MarketingRevisionPartII

Chapter8Product,Services,andBrandingStrategies:BuildingCustomer

Value

1)Wedefineaasanythingthatcanbeofferedtoamarketforattention,

acquisition,use,orconsumptionandthatmightsatisfyawantorneed.

A)privatebrand

B)servicevariability

C)service

D)product

E)serviceencounter

Answer:D

Diff:1PageRef:224

AACSB:Communication

Skill:Concept

Objective:8-1

2)areaformofproductthatconsistsofactivities,benefits,orsatisfactions

offeredforsalethatareessentiallyintangibleanddonotresultintheownershipof

anything.

A)Lineextensions

B)Services

C)Brands

D)Consumerproducts

E)Supplements

Answer:B

Diff:1PageRef:224

AACSB:Communication

Skill:Concept

Objective:8-1

3)Aproductisakeyelementinthe.Atoneextreme,itmayconsistofpure

tangiblegoodsoiattheotherextreme,pureservices.

A)marketoffering

B)brandequity

C)brandextension

D)co-branding

E)valuechain

Answer:A

Diff:1PageRef:224

AACSB:Communication

Skill:Concept

Objective:8-1

4)Todifferentiatethemselves,manycompaniesaregoingbeyondproductsand

services,theyaredevelopinganddeliveringcustomer.

A)quality

B)experiences

C)brands

D)productlines

E)events

Answer:B

Diff:2PageRef:224

AACSB:Communication

Skill:Concept

Objective:8-1

5)Productplannersneedtoconsiderproductsandservicesonthreelevels.Eachlevel

addsmorecustomervalue.Themostbasiclevelisthe,whichaddressesthe

question,"Whatisthebuyerreallybuying?"

A)actualproduct

B)augmentedproduct

C)corecustomervalue

D)co-branding

E)exchange

Answer:C

Diff:2PageRef:225

AACSB:Communication

Skill:Concept

Objective:8-1

6)Developingaproductorserviceinvolvesdefiningthebenefitsthatitwilloffer.

Thesebenefitsarecommunicatedanddeliveredbysuchasquality,features,

andstyleanddesign.

A)privatebrands

B)productattributes

C)consumerproducts

D)productmixes

E)marketingtools

Answer:B

Diff:3PageRef:229

AACSB:Communication

Skill:Concept

Objective:8-2

7)isoneofthemarketer'smajorpositioningtoolsbecauseithasadirect

impactonproductorserviceperformance;itisthereforecloselylinkedtocustomer

valueandsatisfaction.

A)Packaging

B)Productquality

C)Totalqualitymanagement

D)Specialtyproductmarketing

E)Positioning

Answer:B

Diff:2PageRef:229

AACSB:Communication

Skill:Concept

Objective:8-2

8)isanapproachinwhichallthecompany'speopleareinvolvedin

constantlyimprovingtheproducts,services,andbusinessprocesses.

A)Productquality

B)Brandequity

C)Totalqualitymanagement

D)Specialtyproductmarketing

E)Positioning

Answer:C

Diff:2PageRef:230

Skill:Concept

Objective:8-2

9)Whatarethetwodimensionsofproductquality?

A)consistencyandlevel

B)performanceandresistance

C)designandinnovation

D)conformanceandstyle

E)featureanddesign

Answer:A

Diff:2PageRef:230

Skill:Concept

Objective:8-2

10)Whichofthefollowingtypesofqualityreferstofreedomfromdefectsand

consistencyindeliveringatargetedlevelofperformance?

A)privatebrand

B)product

C)totalqualitymanagement

D)conformance

E)adherence

Answer:D

Diff:2PageRef:230

Skill:Concept

Objective:8-2

11)Someanalystsseeasthemajorenduringassetofacompany,

outlastingthecompany'sspecificproductsandfacilities.

A)brands

B)convenienceproducts

C)specialtyproducts

D)unsoughtproducts

E)staples

Answer:A

Diff:1PageRef:235

AACSB:Communication

Skill:Concept

Objective:8-3

12)Akeyelementinacompany'srelationshipwithconsumers,a

representsconsumers'perceptionsandfeelingsaboutaproductanditsperformance.

