（營銷技巧）市場營銷學題庫題庫

（營銷技巧）市場營銷學題庫題庫

MarketingRevisionPartII

Chapter8 Product,Services,andBrandingStrategies:BuildingCustomerValue

Wedefinea asanythingthatcanbeofferedtoamarketforattention,acquisition,use,orconsumptionandthatmightsatisfyawantorneed.

privatebrand

servicevariability

service

product

serviceencounterAnswer: D

Diff:1 PageRef:224AACSB: CommunicationSkill: Concept

Objective: 8-1

areaformofproductthatconsistsofactivities,benefits,orsatisfactionsofferedforsalethatareessentiallyintangibleanddonotresultintheownershipofanything.

Lineextensions

Services

Brands

Consumerproducts

SupplementsAnswer: B

Diff:1 PageRef:224AACSB: CommunicationSkill: Concept

Objective: 8-1

Aproductisakeyelementinthe .Atoneextreme,itmayconsistofpuretangiblegoodsorattheotherextreme,pureservices.

marketoffering

brandequity

brandextension

co-branding

valuechainAnswer: A

Diff:1 PageRef:224AACSB: CommunicationSkill: Concept

Objective: 8-1

Todifferentiatethemselves,manycompaniesaregoingbeyondproductsandservices,theyaredevelopinganddeliveringcustomer

.

quality

experiences

brands

productlines

eventsAnswer: B

Diff:2 PageRef:224AACSB: CommunicationSkill: Concept

Objective: 8-1

Productplannersneedtoconsiderproductsandservicesonthreelevels.Eachleveladdsmorecustomervalue.Themostbasiclevelisthe ,whichaddressesthequestion,"Whatisthebuyerreallybuying?"

actualproduct

augmentedproduct

corecustomervalue

co-branding

exchangeAnswer: C

Diff:2 PageRef:225AACSB: CommunicationSkill: Concept

Objective: 8-1

Developingaproductorserviceinvolvesdefiningthebenefitsthatitwilloffer.Thesebenefitsarecommunicatedanddeliveredby

suchasquality,features,andstyleanddesign.

privatebrands

productattributes

consumerproducts

productmixes

marketingtoolsAnswer: B

Diff:3 PageRef:229AACSB: CommunicationSkill: Concept

Objective: 8-2

isoneofthemarketer'smajorpositioningtoolsbecauseithasadirectimpactonproductorserviceperformance;itisthereforecloselylinkedtocustomervalueandsatisfaction.

Packaging

Productquality

Totalqualitymanagement

Specialtyproductmarketing

PositioningAnswer: B

Diff:2 PageRef:229AACSB: CommunicationSkill: Concept

Objective: 8-2

isanapproachinwhichallthecompany'speopleareinvolvedinconstantlyimprovingtheproducts,services,andbusinessprocesses.

Productquality

Brandequity

Totalqualitymanagement

Specialtyproductmarketing

Positioning

Answer: C

Diff:2 PageRef:230Skill: Concept

Objective: 8-2

Whatarethetwodimensionsofproductquality?

consistencyandlevel

performanceandresistance

designandinnovation

conformanceandstyle

featureanddesignAnswer: A

Diff:2 PageRef:230Skill: Concept

Objective: 8-2

Whichofthefollowingtypesofqualityreferstofreedomfromdefectsandconsistencyindeliveringatargetedlevelofperformance?

privatebrand

product

totalqualitymanagement

conformance

adherenceAnswer: D

Diff:2 PageRef:230Skill: Concept

Objective: 8-2

Someanalystssee asthemajorenduringassetofacompany,outlastingthecompany'sspecificproductsandfacilities.

brands

convenienceproducts

specialtyproducts

unsoughtproducts

staplesAnswer: A

Diff:1 PageRef:235AACSB: Communication

Skill: ConceptObjective: 8-3

Akeyelementinacompany'srelationshipwithconsumers,a

representsconsumers'perceptionsandfeelingsaboutaproductanditsperformance.

productline

productexperience

brand

service

productattributeAnswer: C

Diff:2 PageRef:236AACSB: CommunicationSkill: Concept

Objective: 8-3

WhichofthefollowingisNOToneofthefourconsumerperceptiondimensionsusedbyadagencyYoung&Rubicamtomeasurebrandstrength?

