Question 1

Which of the following best describes a typical scenario companies use in the commercialization phase?

Accepted Answer

A)   The product is first introduced in selected geographical areas and then expanded in phases.
B)   The product generally becomes available at all intended locations simultaneously throughout the United States.
C)   Companies implement their initial plan and very infrequently make any adjustments to this plan.
D)   Companies prepare the budget for commercialization after the product has been fully introduced.
E)   The product is very slowly introduced across the nation throughout a time frame spanning approximately five years.F) A) and B)
G) A) and C)

Question 2

A number of federal regulations specify the information that must be included in labeling. Which of the following is not specified?

Accepted Answer

A)   Fabric content
B)   Safety precautions
C)   Ingredient content
D)   Packaging content to indicate whether the package is recyclable
E)   Fabric cleaning instructionsF) A) and E)
G) B) and C)

Question 3

The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the

Accepted Answer

A)   revenue.
B)   income.
C)   discount.
D)   price.
E)   breakeven quantity.F) C) and D)
G) All of the above

Question 4

Consumer products can be divided into the following three categories:

Accepted Answer

A)   convenience, shopping, and business.
B)   shopping, convenience, and specialty.
C)   convenience, component, and accessory.
D)   shopping, component, and specialty.
E)   business, specialty, and shopping.F) A) and E)
G) B) and E)

Question 5

Identify and discuss three types of pricing associated with business products.

Accepted Answer

1. Cost-Plus Pricing: This type of prici...

Question 6

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

Question 7

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

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

Question 8

Competition-based pricing is

Accepted Answer

A)   used when costs and revenues are considered secondary to competitors' prices.
B)   not useful as a method of increasing or maintaining market share.
C)   of little use if the competing products are homogeneous.
D)   not able to increase sales.
E)   most often used when competing products are homogeneous.F) A) and B)
G) A) and C)

Question 9

All of the following are business products except

Accepted Answer

A)   color televisions in the electronics department of a large retail store.
B)   iron ore in a steel plant.
C)   small hand tools in an automobile repair shop.
D)   toner cartridges in the supply closet of a word processing center.
E)   a new appliance in someone's home.F) B) and C)
G) A) and B)

Question 10

Mama Mia restaurant purchased two large ovens for its kitchen. These ovens are an example of which type of business product?

Accepted Answer

A)   Convenience product
B)   Accessory equipment
C)   Major equipment
D)   Component parts
E)   Process materialF) A) and E)
G) All of the above

Question 11

Identify three different types of discounts that a business may offer. Include a brief reason for the use of the discount and a specific example.

Accepted Answer

1. Percentage Discount: This type of dis...

Question 12

Which of the following types of brands are the least commonly purchased at grocery stores?

Accepted Answer

A)   Producer
B)   Store
C)   Generic
D)   Manufacturer
E)   PrivateF) A) and E)
G) A) and B)

Question 13

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) A) and D)
G) A) and E)

Question 14

Ties 'R' Us sells a variety of ties at many different prices. Often customers are confused about the pricing and have a hard time making a buying decision. Ties 'R' Us should use what type of pricing strategy?

Accepted Answer

A)   Odd pricing
B)   Price lining
C)   Captive pricing
D)   Multiple-unit pricing
E)   Geographic pricingF) A) and D)
G) C) and D)

Question 15

Your Way, Inc.
Eric buys companies that are small or companies in financial trouble. He helps these companies turn around and develop a competitive advantage. The company that he recently purchased is called Your Way, Inc. The company sells men's clothing and accessories. Your Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling.
After looking over the different products available, Eric realized that the company's previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out of date. Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix. To move the company forward, Eric thought of the following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.
-Refer to Your Way, Inc. What types of product are sold at Your Way?

Accepted Answer

A)   Shopping products
B)   Business products
C)   Specialty products
D)   Convenience products
E)   Unique productsF) A) and D)
G) None of the above

Question 16

The strategy of setting prices at uneven amounts that are slightly below an even or whole number of dollars is called

Accepted Answer

A)   penetration pricing.
B)   price skimming.
C)   sample pricing.
D)   introductory pricing.
E)   odd-number pricing.F) C) and D)
G) B) and C)

Question 17

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) None of the above
G) All of the above

Question 18

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

Question 19

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

Question 20

Automobile fenders are an example of

Accepted Answer

A)   accessory equipment.
B)   raw materials.
C)   process materials.
D)   component parts.
E)   supplies.F) C) and D)
G) All of the above

Exam 13: A: Creating and Pricing Products That Satisfy Customers

Price leaders

Correct Answer
verified

Ties 'R' Us sells a variety of ties at many different prices. Often customers are confused about the pricing and have a hard time making a buying decision. Ties 'R' Us should use what type of pricing strategy?

Correct Answer
verified

Consumer products can be divided into the following three categories:

Correct Answer
verified

Automobile fenders are an example of

Correct Answer
verified

Competition-based pricing is

Correct Answer
verified

Which of the following best describes a typical scenario companies use in the commercialization phase?

Correct Answer
verified

The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the

Correct Answer
verified

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

Identify three different types of discounts that a business may offer. Include a brief reason for the use of the discount and a specific example.

Correct Answer
Answered by ExamLex AI
1. Percentage Discount: This type of dis...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

The strategy of setting prices at uneven amounts that are slightly below an even or whole number of dollars is called

Correct Answer
verified

Which of the following types of brands are the least commonly purchased at grocery stores?

Correct Answer
verified

All of the following are business products except

Correct Answer
verified

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

Correct Answer
verified

Mama Mia restaurant purchased two large ovens for its kitchen. These ovens are an example of which type of business product?

Correct Answer
verified

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

Correct Answer
verified

A number of federal regulations specify the information that must be included in labeling. Which of the following is not specified?

Correct Answer
verified

Identify and discuss three types of pricing associated with business products.

Correct Answer
Answered by ExamLex AI
1. Cost-Plus Pricing: This type of prici...
View Answer

Exam 13: A: Creating and Pricing Products That Satisfy Customers

Price leaders

Correct AnswerverifiedShow Answer

Ties 'R' Us sells a variety of ties at many different prices. Often customers are confused about the pricing and have a hard time making a buying decision. Ties 'R' Us should use what type of pricing strategy?

Correct AnswerverifiedShow Answer

Consumer products can be divided into the following three categories:

Correct AnswerverifiedShow Answer

Automobile fenders are an example of

Correct AnswerverifiedShow Answer

Competition-based pricing is

Correct AnswerverifiedShow Answer

Which of the following best describes a typical scenario companies use in the commercialization phase?

Correct AnswerverifiedShow Answer

The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the

Correct AnswerverifiedShow Answer

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

Identify three different types of discounts that a business may offer. Include a brief reason for the use of the discount and a specific example.

Correct AnswerAnswered by ExamLex AI1. Percentage Discount: This type of dis...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The strategy of setting prices at uneven amounts that are slightly below an even or whole number of dollars is called

Correct AnswerverifiedShow Answer

Which of the following types of brands are the least commonly purchased at grocery stores?

Correct AnswerverifiedShow Answer

All of the following are business products except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Mama Mia restaurant purchased two large ovens for its kitchen. These ovens are an example of which type of business product?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A number of federal regulations specify the information that must be included in labeling. Which of the following is not specified?

Correct AnswerverifiedShow Answer

Identify and discuss three types of pricing associated with business products.

Correct AnswerAnswered by ExamLex AI1. Cost-Plus Pricing: This type of prici...View AnswerShow 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
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
1. Percentage Discount: This type of dis...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
1. Cost-Plus Pricing: This type of prici...
View Answer