A)productline

B)productexperience

C)brand

D)service

E)productattribute

Answer:C

Diff:2PageRef:236

AACSB:Communication

Skill:Concept

Objective:8-3

13)WhichofthefollowingisNOToneofthefourconsumerperceptiondimensions

usedbyadagencyYoung&Rubicamtomeasurebrandstrength?

A)branddifferentiation

B)brandknowledge

C)brandvaluation

D)brandesteem

E)brandrelevance

Answer:C

Diff:3PageRef:236

AACSB:Communication

Skill:Concept

Objective:8-3

14)Thetotalfinancialvalueofabrandisestimatedthroughtheprocessofbrand

A)differentiation

B)valuation

C)extensions

D)positioning

E)equity

Answer:B

Diff:2PageRef:236

AACSB:Communication

Skill:Concept

Objective:8-3

15)Thefundamentalassetunderlyingbrandequityis—thevalueofthe

customerrelationshipsthatthebrandcreates.Apowerfulbrandisimportant,butwhat

itreallyrepresentsisasetofloyalconsumers.

A)thecustomermix

B)customerequity

C)lineequity

D)servicevariability

E)theserviceencounter

Answer:B

Diff:3PageRef:238

AACSB:Communication

Skill:Concept

Objective:8-3

16)meansthatservicescannotbeseparatedfromtheirproviders,whether

theprovidersarepeopleormachines.

A)Serviceintangibility

B)Serviceinseparability

C)Servicevariability

D)Serviceperishability

E)Serviceheterogeneity

Answer:B

Diff:1PageRef:245

Skill:Concept

Objective:8-4

17)WhichofthefollowingisNOToneofthelinksintheservice-profitchain,linking

servicefirmprofitswithemployeeandcustomersatisfaction?

A)internalservicequality

B)evidencemanagement

C)satisfiedandproductiveserviceemployees

D)satisfiedandloyalcustomers

E)healthyserviceprofitsandgrowth

Answer:B

Diff:3PageRef:246

Skill:Concept

Objective:8-4

18)Through,theservicefirmtrainsandmotivatesitscustomer-contact

employeesandsupportingservicepeopletoworkasateamtoprovidecustomer

satisfaction.

A)serviceinseparability

B)serviceintangibility

C)servicevariability

D)internalmarketing

E)externalmarketing

Answer:D

Diff:2PageRef:247

Skill:Concept

Objective:8-4

19)Becauseservicequalitydependsonthequalityofbuyer-sellerinteractionduring

theserviceencounter,servicemarketersusetotrainemployeesintheartof

interactingwithcustomerstosatisfytheirneeds.

A)interactivemarketing

B)servicedifferentiation

C)serviceproductivity

D)internalmarketing

E)externalmarketing

Answer:A

Diff:2PageRef:247

Skill:Concept

Objective:8-4

20)Allofthefollowingaremethodsfordevelopingadifferentiatedserviceoffer,

delivery,orimageEXCEPT.

A)offeringinnovativefeatures

B)increasingthequantityofservicebygivingupsomequality

C)havingmorereliablecustomer-contactpeople

D)developingsymbolsandbranding

E)designingasuperiordeliveryprocess

Answer:B

Diff:2PageRef:248

Skill:Concept

Objective:8-4

21)Aserviceisanythingthatcanbeofferedtoamarketforattention,acquisition,use,

orconsumptionandthatmightsatisfyawantorneed.

Answer:FALSE

Diff:1PageRef:224

Skill:Concept

Objective:8-1

22)Sonyoffersconsumersmorethanjustcamcorders;itprovidesconsumerswitha

completesolutiontotheirpicture-takingproblems.Thisofferingiscalledan

augmentedproduct.

Answer:TRUE

Diff:3PageRef:225

AACSB:ReflectiveThinking

Skill:Application

Objective:8-1

23)Unsoughtproductsareproductsthatthecustomerusuallybuysfrequently,

immediately,andwithaminimumofcomparisonandbuyingeffort.

Answer:FALSE

Diff:1PageRef:226

Skill:Concept

Objective:8-1

24)Shoppingproductsarelessfrequentlypurchasedconsumerproductsandservices

thatcustomerscomparecarefullyonsuitability,quality,price,andstyle.

Answer:TRUE

Diff:2PageRef:226

Skill:Concept

Objective:8-1

25)Styleisalargerconceptthandesign.Designdescribestheappearanceofa

product.

