Question 1

The package design,shape,color,and texture all influence buyers' perceptions,but do not influence buying behavior.

Accepted Answer

A) True 
 B)False

Question 2

A bag of snack food is bright and colorful and says,"Fritos." This is an example of a(n)________ brand.

Accepted Answer

A)  family 
B)  manufacturer's 
C)  individual 
D)  co-brand 
E)  private 
A)  family 
B)  manufacturer's 
C)  individual 
D)  co-brand 
E)  private

Question 3

Farmers selling agricultural commodities operate in very competitive market and have little to no control over their prices.Such sellers are price- ________.

Accepted Answer

A)  setters 
B)  takers 
C)  makers 
D)  strategizers 
E)  skimmers 
A)  setters 
B)  takers 
C)  makers 
D)  strategizers 
E)  skimmers

Question 4

If a company sets its price to increase its percentage of total industry sales,the company is using the pricing objective of maximizing profits.

Accepted Answer

A) True 
 B)False

Question 5

Give an example of a company following the pricing objective of maximizing profits.

Accepted Answer

Student answers will vary.The

Question 6

Business-to-business (B2B)products are goods and services purchased by households for personal consumption.

Accepted Answer

A) True 
 B)False

Question 7

A manufacturer produces 200 units of a product at a total cost of $1,000.If the manufacturer wants to make a markup of 10 percent,the price per unit would be ________.

Accepted Answer

A)  $6.00 
B)  $5.50 
C)  $5.00 
D)  $4.50 
E)  $0.50 
A)  $6.00 
B)  $5.50 
C)  $5.00 
D)  $4.50 
E)  $0.50

Question 8

A brand can be any of the following EXCEPT a ________.

Accepted Answer

A)  name 
B)  term 
C)  symbol 
D)  price 
E)  design 
A)  name 
B)  term 
C)  symbol 
D)  price 
E)  design

Question 9

When companies respond to complaints that packaging is excessive and wasteful,which purpose of packaging is being considered?

Accepted Answer

A)  to contain and protect the product 
B)  to be environmentally friendly 
C)  to facilitate use and convenience 
D)  to promote the product 
E)  to provide portion control 
A)  to contain and protect the product 
B)  to be environmentally friendly 
C)  to facilitate use and convenience 
D)  to promote the product 
E)  to provide portion control

Question 10

An advertising campaign that attempts to sell a product to a new subgroup of the existing market is an example of ________.

Accepted Answer

A)  creating a new use 
B)  repackaging 
C)  creating a new vision 
D)  lowering the price 
E)  finding a new market 
A)  creating a new use 
B)  repackaging 
C)  creating a new vision 
D)  lowering the price 
E)  finding a new market

Question 11

A bag of snack food says,"Walmart's Corn Chips." This is an example of a(n)________ brand.

Accepted Answer

A)  generic 
B)  individual 
C)  family 
D)  private 
E)  manufacturer's 
A)  generic 
B)  individual 
C)  family 
D)  private 
E)  manufacturer's

Question 12

Salespeople bringing suggestions for a new fast food item to the headquarters of their food manufacturer is an example of ________.

Accepted Answer

A)  product analysis 
B)  commercialization 
C)  idea generation 
D)  idea screening 
E)  concept testing 
A)  product analysis 
B)  commercialization 
C)  idea generation 
D)  idea screening 
E)  concept testing

Question 13

How does a company benefit from product differentiation?

Accepted Answer

Product differentiation is critical for

Question 14

Give an example of a company following the pricing objective of building traffic.

Accepted Answer

Student answers will vary.Many retail st

Question 15

What is penetration pricing? Give an example.

Accepted Answer

Student answers will vary.Penetration pr

Question 16

Describe a product that is sold in both consumer and B2B markets.

Accepted Answer

Student answers will vary.The

Question 17

Give an example of a company that uses the pricing strategy of bundling.

Accepted Answer

Student answers will vary.In bundling,tw

Question 18

An e-commerce website gives frequent shoppers a deduction from its regular prices.This is an example of ________.

Accepted Answer

A)  bundling 
B)  rebates 
C)  dynamic pricing 
D)  discounts 
E)  psychological pricing 
A)  bundling 
B)  rebates 
C)  dynamic pricing 
D)  discounts 
E)  psychological pricing

Question 19

Rebates are partial refunds on what a customer has already paid for a product.

Accepted Answer

A) True 
 B)False

Question 20

A ________ prevents a brand from becoming generic and public property.

Accepted Answer

A)  brand extension 
B)  private brand 
C)  trademark 
D)  license 
E)  knockoff 
A)  brand extension 
B)  private brand 
C)  trademark 
D)  license 
E)  knockoff

Exam 13: Product Development and Pricing Strategies

The package design,shape,color,and texture all influence buyers' perceptions,but do not influence buying behavior.

A bag of snack food is bright and colorful and says,"Fritos." This is an example of a(n)________ brand.

Farmers selling agricultural commodities operate in very competitive market and have little to no control over their prices.Such sellers are price- ________.

If a company sets its price to increase its percentage of total industry sales,the company is using the pricing objective of maximizing profits.

Give an example of a company following the pricing objective of maximizing profits.

Business-to-business (B2B)products are goods and services purchased by households for personal consumption.

A manufacturer produces 200 units of a product at a total cost of $1,000.If the manufacturer wants to make a markup of 10 percent,the price per unit would be ________.

A brand can be any of the following EXCEPT a ________.

When companies respond to complaints that packaging is excessive and wasteful,which purpose of packaging is being considered?

An advertising campaign that attempts to sell a product to a new subgroup of the existing market is an example of ________.

A bag of snack food says,"Walmart's Corn Chips." This is an example of a(n)________ brand.

Salespeople bringing suggestions for a new fast food item to the headquarters of their food manufacturer is an example of ________.

How does a company benefit from product differentiation?

Give an example of a company following the pricing objective of building traffic.

What is penetration pricing? Give an example.

Describe a product that is sold in both consumer and B2B markets.

Give an example of a company that uses the pricing strategy of bundling.

An e-commerce website gives frequent shoppers a deduction from its regular prices.This is an example of ________.

Rebates are partial refunds on what a customer has already paid for a product.

A ________ prevents a brand from becoming generic and public property.

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