Chapter 12 Introduction to Business Test Review

____ competition is competition based on factors such as product quality, promotion, customer service, and packaging.

Non-price

For a product such as staples, which of the following determines whether it is a consumer product or a business product?

Use of the product

Hallmark cards develops a new line of cards that have a total cost of $200,000 and a price of $3 each. If it sells 20,000 cards the first month, what is its total revenue?

$60,000

William Clark wants to know his breakeven point. His selling price is $20 per unit, his fixed costs are $6,000, and the variable costs per unit are $6. What is his breakeven quantity?

428.6 units

A wrench used to make adjustments to machinery that produces copper wire is classified as

Accessory equipment

Why should companies develop and introduce new products?

Because failing to do so can threaten the future success of the firm

GE, Kellogg's, Mercedes, and Dell are all examples of

Brands

Car Tunes, a national car stereo retailer, markets stereos and speakers. The company will soon sell car alarms and cellular phones to ____ its product mix.

Broaden

A product usually declines because of technological advances or environmental factors or because

Consumers have switched to competing brands

Discounts offered to encourage early payment of outstanding accounts are called ____ discounts.

Cash

Paper, pencils, oils, and ____ are examples of supplies.

Cleaning agents

Which business product classification is most appropriate for the wire used inside a stereo system?

Component part

The Glo-Brite Company is considering development of a new children's toothpaste in fun-shaped dispensers. Before performing any business analysis on the product, Glo-Brite would like an initial response from potential customers to determine interest in a toothpaste of this type. Glo-Brite will begin ____ to gather the information.

Concept testing

Delta Airlines prices its tickets so that it is less expensive to travel between midnight and 5:00 a.m. than during the day, when there is heavy business travel. This illustrates ____ pricing.

Demand-based

To promote an overall company image, Borden dairy products are packaged in similar designs and colors. This approach is known as

Family packaging

Which of the following is considered a trade name?

General Motors Corp

Buyers may relate price to quality. To such a buyer, a higher price for a product is an indicator of

Higher quality

TCBY wants to expand its line of food products. The company sent surveys to consumers to determine which food items would appeal to them for dessert or snacks. The company is in which phase of new product development?

Idea generation

The stage in the evolution of a new product in which a pool of ideas is created is called

Idea generation

When Pepsi introduced Mountain Dew Code Red, it was

Increasing the depth of a product mix

Entirely new products are called

Innovations

The part of the package that contains the presentation of information on a product is called a

Label

The presentation of information on a product or its package is known as

Labeling

Mama Mia restaurant purchased two large ovens for its kitchen. These ovens are an example of which type of business product?

Major equipment

If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on

Market share

Arm & Hammer launches a campaign to extend the life of its baking soda products through improved packaging and new uses in products such as toothpaste and cat litter. These new uses of products and other modifications are generally created during the ____ phase of the product life-cycle.

Maturity

WD-40, Inc. markets only one product, its namesake chemical lubricant. The company offers the product in several different container sizes: smaller ones for household use, and larger ones for industrial use. WD-40 would be considered as having a

Narrow product mix

Lisa goes to a car dealership to purchase a new Honda Accord. She is not willing to pay the listed sticker price for the car, and she instead works with the salesperson and manager until a mutually satisfactory price is agreed upon. This is an example of ____ pricing.

Negotiated

A trademark is registered with the

Patent and Trademark Office

Product ideas are transformed into prototypes during which stage of the product development process?

Product development

Rose is starting to notice some wrinkles around her eyes and mouth. She has decided to purchase some age-defying wrinkle cream but is unfamiliar with available brands. At the store, she picks out a brand because she remembers a clever advertisement about it on television. What level of brand loyalty does this describe?

Recognition

Carmen Cattucci wanted to buy a new car. She visited several dealers to compare prices, styles, and dealer reputations. Finally, she bought a car from a local dealer. The purchase of a car is an example of a

Shopping product

Consumer products can be divided into the following three categories:

Shopping, convenience, and specialty

At a busy intersection in Atlanta, there are four competing gas stations. Each of the stations charges about the same for each gallon of gasoline. The pricing objectives of these firms is

Status-quo pricing

The total amount received from the sales of a product is referred to as

Total revenue

A discount from the list, or retail, price offered to intermediaries is a(n) ____ discount.

Trade

A symbol or word that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by anyone but its owner is a

Trademark

Raw materials are an example of a firm's ____ costs.

Variable

Price differentiation is

a form of demand-based pricing

The number of units that must be sold for the total revenue to equal the total cost is called the ____ quantity.

breakeven