Answer:FALSE

Diff:3PageRef:230

Skill:Concept

Objective:8-2

26)Blandingcanaddconsumervaluetoaproduct.

Answer:TRUE

Diff:2PageRef:231

AACSB:Communication

Skill:Concept

Objective:8-2

27)Becausesomanypurchasedecisionsaremadeinstores,aproduct'spackaging

maybeaseller'slastandbestchancetoinfluenceconsumers.

Answer:TRUE

Diff:2PageRef:232

AACSB:Communication

Skill:Concept

Objective:8-2

28)Productsupportservicesidentifytheproductorbrand,describeseveralthings

abouttheproduct,andpromotetheproductthroughattractivegraphics.

Answer:FALSE

Diff:2PageRef:233

AACSB:Communication

Skill:Concept

Objective:8-2

29)Quakerproducesavarietyofcereals.Thisvarietyiscalleditsproductline.

Answer:TRUE

Diff:2PageRef:234

AACSB:ReflectiveThinking

Skill:Application

Objective:8-2

30)Cannibalizationandcustomerconfusionaboutproductdifferentiationarctwo

potentialresultsiflinefillingisoverdone.

Answer:TRUE

Diff:3PageRef:234

Skill:Concept

Objective:8-2

Chapter9New-ProductDevelopmentandProductLife-CycleStrategies

1)Whatarethetwowaysthatacompanycanobtainnewproducts?

A)lineextensionandbrandmanagement

B)internaldevelopmentandbrandmanagement

C)new-productdevelopmentandacquisition

D)servicedevelopmentandproductextension

E)marketmixmodificationandresearchanddevelopment

Answer:C

Diff:2PageRef:258

Skill:Concept

Objective:9-1

2)Productimprovements,productmodifications,andoriginalproductscanallbe

classifiedas.

A)pioneerproducts

B)newproducts

C)productconcepts

D)productideas

E)testproducts

Answer:B

Diff:1PageRef:258

Skill:Concept

Objective:9-1

3)WhichofthefollowingisNOTapotentialreasonforanewproducttofail?

A)anunderestimatedmarketsize

B)apoorlydesignedproduct

C)anincorrectlypositionedproduct

D)higherthananticipatedcostsofproductdevelopment

E)ineffectiveadvertising

Answer:A

Diff:2PageRef:258

Skill:Concept

Objective:9-1

4)WhichofthefollowingisNOTachallengepresentedbytheproductlifecyclethat

afirmmustface?

A)Allproductseventuallydecline.

B)Changingtastes,technologies,andcompetitionaffectthemarketingoftheproduct

asitpassesthroughlifecyclestages.

C)Afirmmustbegoodatdevelopingnewproductsioreplaceagingones.

D)Afirmmustbegoodatadaptingitsmarketingstrategics.

E)Itisdifficulttoplotthestagesasaproductgoesthroughthem.

Answer:E

Diff:2PageRef:258

Skill:Concept

Objective:9-1

5)Thecreationofasuccessfulnewproductdependsonacompany'sunderstandingof

itsanditsabilitytodelivertocustomers.

A)competitors,distributors,andemployees;newstyles

B)customers,brands,products;productimages

C)customers,competitors,andmarkets;superiorvalue

D)product,marketingmix,andmarketingstrategy;functionalfeatures

E)productlifecycle,legalresponsibilities,andsocialresponsibilities;innovations

Answer:C

Diff:2PageRef:259

Skill:Concept

Objective:9-2

6)Aisthewayconsumersperceiveanactualorpotentialproduct.

A)productidea

B)productconcept

C)productimage

D)testmarket

E)concepttest

Answer:C

Diff:1PageRef:262

AACSB:Communication

Skill:Concept

Objective:9-2

7)Anattractiveideamustbedevelopedintoa.

A)productidea

B)productconcept

C)productimage

D)testmarket

E)productstrategy

Answer:B

Diff:2PageRef:262

Skill:Concept

Objective:9-2

8)callsfortestingnew-productconceptsv/ithgroupsoftargetconsumers.

A)Conceptdevelopment

B)Concepttesting

C)Ideageneration

D)Ideascreening

E)Testmarketing

Answer:B

Diff:1PageRef:263

Skill:Concept

Objective:9-2

9)Intheconcepttestingstageofnew-productdevelopment,aproductconceptin

formispresentedtogroupsoftargetconsumers.

