Question 1

Competition-based pricing is important if competing products are similar and the organization is serving markets in which price is the crucial variable of the marketing strategy.

Accepted Answer

A) True 
 B)False  True

Question 2

After several years of success with the product line,Procter & Gamble introduced its popular Sure deodorant in three new scents.This is an example of ____ modification.

Accepted Answer

A)   functional
B)   feature
C)   quality
D)   aesthetic
E)   marketF) A) and E)
G) A) and D)

Question 3

A company's product mix usually must be changed to stay competitive.

Accepted Answer

A) True 
 B)False

Question 4

Because markup pricing is difficult to use,few retailers and wholesalers use it.

Accepted Answer

A) True 
 B)False

Question 5

If Texas Instruments hires an accounting firm to compute the company's taxes,the accounting firm is providing a(n) ____ service.

Accepted Answer

A)   business
B)   governmental
C)   institutional
D)   tangible
E)   mandatoryF) B) and C)
G) B) and E) A

Question 6

Screening ideas for feasibility is the first stage of the new product development process.

Accepted Answer

A) True 
 B)False

Question 7

What is a status-quo pricing objective?

Accepted Answer

A status-quo pricing objective is offered with the intent to avoid "making waves," or to maintain the status quo.This is especially true in industries that depend on price stability.

Question 8

Consumers would most likely treat candy bars as ____ products.

Accepted Answer

A)   business
B)   shopping
C)   specialty
D)   convenience
E)   householdF) D) and E)
G) B) and C)

Question 9

Price allocates goods and services among those who are willing and able to pay for them.

Accepted Answer

A) True 
 B)False

Question 10

Identify and discuss the three major ways that a product mix can be improved.

Accepted Answer

One way of improving a product mix of a ...

Question 11

Discounts offered to encourage early payment of outstanding accounts are called ____ discounts.

Accepted Answer

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

Question 12

The branding strategy in which a firm uses the same brand for all or most of its products is called individual branding.

Accepted Answer

A) True 
 B)False

Question 13

The width of a product mix is a measure of the number of individual products within each line.

Accepted Answer

A) True 
 B)False

Question 14

A major drawback of price competition is that

Accepted Answer

A)   it lowers prices.
B)   it gains customers.
C)   customers equate lower prices with lower quality.
D)   competitors can also lower their prices.
E)   it generates brand loyalty.F) B) and C)
G) C) and D)

Question 15

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

Accepted Answer

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

Question 16

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

Question 17

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

Question 18

Markup pricing is easy to apply,although it is difficult to determine an effective markup percentage.

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

The stage in the evolution of new products in which the product is launched into full-scale manufacturing and marketing is called

Accepted Answer

A)   test marketing.
B)   business analysis.
C)   screening.
D)   product development.
E)   commercialization.F) A) and D)
G) A) and C)

Exam 12: Creating and Pricing Products That Satisfy Customers

Competition-based pricing is important if competing products are similar and the organization is serving markets in which price is the crucial variable of the marketing strategy.

Correct AnswerverifiedTrue

After several years of success with the product line,Procter & Gamble introduced its popular Sure deodorant in three new scents.This is an example of ____ modification.

Correct AnswerverifiedShow Answer

A company's product mix usually must be changed to stay competitive.

Correct AnswerverifiedShow Answer

Because markup pricing is difficult to use,few retailers and wholesalers use it.

Correct AnswerverifiedShow Answer

If Texas Instruments hires an accounting firm to compute the company's taxes,the accounting firm is providing a(n) ____ service.

Correct AnswerverifiedA

Screening ideas for feasibility is the first stage of the new product development process.

Correct AnswerverifiedShow Answer

What is a status-quo pricing objective?

Correct AnswerverifiedA status-quo pricing objective is offered with the intent to avoid "making waves," or to maintain the status quo.This is especially true in industries that depend on price stability.

Consumers would most likely treat candy bars as ____ products.

Correct AnswerverifiedShow Answer

Price allocates goods and services among those who are willing and able to pay for them.

Correct AnswerverifiedShow Answer

Identify and discuss the three major ways that a product mix can be improved.

Correct AnswerverifiedOne way of improving a product mix of a ...View AnswerShow Answer

Discounts offered to encourage early payment of outstanding accounts are called ____ discounts.

Correct AnswerverifiedShow Answer

The branding strategy in which a firm uses the same brand for all or most of its products is called individual branding.

Correct AnswerverifiedShow Answer

The width of a product mix is a measure of the number of individual products within each line.

Correct AnswerverifiedShow Answer

A major drawback of price competition is that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

Markup pricing is easy to apply,although it is difficult to determine an effective markup percentage.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The stage in the evolution of new products in which the product is launched into full-scale manufacturing and marketing is called

Correct AnswerverifiedShow Answer

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True

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A status-quo pricing objective is offered with the intent to avoid "making waves," or to maintain the status quo.This is especially true in industries that depend on price stability.

Correct Answer
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One way of improving a product mix of a ...
View Answer

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