Question 1

A product is called a good if ________.

Accepted Answer

A)Products contain both tangible and intangible components. Predominantly tangible products are categorized as goods, whereas predominantly intangible products are categorized as services.
B)Products contain both tangible and intangible components. Predominantly tangible products are categorized as goods, whereas predominantly intangible products are categorized as services.
C)Products contain both tangible and intangible components. Predominantly tangible products are categorized as goods, whereas predominantly intangible products are categorized as services.
D)Products contain both tangible and intangible components. Predominantly tangible products are categorized as goods, whereas predominantly intangible products are categorized as services.
E)Products contain both tangible and intangible components. Predominantly tangible products are categorized as goods, whereas predominantly intangible products are categorized as services.

Question 2

Charles is the purchase agent for a consulting firm.He places orders for office stationeries and consumables once in two weeks.The purchases are made in large quantities and are billed in the firm's name.The items that Charles buys are examples of ________.

Accepted Answer

A)Expense items are relatively inexpensive organizational goods that are generally used within a year of purchase, such as printer cartridges and paper.
B)Expense items are relatively inexpensive organizational goods that are generally used within a year of purchase, such as printer cartridges and paper.
C)Expense items are relatively inexpensive organizational goods that are generally used within a year of purchase, such as printer cartridges and paper.
D)Expense items are relatively inexpensive organizational goods that are generally used within a year of purchase, such as printer cartridges and paper.
E)Expense items are relatively inexpensive organizational goods that are generally used within a year of purchase, such as printer cartridges and paper.

Question 3

________ are everyday individual goods and services that people buy frequently without much conscious planning.

Accepted Answer

A)Everyday goods and services that people buy frequently, usually without much conscious planning, are known as convenience products.
B)Everyday goods and services that people buy frequently, usually without much conscious planning, are known as convenience products.
C)Everyday goods and services that people buy frequently, usually without much conscious planning, are known as convenience products.
D)Everyday goods and services that people buy frequently, usually without much conscious planning, are known as convenience products.
E)Everyday goods and services that people buy frequently, usually without much conscious planning, are known as convenience products.

Question 4

________ are fairly important individual goods and services that people buy less frequently.

Accepted Answer

A)Shopping products (such as computers or college educations)are fairly important goods and services that people buy less frequently.
B)Shopping products (such as computers or college educations)are fairly important goods and services that people buy less frequently.
C)Shopping products (such as computers or college educations)are fairly important goods and services that people buy less frequently.
D)Shopping products (such as computers or college educations)are fairly important goods and services that people buy less frequently.
E)Shopping products (such as computers or college educations)are fairly important goods and services that people buy less frequently.

Question 5

The maturity stage of product life cycle is ________.

Accepted Answer

A)During the maturity stage, markets tend to get saturated with all the supply that buyers demand, so the only way a firm can expand its sales in this phase is to win sales away from other suppliers.
B)During the maturity stage, markets tend to get saturated with all the supply that buyers demand, so the only way a firm can expand its sales in this phase is to win sales away from other suppliers.
C)During the maturity stage, markets tend to get saturated with all the supply that buyers demand, so the only way a firm can expand its sales in this phase is to win sales away from other suppliers.
D)During the maturity stage, markets tend to get saturated with all the supply that buyers demand, so the only way a firm can expand its sales in this phase is to win sales away from other suppliers.
E)During the maturity stage, markets tend to get saturated with all the supply that buyers demand, so the only way a firm can expand its sales in this phase is to win sales away from other suppliers.

Question 6

Skim pricing refers to introducing a new product at a low price in hopes of building sales volume quickly.

Accepted Answer

Skim pricing refers to charging a high price for a new product during the introductory stage and lowering the price later.

Question 7

Which of the following is the best example of a good?

Accepted Answer

A)Products contain both tangible and intangible components. Predominantly tangible products are categorized as goods, whereas predominantly intangible products are categorized as services. Most tangible of the given set of products is a pair of shoes.
B)Products contain both tangible and intangible components. Predominantly tangible products are categorized as goods, whereas predominantly intangible products are categorized as services. Most tangible of the given set of products is a pair of shoes.
C)Products contain both tangible and intangible components. Predominantly tangible products are categorized as goods, whereas predominantly intangible products are categorized as services. Most tangible of the given set of products is a pair of shoes.
D)Products contain both tangible and intangible components. Predominantly tangible products are categorized as goods, whereas predominantly intangible products are categorized as services. Most tangible of the given set of products is a pair of shoes.
E)Products contain both tangible and intangible components. Predominantly tangible products are categorized as goods, whereas predominantly intangible products are categorized as services. Most tangible of the given set of products is a pair of shoes.

