市场营销学题库marketing题库

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MarketingRevisionPartII

Chapter8Product,Services,andBrandingStrategies:BuildingCustomerValue

1)Wedefinea________asanythingthatcanbeofferedtoamarketforattention,acquisition,use,orconsumptionandthatmightsatisfyawantorneed.

A)privatebrand

B)servicevariability

C)service

D)product

E)serviceencounter

Answer:D

Diff:1 PageRef:224

AACSB:Communication

Skill:Concept

Objective:8-1

2)________areaformofproductthatconsistsofactivities,benefits,orsatisfactionsofferedforsalethatareessentiallyintangibleanddonotresultintheownershipofanything.

A)Lineextensions

B)Services

C)Brands

D)Consumerproducts

E)Supplements

Answer:B

Diff:1 PageRef:224

AACSB:Communication

Skill:Concept

Objective:8-1

3)Aproductisakeyelementinthe________.Atoneextreme,itmayconsistofpuretangiblegoodsorattheotherextreme,pureservices.

A)marketoffering

B)brandequity

C)brandextension

D)co-branding

E)valuechain

Answer:A

Diff:1 PageRef:224

AACSB:Communication

Skill:Concept

Objective:8-1

4)Todifferentiatethemselves,manycompaniesaregoingbeyondproductsandservices,theyaredevelopinganddeliveringcustomer________.

A)quality

B)experiences

C)brands

D)productlines

E)events

Answer:B

Diff:2 PageRef:224

AACSB:Communication

Skill:Concept

Objective:8-1

5)Productplannersneedtoconsiderproductsandservicesonthreelevels.Eachleveladdsmorecustomervalue.Themostbasiclevelisthe________,whichaddressesthequestion,"Whatisthebuyerreallybuying?"

A)actualproduct

B)augmentedproduct

C)corecustomervalue

D)co-branding

E)exchange

Answer:C

Diff:2 PageRef:225

AACSB:Communication

Skill:Concept

Objective:8-1

6)Developingaproductorserviceinvolvesdefiningthebenefitsthatitwilloffer.Thesebenefitsarecommunicatedanddeliveredby________suchasquality,features,andstyleanddesign.

A)privatebrands

B)productattributes

C)consumerproducts

D)productmixes

E)marketingtools

Answer:B

Diff:3 PageRef:229

AACSB:Communication

Skill:Concept

Objective:8-2

7)________isoneofthemarketer'smajorpositioningtoolsbecauseithasadirectimpactonproductorserviceperformance;itisthereforecloselylinkedtocustomervalueandsatisfaction.

A)Packaging

B)Productquality

C)Totalqualitymanagement

D)Specialtyproductmarketing

E)Positioning

Answer:B

Diff:2 PageRef:229

AACSB:Communication

Skill:Concept

Objective:8-2

8)________isanapproachinwhichallthecompany'speopleareinvolvedinconstantlyimprovingtheproducts,services,andbusinessprocesses.

A)Productquality

B)Brandequity

C)Totalqualitymanagement

D)Specialtyproductmarketing

E)Positioning

Answer:C

Diff:2 PageRef:230

Skill:Concept

Objective:8-2

9)Whatarethetwodimensionsofproductquality?

A)consistencyandlevel

B)performanceandresistance

C)designandinnovation

D)conformanceandstyle

E)featureanddesign

Answer:A

Diff:2 PageRef:230

Skill:Concept

Objective:8-2

10)Whichofthefollowingtypesofqualityreferstofreedomfromdefectsandconsistencyindeliveringatargetedlevelofperformance?

A)privatebrand

B)product

C)totalqualitymanagement

D)conformance

E)adherence

Answer:D

Diff:2 PageRef:230

Skill:Concept

Objective:8-2

11)Someanalystssee________asthemajorenduringassetofacompany,outlastingthecompany'sspecificproductsandfacilities.

