Question 1

Walgreens advertises the fact that Bayer aspirin may cost more but works no better than Walgreens' own brand of aspirin.In this example,Walgreens is competing on the basis of

Accepted Answer

A)   selection.
B)   packaging.
C)   service.
D)   price.
E)   market share.F) B) and D)
G) A) and E)

Question 2

A brand is all of the following except a(n)

Accepted Answer

A)   name.
B)   term.
C)   symbol.
D)   item usually owned by the producer or manufacturer.
E)   design.F) B) and D)
G) A) and E)

Question 3

The sum of the fixed costs and the variable costs attributed to the units produced is the selling price.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

An order of calculators with new features just arrived for the finance department of PUMA.These calculators represent

Accepted Answer

A)   major equipment.
B)   process materials.
C)   component parts.
D)   accessory equipment.
E)   office materials.F) B) and D)
G) C) and E)

Question 6

United Airlines prices its tickets so that it is less expensive to travel between midnight and 5:00 a.m.than during the day,when there is heavy business travel.This illustrates ____ pricing.

Accepted Answer

A)   cost-plus
B)   demand-based
C)   competition-based
D)   secondary markup
E)  SeasonalF) None of the above
G) A) and D)

Question 7

Amy is starting a new business and is confused about how to determine the price to set for her product.She comes to you for advice and you tell her,correctly,that the two factors that determine the price at which a product will sell are

Accepted Answer

A)   the market and the awareness that costs and expected sales can be used only to establish aprice floor.
B)   the market and status-quo.
C)   the cost of production and maximum price that can be charged.
D)   the competition price point and product demand.E) B) and D)
F) A) and B)

Question 8

One of the major dangers of competition-based pricing is that it often results in price wars.

Accepted Answer

A) True 
 B)False

Question 9

Describe non-price competition.When might it be used?

Accepted Answer

Non-price competition is competition bas...

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

​Lang Industries is introducing a new product and will use price skimming to set the price.Price skimming is

Accepted Answer

A)   ​the strategy of charging the highest possible price for a product during the introduction stage of its life-cycle.
B)   ​a way for the seller to secretly pocket extra money charged for a product but not recorded on the company books.
C)   ​raising prices above a fair price.
D)   ​a means of increasing competition in order to raise prices even higher.E) A) and D)
F) A) and B)

Question 12

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

Accepted Answer

A)   usually,a low profit or even a loss.
B)   the appearance on the market of refinements or extensions of the original product.
C)   relatively few competitors.
D)   often,high price.
E)   low consumer awareness and acceptance of the product.F) A) and E)
G) B) and D)

Question 13

Management must set pricing objectives based on the primary objective of making a profit.

Accepted Answer

A) True 
 B)False

Question 14

Slick It,Inc. ​Render is a salesperson for Slick It,Inc.Slick It does not sell products with its own brand name.Instead,its products are created for different retail stores and carry the store brand.Render thought that several changes needed to be made to a particular product,but Slick It management reminded him that the stores,not Slick It,owned the brand. ​However,because Slick It had been concerned about dropping sales,management listened to Render'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 Slick It to set a single price for multiple units.This had the potential of increasing sales and therefore profits,so management agreed to consider Render's suggestion.
-Refer to Slick It,Inc.Because Slick It sells its products under different brand names,each product is a

Accepted Answer

A)   manufacturer brand.
B)   private brand.
C)   producer brand.
D)   generic brand.
E)   no name brand.F) C) and D)
G) A) and B)

Question 15

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

Accepted Answer

A)   operating expenses.
B)   overhead.
C)   variable costs.
D)   fixed costs.
E)   inflexible costs.F) A) and B)
G) C) and D)

Question 16

Which of the following is not a major factor contributing to brand equity?

