Quiz #2

. Which of the following companies uses captive product pricing? a. Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries b. Go Zone, which launched a range of tablet models, each priced according to its features c. Penguin's Parlor, which offers customers a 20-percent discount on their birthdays d. Sportsprint, which prices sports equipment according to customer evaluations e. Burger Den, whose combo meals are priced lower than its individual components sold together

A

. ________ involves the use of a successful brand name for new or modified products in a new category. a. a line extension b. a product line c. a brand extension d. Co-branding

A

. ________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items. a. High-low b. Everyday low c. Cost-plus d. Break-even e. Penetration

A

As a general pricing approach, value-based pricing uses buyers' perceptions of value rather than sellers' ___________ as the key to pricing. a. cost b. price c. value d. perceptions e. none of the above

A

Which new product pricing strategy would you use if your market is price-sensitive and your production costs fall dramatically with increased output? a. market penetration pricing b. market skimming pricing c. product-line pricing d. by-product pricing e. none of the above

A

A cooperative oligopoly (such as OPEC) is sometimes called a: a. monopoly b. cartel c. union d. league e. none of the above

B

Because of ________, a company cannot make its product illegally similar to a competitor's already established product. a. anti-monopoly laws b. patent laws c. product warranties d. product liability

B

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 ________." a. book value b. brand equity c. line extension d. product packaging e. none of the above

B

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? a. optional product pricing b. product bundle pricing c. by-product pricing d. dynamic pricing e. captive product pricing

B

What did I suggest could generate this shape for a product's life cycle? a. fads or fashions b. adding new features c. a celebrity's roller-coaster career d. a widely-anticipated product launch e. none of the above

B

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? a. market penetration pricing b. market skimming pricing c. product-line pricing d. by-product pricing e. none of the above

B

A good brand name should most likely be ________. a. complex b. long c. conventional d. distinctive

D

. Product attributes include all of the following EXCEPT ________. a. style b. design c. price d. features e. quality

C

. ________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. a. Specialty products b. Convenience products c. Unsought products d. Shopping products

C

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

C

Consumers are less likely to use price to judge the quality of a product when they ________. a. have never tried the product before b. have little knowledge of the brand c. have experience with the product d. cannot physically examine the product

C

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: a. discrimination b. two-part pricing c. dumping d. extortion e. none of the above

C

Two factors are associated with the attribute of "quality" in a product. The first is level of quality (or costliness). The other is: a. necessity b. opportunity c. consistency d. value e. none of the above

C

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? a. mental prices b. comparative prices c. reference prices d. familiar prices e. none of the above

C

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits? a. introduction b. maturity c. growth d. decline e. product development

C

Which of the following product mix pricing strategies did Polaroid use when it set the general price range of its cameras low and the markup on its film high? a. product-segmented pricing b. by-product pricing c. customer-segmented pricing d. captive product pricing e. product bundling pricing

D

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? a. growth b. product development c. maturity d. introduction e. decline

D

When amusement parks charge customers for admission and later for food and beverages, they are following a ________ pricing strategy. a. by-product b. product line c. penetration d. skimming e. two-part

E

Which is one of the conditions required for price discrimination? a. market power b. extra revenue from segmentation c. different demand elasticity d. no resale e. all of the above

E

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 competitors' prices? a. by-product pricing b. product bundle pricing c. optional product pricing d. captive product pricing e. product line pricing

E