Question 1

In ________,the seller doesn't set a firm price.Instead,buyers competitively propose the prices that they are willing to pay.

Accepted Answer

A)  cost-based pricing 
B)  value-based pricing 
C)  optimal pricing 
D)  auction pricing 
E)  freemium pricing 
A)  cost-based pricing 
B)  value-based pricing 
C)  optimal pricing 
D)  auction pricing 
E)  freemium pricing

Question 2

Choose a product that has been widely regarded as successful.Construct a product life cycle model for the product that you have selected.

Accepted Answer

Product life cycle refers to the four st

Question 3

Line stretching refers to ________.

Accepted Answer

A)  using the brand of existing products on products in a new category 
B)  adding items with price points above or below the current product line 
C)  creating variations of a current product 
D)  creating variations of an existing product 
E)  developing items to fill gaps in the market that have been overlooked by competitors 
A)  using the brand of existing products on products in a new category 
B)  adding items with price points above or below the current product line 
C)  creating variations of a current product 
D)  creating variations of an existing product 
E)  developing items to fill gaps in the market that have been overlooked by competitors

Question 4

Skim pricing refers to introducing a new product at a low price in hopes of building sales volume quickly.

Accepted Answer

A) True 
 B)False

Question 5

Providing education in return of fees is an example of a service.

Accepted Answer

A) True 
 B)False

Question 6

________ is a product development stage in which a product is sold on a limited basis to gauge its market appeal.

Accepted Answer

A)  Business analysis 
B)  Test marketing 
C)  Crowdsourcing 
D)  Prototyping 
E)  Commercialization 
A)  Business analysis 
B)  Test marketing 
C)  Crowdsourcing 
D)  Prototyping 
E)  Commercialization

Question 7

Describe how products are classified according to their intended use.

Accepted Answer

The following is a classification of pro

Question 8

________ refers to continually adjusting prices to reflect changes in supply and demand.

Accepted Answer

A)  Freemium pricing 
B)  Auction pricing 
C)  Optimal pricing 
D)  Dynamic pricing 
E)  Participative pricing 
A)  Freemium pricing 
B)  Auction pricing 
C)  Optimal pricing 
D)  Dynamic pricing 
E)  Participative pricing

Question 9

Optimal pricing is a computer-based pricing method.

Accepted Answer

A) True 
 B)False

Question 10

Explain the significance of labeling.

Accepted Answer

Labeling is an integral part of packagin

Question 11

Which of the following is a pricing method that allows customers to pay the amount they think a product is worth?

Accepted Answer

A)  cost-based pricing 
B)  participative pricing 
C)  penetration pricing 
D)  optimal pricing 
E)  value-based pricing 
A)  cost-based pricing 
B)  participative pricing 
C)  penetration pricing 
D)  optimal pricing 
E)  value-based pricing

Question 12

Rose Perfumes is a well-known perfume brand in Europe.The firm markets a large collection of perfumes.In order to expand its business,the firm decides to enter the U.S.market.The firm keeps its prices very low to capture the market rapidly.Identify the pricing strategy that the firm is using.

Accepted Answer

A)  cost-based pricing 
B)  value-based pricing 
C)  penetration pricing 
D)  freemium pricing 
E)  optimal pricing 
A)  cost-based pricing 
B)  value-based pricing 
C)  penetration pricing 
D)  freemium pricing 
E)  optimal pricing

Question 13

Which of the following is an example of a fixed cost that businesses have to incur?

Accepted Answer

A)  cost of raw materials 
B)  cost of supplies 
C)  shipping costs 
D)  sales commissions 
E)  cost of building plants 
A)  cost of raw materials 
B)  cost of supplies 
C)  shipping costs 
D)  sales commissions 
E)  cost of building plants

Question 14

Break-even analysis is a method of ________.

Accepted Answer

A)  calculating the minimum sales needed to cover all costs 
B)  classifying the variable costs incurred by a firm 
C)  classifying the fixed costs incurred by a firm 
D)  balancing the costs and risks of a business 
E)  estimating the fixed costs required to minimize the operational costs 
A)  calculating the minimum sales needed to cover all costs 
B)  classifying the variable costs incurred by a firm 
C)  classifying the fixed costs incurred by a firm 
D)  balancing the costs and risks of a business 
E)  estimating the fixed costs required to minimize the operational costs

Question 15

Creating variations of an existing product is referred to as line stretching.

Accepted Answer

A) True 
 B)False

Question 16

Prototypes are diagrammatic representations of a business model.

Accepted Answer

A) True 
 B)False

Question 17

Proctor and Gamble offers products under more than fifty brand names.The company's products vary from cosmetics to cat foods.A complete list of all these products that the company offers will refer to the company's ________.

