Reading comprehension 12

Question 1

When a company changes one or more of a product’s characteristics to manage its product mix, it is engaging in

_____________ modification.

a. 
quality
b. 
functional
c. 
aesthetic
d. 
product
e. 
market

Answer 1

d.

product

Question 2

The first stage of the product life-cycle is the _______ stage.

Answers:	
a. 
inventive
b. 
launching
c. 
discovery
d. 
introduction
e. 
growth

Answer 2

d.

introduction

Question 3

Bread, gasoline, and ___________ are examples of convenience products.

Answers:
a.
cars

b. 
furniture
c. 
newspapers
d. 
large appliances
e. 
a cruise

Answer 3

c.

newspapers

Question 4

The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the

Answers:	
a. 
revenue.
b. 
income.
c. 
discount.
d. 
price.
e. 
breakeven quantity.

Answer 4

d.

price.

Question 5

Multiple-unit packaging does not work well for

Answers:
a.
infrequently used products.

b.
products that are easy to store.

c. 
aiding consumer acceptance.
d. 
two-for-one price offers.
e. 
shelf-space maximization.

Answer 5

a.

infrequently used products.

Question 6

Price competition occurs when a seller emphasizes the

Answers:	
a. 
low price of a product.
b. 
high price of a product.

c.
quality of a product.
d.
quality of the customer service.

e.
importance of the product.

Answer 6

a.

low price of a product.

Question 7

In cost-based pricing, a producer adds an amount to the total production cost to provide a profit. The amount added to the production cost is called a

Answers:	
a. 
discount.
b. 
markup.

c. 
variable cost.
d. 
differentiation.
e. 
price line.

Answer 7

b.

markup.

Question 8

The number of units that must be sold for the total revenue to equal the total cost is called the ________ quantity.

Answers:	
a. 
breakeven
b. 
stabilization

c.
intersect

d.
parity

e.
equalization

Answer 8

a.

breakeven

Question 9

The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle is known as

Answers:	
a. 
penetration pricing.
b. 
price skimming.
c. 
prestige pricing.

d.
sample pricing.
e.
odd pricing.

Answer 9

b.

price skimming.

Question 10

A discount from the list, or retail, price offered to intermediaries is a(n) _______discount.

Answers:	
a. 
quantity
b. 
FOB price

c.
cash

d.
trade
e.
cumulative

Answer 10

d. trade