A)brands

B)convenienceproducts

C)specialtyproducts

D)unsoughtproducts

E)staples

Answer:A

Diff:1 PageRef: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:2 PageRef:236

AACSB:Communication

Skill:Concept

Objective:8-3

13)WhichofthefollowingisNOToneofthefourconsumerperceptiondimensionsusedbyadagencyYoung&Rubicamtomeasurebrandstrength?

A)branddifferentiation

B)brandknowledge

C)brandvaluation

D)brandesteem

E)brandrelevance

Answer:C

Diff:3 PageRef:236

AACSB:Communication

Skill:Concept

Objective:8-3

14)Thetotalfinancialvalueofabrandisestimatedthroughtheprocessofbrand________.

A)differentiation

B)valuation

C)extensions

D)positioning

E)equity

Answer:B

Diff:2 PageRef:236

AACSB:Communication

Skill:Concept

Objective:8-3

15)Thefundamentalassetunderlyingbrandequityis________–-thevalueofthecustomerrelationshipsthatthebrandcreates.Apowerfulbrandisimportant,butwhatitreallyrepresentsisasetofloyalconsumers.

A)thecustomermix

B)customerequity

C)lineequity

D)servicevariability

E)theserviceencounter

Answer:B

Diff:3 PageRef:238

AACSB:Communication

Skill:Concept

Objective:8-3

16)________meansthatservicescannotbeseparatedfromtheirproviders,whethertheprovidersarepeopleormachines.

A)Serviceintangibility

B)Serviceinseparability

C)Servicevariability

D)Serviceperishability

E)Serviceheterogeneity

Answer:B

Diff:1 PageRef:245

Skill:Concept

Objective:8-4

17)WhichofthefollowingisNOToneofthelinksintheservice-profitchain,linkingservicefirmprofitswithemployeeandcustomersatisfaction?

A)internalservicequality

B)evidencemanagement

C)satisfiedandproductiveserviceemployees

D)satisfiedandloyalcustomers

E)healthyserviceprofitsandgrowth

Answer:B

Diff:3 PageRef:246

Skill:Concept

Objective:8-4

18)Through________,theservicefirmtrainsandmotivatesitscustomer-contactemployeesandsupportingservicepeopletoworkasateamtoprovidecustomersatisfaction.

A)serviceinseparability

B)serviceintangibility

C)servicevariability

D)internalmarketing

E)externalmarketing

Answer:D

Diff:2 PageRef:247

Skill:Concept

Objective:8-4

19)Becauseservicequalitydependsonthequalityofbuyer-sellerinteractionduringtheserviceencounter,servicemarketersuse________totrainemployeesintheartofinteractingwithcustomerstosatisfytheirneeds.

A)interactivemarketing

B)servicedifferentiation

C)serviceproductivity

D)internalmarketing

E)externalmarketing

Answer:A

Diff:2 PageRef:247

Skill:Concept

Objective:8-4

20)Allofthefollowingaremethodsfordevelopingadifferentiatedserviceoffer,delivery,orimageEXCEPT________.

A)offeringinnovativefeatures

B)increasingthequantityofservicebygivingupsomequality

C)havingmorereliablecustomer-contactpeople

D)developingsymbolsandbranding

E)designingasuperiordeliveryprocess

Answer:B

Diff:2 PageRef:248

Skill:Concept

Objective:8-4

21)Aserviceisanythingthatcanbeofferedtoamarketforattention,acquisition,use,orconsumptionandthatmightsatisfyawantorneed.

Answer:FALSE

Diff:1 PageRef:224

Skill:Concept

Objective:8-1

22)Sonyoffersconsumersmorethanjustcamcorders;itprovidesconsumerswithacompletesolutiontotheirpicture-takingproblems.Thisofferingiscalledanaugmentedproduct.

Answer:TRUE

Diff:3 PageRef:225

AACSB:ReflectiveThinking

Skill:Application

Objective:8-1

23)Unsoughtproductsareproductsthatthecustomerusuallybuysfrequently,immediately,andwithaminimumofcomparisonandbuyingeffort.

