ag marketing quiz 2

suggestive of benefits and qualities

Lean Cuisine, Beautyrest

the _________________ requires sellers to provide detailed nutritional information on food products.

Nutritional Labeling and Educational Act of 1990

distinctive

Panera, Swiffer

which of the following companies uses captive product pricing

Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries

easy to pronounce and recognize

Twitter, iPad

_____________ involves the use of a successful brand name for new or modified products in a new category

a line extension

brand

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

shopping product

a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores (appliances, TV, furniture, clothing)

unsought product

a product unknown to the potential buyer or a known product that the buyer does not actively seek. aggressive advertising (life insurance, red cross blood donations)

market skimming pricing

a strategy with HIGH initial prices to "skim" revenue layers from the market

multibrand development

a way to appeal to different customer segments

__________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items

high-low

which of the following stages of the product life cycle is characterized with high promotional expenditures that result from an effort to create consumer awareness

introduction

high low pricing

involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items

line extension

low-cost, low-risk way to introduce new products

Which new product pricing strategy would you use if your market is price-sensitive and your production costs fall dramatically with increased output?

market penetration pricing

which new product pricing strategy would you use if your competitors will be slow to enter and/or you have great image and quality product

market skimming pricing

firm level

market value - book value

captive product pricing

sets prices of products that must be used along with the main product (fixed fee + variable usage rate)

market penetration pricing

setting a LOW price for a new product in order to attract a large number of buyers and a large market share

by-product pricing

setting a price for by-products to make the main product's price more competitive

customer value based pricing

setting price based on buyers' perceptions of value rather than on the seller's cost

breakeven pricing (target return pricing)

setting price to break even on the costs of making and marketing a product, or setting price to make a target return

competition based pricing

setting prices based on competitors' strategies, prices, costs, and market offerings

cost based pricing

setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk

product line pricing

setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices

maturity stage

stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them

introduction stage

stage of the product life cycle when innovators start buying the product

decline stage

stage of the product life cycle when sales decline and the product eventually exits the market

the strongest brands are positioned on

strong beliefs and values

speciality product

strong brand preference/loyalty, high effort, little brand comparison, high price (rolex, luxury goods)

optional product pricing

takes into account optional or accessory products along with the main product

promotional pricing

temporarily reducing prices to spur short-run sales

growth stage

the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy

brand value

the total financial value of a brand

When amusement parks charge customers for admission and later for food and beverages, they are following a ________ pricing strategy.

two-part

______________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying

unsought products

A good brand name should most likely be ________.

distinctive

If an international court can establish that the defendant country sold its products in the plaintiff's country at prices lower than the defendant's cost of production, this is usually ruled as evidence of

dumping

extendable

Amazon

cost plus pricing

adding a standard markup to the cost of the product

What did I suggest could generate this shape for a product's life cycle?

adding new features

dynamic pricing

adjusting prices continually to meet the characteristics and needs of individual customers and situations

international pricing

adjusting prices for international markets

psychological pricing

adjusting prices for psychological effect

geographical pricing

adjusting prices to account for the geographic location of customers

segmented pricing

adjusting prices to allow for differences in customers, products, or locations

which is one of the conditions required for price discrimination

all of the above (market power, extra revenue from segmentation, different demand elasticity, no resale)

style is ________

appearance

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

atmosphere and decor

value added pricing

attaching value-added features and services to differentiate a company's offers and charging higher prices, but run frequent promotions/discounts

________________ occurs when two established brand names of different companies are used on the same product

co-branding

Coors has several assets going for it that should prepare it in the high-stakes, highly competitive beer industry of the future. It has strong customer loyalty, high awareness, high perceived quality, and credibility. All these factors are combined in the last phrase of veteran industry analyst Robert S. Weinberg's comment: "The brand is strong, the beer is good and they have their own traditions. They have phenomenal ________."

brand equity

which of the following product mix strategies did polaroid use when it set the general price range of its cameras low and the markup on its film high

captive product pricing

a cooperative oligopoly (such as OPEC) is sometimes called a

cartel

everyday low pricing (EDLP)

charging a constant everyday low price with few or no temporary price discounts

product bundle pricing

combining several products and offering the bundle at a reduced price

two factors are associated with the attribute of "quality" in a product. The first is level of quality (or costliness) and the other is?

consistency

As a general pricing approach, value-based pricing uses buyers' perceptions of value rather than sellers' ___________ as the key to pricing.

cost

brand extension

create immediate new product acceptance at lower development costs

which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?

crowdsourcing

customer level

estimates willingness to pay

convenience product

frequent purchase, little planning and buying effort, low price (toothpaste, laundry detergent)

which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?

growth

Consumers are less likely to use price to judge the quality of a product when they ________.

have experience with the product

New Brand Development

may spread it's resources too thin

Because of ________, a company cannot make its product illegally similar to a competitor's already established product.

patent laws

design is ______

performance

product attributes include all of the following except

price

Noticing that themed envelopes aren't selling well, Charles Payton decides to offer customers a special "letter writing" kit. He prices the kit—which comprises letter paper, matching envelopes, and pens—at $5, even though the combined prices of the individual items is $8. Which of the following pricing strategies is he using?

product bundle pricing

which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and cometitors' prices?

product line pricing

industrial products

products purchased for further processing or for use in conducting a business: materials/parts, capital items, supplies

the packaging concept

protection, dispensing, storage, image, environmental concerns

product attributes

quality (performance and consistency), features, style and design

Discount and allowance pricing

reducing prices to reward customer responses such as paying early or promoting the product

Wal-Mart seems to have discovered that big, heavy apples bring in more revenue when they are sold for prices that look reasonable by the pound. This psychological pricing factor is defined as: "Prices that buyers carry in their minds and refer to when they look at a given product." What is this factor called?

reference prices