Chapter 12

Business Essentials, 12e (Ebert/Griffin)
Chapter 12 Developing and Pricing Products
1) What happens when companies extend their horizons and identify opportunities outside
existing product lines?
A) Disconnected product lines
B) Multiple product lines
C) Uniform product lines
D) Universal product lines
E) Tailored product lines
Answer: B
Difficulty: Moderate
AACSB: Application of Knowledge
Quest. Category: Critical Thinking
LO: 12.1: Explain the definition of a product as a value package and classify goods and services.
2) Which defining word or phrase below BEST captures the meaning of capital items?
A) Bulk loads
B) Directly used in the production process
C) To the consumer within a year
D) Longer lasting
E) Governmental purchase
Answer: D
Quest. Category: Concept
3) When developing the marketing mix, what is the basis for any successful marketing strategy?
A) Customer needs and wants
B) Value packaging
C) Product mix offerings
D) Features and benefits
E) Offering the best product for the least amount of money
Answer: A
AACSB: Analytical Thinking
Quest. Category: Application
4) What are the benefits and features associated with a product called?
A) Product mix
B) Specialty package
C) Service mix
D) Convenience
E) Value package
Answer: E
5) Which of the following BEST describes product features?

A) All attributes and benefits of the product taken together
B) Tangible and intangible qualities built into the product
C) Intangible benefits that increase customer satisfaction
D) Speed and convenience of a buyer interaction
E) Benefits that are used directly in the conversion of a process
Answer: B
6) What are products that are consumed rapidly and regularly classified as?
A) Industrial goods
B) Shopping goods
C) Specialty goods
D) Convenience goods
E) Production goods
Answer: D
7) What type of consumer good is more expensive and therefore receives more evaluation of
alternatives before the purchase is made?
A) Convenience goods
B) Production items
C) Shopping goods
D) Expense items
E) Capital items
Answer: C
8) In addition to cost, how are industrial products divided into product categories?
A) What area of the organization will use them
B) Competitive nature of acquiring the item
C) Availability
D) How they will be used
E) How easily the item can be turned into a consumable good
Answer: D
Difficulty: Difficult
9) What is the grouping of products available for sale by a company called?

A) Product line
B) Capital mix
C) Goods and services
D) Specialty goods
E) Product mix
Answer: E
Difficulty: Easy
10) Which of the following represents the group of products that are closely related or are sold to
the same customer group?
A) Product line
B) Specialty product
C) Product mix
D) Convenience mix
E) Production mix
Answer: A
11) What can a company do to offset the consequences of slow sales in a product line?
A) Limit the use of capital items.
B) Diversify the product line.
C) Add convenience goods.
D) Increase the use of shopping goods available to consumers.
E) Reclassify specialty products as convenience products.
Answer: B
Quest. Category: Analytical
12) A company that buys products to use in the production or creation of other goods or services
is a(n)
A) convenience buyer.
B) consumer.
C) industrial buyer.
D) capital buyer.
E) rebrander.
Answer: C
13) Which of the following best describes production items?
A) Goods consumed within a year by an organization
B) Goods that are specific in nature and where no substitute will be accepted
C) Goods that are consumed rapidly and regularly
D) Goods used to make other products
E) Goods consumed within a year by the buyer
Answer: D
14) When a consumer knows what they want to buy and is not willing to accept a substitute,
what type of consumer product is being sought?
A) Production goods
B) Shopping goods
C) Convenience goods
D) Expense goods
E) Specialty goods
Answer: E
15) What is the difference between a specialty good and a specialty service?
A) A specialty service is an intangible item and a specialty good is a tangible item.
B) A specialty good costs more than a specialty service.
C) A specialty service is often compared to other services before purchase.
D) A specialty good can be compared to other items using the Internet.
E) A specialty service is purchased regularly.
Answer: A
Difficulty: Easy
16) Consumers often spend a great deal of time and money doing research to purchase a specific
service. These consumer services are referred to as
A) production services.
B) specialty services.
C) convenience services.
D) industrial services.
E) shopping services.
Answer: B
Difficulty: Easy
17) A product's features may be intangible.

Answer: TRUE
18) A value package consists of an in-store advertisement that makes the product attractive and
identifies features and benefits.
Answer: FALSE
Difficulty: Easy
19) Shopping goods are purchased more often than convenience goods.
Answer: FALSE
20) A doctor's office buys a multifunction printer. This purchase is an example of a capital item.
Answer: TRUE
Difficulty: Easy
21) The marketing process to the consumer is significantly different than the marketing process
for the industrial buyer.
Answer: TRUE
22) Consumers will often spend a great deal of time and money to find a specialty good and will
generally not accept a substitute.
Answer: TRUE
23) How does a product mix differ from a product line?