Answer:FALSE

Diff:1 PageRef:226

Skill:Concept

Objective:8-1

24)Shoppingproductsarelessfrequentlypurchasedconsumerproductsandservicesthatcustomerscomparecarefullyonsuitability,quality,price,andstyle.

Answer:TRUE

Diff:2 PageRef:226

Skill:Concept

Objective:8-1

25)Styleisalargerconceptthandesign.Designdescribestheappearanceofaproduct.

Answer:FALSE

Diff:3 PageRef:230

Skill:Concept

Objective:8-2

26)Brandingcanaddconsumervaluetoaproduct.

Answer:TRUE

Diff:2 PageRef:231

AACSB:Communication

Skill:Concept

Objective:8-2

27)Becausesomanypurchasedecisionsaremadeinstores,aproduct'spackagingmaybeaseller'slastandbestchancetoinfluenceconsumers.

Answer:TRUE

Diff:2 PageRef:232

AACSB:Communication

Skill:Concept

Objective:8-2

28)Productsupportservicesidentifytheproductorbrand,describeseveralthingsabouttheproduct,andpromotetheproductthroughattractivegraphics.

Answer:FALSE

Diff:2 PageRef:233

AACSB:Communication

Skill:Concept

Objective:8-2

29)Quakerproducesavarietyofcereals.Thisvarietyiscalleditsproductline.

Answer:TRUE

Diff:2 PageRef:234

AACSB:ReflectiveThinking

Skill:Application

Objective:8-2

30)Cannibalizationandcustomerconfusionaboutproductdifferentiationaretwopotentialresultsiflinefillingisoverdone.

Answer:TRUE

Diff:3 PageRef: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:2 PageRef:258

Skill:Concept

Objective:9-1

2)Productimprovements,productmodifications,andoriginalproductscanallbeclassifiedas________.

A)pioneerproducts

B)newproducts

C)productconcepts

D)productideas

E)testproducts

Answer:B

Diff:1 PageRef:258

Skill:Concept

Objective:9-1

3)WhichofthefollowingisNOTapotentialreasonforanewproducttofail?

A)anunderestimatedmarketsize

B)apoorlydesignedproduct

C)anincorrectlypositionedproduct

D)higherthananticipatedcostsofproductdevelopment

E)ineffectiveadvertising

Answer:A

Diff:2 PageRef:258

Skill:Concept

Objective:9-1

4)WhichofthefollowingisNOTachallengepresentedbytheproductlifecyclethatafirmmustface?

A)Allproductseventuallydecline.

B)Changingtastes,technologies,andcompetitionaffectthemarketingoftheproductasitpassesthroughlifecyclestages.

C)Afirmmustbegoodatdevelopingnewproductstoreplaceagingones.

D)Afirmmustbegoodatadaptingitsmarketingstrategies.

E)Itisdifficulttoplotthestagesasaproductgoesthroughthem.

Answer:E

Diff:2 PageRef:258

Skill:Concept

Objective:9-1

5)Thecreationofasuccessfulnewproductdependsonacompany'sunderstandingofits________anditsabilitytodeliver________tocustomers.

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:2 PageRef:259

Skill:Concept

Objective:9-2

6)A________isthewayconsumersperceiveanactualorpotentialproduct.

A)productidea

B)productconcept

C)productimage

D)testmarket

E)concepttest

Answer:C

Diff:1 PageRef:262

AACSB:Communication

Skill:Concept

Objective:9-2

7)Anattractiveideamustbedevelopedintoa________.

A)productidea

B)productconcept

C)productimage

D)testmarket

E)productstrategy

Answer:B

Diff:2 PageRef:262

Skill:Concept

Objective:9-2

8)________callsfortestingnew-productconceptswithgroupsoftargetconsumers.