Question 8

The introductory stage will be followed by a ________ stage for a successful product.

Accepted Answer

A)After the introductory stage comes the growth stage, marked by a rapid jump in sales-if the product is successful-and, usually, an increase in the number of competitors and distribution outlets.
B)After the introductory stage comes the growth stage, marked by a rapid jump in sales-if the product is successful-and, usually, an increase in the number of competitors and distribution outlets.
C)After the introductory stage comes the growth stage, marked by a rapid jump in sales-if the product is successful-and, usually, an increase in the number of competitors and distribution outlets.
D)After the introductory stage comes the growth stage, marked by a rapid jump in sales-if the product is successful-and, usually, an increase in the number of competitors and distribution outlets.
E)After the introductory stage comes the growth stage, marked by a rapid jump in sales-if the product is successful-and, usually, an increase in the number of competitors and distribution outlets.

Question 9

________ are expensive organizational products with a long useful life.

Accepted Answer

A)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories.
B)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories.
C)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories.
D)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories.
E)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories.

Question 10

Break-even point refers to the sales volume at a given price that will cover all of a company's costs.

Accepted Answer

Break-even point refers to the sales volume at a given price that will cover all of a company's costs.

Question 11

Jennifer buys such items as bread,flour,and beverages every week from nearby shops.These items are examples of a(n)________.

Accepted Answer

A)Everyday goods and services that people buy frequently, usually without much conscious planning, are known as convenience products.
B)Everyday goods and services that people buy frequently, usually without much conscious planning, are known as convenience products.
C)Everyday goods and services that people buy frequently, usually without much conscious planning, are known as convenience products.
D)Everyday goods and services that people buy frequently, usually without much conscious planning, are known as convenience products.
E)Everyday goods and services that people buy frequently, usually without much conscious planning, are known as convenience products.

Question 12

________ are particular brands that the buyer especially wants and will seek out.

Accepted Answer

A)Specialty products are particular brands that the buyer especially wants and will seek out, regardless of location or price, such as Suzuki violin lessons or Bang & Olufsen home entertainment gear.
B)Specialty products are particular brands that the buyer especially wants and will seek out, regardless of location or price, such as Suzuki violin lessons or Bang & Olufsen home entertainment gear.
C)Specialty products are particular brands that the buyer especially wants and will seek out, regardless of location or price, such as Suzuki violin lessons or Bang & Olufsen home entertainment gear.
D)Specialty products are particular brands that the buyer especially wants and will seek out, regardless of location or price, such as Suzuki violin lessons or Bang & Olufsen home entertainment gear.
E)Specialty products are particular brands that the buyer especially wants and will seek out, regardless of location or price, such as Suzuki violin lessons or Bang & Olufsen home entertainment gear.

Question 13

John decides to buy a new car.He compares many products and considers such aspects as fuel efficiency,power,and size before finalizing a model.In this case,the new car is an example of a(n)________.

Accepted Answer

A)Shopping products are fairly important goods and services that people buy less frequently, such as computers and college educations. A car is a shopping product in this case. Shopping products require comparison shopping.
B)Shopping products are fairly important goods and services that people buy less frequently, such as computers and college educations. A car is a shopping product in this case. Shopping products require comparison shopping.
C)Shopping products are fairly important goods and services that people buy less frequently, such as computers and college educations. A car is a shopping product in this case. Shopping products require comparison shopping.
D)Shopping products are fairly important goods and services that people buy less frequently, such as computers and college educations. A car is a shopping product in this case. Shopping products require comparison shopping.
E)Shopping products are fairly important goods and services that people buy less frequently, such as computers and college educations. A car is a shopping product in this case. Shopping products require comparison shopping.

Question 14

Dynamic pricing refers to offering temporary price reductions to stimulate sales.

Accepted Answer

Temporary price reductions that stimulate sales are called discounts. Dynamic pricing refers to continually adjusting prices to reflect changes in supply and demand.

Question 15

Expense items are ________.

Accepted Answer

A)Expense items are relatively inexpensive organizational goods that are generally used within a year of purchase, such as printer cartridges and paper.
B)Expense items are relatively inexpensive organizational goods that are generally used within a year of purchase, such as printer cartridges and paper.
C)Expense items are relatively inexpensive organizational goods that are generally used within a year of purchase, such as printer cartridges and paper.
D)Expense items are relatively inexpensive organizational goods that are generally used within a year of purchase, such as printer cartridges and paper.
E)Expense items are relatively inexpensive organizational goods that are generally used within a year of purchase, such as printer cartridges and paper.