branddifferentiation

brandknowledge

brandvaluation

brandesteem

brandrelevanceAnswer: C

Diff:3 PageRef:236AACSB: CommunicationSkill: Concept

Objective: 8-3

Thetotalfinancialvalueofabrandis estimatedthroughtheprocessofbrand .

differentiation

valuation

extensions

positioning

equityAnswer: B

Diff:2 PageRef:236AACSB: CommunicationSkill: Concept

Objective: 8-3

Thefundamentalassetunderlyingbrandequityis –-the

valueofthecustomerrelationshipsthatthebrandcreates.Apowerfulbrandisimportant,butwhatitreallyrepresentsisasetofloyalconsumers.

thecustomermix

customerequity

lineequity

servicevariability

theserviceencounterAnswer: B

Diff:3 PageRef:238AACSB: CommunicationSkill: Concept

Objective: 8-3

meansthatservicescannotbeseparatedfromtheirproviders,whethertheprovidersarepeopleormachines.

Serviceintangibility

Serviceinseparability

Servicevariability

Serviceperishability

ServiceheterogeneityAnswer: B

Diff:1 PageRef:245Skill: Concept

Objective: 8-4

WhichofthefollowingisNOToneofthelinksinthe

service-profitchain,linkingservicefirmprofitswithemployeeandcustomersatisfaction?

internalservicequality

evidencemanagement

satisfiedandproductiveserviceemployees

satisfiedandloyalcustomers

healthyserviceprofitsandgrowthAnswer: B

Diff:3 PageRef:246Skill: Concept

Objective: 8-4

Through ,theservicefirmtrainsandmotivatesits

customer-contactemployeesandsupportingservicepeopletoworkasateamtoprovidecustomersatisfaction.

serviceinseparability

serviceintangibility

servicevariability

internalmarketing

externalmarketingAnswer: D

Diff:2 PageRef:247Skill: Concept

Objective: 8-4

Becauseservicequalitydependsonthequalityofbuyer-sellerinteractionduringtheserviceencounter,servicemarketersuse

totrainemployeesintheartofinteractingwithcustomerstosatisfytheirneeds.

interactivemarketing

servicedifferentiation

serviceproductivity

internalmarketing

externalmarketingAnswer: A

Diff:2 PageRef:247Skill: Concept

Objective: 8-4

Allofthefollowingaremethodsfordevelopingadifferentiatedserviceoffer,delivery,orimageEXCEPT .

offeringinnovativefeatures

increasingthequantityofservicebygivingupsomequality

havingmorereliablecustomer-contactpeople

developingsymbolsandbranding

designingasuperiordeliveryprocessAnswer: B

Diff:2 PageRef:248Skill: Concept

Objective: 8-4

Aserviceisanythingthatcanbeofferedtoamarketforattention,acquisition,use,orconsumptionandthatmightsatisfyawantorneed.

Answer: FALSE

Diff:1 PageRef:224Skill: Concept

Objective: 8-1

Sonyoffersconsumersmorethanjustcamcorders;itprovidesconsumerswithacompletesolutiontotheirpicture-takingproblems.Thisofferingiscalledanaugmentedproduct.

Answer: TRUE

Diff:3 PageRef:225AACSB: ReflectiveThinkingSkill: ApplicationObjective: 8-1

Unsoughtproductsareproductsthatthecustomerusuallybuysfrequently,immediately,andwithaminimumofcomparisonandbuyingeffort.

Answer: FALSE

Diff:1 PageRef:226Skill: Concept

Objective: 8-1

Shoppingproductsarelessfrequentlypurchasedconsumerproductsandservicesthatcustomerscomparecarefullyonsuitability,quality,price,andstyle.

Answer: TRUE

Diff:2 PageRef:226

Skill: ConceptObjective: 8-1

Styleisalargerconceptthandesign.Designdescribestheappearanceofaproduct.

Answer: FALSE

Diff:3 PageRef:230Skill: Concept

Objective: 8-2

Brandingcanaddconsumervaluetoaproduct.

Answer: TRUE

Diff:2 PageRef:231AACSB: CommunicationSkill: Concept

Objective: 8-2

Becausesomanypurchasedecisionsaremadeinstores,aproduct'spackagingmaybeaseller'slastandbestchancetoinfluenceconsumers.