A)Conceptdevelopment

B)Concepttesting

C)Ideageneration

D)Ideascreening

E)Testmarketing

Answer:B

Diff:1 PageRef: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:2 PageRef:263

Skill:Concept

Objective:9-2

10)Withwhatgroupsdofirmsconductconcepttestingfornewproducts?

A)suppliers

B)employees

C)targetcustomers

D)manufacturers

E)competitors

Answer:C

Diff:3 PageRef:263

Skill:Concept

Objective:9-2

11)Followingthedecisionto"time"theintroductionofthenewproduct,acompanymustdecide________tolaunchthenewproduct.

A)where

B)how

C)towhatdegree

D)why

E)alloftheabove

Answer:A

Diff:2 PageRef: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:3 PageRef:268

Skill:Concept

Objective:9-2

13)Whichstageofthenew-productdevelopmentprocessfocusesonfindingnewwaystosolvecustomerproblemsandcreatemorecustomer-satisfyingexperiences?

A)concepttesting

B)new-productdevelopment

C)customer-centerednew-productdevelopment

D)sequentialproductdevelopment

E)team-basednew-productdevelopment

Answer:C

Diff:1 PageRef:269

Skill:Concept

Objective:9-2

14)________isanew-productdevelopmentapproachinwhichonecompanydepartmentworkstocompleteitsstageoftheprocessbeforepassingthenewproductalongtothenextdepartmentandstage.

A)Team-basedproductdevelopment

B)Simultaneousproductdevelopment

C)Sequentialproductdevelopment

D)Productlife-cycleanalysis

E)Micromarketing

Answer:C

Diff:2 PageRef:269

Skill:Concept

Objective:9-2

15)Inordertogettheirnewproductstomarketmorequickly,manycompaniesareadoptingafaster,team-orientedapproachcalled________.

A)simulatednew-productdevelopment

B)sequentialproductdevelopment

C)team-basednew-productdevelopment

D)phased-innew-productdevelopment

E)marketdevelopment

Answer:C

Diff:1 PageRef:270

Skill:Concept

Objective:9-2

16)Whichstageofthetypicalconsumerproductlifecycleisoutoforderbelow?

A)productdevelopment

B)introduction

C)maturity

D)growth

E)decline

Answer:C

Diff:2 PageRef:273

Skill:Concept

Objective:9-3

17)WhichofthefollowingCANNOTbedescribedusingthePLCconcept?

A)productclass

B)productform

C)productimage

D)brand

E)styles

Answer:C

Diff:3 PageRef:273

Skill:Concept

Objective:9-3

18)Allofthefollowingareaccuratedescriptionsofastyleproduct,EXCEPTwhichone?

A)Styleproductsappearinhome,clothing,andart.

B)Onceastyleisinvented,itmaylastforgenerations.

C)Astylehasacycleshowingseveralperiodsofrenewedinterest.

D)Styleslastonlyashorttimeandtendtoattractonlyalimitedfollowing.

E)Stylesarebasicanddistinctivemodesofexpression.

Answer:D

Diff:2 PageRef:274

Skill:Concept

Objective:9-3

19)ThePLCconceptcanbeappliedbymarketersasausefulframeworkfordescribinghow________.

A)toforecastproductperformance

B)todevelopmarketingstrategies

C)productsandmarketswork

D)concepttestingisconducted

E)productideasaredeveloped

Answer:C

Diff:3 PageRef:274

Skill:Concept

Objective:9-3

20)UsingthePLCconcepttodevelopmarketingstrategycanbedifficultbecausestrategyisbotha________anda(n)________oftheproduct'slifecycle.

A)mirrorimage;cause

B)cause;result

C)result;mirrorimage

D)beginning;end

E)purpose;effect

Answer:B

Diff:3 PageRef:274

Skill:Concept

Objective:9-3

21)Manufacturersmustcomplywithspecificlawsregarding________.

A)pricestructures

B)productqualityandsafety

C)productplacement

D)distributionchannels

E)productlifecycles

Answer:B

Diff:1 PageRef:280

AACSB:EthicalReasoning

Skill:Concept

Objective:9-4

22)Becauseof________,acompanycannotmakeitsproductillegallysimilartoacompetitor'salreadyestablishedproduct.

