Question 1

All of Brilliant Solutions' products are packaged in boxes prominently displaying the Brilliant Solutions brand.Why would this brand be valuable to the company?

Accepted Answer

A)   It signals the high quality of the product and helps customers remember it.
B)   It helps customers classify the products correctly.
C)   It is a product feature that contributes to the value package.
D)   It allows Brilliant Solutions to present the products as capital items.
E)   It enables Brilliant Solutions to extend its product lines.F) B) and C)
G) All of the above

Question 2

Describe three ways to extend a product's life as it nears the end of the maturity stage.

Accepted Answer

With product extension,the marketer offe...

Question 3

A doctor's office buys a multifunction printer.This purchase is an example of a capital item.

Accepted Answer

A) True 
 B)False

Question 4

Odd-even pricing falls under the category of which of the following?

Accepted Answer

A)   price fixing
B)   psychological pricing
C)   market pricing
D)   price lining
E)   price skimmingF) B) and E)
G) A) and E)

Question 5

Which defining word or phrase below BEST captures the meaning of capital items?

Accepted Answer

A)   bulk loads
B)   directly used in the production process
C)   to the consumer within a year
D)   permanent
E)   governmental purchaseF) All of the above
G) B) and D)

Question 6

From the choices below,pick the BEST definition of the term fixed costs.

Accepted Answer

A)   costs that are needed to acquire a fixed market share
B)   costs that are needed to acquire fixed profits
C)   costs that are unaffected by the number of goods sold by the firm
D)   costs that remain the same from year to year
E)   costs that remain the same across all productsF) A) and E)
G) C) and D)

Question 7

Why is new product development expensive?

Accepted Answer

Mortality rates for new ideas are high,s...

Question 8

Companies that price their product low enough to attract a large number of buyers are MOST likely pursuing which of the following objectives?

Accepted Answer

A)   stable market pricing
B)   high profits
C)   stable market activity
D)   low market volatility
E)   high market shareF) B) and D)
G) A) and D)

Question 9

How has e-business contributed to lower prices?

Accepted Answer

Doing business online can lower the cost...

Question 10

If the Piper & Son's fixed cost for making pickled peppers is $200,000,and its variable cost per jar is $1,how many jars would the company have to sell at $3 per jar to break even?

Accepted Answer

A)   50,000
B)   66,667
C)   100,000
D)   133,333
E)   300,000F) C) and D)
G) A) and C)

Question 11

PepsiCo's juice product line includes Tropicana juice,Tropicana Twister juice drinks,and Trop50 reduced-calorie juices.Which of the following new products would also belong in this product line,if PepsiCo were to introduce it?

Accepted Answer

A)   farm-stand orange and pineapple juices in containers shaped like fruit
B)   Tropicana breakfast cereal
C)   Trop50 reduced-calorie candy
D)   lemon-flavored Pepsi-Cola
E)   cookbooks with recipes using Tropicana productsF) B) and C)
G) A) and E)

Question 12

Which of the following costs refers specifically to those that are unaffected by the quantity of a product sold or produced?

Accepted Answer

A)   annual costs
B)   variable costs
C)   fixed costs
D)   marginal costs
E)   market-adjusted costsF) B) and C)
G) A) and C)

Question 13

A chef purchases a new oven for her restaurant's kitchen.Explain whether the chef is buying a capital item or a production item.

Accepted Answer

The chef is buying a capital item becaus...

Question 14

The breakeven point is the price at which a company earns the maximum profits.

Accepted Answer

A) True 
 B)False

Question 15

How might selling the peppers online affect Piper & Son's pricing strategy?

Accepted Answer

A)   Selling online will have no effect on Piper & Son's pricing strategy.
B)   Selling online will raise ethical concerns, forcing a price cut.
C)   Selling online will force the company to switch to market share objectives.
D)   Selling online will reduce the number of units sold, driving up prices.
E)   The ease of comparison shopping online will drive down prices.F) A) and B)
G) B) and D)

Question 16

What would the argument for pricing the Superior VI lower than the Superior V be?