Answer: TRUE

Diff:2 PageRef:232

AACSB: CommunicationSkill: ConceptObjective: 8-2

Productsupportservicesidentifytheproductorbrand,describeseveralthingsabouttheproduct,andpromotetheproductthroughattractivegraphics.

Answer: FALSE

Diff:2 PageRef:233AACSB: CommunicationSkill: Concept

Objective: 8-2

Quakerproducesavarietyofcereals.Thisvarietyiscalleditsproductline.

Answer: TRUE

Diff:2 PageRef:234AACSB: ReflectiveThinkingSkill: ApplicationObjective: 8-2

Cannibalizationandcustomerconfusionaboutproduct

differentiationaretwopotentialresultsiflinefillingisoverdone.

Answer: TRUE

Diff:3 PageRef:234Skill: Concept

Objective: 8-2

Chapter9 New-ProductDevelopmentandProductLife-CycleStrategies

Whatarethetwowaysthatacompanycanobtainnewproducts?

lineextensionandbrandmanagement

internaldevelopmentandbrandmanagement

new-productdevelopmentandacquisition

servicedevelopmentandproductextension

marketmixmodificationandresearchanddevelopmentAnswer: C

Diff:2 PageRef:258Skill: Concept

Objective: 9-1

Productimprovements,productmodifications,andoriginalproductscanallbeclassifiedas .

pioneerproducts

newproducts

productconcepts

productideas

testproductsAnswer: B

Diff:1 PageRef:258Skill: Concept

Objective: 9-1

WhichofthefollowingisNOTapotentialreasonforanewproducttofail?

anunderestimatedmarketsize

apoorlydesignedproduct

anincorrectlypositionedproduct

higherthananticipatedcostsofproductdevelopment

ineffectiveadvertisingAnswer: A

Diff:2 PageRef:258Skill: Concept

Objective: 9-1

WhichofthefollowingisNOTachallengepresentedbytheproductlifecyclethatafirmmustface?

Allproductseventuallydecline.

Changingtastes,technologies,andcompetitionaffectthemarketingoftheproductasitpassesthroughlifecyclestages.

Afirmmustbegoodatdevelopingnewproductstoreplaceagingones.

Afirmmustbegoodatadaptingitsmarketingstrategies.

Itisdifficulttoplotthestagesasaproductgoesthroughthem.

Answer: E

Diff:2 PageRef:258Skill: Concept

Objective: 9-1

Thecreationofasuccessfulnewproductdependsonacompany'sunderstandingofits anditsabilitytodeliver tocustomers.

competitors,distributors,andemployees;newstyles

customers,brands,products;productimages

customers,competitors,andmarkets;superiorvalue

product,marketingmix,andmarketingstrategy;functionalfeatures

productlifecycle,legalresponsibilities,andsocial

responsibilities;innovationsAnswer: C

Diff:2 PageRef:259Skill: Concept

Objective: 9-2

A isthewayconsumersperceiveanactualorpotentialproduct.

productidea

productconcept

productimage

testmarket

concepttestAnswer: C

Diff:1 PageRef:262AACSB: CommunicationSkill: Concept

Objective: 9-2

Anattractiveideamustbedevelopedintoa .

productidea

productconcept

productimage

testmarket

productstrategyAnswer: B

Diff:2 PageRef:262Skill: Concept

Objective: 9-2

callsfortestingnew-productconceptswithgroupsoftargetconsumers.

Conceptdevelopment

Concepttesting

Ideageneration

Ideascreening

TestmarketingAnswer: B

Diff:1 PageRef:263Skill: Concept

Objective: 9-2

Intheconcepttestingstageofnew-productdevelopment,aproductconceptin formispresentedtogroupsoftargetconsumers.

physicalorsymbolic

prototype

final

market-tested

commercialAnswer: A

Diff:2 PageRef:263Skill: Concept

Objective: 9-2

Withwhatgroupsdofirmsconductconcepttestingfornewproducts?

suppliers

employees

targetcustomers

manufacturers

competitorsAnswer: C

Diff:3 PageRef:263Skill: Concept

Objective: 9-2

Followingthedecisionto"time"theintroductionofthenewproduct,acompanymustdecide tolaunchthenewproduct.

where

how

towhatdegree

why

alloftheaboveAnswer: A

Diff:2 PageRef:268Skill: Concept

Objective: 9-2

Whichofthefollowingisnecessaryforsuccessfulnew-productdevelopment?