A)anti-monopolylaws

B)patentlaws

C)theConsumerProductSafetyAct

D)productwarranties

E)productliability

Answer:B

Diff:1 PageRef:280

AACSB:EthicalReasoning

Skill:Concept

Objective:9-4

23)Whichofthefollowingbestdescribestheroleofaproductsteward?

A)toprotectconsumersfromharm

B)toevaluatenew-productideasagainstasetofgeneralcriteria

C)todevelopanew-productconceptintoaphysicalproduct

D)toprotectthecompanyfromliabilitybyidentifyingandsolvingpotentialproductproblems

E)AandD

Answer:E

Diff:3 PageRef:280

AACSB:EthicalReasoning

Skill:Concept

Objective:9-4

24)TheadvantagesofstandardizinganinternationalproductincludeallofthefollowingEXCEPT________.

A)thedevelopmentofaconsistentimage

B)lowerproductdesigncosts

C)theadaptationofproductstodifferentmarkets

D)decreasedmanufacturingcosts

E)lowermarketingcosts

Answer:C

Diff:2 PageRef:281

Skill:Concept

Objective:9-4

25)Becausenames,labels,andcolorsmaynoteasilytranslatefromonecountrytoanother,internationalmarketersmustcarefullyassess________.

A)productstandardization

B)marketrollout

C)theproductlifecycle

D)packaging

E)styles

Answer:D

Diff:2 PageRef:281

AACSB:MulticulturalandDiversity

Skill:Concept

Objective:9-4

26)BlairHousewareswantstoaddnewlinesofproductstoits46-storechain.Managersarecorrectinbelievingthatthepurposeofideagenerationistocreateafewideas,andthepurposeofsucceedingstagesistoincreasethatnumber.

Answer:FALSE

Diff:2 PageRef:262

AACSB:AnalyticSkills

Skill:Application

Objective:9-2

27)Aproductideaisanideaforapossibleproductacompanycanofferthemarket,whileaproductconceptisadetailedversionoftheideastatedinmeaningfulconsumerterms.

Answer:TRUE

Diff:3 PageRef:262

Skill:Concept

Objective:9-2

28)Concepttestingworksbestwithpeoplewhoarefamiliarwiththenewideaandthenewproduct'spurpose.Thisgenerallyincludestopmanagement,thesalesforce,andresearchanddevelopment.

Answer:FALSE

Diff:3 PageRef:263

Skill:Concept

Objective:9-2

29)GreenTreeLawnandGardenProductsisengagedinmarketingstrategydevelopment.Managementshouldfirstcreateastatementoutliningtheproduct'splannedprice,distribution,andmarketingbudgetforthefirstyear.

Answer:FALSE

Diff:3 PageRef:263

AACSB:AnalyticSkills

Skill:Application

Objective:9-2

30)GreenTreeLawnandGardenProductsisengagedinareviewofthesales,costs,andprofitprojectionsforsomenewproductstofindoutwhethertheysatisfythecompany'sobjectives.Thisactivityiscalledbusinessproductdevelopment.

Answer:FALSE

Diff:2 PageRef:264

AACSB:ReflectiveThinking

Skill:Application

Objective:9-2

Chapter10PricingProducts:UnderstandingandCapturingCustomerValue

1)________istheamountofmoneychargedforaproductorservice.

A)Experiencecurve

B)Demandcurve

C)Price

D)Wage

E)Salary

Answer:C

Diff:1 PageRef:290

Skill:Concept

Objective:10-1

2)Priceistheonlyelementinthemarketingmixthatproduces________.

A)revenue

B)variablecosts

C)expenses

D)outfixedcosts

E)stability

Answer:A

Diff:1 PageRef:290

Skill:Concept

Objective:10-1

3)Ifasellercharges________thanthebuyer'sperceivedvalue,thecompany'ssaleswill________.

