Question 1

Price differentiation is

Accepted Answer

A)  a form of competition-based pricing.
B)  a form of cost-based pricing.
C)  a form of demand-based pricing.
D)  focused on achieving fewer sales but at higher prices.
E)  focused on selling different goods for different prices.F) A) and E)
G) C) and E)

Question 2

TCBY wants to expand its line of food products. The company sent surveys to consumers to determine which food items would appeal to them for dessert or snacks. The company is in which phase of new product development?

Accepted Answer

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

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Energizer batteries are sold in multipacks to make it more convenient for the consumer, who usually needs more than one battery at a time. Energizer batteries would be classified as a ____ product.

Accepted Answer

A)  household
B)  shopping
C)  luxury
D)  specialty
E)  convenienceF) A) and C)
G) C) and D)

Question 5

Which of the following is an example of a raw material that would be used in the production of a physical product?

Accepted Answer

A)  Steel sheets
B)  Paper
C)  Plastic
D)  Timber
E)  GasolineF) A) and B)
G) B) and E)

Question 6

Sheet steel to be used in making automobile fenders is an example of

Accepted Answer

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

Question 7

Lever Brothers is considering an idea for a new liquid laundry detergent that contains a whitening agent. The company presented its proposed new product to a group of potential customers in the form of a short explanation and questionnaire. Lever Brothers is conducting

Accepted Answer

A)  a business analysis.
B)  concept testing.
C)  screening.
D)  pricing.
E)  idea generation.F) A) and E)
G) A) and B)

Question 8

Which of the following is considered a trade name?

Accepted Answer

A)  Tide laundry detergent
B)  GE
C)  General Motors Corp.
D)  Coke
E)  Adidas' three stripesF) B) and D)
G) C) and E)

Question 9

Setting prices for organizational buyers is very similar to setting prices for consumers.

Accepted Answer

A) True 
 B)False

Question 10

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 E)
G) A) and B)

Question 11

GE, Kellogg's, Mercedes, and Dell are all examples of

Accepted Answer

A)  trade characters.
B)  brand marks.
C)  brands.
D)  trade symbols.
E)  private brands.F) B) and D)
G) A) and B)

Question 12

A symbol or word that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by anyone but its owner is a

Accepted Answer

A)  trade name.
B)  trademark.
C)  brand name.
D)  brand mark.
E)  brand.F) A) and B)
G) All of the above

Question 13

A price of $5.95 for a product would fall into the category of odd-number pricing.

Accepted Answer

A) True 
 B)False

Question 14

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 D)
G) A) and E)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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) All of the above
G) B) and D)

Question 17

AT&T charges different rates for long-distance service depending on time of day and distance of the call. This pricing method is called ____ pricing.

Accepted Answer

A)  geographic
B)  odd
C)  discriminatory
D)  demand-based
E)  segmentedF) None of the above
G) A) and B)

Question 18

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

Question 19

All of the activities involved in developing and providing a container with graphics for a product are called

Accepted Answer

A)  packaging.
B)  advertising.
C)  labeling.
D)  containerization.
E)  parceling.F) B) and D)
G) A) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 12: Creating and Pricing Products That Satisfy Customers

Sheet steel to be used in making automobile fenders is an example of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Price differentiation is

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

Energizer batteries are sold in multipacks to make it more convenient for the consumer, who usually needs more than one battery at a time. Energizer batteries would be classified as a ____ product.

Correct AnswerverifiedShow Answer

Which of the following is an example of a raw material that would be used in the production of a physical product?

Correct AnswerverifiedShow Answer

A price of $5.95 for a product would fall into the category of odd-number pricing.

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

All of the activities involved in developing and providing a container with graphics for a product are called

Correct AnswerverifiedShow Answer

Setting prices for organizational buyers is very similar to setting prices for consumers.

Correct AnswerverifiedShow Answer

Which of the following is considered a trade name?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

AT&T charges different rates for long-distance service depending on time of day and distance of the call. This pricing method is called ____ pricing.

Correct AnswerverifiedShow Answer

Lever Brothers is considering an idea for a new liquid laundry detergent that contains a whitening agent. The company presented its proposed new product to a group of potential customers in the form of a short explanation and questionnaire. Lever Brothers is conducting

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

TCBY wants to expand its line of food products. The company sent surveys to consumers to determine which food items would appeal to them for dessert or snacks. The company is in which phase of new product development?

Correct AnswerverifiedShow Answer

A symbol or word that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by anyone but its owner is a

Correct AnswerverifiedShow Answer

GE, Kellogg's, Mercedes, and Dell are all examples of

Correct AnswerverifiedShow Answer

A trademark is registered with the

Correct AnswerverifiedShow Answer

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