MKT blackboard quiz 3

A shampoo company X currently sells 1.2 million ounces of its brand into a US market. The company X's selling price of this shampoo is $0.09/ ounce and it variable cost percentage is 60%, then (1) what is company X's unit contribution, and (2) how many additional ounces of shampoo must company X sell if it were to increase its advertising expenditures by $100,000? [Please show your work, so that I can understand how answers were derived.]

1) what is contribution margin? cm = sales price - vc cm = .09 - (.09 x .60) cm = .09 - (.054) cm = $ .036 per unit or 2) breakeven = fixed costs / unit contribution revenue = fixed costs

Company focuses on "Finding new ways to solve customer problems" to ensure the products should delight customers. Which new product development approach is this company using?

Customer-centered new product development

Which of the following statements about break-even analysis is most likely true? - It is used to determine the maximum price that can be set on a product. - It is a tool marketers use to examine the relationship between supply and demand. - It fails to consider customer value and the relationship between price and demand.

It fails to consider customer value and the relationship between price and demand.

Which of the following statements concerning new products is correct? - Most new products succeed within two years of their introduction. - To be considered new, the product must be something consumers have not seen before. - Modified and improved products are considered new.

Modified and improved products are considered new.

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings. - Concept testing - Test marketing - Concept development

Test marketing

Kiehl's is planning to release a new line of high-end men's care products. Its teams are now reviewing the sales history of comparable products and conducting marketing surveys to evaluate minimum and maximum sales for this line of products. In which of the following stages of the new product development process is the product? - business analysis - marketing strategy development - concept testing

business analysis

Establishing prices for printer that must be used with the ink cartridge is known as ________ pricing. - product line - product bundle - captive-product

captive-product

I Fratellini, a new Italian restaurant, has set up shop across the street from another Italian restaurant. Which of the following pricing strategies will I Fratellini likely use? - competition-based - break-even - good-value

competition-based

________ calls for testing new product concepts with groups of target consumers symbolically or physically. - concept testing - concept development - test marketing

concept testing

Which of the following sets the upper limit for a product's pricing? - elements of the product mix - consumer perceptions of value - competition

consumer perceptions of value

Under a team-based new product development approach, company departments work closely together overlapping the steps in the product development process. This approach saves times and increases effectiveness because departments work closely together in ________. - self-managed groups - cross-functional teams - independent groups

cross-functional teams

Lego is best known for the manufacture of Lego-brand toys, consisting mostly of interlocking plastic bricks. At their Web site, LEGO invites users to submit ideas for new LEGO products and to vote for other users' ideas. Lego is using ________ to generate new product ideas - competitors - distribution and suppliers - crowdsourcing

crowdsourcing

If the demand is ________, seller will consider lowering their selling price, because the price lowering will produce more total revenue. - elastic - flexible - inelastic

elastic

Arm and Hammer, a cleaning product, is in the maturity stage of the PLC (product life cycle), and Arm and Hammer managers have decided to modify the market. Which of the following steps should Arm and Hammer managers most likely take to achieve this goal? - find new market segments for the brand - improve the overall quality of the product - reduce mass media advertising expenses

find new market segments for the brand

In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit. - growth - decline - maturity

growth

In which stage of the product life cycle will company starts to meet the competition? - growth - maturity - adoption

growth

The first model of Samsung curve-screen TV was introduced in 2005 and sold for $1500. The following year a similar version was introduced for $999. Samsung initially used a ________ strategy to price their TV. - market-skimming - target costing - deceptive

market-skimming

When a product is in the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition.

maturity

Dyson is continually updating its line of household appliances, to reflect the trends of market and need of customer. Although the product class stays in the maturity stage of the PLC (product life cycle), they maintain stable sales of their line of household appliances by continually ________. - rebranding - modifying the product - modifying the market

modifying the product

A detailed version of a product idea stated in meaningful consumer terms is a ________. - product concept - product idea - product image

product concept

Vizio Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is considered as ________ pricing. - product line - optional-product - by-product

product line

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

psychological

When Dr. Lawncare developed his revolutionary new solar powered lawnmower, he knew that during the introductory stage of the product lifecycle ___________.

sales would be slow and profits non-exostent

Providing extra features and services to differentiate their offers and thus support high-priced products is referred to as ________ pricing. - value-added - target return - everyday low

value-added

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth. - cost-based - target costing - value-based

value-based

Each cellphone produced by Samsung involves a cost of processed chips, wires, touch screen, packaging, and other components. Although these costs tend to be the same across units produced, they are called ________ costs because the total changes based on the number of cellphone produced.

variable