Chapter 12

Noxzema, Prudential, and Minute Maid would be examples of which kind of brand name?

a. licensed WRONG b. private WRONG c. national

Which of the following gives the correct formula for calculating markup percentage?

a. sales price/markup WRONG b. sales price/fixed costs WRONG d. markup/sales price e. sales price/variable costs WRONG

Which of the following strategies is involved with penetration pricing?

a. setting an initial low price to establish a new product in the market

Companies that price their product low enough to attract a large number of buyers are MOST likely pursuing which of the following objectives?

a. stable market pricing WRONG c. stable market activity WRONG d. low market volatility WRONG e. high market share

What type of brands are Sears Craftsman tools and Kenmore appliances examples of?

b. licensed WRONG c. private

During the product life cycle, when do sales begin to slow down while profit levels are high?

b. maturity

Which of the following pricing strategies has stimulation of sales as a higher priority than maximization of profits?

b. penetration pricing

When a wholesaler or retailer develops a brand name and has the manufacturer place that name on the product, what is that product name called?

b. private brand

Odd-even pricing falls under the category of which of the following?

b. psychological pricing

Which of the following costs refers specifically to those that change with the quantity of a product sold or produced?

b. variable costs

Which of the following costs refers specifically to those that are unaffected by the quantity of a product sold or produced?

b. variable costs WRONG c. fixed costs

From the choices below, pick the BEST definition of the term fixed costs.

c. costs that are unaffected by the number of goods sold by the firm d. costs that remain the same from year to year WRONG

In which of the following ways is product development different for services than for physical goods?

c. instead of creating a protype, the company develops a service process design

A highly successful bakery specializes in making cherry tarts. Which of the following costs at the bakery is NOT variable?

d. cost of the oven e. cost of heating the oven WRONG

During the product life cycle, when do sales begin to climb and the product begin to show profit?

d. growth

A firm makes bookcases, bicycles, soft drinks, armored cars, and novelty dishes. What do these items make up?

d. product mix

What is selling the rights to place a brand name on products such as t-shirts referred to as?

e. licensed branding

The sales price of a product is given as the product's cost to the seller plus which of the following quantities?

e. markup

Which of the following terms refers to the monetary amount added to a product's cost to the seller in order to sell it at a target profit?

e. markup

Which of the following strategies is involved with price skimming?

e. setting an initial high price to cover new product costs and still generate a profit