Question 1

Razor Company's blades are in the maturity stage of the product life-cycle.How can the company strengthen its market share?

Accepted Answer

A)   Eliminate less profitable versions of the product
B)   Redesign the packaging
C)   Make no style changes
D)   Emphasise customer service
E)   Watch for the early buying patternsF) A) and C)
G) A) and B)

Question 2

When Duracell came out with a new battery that significantly outlasted the company's earlier product, the battery had undergone a(n)  ____ modification.

Accepted Answer

A)   Functional
B)   Feature
C)   Quality
D)   aesthetic
E)   MarketF) B) and C)
G) All of the above

Question 3

A brand that is owned by a producer is called a

Accepted Answer

A)   store brand.
B)   generic mark.
C)   manufacturer brand.
D)   private brand.
E)   dealer brand.F) B) and C)
G) A) and E)

Question 4

Borden, Inc., wants to develop a new line of great tasting, low-calorie, low-fat, and low-cholesterol processed cheese products.The managers are studying whether demand is strong enough and whether the new line will yield a favourable return on investment.The managers are currently in which phase of new product development?

Accepted Answer

A)   Idea generation
B)   Product development
C)   Test marketing
D)   Screening
E)   Business analysisF) All of the above
G) D) and E)

Question 5

Demand-based pricing, unlike cost-based pricing, places firms in a better position to

Accepted Answer

A)   attain higher profit levels.
B)   estimate demand easily and accurately.
C)   perform breakeven analysis.
D)   calculate price based on intangible benefits.
E)   penetrate the market quickly.F) B) and C)
G) C) and D)

Question 6

In spite of the rigorous process for developing product ideas, the majority of new products

Accepted Answer

A)   require several months to gain market share.
B)   yield high returns on R&D costs.
C)   require several years to gain market share.
D)   are copied by competitors.
E)   end up as failures.F) B) and D)
G) B) and C)

Question 7

Fixed costs are costs that depend on the number of units produced.

Accepted Answer

A) True 
 B)False

Question 8

Lisa goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Accepted Answer

A)   Differential
B)   Comprised
C)   Negotiated
D)   Reference
E)   SecondaryF) A) and D)
G) A) and C)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)   a peak in the sales curve.
B)   a decline in the sales curve.
C)   simplification of product lines.
D)   increased distribution.
E)   increased price competition.F) A) and B)
G) C) and E)

Question 11

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)   TextureF) B) and D)
G) A) and B)

Question 12

The total amount received from the sales of a product is referred to as

Accepted Answer

A)   total revenue.
B)   the breakeven quantity.
C)   variable sales.
D)   market revenue.
E)   marginal revenue.F) D) and E)
G) A) and E)

Question 13

A company's product mix usually must be changed to stay competitive.

Accepted Answer

A) True 
 B)False

Question 14

The complete and legal name of an organisation, such as Walmart Stores, Incorporated, is called a

Accepted Answer

A)   trade name.
B)   brand name.
C)   brand mark.
D)   store brand.
E)   manufacturer brand.F) None of the above
G) A) and B)

Question 15

When price helps Josh decide to purchase a Mini Cooper Coupe instead of a Mercedes CLS-Class Coupe 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.F) C) and D)
G) B) and E)

Question 16

Pricing strategies act as guides for achieving pricing objectives.

Accepted Answer

A) True 
 B)False

Question 17

The breakeven quantity is the number of units that must be sold to equal the projected total revenue for the period.

Accepted Answer

A) True 
 B)False

Question 18

A manager at JCPenney discovers that Burlington Coat Factory has reduced the price of its children's Levi's from €31.99 to €24.99, according to an advertisement in the Sunday newspaper.She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: €24.99." This is an example of what pricing strategy?

Accepted Answer

A)   Secondary-market pricing
B)   Periodic discounting
C)   Reference pricing
D)   Random discounting
E)   Comparison discountingF) B) and C)
G) C) and E)

Question 19

Car Tunes, a national car stereo retailer, markets stereos and speakers.The company will soon sell car alarms and mobile phones to ____ its product mix.