Accepted Answer

Given that any new speaker system will b...

Question 17

Products priced above the market play on the common assumption that a higher price means higher quality.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a convenience service?

Accepted Answer

A)   a limousine ride from the restaurant to senior prom
B)   catering for a wedding reception
C)   a haircut at one of Great Clips' 3,000 quick-service salons
D)   a hotel room next door to the convention you're attending
E)   the daily newspaperF) B) and C)
G) C) and D)

Question 19

Sears' Craftsman Tools is an example of a private brand.

Accepted Answer

A) True 
 B)False

Question 20

What would be the MOST important role of packaging for the lighting products sold by Brilliant Solutions?

Accepted Answer

A)   serving as an in-store advertisement for the products
B)   making the product attractive to shoppers
C)   identifying product features and benefits
D)   reducing the risk of damage or breakage
E)   increasing the difficulty of stealing small productsF) B) and C)
G) A) and D)

Exam 12: Developing and Pricing Products

All of Brilliant Solutions' products are packaged in boxes prominently displaying the Brilliant Solutions brand.Why would this brand be valuable to the company?

Correct AnswerverifiedShow Answer

Which of the following costs refers specifically to those that are unaffected by the quantity of a product sold or produced?

Correct AnswerverifiedShow Answer

Which of the following is a convenience service?

Correct AnswerverifiedShow Answer

Odd-even pricing falls under the category of which of the following?

Correct AnswerverifiedShow Answer

Which defining word or phrase below BEST captures the meaning of capital items?

Correct AnswerverifiedShow Answer

Why is new product development expensive?

Correct AnswerverifiedMortality rates for new ideas are high,s...View AnswerShow Answer

A doctor's office buys a multifunction printer.This purchase is an example of a capital item.

Correct AnswerverifiedShow Answer

Companies that price their product low enough to attract a large number of buyers are MOST likely pursuing which of the following objectives?

Correct AnswerverifiedShow Answer

If the Piper & Son's fixed cost for making pickled peppers is $200,000,and its variable cost per jar is $1,how many jars would the company have to sell at $3 per jar to break even?

Correct AnswerverifiedShow Answer

How has e-business contributed to lower prices?

Correct AnswerverifiedDoing business online can lower the cost...View AnswerShow Answer

How might selling the peppers online affect Piper & Son's pricing strategy?

Correct AnswerverifiedShow Answer

Products priced above the market play on the common assumption that a higher price means higher quality.

Correct AnswerverifiedShow Answer

A chef purchases a new oven for her restaurant's kitchen.Explain whether the chef is buying a capital item or a production item.

Correct AnswerverifiedThe chef is buying a capital item becaus...View AnswerShow Answer

What would the argument for pricing the Superior VI lower than the Superior V be?

Correct AnswerverifiedGiven that any new speaker system will b...View AnswerShow Answer

What would be the MOST important role of packaging for the lighting products sold by Brilliant Solutions?

Correct AnswerverifiedShow Answer

Describe three ways to extend a product's life as it nears the end of the maturity stage.

Correct AnswerverifiedWith product extension,the marketer offe...View AnswerShow Answer

The breakeven point is the price at which a company earns the maximum profits.

Correct AnswerverifiedShow Answer

Sears' Craftsman Tools is an example of a private brand.

Correct AnswerverifiedShow Answer

PepsiCo's juice product line includes Tropicana juice,Tropicana Twister juice drinks,and Trop50 reduced-calorie juices.Which of the following new products would also belong in this product line,if PepsiCo were to introduce it?

Correct AnswerverifiedShow Answer

From the choices below,pick the BEST definition of the term fixed costs.

Correct AnswerverifiedShow Answer

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Mortality rates for new ideas are high,s...
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Doing business online can lower the cost...
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The chef is buying a capital item becaus...
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Given that any new speaker system will b...
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Correct Answer
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Correct Answer
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With product extension,the marketer offe...
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Correct Answer
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Correct Answer
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