary Range Rover line.BMW's purchase is an attempt to widen its product mix.

Equate,a brand of health and beauty care products,is available only at Target stores.Equate is a ____ brand.

Price differentiation is

The stage in the evolution of new products in which the product is introduced in a limited way to determine buyers' reactions is called

David and Andy White decided to buy new furniture for their bedroom.They spent considerable time shopping around,comparing prices and styles.Bedroom furniture is best classified as a ____ product.

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

Lever Brothers is considering an idea for a new liquid laundry detergent that contains a whitening agent.The company presented its proposed new product to a group of potential customers in the form of a short explanation and questionnaire.Lever Brothers is conducting

Product ideas are transformed into prototypes during which stage of the product development process?

Philip James asks you to calculate the breakeven point for him.You need which information from him to do so?

Seasonal discounts provide price incentives to customers during peak selling seasons.

If a manager designs the shoe department in a manner that one of its private-label pairs of shoes,priced at $39.99,is positioned next to a well-known national brand of shoes priced at $69.99,what strategy is the manager attempting to accomplish?

Gigi Smith wanted to buy a new car.She visited several dealers to compare prices,styles,and dealer reputations.Finally,she bought a car from a local dealer.The purchase of a car is an example of a

How does product differentiation allow a firm to exert some control over a product's price?

In cost-based pricing,a producer adds an amount to the total production cost to provide a profit.The amount added to the production cost is called a