A)more;benefit

B)more;suffer

C)less;increase

D)less;suffer

E)noneoftheabove

Answer:B

Diff:2 PageRef:292

Skill:Concept

Objective:10-2

4)Somecompanieshaveadopteda________strategy,offeringjusttherightcombinationofqualityandgoodserviceatafairprice.

A)value-basedpricing

B)good-valuepricing

C)cost-pluspricing

D)low-priceimage

E)noneoftheabove

Answer:B

Diff:1 PageRef: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:2 PageRef:293

Skill:Concept

Objective:10-2

6)________involveschargingaconstant,everydaylowpricewithfewornotemporarypricediscounts.

A)High-lowpricing

B)Targetpricing

C)Cost-pluspricing

D)EDLP

E)Penetrationpricing

Answer:D

Diff:2 PageRef:293

Skill:Concept

Objective:10-2

7)________arethesumofthe________and________foranygivenlevelofproduction.

A)Fixedcosts;variable;totalcosts

B)Fixedcosts;total;variablecosts

C)Variablecosts;fixed;totalcosts

D)Totalcosts;fixed;variablecosts

E)Break-evencosts;fixed;totalcosts

Answer:D

Diff:2 PageRef:296

Skill:Concept

Objective:10-3

8)SRACistheacronymforwhichconceptrelatedtocostsatdifferentlevelsofproduction?

A)strategicreasoningandcosts

B)short-runaccountingcosts

C)short-runaveragecost

D)strategicrightsandcompany

E)strategicrevenuesandcosts

Answer:C

Diff:2 PageRef: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:1 PageRef:296

Skill:Concept

Objective:10-3

10)Withahighervolumeofproduct,mostcompaniescanexpectto________.

A)gaineconomiesofscale

B)becomelessefficient

C)seeaveragecostsincrease

D)haveastraight,horizontallearningcurve

E)findcompetitorsusingtheexperiencecurvestrategically

Answer:A

Diff:2 PageRef:296

Skill:Concept

Objective:10-3

11)Thebreak-evenvolumeisthepointatwhich________.

A)thetotalrevenueandtotalcostslinesintersect

B)demandequalssupply

C)theproductionofonemoreunitwillnotincreaseprofit

D)thecompanycanpayallofitslong-termdebt

E)afirm'sprofitgoalisreached

Answer:A

Diff:3 PageRef:298

Skill:Concept

Objective:10-3

12)________pricingworksonlyifthatpriceactuallybringsintheexpectedlevelofsales.

A)Elasticity

B)Markup

C)Variable

D)Inelasticity

E)Targetprofit

Answer:E

Diff:3 PageRef:298

Skill:Concept

Objective:10-3

13)Whichofthefollowingstatementsaboutbreak-evenanalysisistrue?

A)Itisusedtodeterminehowmuchproductionexperienceacompanymusthavetoachievedesiredefficiencies.

B)Itisatechniqueusedtocalculatefixedcosts.

C)Itdeterminestheamountofretainedearningsacompanywillhaveduringanaccountingperiod.

D)Itisatechniquemarketersusetoexaminetherelationshipbetweensupplyanddemand.

E)Itiscalculatedusingvariablecosts,theunitprice,andfixedcosts.

Answer:E

Diff:3 PageRef:298

Skill:Concept

Objective:10-3

14)Asamanufacturerincreasesprice,the________drops.

A)target

B)break-evenvolume

C)cost-pluspricing

D)totalcost

E)sales

Answer:B

Diff:3 PageRef:299

Skill:Concept

Objective:10-3

15)Whichofthefollowingisanexternalfactorthataffectspricingdecisions?

A)thesalariesofproductionmanagement

B)competition

C)thesalariesoffinancemanagement

D)fundsexpensedtocleanproductionequipment

E)A,B,andC

Answer:B

Diff:1 PageRef:299

Skill:Concept

Objective:10-4

16)________thatinfluencepricingdecisionsincludethenatureofthemarketanddemandandcompetitors'prices.