Answer: A product mix is the group of products that a firm makes available for sale. A product
line is a group of similar products intended for a similar group of buyers who will use the
product in similar ways. A company will have only one product mix but may have multiple
product lines.
24) How do expense items differ from capital items?

Answer: Expense items are goods or services that are consumed within a year by firms
producing other goods or supplying other services. Capital items are permanent goods and
services that usually have expected lives of more than a year. How these items are used
determines their classification.
25) Discuss the difference between production items, expense items, and capital items.
Answer: Production items are goods or services that are used directly in the conversion
(production) process, such as petroleum that is converted into gasoline, and passenger demand
information that is converted into bus or train services. Expense items are goods and services that
are consumed within a year by organizations producing other goods or supplying other services.
The term expense items stems from the tradition of accounting in which expenditures are
classified as either (1) expense items or (2) capital items, depending on how quickly they are
consumed. Capital items are longer-lasting (expensive and sometimes permanent) goods and
services. They have expected lives of more than a year; they typically are expected to last several
years.
26) Assuming a company has been gathering ideas for new products, what is the next step in the
development process?
A) Test marketing
B) Prototype development
C) Business analysis
D) Concept testing
E) Screening
Answer: E
Difficulty: Easy
LO: 12.2: Describe the new product development process.
27) Which of the following activities describes the development stage of commercialization?
A) Building a prototype
B) Testing the product to see if it meets performance requirements
C) Selling the product on a trial basis in limited areas
D) Beginning full-scale production and marketing
E) Testing consumer reaction to the product in limited areas
Answer: D
28) In which of the following ways is product development different for services than for
physical goods?
A) Instead of gathering product ideas, the company goes immediately to the testing phase.
B) Instead of screening ideas, the company tests all of them, since no prototype is needed.
C) Instead of creating a prototype, the company develops a service process design.
D) The business analysis step is not needed, since there are no production costs with services.
E) The commercialization step is gradual for services, but rapid for physical goods.
Answer: C
29) What is frequently the most time-consuming stage of product development?

A) Testing
B) Market analysis
C) Design
D) Speed to market
E) Product idea
Answer: A
30) On average, how many new product ideas are needed to generate one that reaches the
consumer market?
A) 25
B) 50
C) 75
D) 100
E) 500
Answer: B
31) After a new product is developed, about 9 out of 10 fail for what reason?
A) Cost
B) Minimal marketing efforts
C) Lack of significant difference
D) The product is too regional
E) Failure in FDA testing
Answer: C
32) How can a company establish market leadership for a product?

A) Introduce the product with a lower price than competitors.
B) Do not introduce the product until success is certain.
C) Be sure the product supports the overall goals and strategies of the organization.
D) Introduce the product before competitors.
E) Introduce a product that supports the rest of the product line.
Answer: D
33) Why is speed to market critical to market demand?

A) It reduces overall cost of product development.
B) It allows more time for product recalls.
C) It allows the company to conduct more concept testing.
D) It produces stronger outcomes on the business analysis process.
E) It allows the company to become entrenched in the marketplace.
Answer: E
34) During what step of the product development stage does the firm consider how well a
product or idea supports the firm's objectives?
A) Screening
B) Concept testing
C) Prototype development
D) Benefits analysis
E) Product idea
Answer: A
Difficulty: Easy
35) During which step of the product development stage does a company conduct market
research on benefits and prices?
A) Screening
B) Concept testing
C) Prototype development
D) Benefits analysis
E) Product idea
Answer: B
36) Why do firms conduct product testing?

A) To determine potential profitability of the product
B) To allow for gradual commercialization over time
C) To ensure the prototype meets performance requirements
D) To determine how well the product fits in with the goals of the organization
E) To determine the potential mesh with the firm's objectives
Answer: C
37) What is the next step in the product development process when test marketing is positive for
a product?
A) Prototype development
B) Business analysis
C) Concept testing
D) Commercialization
E) Product diversification
Answer: D
38) Which of the following includes the tangible and intangible features that characterize a
service?
A) Process selection
B) Service process design
C) Product life cycle
D) Benefits
E) Service value package
Answer: E
39) Most ideas for new products eventually reach the market.
Answer: FALSE
Difficulty: Easy
40) Speed to market increases the chance that a new product will survive.
Answer: TRUE
Difficulty: Easy
41) The process of product development begins with concept testing.

Answer: FALSE
Difficulty: Easy
42) For many companies, speed to market with a product is as important as care in developing it.
Answer: TRUE
43) In the screening stage of product development, companies use market research to get
consumers' input about benefits and prices.
Answer: FALSE
44) Why is new product development expensive?

Answer: Mortality rates for new ideas are high, so only a few products reach the market out of
many ideas generated. Also, speed to market is often as important as care in developing a
product, so companies must move fast as well as carefully. These are the two reasons given in
the chapter in answer to the question of why firms devote so many resources to R&D.
45) Where do organizations get new product ideas?

