Marketing Ch. 7,8,9

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk.

Cost-based

Which of the following statements is most likely true about the new product development process?

Customers, competitors, and suppliers are major sources of new product ideas.

Which of the following statements is most likely true about the product life cycle?

Growth is a period of rapid market acceptance and increasing profits.

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product?

The market for the product is highly price sensitive.

Which of the following is true about the introduction stage of a new product?

Sales growth tends to be slow.

Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal?

find new market segments for the brand

When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as ________.

inelastic

Sweet & Cream, a popular frozen yogurt chain, attracts new customers by adding new flavors to its famous frozen yogurt product line. In this case, the company has developed its brand with ________.

line extensions

Pricing a product based on consumers' reference prices is referred to as ________ pricing.

psychological

The first part of a marketing strategy statement describes the ________ of a new product.

target market

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take?

use aggressive sales promotions

Introducing a new product into the market is called ________.

commercialization

________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market.

A product life cycle

________ involves using an existing brand name for a new product category.

Brand extension

Setting a price for products that must be used along with a main product is known as ________ pricing.

captive-product

Which of the following sets the upper limit for a product's pricing?

consumer perceptions of value

A company designs what it considers to be a good product, calculates the expenses of making the product, and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called ________ pricing.

cost-plus

Brand ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing.

equity

Which of the following is an example of an industrial product grouped under capital items?

factory

Expanding a product line by adding more items within the present range of the line is known as product line ________.

filling

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?

introduction

Qriosity Inc. released a new antivirus program at half-price to attract buyers. This is most likely an example of ________.

market-penetration pricing

The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________.

market-penetration pricing

A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.

market-skimming pricing

Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price.

monopolistic competition

Xenon, a leading consumer-electronics manufacturing company, markets its products under the company's own brand name. In this case, Xenon has sponsored its products by promoting them as ________ brands.

national

Product mix width refers to the ________.

number of different product lines the company carries

Store brands are also known as ________ brands.

private

Combining several products and offering the collection at a reduced price is referred to as ________ pricing.

product bundle

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?

promotional pricing

Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a ________.

seasonal discount

Service inseparability means that ________.

services become a part of their providers, whether the providers are people or machines

Lengthening a product line beyond its current range is referred to as product line ________.

stretching

Specialty products are consumer products and services that customers generally buy ________.

without making comparisons