aholisticandsequentialproductdevelopmentapproach

acustomer-centered,team-based,systematicapproach

ateam-based,innovation-managementapproach

amarketpioneermindsetandaholisticapproach

aninnovationmanagementsystemandsequentialproductdevelopmentAnswer: B

Diff:3 PageRef:268Skill: Concept

Objective: 9-2

Whichstageofthenew-productdevelopmentprocessfocusesonfindingnewwaystosolvecustomerproblemsandcreatemore

customer-satisfyingexperiences?

concepttesting

new-productdevelopment

customer-centerednew-productdevelopment

sequentialproductdevelopment

team-basednew-productdevelopmentAnswer: C

Diff:1 PageRef:269Skill: Concept

Objective: 9-2

isanew-productdevelopmentapproachinwhichonecompanydepartmentworkstocompleteitsstageoftheprocessbeforepassingthenewproductalongtothenextdepartmentandstage.

Team-basedproductdevelopment

Simultaneousproductdevelopment

Sequentialproductdevelopment

Productlife-cycleanalysis

MicromarketingAnswer: C

Diff:2 PageRef:269Skill: Concept

Objective: 9-2

Inordertogettheirnewproductstomarketmorequickly,manycompaniesareadoptingafaster,team-orientedapproachcalled

.

simulatednew-productdevelopment

sequentialproductdevelopment

team-basednew-productdevelopment

phased-innew-productdevelopment

marketdevelopmentAnswer: C

Diff:1 PageRef:270Skill: Concept

Objective: 9-2

Whichstageofthetypicalconsumerproductlifecycleisoutoforderbelow?

productdevelopment

introduction

maturity

growth

declineAnswer: C

Diff:2 PageRef:273

Skill: ConceptObjective: 9-3

WhichofthefollowingCANNOTbedescribedusingthePLCconcept?

productclass

productform

productimage

brand

stylesAnswer: C

Diff:3 PageRef:273Skill: Concept

Objective: 9-3

Allofthefollowingareaccuratedescriptionsofastyleproduct,EXCEPTwhichone?

Styleproductsappearinhome,clothing,andart.

Onceastyleisinvented,itmaylastforgenerations.

Astylehasacycleshowingseveralperiodsofrenewedinterest.

Styleslastonlyashorttimeandtendtoattractonlyalimitedfollowing.

Stylesarebasicanddistinctivemodesofexpression.

Answer: D

Diff:2 PageRef:274Skill: Concept

Objective: 9-3

ThePLCconceptcanbeappliedbymarketersasausefulframeworkfordescribinghow .

toforecastproductperformance

todevelopmarketingstrategies

productsandmarketswork

concepttestingisconducted

productideasaredevelopedAnswer: C

Diff:3 PageRef:274Skill: Concept

Objective: 9-3

UsingthePLCconcepttodevelopmarketingstrategycanbedifficultbecausestrategyisbotha anda(n) oftheproduct'slifecycle.

mirrorimage;cause

cause;result

result;mirrorimage

beginning;end

purpose;effectAnswer: B

Diff:3 PageRef:274Skill: Concept

Objective: 9-3

Manufacturersmustcomplywithspecificlawsregarding .

pricestructures

productqualityandsafety

productplacement

distributionchannels

productlifecyclesAnswer: B

Diff:1 PageRef:280AACSB: EthicalReasoningSkill: Concept

Objective: 9-4

Becauseof ,acompanycannotmakeitsproductillegallysimilartoacompetitor'salreadyestablishedproduct.

anti-monopolylaws

patentlaws

theConsumerProductSafetyAct

productwarranties

productliabilityAnswer: B

Diff:1 PageRef:280AACSB: EthicalReasoningSkill: Concept

Objective: 9-4

Whichofthefollowingbestdescribestheroleofaproductsteward?

toprotectconsumersfromharm

toevaluatenew-productideasagainstasetofgeneralcriteria

todevelopanew-productconceptintoaphysicalproduct

toprotectthecompanyfromliabilitybyidentifyingandsolvingpotentialproductproblems

AandDAnswer: E

Diff:3 PageRef:280AACSB: EthicalReasoningSkill: Concept

Objective: 9-4

Theadvantagesofstandardizinganinternationalproductinclude

allofthefollowingEXCEPT .

