Chapter 15 - Product and Pricing Strategies

The process of progressing an initial idea from birth to maturation can best be classified as:

Idea genesis

The biggest waste of effort and money in new product development is:

Screening out a worthwhile idea

A brand's action perceived by a person is called:

Brand experience

Suppose the management at Hilton hotels was using profit optimization to better address the needs of market segments. In particular, they were focused on how to optimize the booking of a floor of hotel rooms. This level is called:

By group of goods

Which of the following in NOT an aspect of brand management?

Each company uses one ad agency for all products

The most important basis for creating a competitive advantage is to:

Increase value

Initial product testing differs from test marketing because product testing:

Is initiated by the producer

Which of the following is NOT a characteristic of the commercialization stage?

It is the penultimate stage of new product development

Consider the auto industry is a perfect example representation of the laws of supply and demand. If car manufacturers increase the amount of cars in the market and consumers demand remains unchanged, then there will be:

Lower equilibrium price and a higher quantity

Which of the following is NOT a characteristic of cost-plus pricing?

Most profitable

Suppose a company brought a new product to market with price-sensitive customers, low barriers to entry, and the probability of rapid acceptance by potential buyers. Which pricing strategy would this company likely employ?

Penetration

Which of the following is NOT an example of a promotion?

Pricing at a premium

Suppose a car company has achieved a level of branding so that a consumer associates the brand with phenomenal steering control . This is an example of:

Strategic awareness

Which of the following is NOT a characteristic of the service industry?

Tangible

Which of the following is NOT a situation in which premium pricing is not used to maximize profit?

Where the seller can achieve economies of scale by producing at a high volume