Deck 13: Product Development and Pricing Strategies

Question 1

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

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

Answer 1

D

Question 2

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

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

Answer 2

C

Question 3

Which of the following is a consumer product classification?

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

Answer 3

D

Question 4

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
E) equipment

Question 5

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

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

Question 6

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

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

Question 7

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

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

Question 8

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

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

Question 9

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

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

Question 10

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

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

Question 11

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

A) convenience
B) shopping
C) specialty
D) unsought
E) maintenance, repair, and operating

Question 12

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.
E) Brands require consumers to compare product descriptions and ingredients.

Question 13

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

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

Question 14

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

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

Question 15

Branding benefits ________.

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

Question 16

Outsourced accounting is an example of ________.

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

Question 17

A bulldozer is an example of ________.

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

Question 18

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
E) product perception

Question 19

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
E) augmentation

Question 20

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
E) combined activities of a company

Question 21

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
E) to appeal to the consumer's aesthetics

Question 22

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
E) manufacturer's

Question 23

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
E) to entice and mislead

Question 24

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
E) manufacturer's

Question 25

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

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

Question 26

All of the following are perceptions of brand EXCEPT brand ________.

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

Question 27

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
E) to provide portion control

Question 28

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
E) market testing

Question 29

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
E) concept analysis

Question 30

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

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

Question 31

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
E) misleading

Question 32

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
E) to provide portion control

Question 33

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
E) manufacturer's

Question 34

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
E) name and place of business of the distributor

Question 35

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
E) concept testing

Question 36

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
E) market testing

Question 37

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
E) private

Question 38

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
E) family

Question 39

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
E) private

Question 40

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
E) privatizing

Question 41

Everyday low pricing is a strategy of ________.

A) charging inexpensive prices with few, if any, special promotional sales
B) determining prices directly between the seller and buyer
C) combining two or more complementary products into a single package
D) providing partial refunds on what a customer has already paid for a product
E) charging a high price for a product initially and then lowering the price over time

Question 42

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) creating a new vision
D) lowering the price
E) finding a new market

Question 43

Each of the following is a form of discount EXCEPT ________.

A) packaging discounts
B) cash discounts
C) seasonal discounts
D) quantity discounts
E) allowance discounts

Question 44

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

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

Question 45

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
E) referencing

Question 46

Consumers only need to consider tangible benefits when buying products.

Question 47

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

A) $6.00
B) $5.50
C) $5.00
D) $4.50
E) $0.50

Question 48

A company that announces a manufacturer's suggested retail price and then offers a discount off that price is using ________ pricing.

A) psychological
B) dynamic
C) reference
D) prestige
E) loss leader

Question 49

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

A) packaging
B) growth
C) maturity
D) decline
E) introduction

Question 50

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) covering costs to survive
B) creating an image
C) achieving social objectives
D) maximizing profits
E) matching the status quo prices

Question 51

Farmers selling agricultural commodities 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
E) skimmers

Question 52

An e-commerce website gives frequent shoppers a deduction from its regular prices.This is an example of ________.

A) bundling
B) rebates
C) dynamic pricing
D) discounts
E) psychological pricing

Question 53

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

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

Question 54

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

A) 60
B) 40
C) 30
D) 20
E) 15

Question 55

A company that charges a high price to invoke perceptions of high quality is using ________ pricing.

A) psychological
B) prestige
C) dynamic
D) reference
E) penetration

Question 56

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
E) building traffic

Question 57

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
E) maximizing sales

Question 58

A pricing strategy based on what rival businesses are charging is known as ________ -based pricing.

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

Question 59

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
E) loss leader

Question 60

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

A) discrimination
B) penetration
C) predation
D) skimming
E) targeting

Question 61

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

Question 62

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

Question 63

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

Question 64

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

Question 65

Maturity is a stage in the product life cycle.

Question 66

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 67

Brand awareness involves connecting a brand with other positive attributes.

Question 68

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 69

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

Question 70

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

Question 71

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

Question 72

Use and convenience are unimportant when planning packaging for products.

Question 73

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

Question 74

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

Question 75

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

Question 76

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.

Question 77

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

Question 78

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

Question 79

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

Question 80

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