thedevelopmentofaconsistentimage

lowerproductdesigncosts

theadaptationofproductstodifferentmarkets

decreasedmanufacturingcosts

lowermarketingcostsAnswer: C

Diff:2 PageRef:281Skill: Concept

Objective: 9-4

Becausenames,labels,andcolorsmaynoteasilytranslatefromonecountrytoanother,internationalmarketersmustcarefullyassess

.

productstandardization

marketrollout

theproductlifecycle

packaging

stylesAnswer: D

Diff:2 PageRef:281

AACSB: MulticulturalandDiversitySkill: Concept

Objective: 9-4

BlairHousewareswantstoaddnewlinesofproductstoits

46-storechain.Managersarecorrectinbelievingthatthepurposeofideagenerationistocreateafewideas,andthepurposeofsucceedingstagesistoincreasethatnumber.

Answer: FALSE

Diff:2 PageRef:262AACSB: AnalyticSkillsSkill: ApplicationObjective: 9-2

Aproductideaisanideaforapossibleproductacompanycanofferthemarket,whileaproductconceptisadetailedversionoftheideastatedinmeaningfulconsumerterms.

Answer: TRUE

Diff:3 PageRef:262Skill: Concept

Objective: 9-2

Concepttestingworksbestwithpeoplewhoarefamiliarwiththenewideaandthenewproduct'spurpose.Thisgenerallyincludestopmanagement,thesalesforce,andresearchanddevelopment.

Answer: FALSE

Diff:3 PageRef:263Skill: Concept

Objective: 9-2

GreenTreeLawnandGardenProductsisengagedinmarketingstrategydevelopment.Managementshouldfirstcreateastatementoutliningtheproduct'splannedprice,distribution,andmarketingbudgetforthefirstyear.

Answer: FALSE

Diff:3 PageRef:263AACSB: AnalyticSkillsSkill: ApplicationObjective: 9-2

GreenTreeLawnandGardenProductsisengagedinareviewofthesales,costs,andprofitprojectionsforsomenewproductstofindoutwhethertheysatisfythecompany'sobjectives.Thisactivityiscalledbusinessproductdevelopment.

Answer: FALSE

Diff:2PageRef:264AACSB:ReflectiveThinkingSkill:Application

Objective: 9-2

Chapter10 PricingProducts:UnderstandingandCapturingCustomerValue

istheamountofmoneychargedforaproductorservice.

Experiencecurve

Demandcurve

Price

Wage

SalaryAnswer: C

Diff:1 PageRef:290Skill: Concept

Objective: 10-1

Priceistheonlyelementinthemarketingmixthatproduces

.

revenue

variablecosts

expenses

outfixedcosts

stabilityAnswer: A

Diff:1 PageRef:290Skill: Concept

Objective: 10-1

Ifasellercharges thanthebuyer'sperceivedvalue,thecompany'ssaleswill .

more;benefit

more;suffer

less;increase

less;suffer

noneoftheaboveAnswer: B

Diff:2 PageRef:292Skill: Concept

Objective: 10-2

Somecompanieshaveadopteda strategy,offeringjusttherightcombinationofqualityandgoodserviceatafairprice.

value-basedpricing

good-valuepricing

cost-pluspricing

low-priceimage

noneoftheaboveAnswer: B

Diff:1 PageRef:293Skill: Concept

Objective: 10-2

Wal-Martisfamousforusingwhatimportanttypeofvaluepricing?

competition-basedpricing

everydaylowpricing

cost-pluspricing

break-evenpricing

penetrationpricingAnswer: B

Diff:2 PageRef:293Skill: Concept

Objective: 10-2

involveschargingaconstant,everydaylowpricewithfewornotemporarypricediscounts.

High-lowpricing

Targetpricing

Cost-pluspricing

EDLP

PenetrationpricingAnswer: D

Diff:2 PageRef:293Skill: Concept

Objective: 10-2

arethesumofthe and foranygivenlevelofproduction.

