Question 1

New products are often immediate successes.

Accepted Answer

A) True 
 B)False

Question 2

Three types of product-line pricing are price leaders, special-event pricing, and comparison discounting.

Accepted Answer

A) True 
 B)False

Question 3

Entirely new products are called

Accepted Answer

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

Question 4

Hallmark cards develops a new line of cards that have a total cost of $200,000 and a price of $3 each. If it sells 20,000 cards the first month, what is its total revenue?

Accepted Answer

A)  $60,000
B)  $600,000
C)  $400,000
D)  $140,000
E)  −$140,000F) A) and E)
G) A) and B)

Question 5

Even if a grocery item is a generic product, a consumer can tell who produced it by examining the package carefully.

Accepted Answer

A) True 
 B)False

Question 6

Iron ore in a steel plant is an example of

Accepted Answer

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

Question 7

A consumer product for which buyers will not accept a substitute, for which purchasers do not compare alternatives, and that is purchased infrequently and with extra effort on the buyer's part is a ____ product.

Accepted Answer

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

Question 8

Aspirin, yo-yo, and escalator were all brand names at one time.

Accepted Answer

A) True 
 B)False

Question 9

The same price will be charged no matter what pricing objective is used.

Accepted Answer

A) True 
 B)False

Question 10

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) All of the above
G) C) and E)

Question 11

Arm & Hammer launches a campaign to extend the life of its baking soda products through improved packaging and new uses in products such as toothpaste and cat litter. These new uses of products and other modifications are generally created during the ____ phase of the product life-cycle.

Accepted Answer

A)  growth
B)  introduction
C)  maturity
D)  extension
E)  declineF) A) and B)
G) A) and C)

Question 12

Timothy is experimenting with boosting the sales of the goods in his store by using odd-even pricing, multiple-unit pricing, and reference pricing. These are all examples of ___ pricing strategies.​

Accepted Answer

A)  ​psychological
B)  ​status
C)  ​luxury
D)  ​exemplaryE) A) and B)
F) A) and C)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Price competition occurs when a seller makes its product stand out from the competition by distinctive product quality and customer service.

Accepted Answer

A) True 
 B)False

Question 15

A good or service intended primarily for use in producing other goods or services is a ____ product.

Accepted Answer

A)  production
B)  business
C)  specialty
D)  component
E)  supplyF) C) and E)
G) B) and E)

Question 16

The strategy of setting a low price for a new product to gain a large market share for the product quickly is called

Accepted Answer

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

Question 17

A good or service that is intended primarily for personal or household use is called a(n)  ____ product.

Accepted Answer

A)  convenience
B)  business
C)  specialty
D)  consumer
E)  organizationalF) B) and D)
G) C) and D)

Question 18

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

Question 19

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) D) and E)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 12: Creating and Pricing Products That Satisfy Customers

Arm & Hammer launches a campaign to extend the life of its baking soda products through improved packaging and new uses in products such as toothpaste and cat litter. These new uses of products and other modifications are generally created during the ____ phase of the product life-cycle.

Correct AnswerverifiedShow Answer

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

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

Hallmark cards develops a new line of cards that have a total cost of $200,000 and a price of $3 each. If it sells 20,000 cards the first month, what is its total revenue?

Correct AnswerverifiedShow Answer

The same price will be charged no matter what pricing objective is used.

Correct AnswerverifiedShow Answer

Price competition occurs when a seller makes its product stand out from the competition by distinctive product quality and customer service.

Correct AnswerverifiedShow Answer

Three types of product-line pricing are price leaders, special-event pricing, and comparison discounting.

Correct AnswerverifiedShow Answer

A good or service intended primarily for use in producing other goods or services is a ____ product.

Correct AnswerverifiedShow Answer

Aspirin, yo-yo, and escalator were all brand names at one time.

Correct AnswerverifiedShow Answer

Iron ore in a steel plant is an example of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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 AnswerverifiedShow Answer

Even if a grocery item is a generic product, a consumer can tell who produced it by examining the package carefully.

Correct AnswerverifiedShow Answer

Entirely new products are called

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Timothy is experimenting with boosting the sales of the goods in his store by using odd-even pricing, multiple-unit pricing, and reference pricing. These are all examples of ___ pricing strategies.​

Correct AnswerverifiedShow Answer

The strategy of setting a low price for a new product to gain a large market share for the product quickly is called

Correct AnswerverifiedShow Answer

A good or service that is intended primarily for personal or household use is called a(n) ____ product.

Correct AnswerverifiedShow Answer

New products are often immediate successes.

Correct AnswerverifiedShow Answer

A consumer product for which buyers will not accept a substitute, for which purchasers do not compare alternatives, and that is purchased infrequently and with extra effort on the buyer's part is a ____ product.

Correct AnswerverifiedShow Answer

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Timothy is experimenting with boosting the sales of the goods in his store by using odd-even pricing, multiple-unit pricing, and reference pricing. These are all examples of ___ pricing strategies.

Correct Answer
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