ETR401 - Chapter 9
C
70. The practice of setting (usually) three price points: good, better and best quality refers to which of the following? A. Captive pricing B. Partitioned pricing C. Price lining D. Breakeven point pricing
C
71. Identify the term for an attempt to appeal to several different markets. A. Prestige pricing B. Captive pricing C. Price lining D. Random discounting
D
72. _____ discounting refers to sales that happen on some regular cycle. A. Off-peak B. Bundling C. Random D. Periodic
A
73. A back-to-school sale is an example of A. periodic discounting. B. random discounting. C. price skimming. D. off-peak pricing.
B
74. Senior citizens' discounts are an example of A. limit pricing. B. price discrimination. C. penetration pricing. D. price signaling.
C
75. At or near industry average price is called A. captive pricing. B. bait pricing. C. the going rate. D. price signaling.
B
76. Selling a name brand at or near cost in order to attract traffic to a retailer is termed A. bait pricing. B. loss leaders. C. price signaling. D. customary pricing.
D
77. What is an extremely low penetration price that discourages competitors from entering a market called? A. Everyday low price B. Going rate C. Price signaling D. Limit pricing
A
78. The term for charging the absolute highest possible price due to inelastic demand is A. price skimming. B. premium pricing. C. professional pricing. D. penetration pricing.
C
79. Advertising an inexpensive product and placing it near better, more expensive models is called A. reference pricing. B. captive pricing. C. bait pricing. D. limit pricing.
B
80. "Buy one large pizza and get a regular one free," offer to long-time customers is an example of A. partitioned pricing. B. loyalty programs. C. referral discounts. D. coupons.
A
81. Charging lower prices at certain times to encourage customers to come during slack periods refers to A. off-peak pricing. B. bundling. C. random discounting. D. partitioned pricing.
C
82. Rebates are a great tool for small businesses because A. the redemption rate is extremely high. B. they create loyalty programs. C. the redemption rate is extremely low. D. they generate referral businesses.
C
83. Identify the term used for combining two or more products in one unit and pricing it less than if the units were sold separately. A. Factoring B. Coupons C. Bundling D. Loyalty programs
A
84. What is the term used for combining more than one unit of the same product and pricing it lower than if each unit were sold separately? A. Multiple packs B. Coupons C. Factoring D. Loyalty programs
D
85. These are especially good for getting customers to return to your business. A. Multiple packs B. Coupons C. Bundling D. Loyalty programs
B
86. Which of the following are discounts given to customers who introduce friends to the business? A. Coupons B. Referral discounts C. Periodic discounts D. Rebates
C
87. Having generated several toy ideas, the next step Tammy needs to pursue in the new product development process is A. product development. B. idea evaluation. C. idea screening. D. commercialization.
D
88. The first versions of the toy products that Tammy develops in the formal development are called A. hybrids. B. test markets. C. total products. D. prototypes.
A
89. Once Tammy has introduced her toys in the market, during which stage of the product life cycle would the acceptance of her products increase and sales and profits grow faster than at any other time? A. Growth B. Maturity C. Introduction D. Decline
A
90. If Tammy were to charge the highest price the market would bear, it would be called A. skimming. B. return pricing. C. psychological pricing. D. partitioned pricing.
B
69. Which of the following refers to setting the price for an item relatively low and then charging much higher prices for the expendables it uses? A. Prestige pricing B. Captive pricing C. Partitioned pricing D. Odd-even pricing
D
21. A product can include all of the following EXCEPT A. goods. B. ideas. C. people. D. price.
A
22. An item's capability of being touched, seen, tasted, or felt is called A. tangibility. B. inseparability. C. heterogeneity. D. perishability.
B
23. Goods are _____, while services are _____. A. heterogeneous; homogeneous B. tangible; intangible C. inseparable; separable D. perishable; not perishable
D
24. Leasing a car is an example of a A. service-dominated product. B. good-dominated product. C. pure service. D. hybrid good and service combination.