Fixedcosts;variable;totalcosts

Fixedcosts;total;variablecosts

Variablecosts;fixed;totalcosts

Totalcosts;fixed;variablecosts

Break-evencosts;fixed;totalcostsAnswer: D

Diff:2 PageRef:296Skill: Concept

Objective: 10-3

SRACistheacronymforwhichconceptrelatedtocostsatdifferentlevelsofproduction?

strategicreasoningandcosts

short-runaccountingcosts

short-runaveragecost

strategicrightsandcompany

strategicrevenuesandcostsAnswer: C

Diff:2 PageRef:296Skill: Concept

Objective: 10-3

Asproductionworkersbecomebetterorganizedandmorefamiliarwithequipment,theaveragecostperunitdecreases.Thisiscalledthe .

demandcurve

experiencecurve

short-runaveragecostcurve

long-runaveragecostcurve

marginalutilityAnswer: B

Diff:1 PageRef:296Skill: Concept

Objective: 10-3

Withahighervolumeofproduct,mostcompaniescanexpectto

.

gaineconomiesofscale

becomelessefficient

seeaveragecostsincrease

haveastraight,horizontallearningcurve

findcompetitorsusingtheexperiencecurvestrategicallyAnswer: A

Diff:2 PageRef:296Skill: Concept

Objective: 10-3

Thebreak-evenvolumeisthepointatwhich .

thetotalrevenueandtotalcostslinesintersect

demandequalssupply

theproductionofonemoreunitwillnotincreaseprofit

thecompanycanpayallofitslong-termdebt

afirm'sprofitgoalisreachedAnswer: A

Diff:3 PageRef:298Skill: Concept

Objective: 10-3

pricingworksonlyifthatpriceactuallybringsintheexpectedlevelofsales.

Elasticity

Markup

Variable

Inelasticity

TargetprofitAnswer: E

Diff:3 PageRef:298Skill: Concept

Objective: 10-3

Whichofthefollowingstatementsaboutbreak-evenanalysisistrue?

Itisusedtodeterminehowmuchproductionexperienceacompanymusthavetoachievedesiredefficiencies.

Itisatechniqueusedtocalculatefixedcosts.

Itdeterminestheamountofretainedearningsacompanywillhaveduringanaccountingperiod.

Itisatechniquemarketersusetoexaminetherelationshipbetweensupplyanddemand.

Itiscalculatedusingvariablecosts,theunitprice,andfixedcosts.

Answer: E

Diff:3 PageRef:298Skill: Concept

Objective: 10-3

Asamanufacturerincreasesprice,the drops.

target

break-evenvolume

cost-pluspricing

totalcost

salesAnswer: B

Diff:3 PageRef:299Skill: Concept

Objective: 10-3

Whichofthefollowingisanexternalfactorthataffectspricingdecisions?

thesalariesofproductionmanagement

competition

thesalariesoffinancemanagement

fundsexpensedtocleanproductionequipment

A,B,andCAnswer: B

Diff:1 PageRef:299Skill: Concept

Objective: 10-4

thatinfluencepricingdecisionsincludethenatureofthemarketanddemandandcompetitors'prices.

Internalfactors

Elasticityfactors

Externalfactors

Targetfactors

DomesticfactorsAnswer: C

Diff:2 PageRef:299Skill: Concept

Objective: 10-4

CompaniesmaysetpriceslowforwhichofthefollowingreasonsEXCEPT .

topreventcompetitionfromenteringthemarket

tostabilizethemarket

tocreateexcitementforaproduct

toprepareforaneasyexitfromamarket

tomatchacompetitorAnswer: D

Diff:2 PageRef:299Skill: Concept

Objective: 10-4

Inordertoformaconsistentandeffectiveintegratedmarketingprogram,pricedecisionsshouldbecoordinatedwitheachofthefollowingEXCEPT .

productdesign

distribution

competitors'prices

promotiondecisions

marketingobjectivesAnswer: C

Diff:2 PageRef:299Skill: Concept

Objective: 10-4

Withtargetcosting,marketerswillfirst andthen

.

buildthemarketingmix;identifythetargetmarket

identifythetargetmarket;buildthemarketingmix

designtheproduct;determineitscost

useskimmingpricing;penetratingpricing

determineasellingprice;targetcoststoensurethatthepriceismet

Answer: E

Diff:2 PageRef:300Skill: Concept

Objective: 10-4

Pricesettingisusuallydeterminedby insmallcompanies.

topmanagement

marketingdepartments

salesdepartments

divisionalmanagers

cross-functionalteamsAnswer: A

Diff:2 PageRef:300Skill: Concept

Objective: 10-4

Pricesettingisusuallydeterminedby inlargecompanies.

topmanagement

divisionalmanagers

productlinemanagers

pricingdepartments

bothBandCAnswer: E

Diff:2 PageRef:300Skill: Concept

Objective: 10-4

EDLPisverysimilartohigh-lowpricing.

