Marketing Ch. 9-10 Quiz

True/False: Overhead costs are costs that do not vary with production or sales level.

True

True/False: Sales of products decline because of technological advances, shifts in consumer tastes, and increased competition.

True

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

U.S. Patent Laws

Costs that change with the level of production are referred to as ________.

Variable Costs

The simplest pricing method is ________ pricing.

cost-plus

Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This exemplifies ________.

cost-plus pricing

What sets the floor for product prices?

costs

Fixed costs ________.

costs that do not vary with production or sales level

A style is best defined as a ________.

A basic and distinctive mode of expression.

Which of the following exemplifies a pure competitive market?

A market where many buyers and sellers trade in a uniform commodity

A detailed version of a new idea stated in meaningful customer terms is called a product ________.

Concept

The perceived value of different product offers can be reasonably assessed by ________.

Conducting surveys and experiments

Companies can legitimately charge a higher price if ________.

Consumers perceive that the company's product offers greater value

Which of the following is an external source for ideas?

Distributors and suppliers Industry experts* competitors customers

When companies set prices, the government and social concerns are ________ factors affecting pricing decisions.

External

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

High-low pricing

In the new product development process, the first idea-reducing stage is ________.

Idea Screening

Most products in the marketplace are in the ________ stage of the product life cycle.

Maturity

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?

Product development

Companies with lower costs ________.

can set lower prices that result in smaller margins but greater sales and profits

Introducing a new product into the market is called ________.

commercialization

New product development starts with ________.

idea generation

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

In the ________ stage of the new product development process, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.

Product development