Accepted Answer

A)   Brand loyalty
B)   Perceived brand quality
C)   Brand awareness
D)   Brand relationship
E)   Brand associationsF) A) and B)
G) D) and E)

Question 17

The Morton's Salt Girl,the Pillsbury Dough Boy,and Planters' Mr.Peanut are all examples of

Accepted Answer

A)   trade names.
B)   brand names.
C)   brand marks.
D)   store brands.
E)   manufacturer brands.F) B) and D)
G) C) and E)

Question 18

Entirely new products are called

Accepted Answer

A)   innovations.
B)   generics.
C)   imitations.
D)   house brands.
E)   adaptations.F) C) and D)
G) A) and E)

Question 19

A trademark is registered with the

Accepted Answer

A)   Department of Affairs.
B)   Office of the Attorney General.
C)   Patent and Trademark Office.
D)   Registrar of Patents and Inventors.
E)   Department of Commerce.F) A) and B)
G) A) and C)

Question 20

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) B) and D)
G) B) and E)

Exam 12: Creating and Pricing Products That Satisfy Customers

Correct Answer
verified

The sum of the fixed costs and the variable costs attributed to the units produced is the selling price.

Correct Answer
verified

Which of the following is not a major factor contributing to brand equity?

Correct Answer
verified

Describe non-price competition.When might it be used?

Correct Answer
verified
Non-price competition is competition bas...
View Answer

One of the major dangers of competition-based pricing is that it often results in price wars.

Correct Answer
verified

A trademark is registered with the

Correct Answer
verified

A brand is all of the following except a(n)

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Walgreens advertises the fact that Bayer aspirin may cost more but works no better than Walgreens' own brand of aspirin.In this example,Walgreens is competing on the basis of

Correct Answer
verified

Amy is starting a new business and is confused about how to determine the price to set for her product.She comes to you for advice and you tell her,correctly,that the two factors that determine the price at which a product will sell are

Correct Answer
verified

Lang Industries is introducing a new product and will use price skimming to set the price.Price skimming is

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Management must set pricing objectives based on the primary objective of making a profit.

Correct Answer
verified

The Morton's Salt Girl,the Pillsbury Dough Boy,and Planters' Mr.Peanut are all examples of

Correct Answer
verified

United Airlines prices its tickets so that it is less expensive to travel between midnight and 5:00 a.m.than during the day,when there is heavy business travel.This illustrates ____ pricing.

Correct Answer
verified

An order of calculators with new features just arrived for the finance department of PUMA.These calculators represent

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

Entirely new products are called

Correct Answer
verified

Exam 12: Creating and Pricing Products That Satisfy Customers

Correct AnswerverifiedShow Answer

The sum of the fixed costs and the variable costs attributed to the units produced is the selling price.

Correct AnswerverifiedShow Answer

Which of the following is not a major factor contributing to brand equity?

Correct AnswerverifiedShow Answer

Describe non-price competition.When might it be used?

Correct AnswerverifiedNon-price competition is competition bas...View AnswerShow Answer

One of the major dangers of competition-based pricing is that it often results in price wars.

Correct AnswerverifiedShow Answer

A trademark is registered with the

Correct AnswerverifiedShow Answer

A brand is all of the following except a(n)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Walgreens advertises the fact that Bayer aspirin may cost more but works no better than Walgreens' own brand of aspirin.In this example,Walgreens is competing on the basis of

Correct AnswerverifiedShow Answer

Amy is starting a new business and is confused about how to determine the price to set for her product.She comes to you for advice and you tell her,correctly,that the two factors that determine the price at which a product will sell are

Correct AnswerverifiedShow Answer

​Lang Industries is introducing a new product and will use price skimming to set the price.Price skimming is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Management must set pricing objectives based on the primary objective of making a profit.

Correct AnswerverifiedShow Answer

The Morton's Salt Girl,the Pillsbury Dough Boy,and Planters' Mr.Peanut are all examples of

Correct AnswerverifiedShow Answer

United Airlines prices its tickets so that it is less expensive to travel between midnight and 5:00 a.m.than during the day,when there is heavy business travel.This illustrates ____ pricing.

Correct AnswerverifiedShow Answer

An order of calculators with new features just arrived for the finance department of PUMA.These calculators represent

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

Entirely new products are called

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
verified
Non-price competition is competition bas...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Lang Industries is introducing a new product and will use price skimming to set the price.Price skimming is

Correct Answer
verified

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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