Practice Exams

Question 1

A company sets not a single price, but rather a \_\_\_\_\_\_\_\_ that covers different items in its line that change over time as products move through their life cycles.
A) pricing by-product
B) pricing structure
C) pricing loop
D) pricing cycle
E) pricing bundle

Answer 1

B) pricing structure

Question 2

4) A firm is using \_\_\_\_\_\_\_\_ when it charges a high, premium price for a new product with the intention of reducing the price in the future.
A) price skimming
B) trial pricing
C) value pricing
D) market-penetration pricing
E) prestige pricing

Answer 2

A) price skimming

Question 3

7) Which of the following is a reason that a marketer would choose a penetration pricing strategy?
A) to ensure the company has the ability to increase prices once demand decreases
B) to focus on the rapid achievement of profit objectives
C) to appeal to different consumer segments with different levels of price sensitivity
D) to create markets for highly technical products
E) to discourage competition from entering the market

Answer 3

E) to discourage competition from entering the market

Question 4

8) Which of the following is NOT a typical supply chain member?
A) resellers
B) customers
C) intermediaries
D) government agencies
E) raw materials supplier

Answer 4

D) government agencies

Question 5

28) A product is a key element in the \_\_\_\_\_\_\_\_. At one extreme, it may consist of pure tangible goods or at the other extreme, pure services.
A) market offering
B) brand equity
C) brand extension
D) co-branding
E) value chain

Answer 5

A) market offering

Question 6

29) To differentiate themselves, many companies are going beyond products and services, they are developing and delivering customer \_\_\_\_\_\_\_\_. 
A) quality
B) experiences
C) brands
D) product lines
E) events

Answer 6

B) experiences

Question 7

30) Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is the \_\_\_\_\_\_\_\_, which addresses the question, "What is the buyer really buying?"
A) actual product
B) augmented product
C) core customer value
D) co-branding
E) exchange

Answer 7

C) core customer value

Question 8

31) The third level of a product that product planners must consider is a(n) \_\_\_\_\_\_\_\_ around the core benefit and actual product that offers additional consumer services and benefits.
A) brand equity
B) augmented product
C) brand extension
D) industrial product
E) image

Answer 8

B) augmented product

Question 9

32) Product planners must design the actual product and find ways to \_\_\_\_\_\_\_\_ it in order to create the bundle of benefits that will provide the most satisfying customer experience.
A) promote
B) package
C) brand
D) augment
E) present

Answer 9

D) augment

Question 10

33) Products and services fall into two broad classifications based on the types of consumers that use them. Which is one of these broad classes?
A) industrial products
B) specialty products
C) supplies and services
D) materials and parts
E) convenience products

Answer 10

A) industrial products

Question 11

34) What are the two ways that a company can obtain new products?
A) line extension and brand management
B) internal development and brand management
C) new-product development and acquisition
D) service development and product extension
E) market mix modification and research and development

Answer 11

C) new-product development and acquisition