A)Internalfactors

B)Elasticityfactors

C)Externalfactors

D)Targetfactors

E)Domesticfactors

Answer:C

Diff:2 PageRef:299

Skill:Concept

Objective:10-4

17)CompaniesmaysetpriceslowforwhichofthefollowingreasonsEXCEPT________.

A)topreventcompetitionfromenteringthemarket

B)tostabilizethemarket

C)tocreateexcitementforaproduct

D)toprepareforaneasyexitfromamarket

E)tomatchacompetitor

Answer:D

Diff:2 PageRef:299

Skill:Concept

Objective:10-4

18)Inordertoformaconsistentandeffectiveintegratedmarketingprogram,pricedecisionsshouldbecoordinatedwitheachofthefollowingEXCEPT________.

A)productdesign

B)distribution

C)competitors'prices

D)promotiondecisions

E)marketingobjectives

Answer:C

Diff:2 PageRef:299

Skill:Concept

Objective:10-4

19)Withtargetcosting,marketerswillfirst________andthen________.

A)buildthemarketingmix;identifythetargetmarket

B)identifythetargetmarket;buildthemarketingmix

C)designtheproduct;determineitscost

D)useskimmingpricing;penetratingpricing

E)determineasellingprice;targetcoststoensurethatthepriceismet

Answer:E

Diff:2 PageRef:300

Skill:Concept

Objective:10-4

20)Pricesettingisusuallydeterminedby________insmallcompanies.

A)topmanagement

B)marketingdepartments

C)salesdepartments

D)divisionalmanagers

E)cross-functionalteams

Answer:A

Diff:2 PageRef:300

Skill:Concept

Objective:10-4

21)Pricesettingisusuallydeterminedby________inlargecompanies.

A)topmanagement

B)divisionalmanagers

C)productlinemanagers

D)pricingdepartments

E)bothBandC

Answer:E

Diff:2 PageRef:300

Skill:Concept

Objective:10-4

22)EDLPisverysimilartohigh-lowpricing.

Answer:TRUE

Diff:2 PageRef:293

Skill:Concept

Objective:10-2

23)Overheadcostisanothertermforfixedcost.

Answer:TRUE

Diff:1 PageRef:295

Skill:Concept

Objective:10-3

24)Cost-basedpricingreliesonconsumerperceptionofvaluetodrivepricing.

Answer:FALSE

Diff:2 PageRef:295

Skill:Concept

Objective:10-3

25)Averageunitcostincreaseswithaccumulatedproductionexperience.

Answer:FALSE

Diff:1 PageRef:296

Skill:Concept

Objective:10-3

26)Anupward-slopingexperiencecurveisbeneficialforacompany.

Answer:FALSE

Diff:3 PageRef:297

Skill:Concept

Objective:10-3

27)Thesimplestpricingmethodiscost-pluspricing,whichinvolvesaddingastandardmarkuptothecostoftheproduct.

Answer:TRUE

Diff:2 PageRef:297

Skill:Concept

Objective:10-3

28)Markuppricingispopularbecausepricestendtobesimilarandpricecompetitionisthusminimized.

Answer:TRUE

Diff:2 PageRef:298

Skill:Concept

Objective:10-3

29)Targetprofitpricingisusedwhenafirmtriestodeterminethepriceatwhichitwillbreakevenormaketheprofititisseeking.

Answer:TRUE

Diff:3 PageRef:298

Skill:Concept

Objective:10-3

30)Abreak-evenchartshowsthetotalcostandtotalrevenueexpectedatvarioussalesvolumelevels.

Answer:TRUE

Diff:2 PageRef:298

Skill:Concept

Objective:10-3

Chapter11PricingStrategies

1)Acompanysetsnotasingleprice,butrathera________thatcoversdifferentitemsinitslinethatchangeovertimeasproductsmovethroughtheirlifecycles.