ag marketing quiz 2
suggestive of benefits and qualities
Lean Cuisine, Beautyrest
the _________________ requires sellers to provide detailed nutritional information on food products.
Nutritional Labeling and Educational Act of 1990
distinctive
Panera, Swiffer
which of the following companies uses captive product pricing
Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries
easy to pronounce and recognize
Twitter, iPad
_____________ involves the use of a successful brand name for new or modified products in a new category
a line extension
brand
a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products
shopping product
a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores (appliances, TV, furniture, clothing)
unsought product
a product unknown to the potential buyer or a known product that the buyer does not actively seek. aggressive advertising (life insurance, red cross blood donations)
market skimming pricing
a strategy with HIGH initial prices to "skim" revenue layers from the market
multibrand development
a way to appeal to different customer segments
__________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items
high-low
which of the following stages of the product life cycle is characterized with high promotional expenditures that result from an effort to create consumer awareness
introduction
high low pricing
involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items
line extension
low-cost, low-risk way to introduce new products
Which new product pricing strategy would you use if your market is price-sensitive and your production costs fall dramatically with increased output?
market penetration pricing
which new product pricing strategy would you use if your competitors will be slow to enter and/or you have great image and quality product
market skimming pricing
firm level
market value - book value
captive product pricing
sets prices of products that must be used along with the main product (fixed fee + variable usage rate)
market penetration pricing
setting a LOW price for a new product in order to attract a large number of buyers and a large market share
by-product pricing
setting a price for by-products to make the main product's price more competitive
customer value based pricing
setting price based on buyers' perceptions of value rather than on the seller's cost
breakeven pricing (target return pricing)
setting price to break even on the costs of making and marketing a product, or setting price to make a target return
competition based pricing
setting prices based on competitors' strategies, prices, costs, and market offerings
cost based pricing
setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk
product line pricing
setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices
maturity stage
stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them
introduction stage
stage of the product life cycle when innovators start buying the product
decline stage
stage of the product life cycle when sales decline and the product eventually exits the market
the strongest brands are positioned on
strong beliefs and values
speciality product
strong brand preference/loyalty, high effort, little brand comparison, high price (rolex, luxury goods)
optional product pricing
takes into account optional or accessory products along with the main product
promotional pricing
temporarily reducing prices to spur short-run sales
growth stage
the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy
brand value
the total financial value of a brand
When amusement parks charge customers for admission and later for food and beverages, they are following a ________ pricing strategy.
two-part
______________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying
unsought products
A good brand name should most likely be ________.
distinctive
If an international court can establish that the defendant country sold its products in the plaintiff's country at prices lower than the defendant's cost of production, this is usually ruled as evidence of
dumping
extendable
Amazon
cost plus pricing
adding a standard markup to the cost of the product
What did I suggest could generate this shape for a product's life cycle?
adding new features
dynamic pricing
adjusting prices continually to meet the characteristics and needs of individual customers and situations
international pricing
adjusting prices for international markets
psychological pricing
adjusting prices for psychological effect
geographical pricing
adjusting prices to account for the geographic location of customers
segmented pricing
adjusting prices to allow for differences in customers, products, or locations
which is one of the conditions required for price discrimination
all of the above (market power, extra revenue from segmentation, different demand elasticity, no resale)
style is ________
appearance
a restaurant wants to use value based pricing. it knows the costs of the ingredients in the food. it must also factor in _________________ in determining customer satisfaction and value
atmosphere and decor
value added pricing
attaching value-added features and services to differentiate a company's offers and charging higher prices, but run frequent promotions/discounts
________________ occurs when two established brand names of different companies are used on the same product
co-branding
Coors has several assets going for it that should prepare it in the high-stakes, highly competitive beer industry of the future. It has strong customer loyalty, high awareness, high perceived quality, and credibility. All these factors are combined in the last phrase of veteran industry analyst Robert S. Weinberg's comment: "The brand is strong, the beer is good and they have their own traditions. They have phenomenal ________."
brand equity
which of the following product mix strategies did polaroid use when it set the general price range of its cameras low and the markup on its film high
captive product pricing
a cooperative oligopoly (such as OPEC) is sometimes called a
cartel
everyday low pricing (EDLP)
charging a constant everyday low price with few or no temporary price discounts
product bundle pricing
combining several products and offering the bundle at a reduced price
two factors are associated with the attribute of "quality" in a product. The first is level of quality (or costliness) and the other is?
consistency
As a general pricing approach, value-based pricing uses buyers' perceptions of value rather than sellers' ___________ as the key to pricing.
cost
brand extension
create immediate new product acceptance at lower development costs
which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?
crowdsourcing
customer level
estimates willingness to pay
convenience product
frequent purchase, little planning and buying effort, low price (toothpaste, laundry detergent)
which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?
growth
Consumers are less likely to use price to judge the quality of a product when they ________.
have experience with the product
New Brand Development
may spread it's resources too thin
Because of ________, a company cannot make its product illegally similar to a competitor's already established product.
patent laws
design is ______
performance
product attributes include all of the following except
price
Noticing that themed envelopes aren't selling well, Charles Payton decides to offer customers a special "letter writing" kit. He prices the kit—which comprises letter paper, matching envelopes, and pens—at $5, even though the combined prices of the individual items is $8. Which of the following pricing strategies is he using?
product bundle pricing
which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and cometitors' prices?
product line pricing
industrial products
products purchased for further processing or for use in conducting a business: materials/parts, capital items, supplies
the packaging concept
protection, dispensing, storage, image, environmental concerns
product attributes
quality (performance and consistency), features, style and design
Discount and allowance pricing
reducing prices to reward customer responses such as paying early or promoting the product
Wal-Mart seems to have discovered that big, heavy apples bring in more revenue when they are sold for prices that look reasonable by the pound. This psychological pricing factor is defined as: "Prices that buyers carry in their minds and refer to when they look at a given product." What is this factor called?
reference prices