Accepted Answer

A)   Modify
B)   Broaden
C)   Narrow
D)   customise
E)   AdaptF) All of the above
G) None of the above

Question 20

In a meeting to generate new products, the advisory committee felt that it had come up with some excellent ideas.Now that there is a list of product ideas, the next step is

Accepted Answer

A)   business analysis.
B)   product development.
C)   screening.
D)   test marketing.
E)   commercialisation.F) B) and C)
G) B) and E)

Exam 12: Aproduct Development and Pricing Strategies

The breakeven quantity is the number of units that must be sold to equal the projected total revenue for the period.

Correct Answer
verified

Fixed costs are costs that depend on the number of units produced.

Correct Answer
verified

Car Tunes, a national car stereo retailer, markets stereos and speakers.The company will soon sell car alarms and mobile phones to ____ its product mix.

Correct Answer
verified

In a meeting to generate new products, the advisory committee felt that it had come up with some excellent ideas.Now that there is a list of product ideas, the next step is

Correct Answer
verified

Lisa goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Correct Answer
verified

A company's product mix usually must be changed to stay competitive.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The total amount received from the sales of a product is referred to as

Correct Answer
verified

Razor Company's blades are in the maturity stage of the product life-cycle.How can the company strengthen its market share?

Correct Answer
verified

Demand-based pricing, unlike cost-based pricing, places firms in a better position to

Correct Answer
verified

Correct Answer
verified

When price helps Josh decide to purchase a Mini Cooper Coupe instead of a Mercedes CLS-Class Coupe because he also wants a Harley-Davidson motorcycle, price serves the function of

Correct Answer
verified

The complete and legal name of an organisation, such as Walmart Stores, Incorporated, is called a

Correct Answer
verified

Correct Answer
verified

Pricing strategies act as guides for achieving pricing objectives.

Correct Answer
verified

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

Correct Answer
verified

A brand that is owned by a producer is called a

Correct Answer
verified

When Duracell came out with a new battery that significantly outlasted the company's earlier product, the battery had undergone a(n) ____ modification.

Correct Answer
verified

In spite of the rigorous process for developing product ideas, the majority of new products

Correct Answer
verified

Exam 12: Aproduct Development and Pricing Strategies

The breakeven quantity is the number of units that must be sold to equal the projected total revenue for the period.

Correct AnswerverifiedShow Answer

Fixed costs are costs that depend on the number of units produced.

Correct AnswerverifiedShow Answer

Car Tunes, a national car stereo retailer, markets stereos and speakers.The company will soon sell car alarms and mobile phones to ____ its product mix.

Correct AnswerverifiedShow Answer

In a meeting to generate new products, the advisory committee felt that it had come up with some excellent ideas.Now that there is a list of product ideas, the next step is

Correct AnswerverifiedShow Answer

Lisa goes to a car dealership to purchase a new Honda Accord.She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon.This is an example of ____ pricing.

Correct AnswerverifiedShow Answer

A company's product mix usually must be changed to stay competitive.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The total amount received from the sales of a product is referred to as

Correct AnswerverifiedShow Answer

Razor Company's blades are in the maturity stage of the product life-cycle.How can the company strengthen its market share?

Correct AnswerverifiedShow Answer

Demand-based pricing, unlike cost-based pricing, places firms in a better position to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When price helps Josh decide to purchase a Mini Cooper Coupe instead of a Mercedes CLS-Class Coupe because he also wants a Harley-Davidson motorcycle, price serves the function of

Correct AnswerverifiedShow Answer

The complete and legal name of an organisation, such as Walmart Stores, Incorporated, is called a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Pricing strategies act as guides for achieving pricing objectives.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A brand that is owned by a producer is called a

Correct AnswerverifiedShow Answer

When Duracell came out with a new battery that significantly outlasted the company's earlier product, the battery had undergone a(n) ____ modification.

Correct AnswerverifiedShow Answer

In spite of the rigorous process for developing product ideas, the majority of new products

Correct AnswerverifiedShow Answer

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