Question 1

A trademark is legally protected from use by anyone except its owner.

Accepted Answer

A) True 
 B)False

Question 2

Razor Company's blades are in the maturity stage of the product life cycle.How can the company strengthen its market share?

Accepted Answer

A)   eliminate less profitable versions of the product
B)   redesign the packaging
C)   make no style changes
D)   emphasize customer service
E)   watch for the early buying patternsF) A) and D)
G) A) and E)

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

If a customer has moderate loyalty toward Heinz ketchup, she likely will

Accepted Answer

A)   buy the product in greater quantities.
B)   shop around for the best price for that good.
C)   perceive the product as having the same quality level as competitive brands.
D)   never buy another brand of ketchup.
E)   purchase other products that carry the Heinz name.F) B) and D)
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

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

Accepted Answer

A)   breakeven quantity
B)   supply
C)   distended supply
D)   inventory
E)   demandF) A) and C)
G) A) and E)

Question 7

Brand names such as Tide, Surf, Biz, and Wisk are effective names because they

Accepted Answer

A)   suggest special characteristics and benefits of the product.
B)   are easy for customers to say, spell, and recall.
C)   are generic terms for detergent.
D)   indicate the products' uses.
E)   blend with competing brand names.F) D) and E)
G) B) and C)

Question 8

If the manager at Best Buy puts a sign up next to a Pioneer stereo that reads, "Only $199.99! $58.01 less than Circuit City," this is an example of what type of pricing strategy?

Accepted Answer

A)   random discounting
B)   periodic discounting
C)   comparison discounting
D)   penetration discounting
E)   everyday low pricesF) A) and E)
G) All of the above

Question 9

The Arizona Jean Co.brand of jeans, owned by JCPenney, is a(n)  ____ brand.

Accepted Answer

A)   generic
B)   private
C)   national
D)   individual
E)   manufacturerF) A) and E)
G) B) and C)

Question 10

Competition-based pricing is

Accepted Answer

A)   used when costs and revenues are considered secondary to competitors' prices.
B)   not useful as a method of increasing or maintaining market share.
C)   of little use if the competing products are homogeneous.
D)   not able to increase sales.
E)   most often used when competing products are homogeneous.F) C) and D)
G) A) and B)

Question 11

Discounts from the list price offered to intermediaries are called ____ discounts.

Accepted Answer

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

Question 12

Appliances, stereos, and furniture are all considered specialty products.

Accepted Answer

A) True 
 B)False

Question 13

The part of the package that contains the presentation of information on a product is called a _____.

Accepted Answer

A)   brand
B)   trademark
C)   label
D)   Universal Product Code
E)   warranty statementF) A) and B)
G) B) and E)

Question 14

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 15

The breakeven quantity is the number of units that must be sold to equal the projected total revenue for the period.

Accepted Answer

A) True 
 B)False

Question 16

Martin always chooses Colgate toothpaste at his local drug store.However, when the store occasionally runs out of Colgate, he will purchase Crest or Mentadent.What level of brand loyalty does Martin have to Colgate?

Accepted Answer

A)   awareness
B)   insistence
C)   preference
D)   resistance
E)   partialityF) A) and C)
G) A) and E)

Question 17

The strategy of developing a large market share for a new product by setting a very low price is called penetration pricing.

Accepted Answer

A) True 
 B)False

Question 18

When a product experiences sales revenue and profit increases, reaches a peak, and then declines, it goes through what is called _____.

Accepted Answer

A)   cyclical phases
B)   roller coaster revenue
C)   product stages
D)   product growth and decline
E)   product life cycleF) C) and D)
G) All of the above

Question 19

The total amount received from the sales of a product is referred to as _____.

Accepted Answer

A)   total revenue
B)   the breakeven quantity
C)   variable sales
D)   market revenue
E)   marginal revenueF) A) and C)
G) A) and D)

Question 20

The part of a brand that can be spoken-letters, words, numbers, and/or pronounceable symbols-is called a _____.

Accepted Answer

A)   trademark
B)   brand mark
C)   brand name
D)   brand
E)   generic markF) C) and D)
G) None of the above

Exam 12: Creating and Pricing Products That Satisfy Customers

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

Correct AnswerverifiedShow Answer

Martin always chooses Colgate toothpaste at his local drug store.However, when the store occasionally runs out of Colgate, he will purchase Crest or Mentadent.What level of brand loyalty does Martin have to Colgate?

Correct AnswerverifiedShow Answer

A trademark is legally protected from use by anyone except its owner.

Correct AnswerverifiedShow Answer

Appliances, stereos, and furniture are all considered specialty products.

Correct AnswerverifiedShow Answer

Discounts from the list price offered to intermediaries are called ____ discounts.

Correct AnswerverifiedShow Answer

Competition-based pricing is

Correct AnswerverifiedShow Answer

The breakeven quantity is the number of units that must be sold to equal the projected total revenue for the period.

Correct AnswerverifiedShow Answer

The Arizona Jean Co.brand of jeans, owned by JCPenney, is a(n) ____ brand.

Correct AnswerverifiedShow Answer

If the manager at Best Buy puts a sign up next to a Pioneer stereo that reads, "Only $199.99! $58.01 less than Circuit City," this is an example of what type of pricing 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

Razor Company's blades are in the maturity stage of the product life cycle.How can the company strengthen its market share?

Correct AnswerverifiedShow Answer

The total amount received from the sales of a product is referred to as _____.

Correct AnswerverifiedShow Answer

The part of the package that contains the presentation of information on a product is called a _____.

Correct AnswerverifiedShow Answer

Brand names such as Tide, Surf, Biz, and Wisk are effective names because they

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a product experiences sales revenue and profit increases, reaches a peak, and then declines, it goes through what is called _____.

Correct AnswerverifiedShow Answer

If a customer has moderate loyalty toward Heinz ketchup, she likely will

Correct AnswerverifiedShow Answer

The part of a brand that can be spoken-letters, words, numbers, and/or pronounceable symbols-is called a _____.

Correct AnswerverifiedShow Answer

The strategy of developing a large market share for a new product by setting a very low price is called penetration pricing.

Correct AnswerverifiedShow Answer

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