A)physicalorsymbolic

B)prototype

C)final

D)market-tested

E)commercial

Answer:A

Diff:2PageRef:263

Skill:Concept

Objective:9-2

10)Withwhatgroupsdofirmsconductconcepttestingfornewproducts?

A)suppliers

B)employees

C)targetcustomers

D)manufacturers

E)competitors

Answer:C

Diff:3PageRef:263

Skill:Concept

Objective:9-2

11)Followingthedecisionto"time"theintroductionofthenewproduct,acompany

mustdecidetolaunchthenewproduct.

A)where

B)how

C)towhatdegree

D)why

E)alloftheabove

Answer:A

Diff:2PageRef:268

Skill:Concept

Objective:9-2

12)Whichofthefollowingisnecessaryforsuccessfulnew-productdevelopment?

A)aholisticandsequentialproductdevelopmentapproach

B)acustomer-centered,team-based,systematicapproach

C)ateam-based,innovation-managementapproach

D)amarketpioneermindsetandaholisticapproach

E)aninnovationmanagementsystemandsequentialproductdevelopment

Answer:B

Diff:3PageRef:268

Skill:Concept

Objective:9-2

13)Whichstageofthenew-productdevelopmentprocessfocusesonfindingnew

waystosolvecustomerproblemsandcreatemorecustomer-satisfyingexperiences?

A)concepttesting

B)new-productdevelopment

C)customer-centerednew-productdevelopment

D)sequentialproductdevelopment

E)team-basednew-productdevelopment

Answer:C

Diff:1PageRef:269

Skill:Concept

Objective:9-2

14)isanew-productdevelopmentapproachinwhichonecompany

departmentworkstocompleteitsstageoftheprocessbeforepassingthenewproduct

alongtothenextdepartmentandstage.

A)Team-basedproductdevelopment

B)Simultaneousproductdevelopment

C)Sequentialproductdevelopment

D)Productlife-cycleanalysis

E)Micromarketing

Answer:C

Diff:2PageRef:269

Skill:Concept

Objective:9-2

15)Inordertogettheirnewproductstomarketmorequickly,manycompaniesare

adoptingafaster,team-orientedapproachcalled.

A)simulatednew-productdevelopment

B)sequentialproductdevelopment

C)team-basednew-productdevelopment

D)phased-innew-productdevelopment

E)marketdevelopment

Answer:C

Diff:1PageRef:270

Skill:Concept

Objective:9-2

16)Whichstageofthetypicalconsumerproductlifecycleisoutoforderbelow?

A)productdevelopment

B)introduction

C)maturity

D)growth

E)decline

Answer:C

Diff:2PageRef:273

Skill:Concept

Objective:9-3

17)WhichofthefollowingCANNOTbedescribedusingthePLCconcept?

A)productclass

B)productform

C)productimage

D)brand

E)styles

Answer:C

Diff:3PageRef:273

Skill:Concept

Objective:9-3

18)Allofthefollowingareaccuratedescriptionsofastyleproduct,EXCEPTwhich

one?

A)Styleproductsappearinhome,clothing,andart.

B)Onceastyleisinvented,itmaylastforgenerations.

C)Astylehasacycleshowingseveralperiodsofrenewedinterest.

D)Styleslastonlyashorttimeandtendtoattractonlyalimitedfollowing.

E)Stylesarcbasicanddistinctivemodesofexpression.

Answer:D

Diff:2PageRef:274

Skill:Concept

Objective:9-3

19)ThePLCconceptcanbeappliedbymarketersasausefulframeworkfor

describinghow.

A)toforecastproductperformance

B)todevelopmarketingstrategies

C)productsandmarketswork

D)concepttestingisconducted

E)productideasaredeveloped

Answer:C

Diff:3PageRef:274

Skill:Concept

Objective:9-3

20)UsingthePLCconcepttodevelopmarketingstrategycanbedifficultbecause

strategyisbothaanda(n)oftheproduct'slifecycle.

A)mirrorimage;cause

B)cause;result

C)result;mirrorimage

D)beginning;end

E)purpose;effect

Answer:B

Diff:3PageRef:274

Skill:Concept

Objective:9-3

21)Manufacturersmustcomplywithspecificlawsregarding.

