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Exam 12: Aproduct Development and Pricing Strategies

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Question 81

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

A) Producer
B) Private
C) distributor
D) Generic
E) conglomerate

F) A) and B)
G) A) and C)

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Question 82

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The fact that senior citizens are charged a lower price at movie theaters than are younger adults is an example of ____ pricing.

A) price-lining
B) Promotional
C) Professional
D) Differential
E) psychological

F) C) and D)
G) None of the above

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Question 83

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Price leaders

A hotel room in New Orleans during Mardi Gras costs considerably more than it would during the following week.This is an example of

A product cannot perform its function if it is priced incorrectly.

Paper, pencils, oils, and ____ are examples of supplies.

During the decline stage of the product life-cycle, the sales volume decreases sharply because of an increase in the number of competing firms.

The strategy of developing a large market share for a new product by setting a very low price is called penetration pricing.

A major reason why retailers use markup pricing is because it is easy to apply.

Price differentiation is

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

Click It, Inc. Travis is a salesperson for Click It, Inc.Click It does not sell products with its own brand name.Instead, its products are created for different retail stores and carry the store brand.Travis thought that several changes needed to be made to a particular product, but Click It management reminded him that the stores, not Click It, owned the brand. However, because Click It had been concerned about dropping sales, management listened to Travis's concerns about the company's pricing.He suggested using a different pricing strategy.More specifically, he felt that the company should incorporate a multiple-unit pricing strategy because it would then allow Click It to set a single price for multiple units.This had the potential of increasing sales and therefore profits, so management agreed to consider Travis's suggestion. -Refer to Click It, Inc.As Click It managers considers the pricing issues, they should know that all of the following are major pricing objectives except

A discount from the list, or retail, price offered to intermediaries is a(n) ____ discount.

Entirely new products are called

Costs that are incurred no matter how many units of a product are produced or sold are called

Chris and Kimberly 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.

WD-40, Inc., markets only one product, its namesake chemical lubricant.The company offers the product in several different container sizes: smaller ones for household use and larger ones for industrial use.WD-40 would be considered as having a

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

A written explanation of the responsibilities of the producer in the event the product is found to be defective or otherwise unsatisfactory is called a(n)

Psychological pricing strategies encourage purchases to be based on economically rational responses rather than on emotional responses.