Accepted Answer

A)  core product line 
B)  marketing mix 
C)  product mix 
D)  product line 
E)  co-branding list 
A)  core product line 
B)  marketing mix 
C)  product mix 
D)  product line 
E)  co-branding list

Question 18

________ refer to brands that have been given legal protection so that their owners have exclusive rights to their use.

Accepted Answer

A)  Brand equities 
B)  Prototypes 
C)  Licenses 
D)  Trademarks 
E)  Brand marks 
A)  Brand equities 
B)  Prototypes 
C)  Licenses 
D)  Trademarks 
E)  Brand marks

Question 19

A group of fifteen entrepreneurs starts a manufacturing firm.The total fixed costs that they have incurred in setting up the business amounts to $50000.The variable cost of selling a unit of product is $25.What is the break-even point if each unit is priced at $50?

Accepted Answer

A)  2000 
B)  500 
C)  333 
D)  666 
E)  1000 
A)  2000 
B)  500 
C)  333 
D)  666 
E)  1000

Question 20

A number of applications in the Android Market do not charge the customer for using the basic version of the application.However,the customers are charged if they want a version of the product with better features.This pricing strategy is referred to as ________ pricing.

Accepted Answer

A)  value-based 
B)  freemium 
C)  optimal 
D)  auction 
E)  penetration 
A)  value-based 
B)  freemium 
C)  optimal 
D)  auction 
E)  penetration

In ________,the seller doesn't set a firm price.Instead,buyers competitively propose the prices that they are willing to pay.

Choose a product that has been widely regarded as successful.Construct a product life cycle model for the product that you have selected.

Line stretching refers to ________.

Skim pricing refers to introducing a new product at a low price in hopes of building sales volume quickly.

Providing education in return of fees is an example of a service.

________ is a product development stage in which a product is sold on a limited basis to gauge its market appeal.

Describe how products are classified according to their intended use.

________ refers to continually adjusting prices to reflect changes in supply and demand.

Optimal pricing is a computer-based pricing method.

Explain the significance of labeling.

Which of the following is a pricing method that allows customers to pay the amount they think a product is worth?

Rose Perfumes is a well-known perfume brand in Europe.The firm markets a large collection of perfumes.In order to expand its business,the firm decides to enter the U.S.market.The firm keeps its prices very low to capture the market rapidly.Identify the pricing strategy that the firm is using.

Which of the following is an example of a fixed cost that businesses have to incur?

Break-even analysis is a method of ________.

Creating variations of an existing product is referred to as line stretching.

Prototypes are diagrammatic representations of a business model.

Proctor and Gamble offers products under more than fifty brand names.The company's products vary from cosmetics to cat foods.A complete list of all these products that the company offers will refer to the company's ________.

________ refer to brands that have been given legal protection so that their owners have exclusive rights to their use.

A group of fifteen entrepreneurs starts a manufacturing firm.The total fixed costs that they have incurred in setting up the business amounts to $50000.The variable cost of selling a unit of product is $25.What is the break-even point if each unit is priced at $50?

A number of applications in the Android Market do not charge the customer for using the basic version of the application.However,the customers are charged if they want a version of the product with better features.This pricing strategy is referred to as ________ pricing.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 14: Product and Pricing Strategies

In ________,the seller doesn't set a firm price.Instead,buyers competitively propose the prices that they are willing to pay.

Choose a product that has been widely regarded as successful.Construct a product life cycle model for the product that you have selected.

Line stretching refers to ________.

Skim pricing refers to introducing a new product at a low price in hopes of building sales volume quickly.

Providing education in return of fees is an example of a service.

________ is a product development stage in which a product is sold on a limited basis to gauge its market appeal.

Describe how products are classified according to their intended use.

________ refers to continually adjusting prices to reflect changes in supply and demand.

Optimal pricing is a computer-based pricing method.

Explain the significance of labeling.

Which of the following is a pricing method that allows customers to pay the amount they think a product is worth?

Rose Perfumes is a well-known perfume brand in Europe.The firm markets a large collection of perfumes.In order to expand its business,the firm decides to enter the U.S.market.The firm keeps its prices very low to capture the market rapidly.Identify the pricing strategy that the firm is using.

Which of the following is an example of a fixed cost that businesses have to incur?

Break-even analysis is a method of ________.

Creating variations of an existing product is referred to as line stretching.

Prototypes are diagrammatic representations of a business model.

Proctor and Gamble offers products under more than fifty brand names.The company's products vary from cosmetics to cat foods.A complete list of all these products that the company offers will refer to the company's ________.

________ refer to brands that have been given legal protection so that their owners have exclusive rights to their use.

A group of fifteen entrepreneurs starts a manufacturing firm.The total fixed costs that they have incurred in setting up the business amounts to $50000.The variable cost of selling a unit of product is $25.What is the break-even point if each unit is priced at $50?

A number of applications in the Android Market do not charge the customer for using the basic version of the application.However,the customers are charged if they want a version of the product with better features.This pricing strategy is referred to as ________ pricing.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters