Question 1

Seasonal discounts provide price incentives to customers during peak selling seasons.

Accepted Answer

A) True 
 B)False

Question 2

Consumers would most likely treat personal computers as ____ products.

Accepted Answer

A)   business
B)   convenience
C)   specialty
D)   shopping
E)   luxuryF) All of the above
G) A) and B)

Question 3

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

Accepted Answer

A) True 
 B)False

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 D)
G) A) and C)

Question 5

The price floor is the lowest price at which a producer can sell its product without incurring a loss.

Accepted Answer

A) True 
 B)False

Question 6

A product may be a good or a service but not an idea.

Accepted Answer

A) True 
 B)False

Question 7

The quantity of a product that buyers are willing to purchase at various prices is called

Accepted Answer

A)   breakeven quantity.
B)   supply.
C)   distended supply.
D)   inventory.
E)   demand.F) All of the above
G) D) and E)

Question 8

In her local supermarket Susan purchases green beans in a white can simply labelled as green beans.This represents a(n)  ____ brand.

Accepted Answer

A)   Private
B)   Generic
C)   Value
D)   manufacturer
E)   anonymousF) D) and E)
G) A) and C)

Question 9

A product usually declines because of technological advances or environmental factors or because

Accepted Answer

A)   the item is very popular.
B)   the price is too low.
C)   consumers have switched to competing brands.
D)   the price is too high.
E)   no ads or sales incentives have been used.F) A) and B)
G) A) and E)

Question 10

Differential pricing means different buyers pay different prices for the same quality and quantity of a product.

Accepted Answer

A) True 
 B)False

Question 11

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's three stripesF) B) and D)
G) A) and B)

Question 12

Bread, gasoline, and ____ are examples of convenience products.

Accepted Answer

A)   Cars
B)   furniture
C)   newspapers
D)   large appliances
E)   a cruiseF) B) and D)
G) C) and E)

Question 13

Borden, Inc.offers pasta, snacks, grocery, and dairy items as well as films, adhesives, and other nonfood products.These products are referred to as Borden's

Accepted Answer

A)   product mix.
B)   product line.
C)   product differentiation.
D)   product life-cycle.
E)   inventory mix.F) B) and D)
G) B) and C)

Question 14

If Tiger Mart advertises a 2-liter bottle of Pepsi for €1.29 cents to generate store traffic that will increase the purchasing of other items at regular prices, the grocer is using

Accepted Answer

A)   reference pricing.
B)   a price leader.
C)   special-event pricing.
D)   comparison discounting.
E)   professional pricing.F) A) and E)
G) B) and C)

Question 15

The strategy of setting a single price for two or more units is known as

Accepted Answer

A)   penetration pricing.
B)   price skimming.
C)   sample pricing.
D)   multiple-unit pricing.
E)   odd pricing.F) A) and D)
G) All of the above

Question 16

Costs that depend on the number of units produced are called variable costs.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)   Household
B)   Shopping
C)   Luxury
D)   specialty
E)   convenienceF) A) and B)
G) A) and E)

Question 18

Manufacturers, wholesalers, and retailers do not use negotiated pricing strategies.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)   Brand loyalty
B)   Perceived brand quality
C)   Brand-name awareness
D)   Brand relationship
E)   Brand associationsF) All of the above
G) C) and D)

Question 20

When Polaroid comes out with a new model in a series, it sets an initial price and then gradually lowers the price.Polaroid is initially using which pricing strategy?

Accepted Answer

A)   Penetration pricing
B)   Prestige pricing
C)   Price lining
D)   Premium pricing
E)   Price skimmingF) A) and C)
G) B) and E)

Exam 12: Aproduct Development and Pricing Strategies

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

Correct AnswerverifiedShow Answer

Consumers would most likely treat personal computers as ____ products.

Correct AnswerverifiedShow Answer

A product may be a good or a service but not an idea.

Correct AnswerverifiedShow Answer

In her local supermarket Susan purchases green beans in a white can simply labelled as green beans.This represents a(n) ____ brand.

Correct AnswerverifiedShow Answer

Differential pricing means different buyers pay different prices for the same quality and quantity of a product.

Correct AnswerverifiedShow Answer

If Tiger Mart advertises a 2-liter bottle of Pepsi for €1.29 cents to generate store traffic that will increase the purchasing of other items at regular prices, the grocer is using

Correct AnswerverifiedShow Answer

When Polaroid comes out with a new model in a series, it sets an initial price and then gradually lowers the price.Polaroid is initially using which pricing strategy?

Correct AnswerverifiedShow Answer

The strategy of setting a single price for two or more units is known as

Correct AnswerverifiedShow Answer

Bread, gasoline, and ____ are examples of convenience products.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A product usually declines because of technological advances or environmental factors or because

Correct AnswerverifiedShow Answer

Costs that depend on the number of units produced are called variable costs.

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 quantity of a product that buyers are willing to purchase at various prices is called

Correct AnswerverifiedShow Answer

The price floor is the lowest price at which a producer can sell its product without incurring a loss.

Correct AnswerverifiedShow Answer

Which of the following is considered a trade name?

Correct AnswerverifiedShow Answer

Manufacturers, wholesalers, and retailers do not use negotiated pricing strategies.

Correct AnswerverifiedShow Answer

Borden, Inc.offers pasta, snacks, grocery, and dairy items as well as films, adhesives, and other nonfood products.These products are referred to as Borden's

Correct AnswerverifiedShow Answer

Seasonal discounts provide price incentives to customers during peak selling seasons.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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