B
25. Which of the following is INCORRECT about services? A. Services are inseparable from consumption B. Services are tangible C. Services are heterogeneous D. Services are perishable
C
26. A quality of a service in which the service being done cannot be disconnected from the provider of the service is called A. perishability. B. tangibility. C. inseparability. D. heterogeneity.
D
27. A quality of a service in which each time it is provided it will be slightly different from the previous time refers to A. perishability. B. tangibility. C. inseparability. D. heterogeneity.
A
28. If a service is not used when offered, it cannot be saved for a later use, thereby describing its A. perishability. B. tangibility. C. inseparability. D. heterogeneity.
A
29. Which of the following includes the entire bundle of products and services that you offer? A. Total product B. Augmented product C. Hybrid product D. Core product
D
30. The very basic description of what a product is refers to A. the total product. B. an augmented product. C. the hybrid product. D. the core product.
C
31. Identify the product that has features which differentiate it from the competition but is still closely related to the core product. A. Total product B. Core product C. Augmented product D. Me-too product
B
32. The group of people on which a marketer focuses promotion and sales efforts is called a A. me-too group. B. target market. C. maturity group. D. breakeven market.
C
33. Which of the following is NOT the best option when naming your company? A. Catchy name B. Easy to spell and pronounce C. Same as your product name or your name D. Descriptive of your business
D
34. Which of the following is the first stage of the new product development process? A. Idea screening B. Commercialization C. Idea evaluation D. Idea generation
D
35. Products essentially similar to something already on the market are called A. parallel competition products. B. prototypes. C. test market products. D. me-too products.
A
36. In the new product development process, what stage comes after idea generation? A. Idea screening B. Commercialization C. Idea evaluation D. Product development
B
37. Idea screening A. is the process of specifying the details of each idea's technological feasibility, its cost, how it can be marketed, and its market potential. B. is the process of selecting the most promising ideas to be further evaluated for feasibility. C. involves the first versions of products called prototypes which are used in further consumer testing. D. is the process of making the new product available to consumers.
C
38. This is an exhaustive process of specifying the details of each idea's technological feasibility, its cost, how it can be marketed, and its market potential. A. Idea screening B. Product development C. Idea evaluation D. Commercialization
B
39. The first versions of products in formal development are called A. test markets. B. prototypes. C. total products. D. hybrid products.
D
40. Which of the following statements about prototypes is true? A. If you are not in business, or if you are in a very different business, prototyping is not very difficult. B. If a rapid prototyping model can be developed, the molds for manufacturing can be made, but expensively, by modern manufacturers. C. Test marketing involves selling the prototype in a simulated market environment only. D. The Internet makes it easier to find companies willing to bid on and build prototypes.
C
41. Which of the following statements about prototypes is false? A. Once the prototype is developed and tested, the product is ready for test marketing. B. Small businesses, for financial reasons, primarily choose smaller local markets and conduct fewer tests than their larger counterparts. C. Standard test marketing introduces the product and the marketing strategy in the simulated environment. D. If you are not in business or are in a very different business, test marketing services are very difficult.
C
42. Which of the following is the final stage of the new product development process? A. Idea screening B. Feasibility study C. Commercialization D. Product development
A
43. _____ is the process of making the new product available to consumers. A. Commercialization B. Test marketing C. Breakeven D. Pricing psychology
A
44. Standard product life cycle has four stages: A. introduction, growth, maturity, and decline. B. core, growth, total, and decline. C. introduction, core, merge, and decline. D. introduction, growth, merge, and decline.
B
45. Which of the following statements about the introduction stage of the product life cycle is true? A. The risks from competition in the introduction stage are generally high. B. From a marketing standpoint, the more innovative the product, the slower the sales. C. The best sales method is to focus on the absolute advantage your product has over the competition. D. All products survive the introduction phase of the product life cycle.