Answer: Ideas typically come from consumers, the sales force, R&D departments, suppliers, and
engineering personnel. These are the sources mentioned in the chapter. Students may identify
other sources as well.
46) What is involved in service process design?

Answer: The design involves three parts. First, process selection identifies each step in the
service, including sequence and timing. Second, worker requirements are employee behaviors,
skills, capabilities, and interactions with customers during the service encounter. Finally, facility
requirements designate all the equipment needed to support the delivery of services. Instead of
prototype development, services require a three-part service process design: (1) process
selection; (2) worker requirements; and (3) facility requirements.
47) Why is speed to market so important?
Answer: According to the textbook, one study reports that a product that is only three months
late to market (three months behind the leader) loses 12 percent of its lifetime profit potential. At
six months, it will lose 33 percent. Another term is time compression that captures a firm's speed
in responding to consumer needs.
48) What is selling the rights to place a brand name on products such as t-shirts referred to as?
A) International branding
B) National branding
C) Private branding
D) Regional branding
E) Licensed branding
Answer: E
Difficulty: Easy
LO: 12.3: Describe the stages of the product life cycle (PLC) and methods for extending a
product's life.
49) When a wholesaler or retailer develops a brand name and has the manufacturer place that
name on the product, what is that product name called?
A) National brand
B) Private brand
C) Luxury brand
D) Licensed brand
E) Manufacturer brand
Answer: B
Difficulty: Easy
product's life.
50) During the product life cycle, when do sales begin to climb and the product begin to show
profit?
A) Ascending
B) Mature
C) Initial
D) Growth
E) Accelerated
Answer: D
product's life.
51) During the product life cycle, when do sales begin to slow down even though profit levels
are high?
A) Decline
B) Maturity
C) Introduction
D) Growth
E) Promotion
Answer: B
Difficulty: Easy
product's life.
52) Which of the following is least likely to increase the life of a product without involving
product changes?
A) Product extension
B) Product adaption
C) Rebranding
D) New product placement
E) Reintroduction
Answer: B
product's life.
53) Using symbols and names to communicate the qualities of a product is a function of what?
A) Awareness
B) Reintroduction
C) Product adaptation
D) Product extension
E) Branding
Answer: E
product's life.
54) What is one of the key benefits to successful branding?

A) Brand extension
B) Brand loyalty
C) Preferred product placement
D) Ease of licensing
E) Ease in adaptation
Answer: B
product's life.
55) In additional to social networking and viral marketing, how do firms successfully increase
brand awareness?
A) Reintroduction
B) Globalization
C) Rebranding
D) Product placement
E) Product extensions
Answer: D
product's life.
56) Which of the following best describes product placement?
A) Placing products on the shelf where they receive the most attention
B) Identifying specific products for viral marketing campaigns
C) Placing products in movies and television shows
D) Placing a national brand next to a store brand for better comparison
E) Determining if a product should be sold only online or only in brick and mortar shops
Answer: C
product's life.
57) Which of the following indicates a firm sold the rights to put their name on a product not
produced by them?
A) Asset brands
B) National brands
C) Licensed brands
D) Private brands
E) Private labels
Answer: C
product's life.
58) Which of the following best describes a private label brand?

A) A retailer uses packaging as a form of advertising.
B) A retailer develops a brand name and has a manufacturer put it on a product.
C) A manufacturer puts its name on an unrelated product for a fee.
D) A brand name is used throughout a series of products made by the same manufacturer.
E) A brand is reintroduced in a new, often global, market.
Answer: B
product's life.
59) How do customers most benefit from packaging design?
A) Increased utility
B) In-store advertisements
C) Less spoilage
D) Reduced risk of damage
E) Less theft of the product
Answer: A
product's life.
60) A private brand is a brand name developed by a wholesaler or retailer for their product.
Answer: TRUE
Difficulty: Easy
product's life.
61) Sears' Craftsman Tools is an example of a private brand.