Question 16

Absco computers introduced a low cost,cloud-based storage service.The company adopted a unit-based pricing for the product and many small businesses found the product to be very effective in reducing their storage costs.The sale of the product has increased swiftly in the recent months and is at an all-time high.The product is presently in the ________ stage of product life cycle.

Accepted Answer

A)After the introductory stage comes the growth stage, marked by a rapid jump in sales-if the product is successful-and, usually, an increase in the number of competitors and distribution outlets.
B)After the introductory stage comes the growth stage, marked by a rapid jump in sales-if the product is successful-and, usually, an increase in the number of competitors and distribution outlets.
C)After the introductory stage comes the growth stage, marked by a rapid jump in sales-if the product is successful-and, usually, an increase in the number of competitors and distribution outlets.
D)After the introductory stage comes the growth stage, marked by a rapid jump in sales-if the product is successful-and, usually, an increase in the number of competitors and distribution outlets.
E)After the introductory stage comes the growth stage, marked by a rapid jump in sales-if the product is successful-and, usually, an increase in the number of competitors and distribution outlets.

Question 17

Research and development is carried out usually during the ________ stage of product development.

Accepted Answer

A)The first stage in the product life cycle is the introductory stage, which extends from the research-and-development (R&D)phase through the product's first commercial availability.
B)The first stage in the product life cycle is the introductory stage, which extends from the research-and-development (R&D)phase through the product's first commercial availability.
C)The first stage in the product life cycle is the introductory stage, which extends from the research-and-development (R&D)phase through the product's first commercial availability.
D)The first stage in the product life cycle is the introductory stage, which extends from the research-and-development (R&D)phase through the product's first commercial availability.
E)The first stage in the product life cycle is the introductory stage, which extends from the research-and-development (R&D)phase through the product's first commercial availability.

Question 18

Optimal pricing is a computer-based pricing method.

Accepted Answer

Optimal pricing is a computer-based pricing method that creates a demand curve for every product to help managers select a price that meets specific marketing objectives.

Question 19

Five college graduates decide to open a laundry service company.They import six commercial washing machines from Italy to set up a factory.In this case,the commercial washing machines are best referred to as a(n)________.

Accepted Answer

A)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories. In this case, the graduates are buying the machines as a long-term capital investment.
B)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories. In this case, the graduates are buying the machines as a long-term capital investment.
C)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories. In this case, the graduates are buying the machines as a long-term capital investment.
D)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories. In this case, the graduates are buying the machines as a long-term capital investment.
E)Capital items are expensive organizational products with a long useful life, ranging from office and plant equipment to entire factories. In this case, the graduates are buying the machines as a long-term capital investment.

Question 20

Participative pricing allows customers to pay the amount they think a product is worth.

Accepted Answer

Participative pricing allows customers to pay the amount they think a product is worth.

Quiz 14: Product and Pricing Strategies

A product is called a good if ________.

Charles is the purchase agent for a consulting firm.He places orders for office stationeries and consumables once in two weeks.The purchases are made in large quantities and are billed in the firm's name.The items that Charles buys are examples of ________.

________ are everyday individual goods and services that people buy frequently without much conscious planning.

________ are fairly important individual goods and services that people buy less frequently.

The maturity stage of product life cycle is ________.

Skim pricing refers to introducing a new product at a low price in hopes of building sales volume quickly.

Which of the following is the best example of a good?

The introductory stage will be followed by a ________ stage for a successful product.

________ are expensive organizational products with a long useful life.

Break-even point refers to the sales volume at a given price that will cover all of a company's costs.

Jennifer buys such items as bread,flour,and beverages every week from nearby shops.These items are examples of a(n) ________.

________ are particular brands that the buyer especially wants and will seek out.

John decides to buy a new car.He compares many products and considers such aspects as fuel efficiency,power,and size before finalizing a model.In this case,the new car is an example of a(n) ________.

Dynamic pricing refers to offering temporary price reductions to stimulate sales.

Expense items are ________.

Research and development is carried out usually during the ________ stage of product development.

Optimal pricing is a computer-based pricing method.

Five college graduates decide to open a laundry service company.They import six commercial washing machines from Italy to set up a factory.In this case,the commercial washing machines are best referred to as a(n) ________.

Participative pricing allows customers to pay the amount they think a product is worth.