C
46. During the _____ stage of product life cycle, acceptance of the product increases rapidly and sales and profits grow at higher rates than at any other part of the product life cycle. A. maturity B. introduction C. growth D. decline
B
47. Identify the incorrect statement about the growth stage of the product life cycle. A. Prices tend to drop as production becomes more efficient and competition increases. B. During this stage, advertising and promotion are much more critical than in the introduction stage. C. From a marketing standpoint, consumers are aware of your product and know how it will make their lives better. D. This stage is when you try to get into all the markets you can nationally or internationally.
A
48. What is the challenge a small business faces in the maturity stage? A. Keeping sales and profits at a fairly high level. B. Educating customers about your product. C. Keeping up with production and ensuring good distribution. D. Convincing intermediaries about why your product is preferable.
C
49. Which of the following statements about the maturity phase of the product life cycle is false? A. Manufacturers find ways to cut costs to keep market share. B. Since there are few new users for the product, most gains in market share are made by stealing customers from competitors. C. A product can stay in the maturity stage for only a short period of time. D. As weaker competitors start to leave the market, you will have opportunities to take their "leftover" customers.
D
50. At which stage of the product life cycle do promotions such as coupons, rebates, and multipacks become an important marketing tool? A. Growth B. Decline C. Introduction D. Maturity
B
51. Identify the correct statement about the decline phase of the product life cycle. A. Advertising and promotion expenses are usually nearly ratified at this point. B. Many products go into decline, only to be resurrected in the future as styles come back to old standards. C. Companies upgrade their product lines in order to cut costs. D. Companies market to less profitable segments to squeeze as much profit out of the final stage as possible.
D
52. All of the following influence the prices you set for your products EXCEPT A. costs. B. customer. C. competition. D. employees.
A
53. Of all the marketing variables available, which is the easiest to change? A. Price B. Product C. Promotion D. Placement
B
54. The optimum price is primarily a function of all of the following EXCEPT A. demand for the product or service. B. value delivered by the customer. C. prices set by competing firms. D. your business strategy and product placement.
C
55. _____ is the amount of profit, usually stated as a percentage of the total price. A. Elasticity B. Breakeven C. Margin D. Markup
A
56. _____ products have lots of substitutes or are not necessities. A. Elastic B. Hybrid C. Inelastic D. Augmented
A
57. Which of the following is an example of an elastic product? A. Candy bar B. Antibiotics C. Heating oil D. Drinking water
C
58. Which of the following is an example of an inelastic product? A. Luxury goods B. Hamburgers C. Gasoline D. Coffee
D
59. A product for which there are few substitutes and for which a change in price makes very little difference in quantity purchased is called a(n) A. hybrid product. B. total product. C. elastic product. D. inelastic product.
B
60. A consumer's mental image of what a product price should be refers to A. breakeven price. B. internal reference price. C. fixed cost price. D. external reference price.
D
61. _____ prices may come from looking at the competitive ads, researching the Internet, visiting several stores, or asking friends. A. Breakeven B. Internal reference C. Fixed cost D. External reference
B
62. Consumers' internal reference price may be based on A. looking at competitive ads. B. their understanding of how much it would cost to make it. C. researching on the Internet. D. visiting several stores.
C
63. Increasing market share A. usually means pricing toward the high end of the competition in order to take market share from the competition. B. becomes more popular as a product reaches the decline phase of the product life cycle. C. should not be an objective for a small business. D. is a much better option for the small firm than maximizing profits.
B
64. _____ is the end price to your customer that might be four times from what you got. A. Skimming B. Price escalation C. Premium pricing D. Partitioned pricing
A
65. _____ is charging the highest price the market will bear. A. Skimming B. Psychological price C. Breakeven D. Return pricing
C
66. What pricing is used for non-status symbol types of products? A. Prestige pricing B. Odd-even pricing C. Premium pricing D. Captive pricing
B
67. Generally, _____ pricing is for an item considered a status symbol, whereas, _____ pricing is used for non-status symbol types of products. A. skimming; total B. prestige; premium C. return; skimming D. premium; prestige
C
68. _____ pricing refers to setting the price for a base item and then charging extra for each additional component. A. Captive B. Prestige C. Partitioned D. Premium