A)pricestructures

B)productqualityandsafety

C)productplacement

D)distributionchannels

E)productlifecycles

Answer:B

Diff:1PageRef:280

AACSB:EthicalReasoning

Skill:Concept

Objective:9-4

22)Becauseof,acompanycannotmakeitsproductillegallysimilartoa

competitor'salreadyestablishedproduct.

A)anti-monopolylaws

B)patentlaws

C)theConsumerProductSafetyAct

D)productwarranties

E)productliability

Answer:B

Diff:1PageRef:280

AACSB:EthicalReasoning

Skill:Concept

Objective:9-4

23)Whichofthefollowingbestdescribestheroleofaproductsteward?

A)toprotectconsumersfromharm

B)toevaluatenew-productideasagainstasetofgeneralcriteria

C)todevelopanew-productconceptintoaphysicalproduct

D)toprotectthecompanyfromliabilitybyidentifyingandsolvingpotentialproduct

problems

E)AandD

Answer:E

Diff:3PageRef:280

AACSB:EthicalReasoning

Skill:Concept

Objective:9-4

24)Theadvantagesofstandardizinganinternationalproductincludeallofthe

followingEXCEPT.

A)thedevelopmentofaconsistentimage

B)lowerproductdesigncosts

C)theadaptationofproductstodifferentmarkets

D)decreasedmanufacturingcosts

E)lowermarketingcosts

Answer:C

Diff:2PageRef:281

Skill:Concept

Objective:9-4

25)Becausenames,labels,andcolorsmaynoteasilytranslatefromonecountryto

another,internationalmarketersmustcarefullyassess.

A)productstandardization

B)marketrollout

C)theproductlifecycle

D)packaging

E)styles

Answer:D

Diff:2PageRef:281

AACSB:MulticulturalandDiversity

Skill:Concept

Objective:9-4

26)BlairHousewareswantstoaddnewlinesofproductstoits46-storechain.

Managersarecorrectinbelievingthatthepurposeofideagenerationistocreateafew

ideas,andthepurposeofsucceedingstagesistoincreasethatnumber.

Answer:FALSE

Diff:2PageRef:262

AACSB:AnalyticSkills

Skill:Application

Objective:9-2

27)Aproductideaisanideaforapossibleproductacompanycanofferthemarket,

whileaproductconceptisadetailedversionoftheideastatedinmeaningful

consumerterms.

Answer:TRUE

Diff:3PageRef:262

Skill:Concept

Objective:9-2

28)Concepttestingworksbestwithpeoplewhoarefamiliarwiththenewideaand

thenewproduct'spurpose.Thisgenerallyincludestopmanagement,thesalesforce,

andresearchanddevelopment.

Answer:FALSE

Diff:3PageRef:263

Skill:Concept

Objective:9-2

29)GrccnTrccLawnandGardenProductsisengagedinmarketingstrategy

development.Managementshouldfirstcreateastatementoutliningtheproduct's

plannedprice,distribution,andmarketingbudgetforthefirstyear.

Answer:FALSE

Diff:3PageRef:263

AACSB:AnalyticSkills

Skill:Application

Objective:9-2

30)GreenTreeLawnandGardenProductsisengagedinareviewofthesales,costs,

andprofitprojectionsforsomenewproductstofindoutwhethertheysatisfythe

company'sobjectives.Thisactivityiscalledbusinessproductdevelopment.

Answer:FALSE

Diff:2PageRef:264

AACSB:ReflectiveThinking

Skill:Application

Objective:9-2

Chapter1()PricingProducts:UnderstandingandCapturingCustomerValue

1)istheamountofmoneychargedforaproductorservice.

A)Experiencecurve

B)Demandcurve

C)Price

D)Wage

E)Salary

Answer:C

Diff:1PageRef:290

Skill:Concept

Objective:10-1

2)Priceistheonlyelementinthemarketingmixthatproduces.

A)revenue

B)variablecosts

C)expenses

D)outfixedcosts

E)stability

Answer:A

Diff:1PageRef:290

Skill:Concept

Objective:10-1

3)Ifasellerchargesthanthebuyer'sperceivedvalue,thecompany'ssales

will.

