Question 1

Which of the following is an example of a raw material that would be used in the production of a physical product?

Accepted Answer

A) Steel sheets 
B) Paper 
C) Plastic 
D) Timber 
E) Gasoline

Question 2

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 3

A trademark is registered with the

Accepted Answer

A) Department of Affairs. 
B) Office of the Attorney General. 
C) Patent and Trademark Office. 
D) Registrar of Patents and Inventors. 
E) Department of Commerce.

Question 4

TCBY wants to expand its line of food products. The company sent surveys to consumers to determine which food items would appeal to them for dessert or snacks. The company is in which phase of new product development?

Accepted Answer

A) Idea generation 
B) Product development 
C) Test marketing 
D) Screening 
E) Business analysis

Question 5

Sheet steel to be used in making automobile fenders is an example of

Accepted Answer

A) raw materials. 
B) supplies. 
C) component parts. 
D) accessory equipment. 
E) process materials.

Question 6

A price of $5.95 for a product would fall into the category of odd-number pricing.

Accepted Answer

A) True 
 B)False

Question 7

GE, Kellogg's, Mercedes, and Dell are all examples of

Accepted Answer

A) trade characters. 
B) brand marks. 
C) brands. 
D) trade symbols. 
E) private brands.

Question 8

Setting prices for organizational buyers is very similar to setting prices for consumers.

Accepted Answer

A) True 
 B)False

Question 9

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 10

All of the following are characteristics of the introduction stage of the product life-cycle except

Accepted Answer

A) usually, a low profit or even a loss. 
B) the appearance on the market of refinements or extensions of the original product. 
C) relatively few competitors. 
D) often, high price. 
E) low consumer awareness and acceptance of the product.

Question 11

Which of the following is considered a trade name?

Accepted Answer

A) Tide laundry detergent 
B) GE 
C) General Motors Corp. 
D) Coke 
E) Adidas' three stripes

Question 12

Once it becomes effective, a product mix for a given product remains effective for a long time.

Accepted Answer

A) True 
 B)False

Question 13

A symbol or word that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by anyone but its owner is a

Accepted Answer

A) trade name. 
B) trademark. 
C) brand name. 
D) brand mark. 
E) brand.

Question 14

All of the activities involved in developing and providing a container with graphics for a product are called

Accepted Answer

A) packaging. 
B) advertising. 
C) labeling. 
D) containerization. 
E) parceling.

Question 15

Costs incurred regardless of how many units of a product are produced or sold are called fixed costs.

Accepted Answer

A) True 
 B)False

Question 16

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 17

A number of federal regulations specify the information that must be included in labeling. Which of the following is not specified?

Accepted Answer

A) Fabric content 
B) Safety precautions 
C) Ingredient content 
D) Packaging content to indicate whether the package is recyclable 
E) Fabric cleaning instructions

Question 18

Energizer batteries are sold in multipacks to make it more convenient for the consumer, who usually needs more than one battery at a time. Energizer batteries would be classified as a ____ product.

Accepted Answer

A) household 
B) shopping 
C) luxury 
D) specialty 
E) convenience

Question 19

Brand equity refers to making all of a company's brands approximately equal with respect to brand loyalty.

Accepted Answer

A) True 
 B)False

Question 20

Koolers Incorporated feels that at its current stage-growth-it needs to meet its competition. It can best do this by all of the following means except

Accepted Answer

A) initiating product improvements. 
B) expanding the product line to appeal to specialized market segments. 
C) lowering prices. 
D) emphasizing customer service and prompt credit for defective products. 
E) eliminating less profitable versions of the product.

Exam 12: Creating and Pricing Products That Satisfy Customers

Which of the following is an example of a raw material that would be used in the production of a physical product?

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

A trademark is registered with the

TCBY wants to expand its line of food products. The company sent surveys to consumers to determine which food items would appeal to them for dessert or snacks. The company is in which phase of new product development?

Sheet steel to be used in making automobile fenders is an example of

A price of $5.95 for a product would fall into the category of odd-number pricing.

GE, Kellogg's, Mercedes, and Dell are all examples of

Setting prices for organizational buyers is very similar to setting prices for consumers.

Price differentiation is

All of the following are characteristics of the introduction stage of the product life-cycle except

Which of the following is considered a trade name?

Once it becomes effective, a product mix for a given product remains effective for a long time.

A symbol or word that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by anyone but its owner is a

All of the activities involved in developing and providing a container with graphics for a product are called

Costs incurred regardless of how many units of a product are produced or sold are called fixed costs.

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.

A number of federal regulations specify the information that must be included in labeling. Which of the following is not specified?

Energizer batteries are sold in multipacks to make it more convenient for the consumer, who usually needs more than one battery at a time. Energizer batteries would be classified as a ____ product.

Brand equity refers to making all of a company's brands approximately equal with respect to brand loyalty.

Koolers Incorporated feels that at its current stage-growth-it needs to meet its competition. It can best do this by all of the following means except