Marketing Quiz #2

If a consumer purchases a new flat-screen "smart" television which can connect to services like Netflix and Pandora, what is the core customer value involved? A) connection to entertainment and information B) state-of the art technology C) slick and attractive packaging D) brand name E) tech support and warranty

A) connection to entertainment and information

Which of the following is true of optional-product pricing? A) It involves capitalizing on low value by-products. B) It involves pricing products that can be added to the base product. C) It is used to price a company's main product. D) It involves setting geographically specific prices. E) It is used to price products that must be used with the company's main product.

B) It involves pricing products that can be added to the base product

Product planners need to consider products and services on three levels. At the third level, product planners must build ________. A) an actual product B) an augmented product C) core customer value D) a brand personality E) a basic product

B) an augmented product

Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two models share the same specifications. What type of pricing does Multiprint use? A) product line pricing B) captive product pricing C) optional product pricing D) by-product pricing E) product bundle pricing

B) captive product pricing

According to the text, the search for new product ideas should most likely be ________. A) intermittent B) holistic C) segmented D) compartmentalized E) flexible

B) holistic

A company can install a(n) ________ management system to collect, review, evaluate, and manage new product ideas. A) quality B) innovation C) content D) supply chain E) customer relationship

B) innovation

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________. A) clearly assigns responsibility for the process to a single department B) yields a larger number of new product ideas C) guarantees successful products D) frees up senior management time E) requires less budget support

B) yields a larger number of new product ideas

A restaurant wants to use value-based pricing. It knows the costs of the ingredients in the food. It must also factor in ________ in determining customer satisfaction and value. A) wages of employees B) costs of utilities of the restaurant C) atmosphere and décor of the restaurant D) travel distance for customers E) percentage of bar patrons versus dining patrons

C) atmosphere and décor of the restaurant

Which of the following product mix pricing strategies involves pricing products that can only be used with the main product? A) by-product pricing B) product bundle pricing C) captive product pricing D) product line pricing E) optional product pricing

C) captive product pricing

The perceived value of different product offers can be reasonably assessed by ________. A) conducting a SWOT analysis B) preparing demand curves C) conducting surveys and experiments D) collecting data about competitors' offers E) setting a benchmark for product quality

C) conducting surveys and experiments

Product planners need to consider products and services on three levels. At the second level, product planners must ________. A) offer additional product support and after-sale services B) identify the core customer value that consumers seek from the product C) turn the core benefit into an actual product D) find out how they can create the most satisfying brand experience E) define the problem-solving benefits or services that consumers seek

C) turn the core benefit into an actual product

Which of the following is a disadvantage of a team-based approach to new product development? A) It takes longer for the development of a new product. B) The development effort is not as effective because of employee inexperience. C) It decreases the efficiency of the new product development process. D) It can result in organizational confusion and tension. E) The process does not work with the shorter life cycles of many of today's products.

D) It can result in organizational confusion and tension.

Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the main product? A) inclusive product pricing B) exclusive product pricing C) by-product pricing D) product bundle pricing E) optional-product pricing

E) optional-product pricing

A company introducing a product that is similar to its competitors' product will do a complete test market to gain maximum information before product introduction.

FALSE

A company launching a new product into the market must first decide where to launch the product.

FALSE

A company should strive to build a brand name that becomes identified with the product category, as Scotch Tape did.

FALSE

Co-branding occurs when retailers and wholesalers create their own store brands.

FALSE

Customer perceptions of the product's value set the floor for prices.

FALSE

Using value-based pricing, a marketer would not design a product and marketing program before setting the price.

TRUE

Which of the following companies uses product line pricing? A) Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries B) Mobile Point, which launched a range of cell phone models, each priced according to its features C) Penguin's Parlor, which offers customers a 20-percent discount on their birthdays and certain holidays D) Green Thumb, which gives away free watering cans with the purchase of certain potted plants E) Panizza, whose combo meals are priced lower than the individual components sold together

B) Mobile Point, which launched a range of cell phone models, each priced according to its features

Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is ________, which addresses the question, "What is the buyer really buying?" A) an actual product B) an augmented product C) core customer value D) co-branding E) exchange value

C) core customer value

Which of the following processes does value-based pricing reverse? A) high-low pricing B) everyday low pricing C) cost-based pricing D) good-value pricing E) value-added pricing

C) cost-based pricing

What is usually the first step in cost-based pricing? A) testing the product concept with potential customers B) determining the marketing mix strategy C) setting a price that covers costs plus a target profit D) designing a good product E) adding up the costs of making the product

D) designing a good product

A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds of ulcers. The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance? A) target pricing B) markup pricing C) cost-based pricing D) value-based pricing E) break-even pricing

D) value-based pricing

New product success requires all of the following EXCEPT ________. A) a whole-company commitment B) a holistic approach for finding new ways to create valued customer experiences C) thinking up a few good ideas D) introducing products that will satisfy a want or need for customers E) efficient engineering and manufacturing

E) efficient engineering and manufacturing

Line extension refers to extending an existing brand name to new product categories.

FALSE

Product costs set the ceiling for prices.

FALSE

Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringing products to market.

FALSE

The strongest brands do not engage customers on a deep, emotional level.

FALSE

The widespread use of scanner-based computer checkouts has eradicated complaints of retailers overcharging their customers.

FALSE

Value-based pricing uses the sellers' perception of value as the key to pricing.

FALSE

While regulations exist to prohibit deceptive pricing practices, in reality, most reputable sellers do the minimum required to meet the regulations.

FALSE

E) tech support and warranty

If a consumer purchases a new flat-screen "smart" television, what is the augmented product involved? A) connection to the world of entertainment B) state-of the art technology C) slick and attractive packaging D) brand name E) tech support and warranty

Companies need to respond to a competitor's price change if its own market share and profits will decrease because of the change.

TRUE

In customer value-based pricing, price is considered along with all other marketing mix variables before the marketing program is set.

TRUE

JumBo Games is in the commercialization stage. The first decision that the firm should make while introducing the product in the market is introduction timing.

TRUE

Launching a fighter brand is an effective way to deal with a situation in which the market segment being lost is price sensitive and will not respond to arguments of higher quality.

TRUE

Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share.

TRUE

Price discrimination is permissible if the seller manufactures different qualities of the same product for different retailers and can prove that the price difference is proportional.

TRUE

To avoid too few new product ideas and the failure of many good ideas, management should implement an innovation management system that collects, reviews, evaluates, and manages new product ideas.

TRUE