A)more;benefit

B)more;suffer

C)less;increase

D)less;suffer

E)noneoftheabove

Answer:B

Diff:2PageRef:292

Skill:Concept

Objective:10-2

4)Somecompanieshaveadoptedastrategy,offeringjusttheright

combinationofqualityandgoodserviceatafairprice.

A)value-basedpricing

B)good-valuepricing

C)cost-pluspricing

D)low-priceimage

E)noneoftheabove

Answer:B

Diff:1PageRef:293

Skill:Concept

Objective:10-2

5)Wal-Martisfamousforusingwhatimportanttypeofvaluepricing?

A)competition-basedpricing

B)everydaylowpricing

C)cost-pluspricing

D)break-evenpricing

E)penetrationpricing

Answer:B

Diff:2PageRef:293

Skill:Concept

Objective:10-2

6)involveschargingaconstant,everydaylowpricewithfeworno

temporarypricediscounts.

A)High-lowpricing

B)Targetpricing

C)Cost-pluspricing

D)EDLP

E)Penetrationpricing

Answer:D

Diff:2PageRef:293

Skill:Concept

Objective:10-2

7)arethesumoftheandforanygivenlevelof

production.

A)Fixedcosts;variable:totalcosts

B)Fixedcosts;total;variablecosts

C)Variablecosts;fixed:totalcosts

D)Totalcosts;fixed;variablecosts

E)Break-evencosts;fixed;totalcosts

Answer:D

Diff:2PageRef:296

Skill:Concept

Objective:10-3

8)SRACistheacronymforwhichconceptrelatedtocostsatdifferentlevelsof

production?

A)strategicreasoningandcosts

B)short-runaccountingcosts

C)short-runaveragecost

D)strategicrightsandcompany

E)strategicrevenuesandcosts

Answer:C

Diff:2PageRef:296

Skill:Concept

Objective:10-3

9)Asproductionworkersbecomebetterorganizedandmorefamiliarwithequipment,

theaveragecostperunitdecreases.Thisiscalledthe.

A)demandcurve

B)experiencecurve

C)short-runaveragecostcurve

D)long-runaveragecostcurve

E)marginalutility

Answer:B

Diff:1PageRef:296

Skill:Concept

Objective:10-3

10)Withahighervolumeofproduct,mostcompaniescanexpectto.

A)gaineconomiesofscale

B)becomelessefficient

C)seeaveragecostsincrease

D)haveastraight,horizontallearningcurve

E)findcompetitorsusingtheexperiencecurvestrategically

An*we亡A

Diff:2PageRef:296

Skill:Concept

Objective:10-3

11)Thebreak-evenvolumeisthepointatwhich.

A)thetotalrevenueandtotalcostslinesintersect

B)demandequalssupply

C)theproductionofonemoreunitwillnotincreaseprofit

D)thecompanycanpayallofitslong-termdebt

E)afirm'sprofitgoalisreached

Answer:A

Diff:3PageRef:298

Skill:Concept

Objective:10-3

12)pricingworksonlyifthatpriceactuallybringsintheexpectedlevelof

sales.

A)Elasticity

B)Markup

C)Variable

D)Inelasticity

E)Targetprofit

Answer:E

Diff:3PageRef:298

Skill:Concept

Objective:10-3

13)Whichofthefollowingstatementsaboutbreak-evenanalysisistrue?

A)Itisusedtodeterminehowmuchproductionexperienceacompanymusthaveto

achievedesiredefficiencies.

B)Itisatechniqueusedtocalculatefixedcosts.

C)Itdeterminestheamountofretainedearningsacompanywillhaveduringan

accountingperiod.

D)Itisatechniquemarketersusetoexaminetherelationshipbetweensupplyand

demand.

E)Itiscalculatedusingvariablecosts,theunitprice,andfixedcosts.

Answer:E

Diff:3PageRef:298

Skill:Concept

Objective:10-3

14)Asamanufacturerincreasesprice,thedrops.

A)target

B)break-evenvolume

C)cost-pluspricing

D)totalcost

E)sales

Answer:B

Diff:3PageRef:299

Skill:Concept

Objective:10-3

15)Whichofthefollowingisanexternalfactorthataffectspricingdecisions?

