Question 1

Novice Telecom is a manufacturer of cell phones.The company is planning to launch a new model of smart phone and the pre-launch marketing has created much hype in the market.In order to cash in on the hype,the company charges a high price during the initial stages of the product's launch.Identify the pricing strategy this company is using.

Accepted Answer

A)   optimal pricing
B)   skim pricing
C)   penetration pricing
D)   auction pricing
E)   freemium pricing B

Question 2

Explain the significance of labeling.

Accepted Answer

Labeling is an integral part of packaging.Whether the label is a separate element attached to the package or a printed part of the container,it serves to identify a brand and communicate multiple types of information,from promotional messages to legally required safety or nutritional data.The labeling of foods,drugs,cosmetics,and many health products is regulated under various federal laws,which often require disclosures about potential dangers,benefits,and other issues consumers need to consider when making a buying decision.

Question 3

Participative pricing allows customers to pay the amount they think a product is worth.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following statements is true of a brand extension strategy?

Accepted Answer

A)   Brand extension cuts the costs and risks of introducing new products.
B)   It is used by firms that have a weak brand name.
C)   It is a strategy used by start-up firms.
D)   It refers to developing items to fill gaps in the market.
E)   Brand extension refers to creating variations of a product.

Question 5

Target customers are familiar with a brand and are likely to consider buying it.This brand has high brand preference.

Accepted Answer

A) True 
 B)False

Question 6

Five college graduates decide to open a laundry service company.They import six commercial washing machines from Italy to set up a factory.In this case the commercial washing machines are best referred to as a(n)________.

Accepted Answer

A)   capital item
B)   shopping product
C)   expense item
D)   convenience product
E)   specialty product

Question 7

Explain how a business analysis is carried out.

Accepted Answer

The answer of Explain how a business analysis is carried...

Question 8

A product is called a good if ________.

Accepted Answer

A)   its price is below the market standards
B)   it is predominantly tangible
C)   it has been standardized
D)   it is sold directly to the end consumers
E)   its price is above the market standards

Question 9

________ are everyday individual goods and services that people buy frequently without much conscious planning.

Accepted Answer

A)   Convenience products
B)   Shopping products
C)   Expense items
D)   Capital items
E)   Specialty products

Question 10

________ 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

Question 11

Expense items are ________.

Accepted Answer

A)   fairly important goods and services that people buy less frequently
B)   everyday goods and services that individuals buy
C)   inexpensive products that organizations generally use
D)   expensive organizational products with a longer useful life
E)   particular brands that the buyer especially wants and will seek out

Question 12

The introductory stage will be followed by a ________ stage for a successful product.

Accepted Answer

A)   maturity
B)   research
C)   saturation
D)   growth
E)   infiltration

Question 13

MaCton is a Chinese manufacturer of personal computers.The company decides to extend its product line by adding two premium products that are priced much more than the existing products.Identify the product-line expansion method that the company is using.

Accepted Answer

A)   Brand extension
B)   Line filling
C)   Line extension
D)   Brand filling
E)   Line stretching

Question 14

Which of the following refers to a graphical representation of a brand?

Accepted Answer

A)   brand equity
B)   brand name
C)   trademark
D)   logo
E)   prototype

Question 15

Research and development is carried out usually during the ________ stage of product development.

Accepted Answer

A)   maturity
B)   introduction
C)   growth
D)   saturation
E)   intensification

Question 16

Cost-based pricing ________.

Accepted Answer

A)   uses a software to generate the ideal price for each item
B)   introduces a new product at a very low price
C)   is based on customer perceptions of cost
D)   doesn't consider factors such as customer demand
E)   uses a high price for a new product during the introductory stages

Question 17

Jennifer buys such items as bread,flour,and beverages every week from nearby shops.These items are examples of a(n)________.

Accepted Answer

A)   shopping product
B)   expense item
C)   capital item
D)   specialty product
E)   convenience product

Question 18

________ refers to developing items to fill gaps in the market that have been overlooked by competitors or have emerged as consumer tastes and needs shift.

Accepted Answer

A)   Brand extension
B)   Line filling
C)   Brand stretching
D)   Line extension
E)   Line stretching

Question 19

Crowdsourcing is a technique that companies use to generate new product ideas.

Accepted Answer