Question 1

Multiple-unit pricing is packaging together two or more complementary products and selling them for a single price.

Accepted Answer

A) True 
 B)False

Question 2

The stage in the evolution of new products in which ideas that match company objectives are analyzed 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 3

Candy bars, milk, and newspapers are all examples of convenience products.

Accepted Answer

A) True 
 B)False

Question 4

​Fernand's Fabrics has a large inventory of fabric for home crafters and seamstresses but carries very few craft supplies and is finding it difficult to compete with the large chain fabric stores as a result. In order to bring more customers into the store, Fernand lowers the price of fabric below his cost for a month, hoping that once customers come to his store, they will return. This is called ___ pricing.

Accepted Answer

A)  ​survival
B)  ​competitive
C)  ​profit maximization
D)  investment

Question 5

Raw materials are an example of a firm's ____ costs.

Accepted Answer

A)  selling
B)  operating
C)  fixed
D)  overhead
E)  variable

Question 6

Describe the three major pricing methods that firms employ.

Accepted Answer

Cost-based pricing is the simplest metho...

Question 7

A product mix is a combination of all the information a producer uses to sell its product to the public.

Accepted Answer

A) True 
 B)False

Question 8

Price leaders

Accepted Answer

A)  are sold at the highest possible price.
B)  maximize profits.
C)  lead to increased revenue or lower costs when prices are increased or decreased.
D)  are sometimes sold at less than cost in hopes that sales of other products will increase.
E)  lead the industry in sales.

Question 9

The presentation of information on a product or its package is known as

Accepted Answer

A)  branding.
B)  labeling.
C)  guaranteeing.
D)  informing.
E)  product coding.

Question 10

When price helps Josh decide to purchase a Chevrolet Cavalier instead of a Mercedes because he also wants a Harley-Davidson motorcycle, price serves the function of

Accepted Answer

A)  demander.
B)  decision maker.
C)  facilitator.
D)  intermediation.
E)  allocator.

Question 11

Costs that depend on the number of units produced are called variable costs.

Accepted Answer

A) True 
 B)False

Question 12

If a customer has moderate loyalty toward Heinz ketchup, she likely will

Accepted Answer

A)  buy the product in greater quantities.
B)  shop around for the best price for that good.
C)  perceive the product as having the same quality level as competitive brands.
D)  never buy another brand of ketchup.
E)  purchase other products that carry the Heinz name.

Question 13

Appliances, men's suits, and ____ are examples of shopping products.

Accepted Answer

A)  bicycles
B)  process materials
C)  chewing gum
D)  soft drinks
E)  cranes

Question 14

Why should companies develop and introduce new products?

Accepted Answer

A)  To keep their product designers busy
B)  Because failing to do so can threaten the future success of the firm
C)  Because it is relatively inexpensive and therefore worth the time
D)  To replace deleted products so the broadness of the marketing mix remains unchanged
E)  Because new products are almost always successful

Question 15

The redesign of a bicycle to improve its safety is an example of a(n)  ____ modification.

Accepted Answer

A)  visual
B)  functional
C)  quality
D)  aesthetic
E)  texture

Question 16

When Polaroid comes out with a new model in a series, it sets an initial price and then gradually lowers the price. Polaroid is initially using which pricing strategy?

Accepted Answer

A)  Penetration pricing
B)  Prestige pricing
C)  Price lining
D)  Premium pricing
E)  Price skimming

Question 17

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 18

For any product, the breakeven quantity is the

Accepted Answer

A)  number sold over fifty units.
B)  number sold such that costs equal revenues.
C)  total number produced to equal the total resources available to the producer.
D)  number of products needed to be sold in order to make a reasonable profit.
E)  dollar volume of total sales.

Question 19

For product modification to be effective, all but which of the following conditions must be met?

Accepted Answer

A)  The modification should make the product more consistent with consumers' desires.
B)  The product must be modifiable.
C)  Consumers must be able to perceive that a modification has been made.
D)  Modification should allow the product to provide greater satisfaction.
E)  The product must be an appliance.

Question 20

Brands help reduce a consumer's perceived risk of purchase.

Accepted Answer

A) True 
 B)False

Exam 12: Creating and Pricing Products That Satisfy Customers

When Polaroid comes out with a new model in a series, it sets an initial price and then gradually lowers the price. Polaroid is initially using which pricing strategy?

Correct Answer
verified

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

Correct Answer
verified

Appliances, men's suits, and ____ are examples of shopping products.

Correct Answer
verified

Multiple-unit pricing is packaging together two or more complementary products and selling them for a single price.

Correct Answer
verified

The presentation of information on a product or its package is known as

Correct Answer
verified

For any product, the breakeven quantity is the

Correct Answer
verified

Correct Answer
verified

A product mix is a combination of all the information a producer uses to sell its product to the public.

Correct Answer
verified

Describe the three major pricing methods that firms employ.

Correct Answer
verified
Cost-based pricing is the simplest metho...
View Answer

When price helps Josh decide to purchase a Chevrolet Cavalier instead of a Mercedes because he also wants a Harley-Davidson motorcycle, price serves the function of

Correct Answer
verified

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

Correct Answer
verified

Costs that depend on the number of units produced are called variable costs.

Correct Answer
verified

The redesign of a bicycle to improve its safety is an example of a(n) ____ modification.

Correct Answer
verified

Brands help reduce a consumer's perceived risk of purchase.

Correct Answer
verified

Price leaders

Correct Answer
verified

Raw materials are an example of a firm's ____ costs.

Correct Answer
verified

For product modification to be effective, all but which of the following conditions must be met?

Correct Answer
verified

Candy bars, milk, and newspapers are all examples of convenience products.

Correct Answer
verified

Why should companies develop and introduce new products?

Correct Answer
verified

If a customer has moderate loyalty toward Heinz ketchup, she likely will

Correct Answer
verified

Exam 12: Creating and Pricing Products That Satisfy Customers

When Polaroid comes out with a new model in a series, it sets an initial price and then gradually lowers the price. Polaroid is initially using which pricing strategy?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Appliances, men's suits, and ____ are examples of shopping products.

Correct AnswerverifiedShow Answer

Multiple-unit pricing is packaging together two or more complementary products and selling them for a single price.

Correct AnswerverifiedShow Answer

The presentation of information on a product or its package is known as

Correct AnswerverifiedShow Answer

For any product, the breakeven quantity is the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A product mix is a combination of all the information a producer uses to sell its product to the public.

Correct AnswerverifiedShow Answer

Describe the three major pricing methods that firms employ.

Correct AnswerverifiedCost-based pricing is the simplest metho...View AnswerShow Answer

When price helps Josh decide to purchase a Chevrolet Cavalier instead of a Mercedes because he also wants a Harley-Davidson motorcycle, price serves the function of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Costs that depend on the number of units produced are called variable costs.

Correct AnswerverifiedShow Answer

The redesign of a bicycle to improve its safety is an example of a(n) ____ modification.

Correct AnswerverifiedShow Answer

Brands help reduce a consumer's perceived risk of purchase.

Correct AnswerverifiedShow Answer

Price leaders

Correct AnswerverifiedShow Answer

Raw materials are an example of a firm's ____ costs.

Correct AnswerverifiedShow Answer

For product modification to be effective, all but which of the following conditions must be met?

Correct AnswerverifiedShow Answer

Candy bars, milk, and newspapers are all examples of convenience products.

Correct AnswerverifiedShow Answer

Why should companies develop and introduce new products?

Correct AnswerverifiedShow Answer

If a customer has moderate loyalty toward Heinz ketchup, she likely will

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Cost-based pricing is the simplest metho...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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