Question 1

Differential pricing means different buyers pay different prices for the same quality and quantity of a product.

Accepted Answer

A) True 
 B)False

Question 2

The largest number of product ideas are rejected during the ____ stage of new product development.

Accepted Answer

A)   screening
B)   test marketing
C)   idea generation
D)   business analysis
E)   pricingF) D) and E)
G) B) and E)

Question 3

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

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 productF) A) and C)
G) B) and D)

Question 4

What is a status-quo pricing objective?

Accepted Answer

A status-quo pricing objective is a pric...

Question 5

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)   allocatorF) A) and E)
G) B) and E)

Question 6

If a company invests $1,000,000 to develop and market a new product with a goal of earning $1,200,000 on the product by the end of the year, it will price the product based on

Accepted Answer

A)   profit expectations.
B)   market share goals.
C)   return on investment goals.
D)   survival goals.
E)   objectives.F) A) and B)
G) A) and D)

Question 7

If Macy's department store managers looked at Dillard's department store prices for identical national brands and, based on that information, decided to advertise a sale on those products, they would be exercising which pricing method?

Accepted Answer

A)   competition-based
B)   demand-based
C)   cost-based
D)   premium
E)   penetrationF) C) and D)
G) B) and D)

Question 8

Buyers may relate price to quality.To such a buyer, a higher price for a product is an indicator of

Accepted Answer

A)   suspicious pricing.
B)   higher quality.
C)   product availability.
D)   poor image.
E)   greater quantity.F) A) and D)
G) B) and C)

Question 9

The sum of the fixed costs and the variable costs of producing a certain number of units is called the _____.

Accepted Answer

A)   cost of goods sold
B)   equilibrium cost
C)   total cost
D)   breakeven cost
E)   total operating expenseF) A) and E)
G) A) and D)

Question 10

Packages have marketing value but no functional value.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   selling
B)   operating
C)   fixed
D)   overhead
E)   variableF) A) and B)
G) None of the above

Question 12

Price competition occurs when a seller makes its product stand out from the competition by distinctive product quality and customer service.

Accepted Answer

A) True 
 B)False

Question 13

The first stage of the product life cycle is the ____ stage.

Accepted Answer

A)   inventive
B)   launching
C)   discovery
D)   introduction
E)   growthF) A) and E)
G) C) and D)

Question 14

Identify and describe the major stages of the product life cycle.

Accepted Answer

The answer of Identify and describe the major stages of...

Question 15

The strategy of charging the highest possible price for a product during the introduction stage of its life cycle is known as _____.

Accepted Answer

A)   penetration pricing
B)   price skimming
C)   prestige pricing
D)   sample pricing
E)   odd pricingF) All of the above
G) A) and E)

Question 16

Discounts given to customers who buy in large amounts are called ____ discounts.

Accepted Answer

A)   trade
B)   cash
C)   quantity
D)   wholesale
E)   preferentialF) B) and D)
G) A) and B)

Question 17

A men's clothing store sells ties only at $20 and $35.This type of pricing strategy is known as price lining.

Accepted Answer

A) True 
 B)False

Question 18

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.F) A) and E)
G) C) and D)

Question 19

Three types of product-line pricing are price leaders, special-event pricing, and comparison discounting.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 12: Creating and Pricing Products That Satisfy Customers

The largest number of product ideas are rejected during the ____ stage of new product development.

Correct AnswerverifiedShow Answer

If Macy's department store managers looked at Dillard's department store prices for identical national brands and, based on that information, decided to advertise a sale on those products, they would be exercising which pricing method?

Correct AnswerverifiedShow 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

The strategy of charging the highest possible price for a product during the introduction stage of its life cycle is known as _____.

Correct AnswerverifiedShow Answer

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

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

A men's clothing store sells ties only at $20 and $35.This type of pricing strategy is known as price lining.

Correct AnswerverifiedShow Answer

Three types of product-line pricing are price leaders, special-event pricing, and comparison discounting.

Correct AnswerverifiedShow Answer

Identify and describe the major stages of the product life cycle.

Correct AnswerverifiedShow Answer

If a company invests $1,000,000 to develop and market a new product with a goal of earning $1,200,000 on the product by the end of the year, it will price the product based on

Correct AnswerverifiedShow Answer

Price competition occurs when a seller makes its product stand out from the competition by distinctive product quality and customer service.

Correct AnswerverifiedShow Answer

What is a status-quo pricing objective?

Correct AnswerAnswered by ExamLex AIA status-quo pricing objective is a pric...View AnswerShow Answer

The first stage of the product life cycle is the ____ stage.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Buyers may relate price to quality.To such a buyer, a higher price for a product is an indicator of

Correct AnswerverifiedShow Answer

Differential pricing means different buyers pay different prices for the same quality and quantity of a product.

Correct AnswerverifiedShow Answer

Packages have marketing value but no functional value.

Correct AnswerverifiedShow Answer

The sum of the fixed costs and the variable costs of producing a certain number of units is called the _____.

Correct AnswerverifiedShow Answer

Discounts given to customers who buy in large amounts are called ____ discounts.

Correct AnswerverifiedShow Answer

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Answered by ExamLex AI
A status-quo pricing objective is a pric...
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