Answer: TRUE

Diff:2 PageRef:293Skill: Concept

Objective: 10-2

Overheadcostisanothertermforfixedcost.

Answer: TRUE

Diff:1 PageRef:295Skill: Concept

Objective: 10-3

Cost-basedpricingreliesonconsumerperceptionofvaluetodrivepricing.

Answer: FALSE

Diff:2 PageRef:295Skill: Concept

Objective: 10-3

Averageunitcostincreaseswithaccumulatedproductionexperience.

Answer: FALSE

Diff:1 PageRef:296Skill: Concept

Objective: 10-3

Anupward-slopingexperiencecurveisbeneficialforacompany.

Answer: FALSE

Diff:3 PageRef:297Skill: Concept

Objective: 10-3

Thesimplestpricingmethodiscost-pluspricing,whichinvolves

addingastandardmarkuptothecostoftheproduct.Answer: TRUE

Diff:2 PageRef:297Skill: Concept

Objective: 10-3

Markuppricingispopularbecausepricestendtobesimilarandpricecompetitionisthusminimized.

Answer: TRUE

Diff:2 PageRef:298Skill: Concept

Objective: 10-3

Targetprofitpricingisusedwhenafirmtriestodeterminethepriceatwhichitwillbreakevenormaketheprofititisseeking.Answer: TRUE

Diff:3 PageRef:298Skill: Concept

Objective: 10-3

Abreak-evenchartshowsthetotalcostandtotalrevenueexpectedatvarioussalesvolumelevels.

Answer: TRUE

Diff:2 PageRef:298Skill: Concept

Objective: 10-3

Chapter11 PricingStrategies

Acompanysetsnotasingleprice,butrathera thatcoversdifferentitemsinitslinethatchangeovertimeasproductsmovethroughtheirlifecycles.

pricingby-product

pricingstructure

pricingloop

pricingcycle

pricingbundleAnswer: B

Diff:1 PageRef:311Skill: Concept

Objective: 11-1

Companiesfacingthechallengeofsettingpricesforthefirsttimecanchoosebetweentwobroadstrategies:market-penetrationpricingand .

market-levelpricing

market-competitivepricing

market-skimmingpricing

market-pricelining

market-pricefillingAnswer: C

Diff:2 PageRef:312Skill: Concept

Objective: 11-1

Ofthefollowing,whichstatementwouldNOTsupportamarket-skimmingpolicyforanewproduct?

Theproduct'squalityandimagesupportitshigherprice.

Enoughbuyerswanttheproductsatthatprice.

Competitorsarenotabletoundercutthehighprice.

Competitorscanenterthemarketeasily.

CandDAnswer: D

Diff:3 PageRef:312Skill: Concept

Objective: 11-1

HiPointTelephoneCompanyusestwo-partpricingforits

long-distancecallcharges.Becausethisisaservice,thepriceisbrokenintoafixedrateplusa .

fixedrateusage

variableusagerate

standardusagerate

marketusagerate

noneoftheaboveAnswer: B

Diff:1 PageRef:315Skill: Concept

Objective: 11-2

Companiesinvolvedindecidingwhichitemstoincludeinthebasepriceandwhichtoofferasoptionsareengagedin pricing.

productbundle

optional-product

captive-product

by-product

skimmingAnswer: B

Diff:1 PageRef:314Skill: Concept

Objective: 11-2

Keepinginmindthatasellermustsellby-productsatapricethatcoversmorethanthecostofstoringanddeliveringthem,whichofthefollowingwillby-productpricingpermitasellertodo?

increasethemainproduct'sprice

makeextraprofit

reducethemainproduct'sprice

noneoftheabove

BandCAnswer: E

Diff:3 PageRef:315Skill: Concept

Objective: 11-2

Withproductbundlepricing,sellerscancombineseveralproductsandofferthebundle .

asaworkingunit

atareducedprice

asacompleteself-servicepackage

asarewardtoloyalcustomers

assegmentedpricingAnswer: B

Diff:1 PageRef:315

Ski