Question 1

Price differentiation attempts to sell

Accepted Answer

A)   different products with different features at the same price.
B)   identical products at different times at different prices.
C)   products at lower prices, due to economies of scale unintentionally resulting in lower net income for the company.
D)   products to customers based on their ability to pay.
E)   all products at different prices.F) A) and D)
G) A) and E)

Question 2

A variation of an existing product, such as freeze-dried coffee, is an example of product imitation.

Accepted Answer

A) True 
 B)False

Question 3

What do yo-yo, aspirin, and thermos all have in common in a marketing sense?

Accepted Answer

A)   They were all once brand names that have since been declared generic terms.
B)   They are all heavily promoted during daytime television.
C)   They are examples of functional product modification.
D)   They have extremely high brand loyalty.
E)   They are all examples of private-label brands.F) All of the above
G) A) and B)

Question 4

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

Question 5

The number of units that must be sold for the total revenue to equal the total cost is called the ____ quantity.

Accepted Answer

A)   Breakeven
B)   Stabilisation
C)   Intersect
D)   Parity
E)   equalisationF) B) and E)
G) D) and E)

Question 6

HP considers its extensive line of printers to be superior to other brands.To communicate the product's superior quality, which price may be appropriate for their printers?

Accepted Answer

A)   Low
B)   Average
C)   Premium
D)   Discount
E)   PrevailingF) B) and D)
G) A) and E)

Question 7

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 E)
G) C) and D)

Question 8

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

Question 9

A deduction from the price of an item is called a

Accepted Answer

A)   discount.
B)   variable reduction.
C)   trade-in.
D)   line.
E)   concession remittance.F) A) and B)
G) A) and C)

Question 10

Which of the following best describes a typical scenario companies use in the commercialisation 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 nation.
C)   Companies implement their initial plan and very infrequently make any adjustments to this plan.
D)   Companies prepare the budget for commercialisation 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) B) and E)
G) A) and E)

Question 11

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 E)
G) A) and E)

Question 12

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) None of the above
G) A) and E)

Question 13

A wrench used to make adjustments to machinery that produces copper wire is classified as

Accepted Answer

A)   raw material.
B)   component part.
C)   process material.
D)   major equipment.
E)   accessory equipment.F) B) and C)
G) C) and D)

Question 14

The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle is called price skimming.

Accepted Answer

A) True 
 B)False

Question 15

A branding strategy in which a firm uses a different brand for each of its products is called ____ branding.

Accepted Answer

A)   Producer
B)   Individual
C)   Unity
D)   family
E)   promotionF) A) and E)
G) A) and D)

Question 16

Which of the following constitutes an ROI?

Accepted Answer

A)   Amount earned from sales before taxes
B)   Amount realised from cutting production costs
C)   Amount earned as a result of a return on investment
D)   Amount, or ratio, that represents rate of investment
E)   Amount earned as gross incomeF) D) and E)
G) None of the above

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The product life-cycle stage in which consumer awareness and acceptance of the product are low, there are few competitors, and there is a gradual rise in sales because of promotion is called

Accepted Answer

A)   extension.
B)   introduction.
C)   growth.
D)   decline.
E)   maturity.F) B) and E)
G) A) and B)

Question 19

The temporary reduction of prices on a patterned or systemic basis is called

Accepted Answer

A)   random discounting.
B)   negotiated pricing.
C)   periodic discounting.
D)   secondary-market discounting.
E)   comparison discounting.F) None of the above
G) B) and E)

Question 20

A number of federal regulations specify the information that must be included in labelling.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) C) and E)
G) B) and D)

Exam 12: Aproduct Development and Pricing Strategies

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

Correct AnswerverifiedShow Answer

The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle is called price skimming.

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

What do yo-yo, aspirin, and thermos all have in common in a marketing sense?

Correct AnswerverifiedShow Answer

A variation of an existing product, such as freeze-dried coffee, is an example of product imitation.

Correct AnswerverifiedShow Answer

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

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 number of units that must be sold for the total revenue to equal the total cost is called the ____ quantity.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A branding strategy in which a firm uses a different brand for each of its products is called ____ branding.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A wrench used to make adjustments to machinery that produces copper wire is classified as

Correct AnswerverifiedShow Answer

The product life-cycle stage in which consumer awareness and acceptance of the product are low, there are few competitors, and there is a gradual rise in sales because of promotion is called

Correct AnswerverifiedShow Answer

HP considers its extensive line of printers to be superior to other brands.To communicate the product's superior quality, which price may be appropriate for their printers?

Correct AnswerverifiedShow Answer

The temporary reduction of prices on a patterned or systemic basis is called

Correct AnswerverifiedShow Answer

Which of the following constitutes an ROI?

Correct AnswerverifiedShow Answer

A deduction from the price of an item is called a

Correct AnswerverifiedShow Answer

Price differentiation attempts to sell

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow 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
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
verified

Correct Answer
verified