A)thesalariesofproductionmanagement

B)competition

C)thesalariesoffinancemanagement

D)fundsexpensedtocleanproductionequipment

E)A,B,andC

Answer:B

Diff:1PageRef:299

Skill:Concept

Objective:10-4

16)thatinfluencepricingdecisionsincludethenatureofthemarketand

demandandcompetitors'prices.

A)Internalfactors

B)Elasticityfactors

C)Externalfactors

D)Targetfactors

E)Domesticfactors

Answer:C

Diff:2PageRef:299

Skill:Concept

Objective:10-4

17)CompaniesmaysetpriceslowforwhichofthefollowingreasonsEXCEPT

A)topreventcompetitionfromenteringthemarket

B)tostabilizethemarket

C)tocreateexcitementforaproduct

D)toprepareforaneasyexitfromamarket

E)tomatchacompetitor

Answer:D

Diff:2PageRef:299

Skill:Concept

Objective:10-4

18)Inordertoformaconsistentandeffectiveintegratedmarketingprogram,price

decisionsshouldbecoordinatedwitheachofthefollowingEXCEPT.

A)productdesign

B)distribution

C)competitors'prices

D)promotiondecisions

E)marketingobjectives

Answer:C

Diff:2PageRef:299

Skill:Concept

Objective:10-4

19)Withtargetcosting,marketerswillfirstandthen

A)buildthemarketingmix;identifythetargetmarket

B)identifythetargetmarket;buildthemarketingmix

C)designtheproduct;determineitscost

D)useskimmingpricing;penetratingpricing

E)determineasellingprice;targetcoststoensurethatthepriceismet

Answer:E

Diff:2PageRef:300

Skill:Concept

Objective:10-4

20)Pricesettingisusuallydeterminedbyinsmallcompanies.

A)topmanagement

B)marketingdepartments

C)salesdepartments

D)divisionalmanagers

E)cross-functionalteams

Answer:A

Diff:2PageRef:300

Skill:Concept

Objective:10-4

21)Pricesettingisusuallydeterminedbyinlargecompanies.

A)topmanagement

B)divisionalmanagers

C)productlinemanagers

D)pricingdepartments

E)bothBandC

Answer:E

Diff:2PageRef:300

Skill:Concept

Objective:10-4

22)EDLPisverysimilartohigh-lowpricing.

Answer:TRUE

Diff:2PageRef:293

Skill:Concept

Objective:10-2

23)Overheadcostisanothertermforfixedcost.

Answer:TRUE

Diff:1PageRef:295

Skill:Concept

Objective:10-3

24)Cost-basedpricingreliesonconsumerperceptionofvaluetodrivepricing.

Answer:FALSE

Diff:2PageRef:295

Skill:Concept

Objective:10-3

25)Averageunitcostincreaseswithaccumulatedproductionexperience.

Answer:FALSE

Diff:1PageRef:296

Skill:Concept

Objective:10-3

26)Anupward-slopingexperiencecurveisbeneficialforacompany.

Answer:FALSE

Diff:3PageRef:297

Skill:Concept

Objective:10-3

27)Thesimplestpricingmethodiscost-pluspricing,whichinvolvesaddinga

standardmarkuptothecostoftheproduct.

Answer:TRUE

Diff:2PageRef:297

Skill:Concept

Objective:10-3

28)Markuppricingispopularbecausepricestendtobesimilarandpricecompetition

isthusminimized.

Answer:TRUE

Diff:2PageRef:298

Skill:Concept

Objective:10-3

29)Targetprofitpricingisusedwhenafirmtriestodeterminethepriceatwhichit

willbreakevenormaketheprofititisseeking.

Answer:TRUE

Diff:3PageRef:298

Skill:Concept

Objective:10-3

30)Abrcak-cvcnchartshowsthetotalcostandtotalrevenueexpectedatvarious

salesvolumelevels.

Answer:TRUE

Diff:2PageRef:298

Skill:Concept

Objective:10-3

Chapter11PricingStrategies

1)Acompanysetsnotasingleprice,butratherathatcoversdifferentitems

initslinethatchangeovertimeasproductsmovethroughtheirlifecycles.

A)pricingby-product

B)pricingstructure

C)pricingloop

D)pricingcycle

E)pricingbundle

Answer:B

Diff:1PageRef:311

Skill:Concept

Objective:11-1

2)Companiesfacingthechal