Answer: TRUE
Difficulty: Easy
product's life.
62) Packaging can serve as an in-store advertisement that makes the product attractive, displays
the brand name, and identifies features and benefits.
Answer: TRUE
product's life.
63) Product placement includes showing actors on television shows using a name-brand product.
Answer: TRUE
product's life.
64) The product life cycle describes the commercial life of services as well as goods.
Answer: TRUE
product's life.
65) After a product has been in the maturity stage for a few years, marketers must accept that the
product will begin to decline.
Answer: FALSE
product's life.
66) With product adaptation, the product is modified for greater appeal in different countries.
Answer: TRUE
product's life.
67) Product X is just beginning to generate a profit for the first time as the manufacturer lowers
prices slightly and sees a significant increase in sales. At what stage in the product life cycle is
Product X, and how is this stage identified?
Answer: Product X is entering the growth stage. The growth stage is when sales climb, profits
begin, and marketers generally continue promotional expenditures to increase sales.
product's life.
68) Describe three ways to extend a product's life as it nears the end of the maturity stage.
Answer: With product extension, the marketer offers the product globally, moving beyond
domestic markets. With product adaptation, the marketer modifies the product for greater appeal
in different markets. With reintroduction, the marketer revives products becoming obsolete in
one market by introducing it to new markets. Companies try to keep products in the maturity
stage as long as they can. Ways to extend product life include product extension, product
adaptation, and reintroduction of the product.
product's life.
69) What is branding? Explain what branding is and give an example of branding.
Answer: Branding is the process of using names and symbols to communicate the qualities of a
particular product made by a particular producer. Examples of brands include the name Coca-
Cola and the golden arches of McDonald's. Brands are important because they signal, in a
succinct way, the uniformity of quality of a product.
product's life.
70) Describe the three types of brand names and give an example of each.
Answer: Brand names may be national brands, licensed brands, or private brands. National
brands are produced by, widely distributed by, and carry the name of the manufacturer.
Examples of national brands include Scotch tape, Scope mouthwash, Coke, and Pepsi. Licensed
brands are brand names for whose name the seller has purchased the right from an individual or
organization. Examples include Dilbert, the NFL, and Ferrari. Finally, private brand names are
found when a wholesaler or retailer develops a brand name and has a manufacturer place that
name on the product. Examples of private brands include Sears' Craftsman tools and Kenmore
appliances. Brand names have an important function in increasing the attention of the buyer to
the differences between brands of similar products.
product's life.
71) Which of the following terms refers to the monetary amount added to a product's cost to the
seller in order to sell it at a target profit?
A) Profit margin
B) Breakeven cost
C) Revenue
D) Revenue margin
E) Markup
Answer: E
Difficulty: Easy
LO: 12.4: Identify the various pricing objectives that govern pricing decisions and describe the
price-setting tools used in making these decisions.
72) Which of the following costs refers specifically to those that change with the quantity of a
product sold or produced?
A) Annual costs
B) Variable costs
C) Fixed costs
D) Marginal costs
E) Market-adjusted costs
Answer: B
Difficulty: Easy
73) Which of the following costs refers specifically to those that are unaffected by the quantity of
a product sold or produced?
A) Annual costs
B) Variable costs
C) Fixed costs
D) Marginal costs
E) Market-adjusted costs
Answer: C
Difficulty: Easy
74) Companies who price their product low enough to attract a large number of buyers are most
likely pursuing which of the following objectives?
A) Stable market pricing
B) High profits
C) Stable market activity
D) Low market volatility
E) Market share
Answer: E
75) The sales price of a product is given as the product's cost to the seller plus which of the
following quantities?
A) Breakeven price
B) Revenues
C) Variable price
D) Fixed point
E) Markup
Answer: E
76) Which of the following gives the correct formula for calculating markup percentage?
A) Sales price/markup
B) Sales price/fixed costs
C) Fixed costs/variable costs
D) Markup/sales price
E) Sales price/variable costs
Answer: D
77) Which of the following best defines fixed costs?
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 products
Answer: C
78) Which of the following best describes pricing objectives?

A) The need for the company to compete
B) An indication of the company's social and ethical concerns
C) A reflection of the company's image
D) The ability of a firm to generate revenue
E) The goals of the seller achieved by pricing products
Answer: E
79) Which pricing objective has the goal of establishing market share?
A) Market penetration
B) E-business
C) Brand recognition
D) Brand licensing
E) Profit-maximizing
Answer: A
80) How do companies achieve continuous sales of more units and higher profits, even with
lower unit prices?
A) Market penetration
B) E-business
C) Profit-maximization strategies
D) Market domination
E) Market share
Answer: D
81) Which of the following is a primary advantage for the consumer when using the internet for
shopping?
A) Objective customer reviews
B) Faster delivery
C) Elimination of added costs of wholesalers and retailers
D) Efficient use of corporate resources
E) Cost-oriented pricing
Answer: C
82) What is the amount added by a retailer to an item's purchase cost needed to make a profit?
A) Gross
B) Variable cost
C) Breakeven
D) Markup
E) Fixed cost
Answer: D
Difficulty: Easy
83) Which of the following represents the sales volume where total costs equal total revenue?
A) Fixed costs
B) Pricing analysis
C) Skimming
D) Variable costs
E) Breakeven point
Answer: E
84) If prices are set too high, the company will make a large profit on each item, but will sell
fewer units.
Answer: TRUE
85) One advantage to marketers of selling online is that it is easier for sellers to hide prices and
enjoy a large markup.
Answer: FALSE
Difficulty: Easy
86) Variable costs of a product are those costs that change with the quantity of a product
produced and sold.
Answer: TRUE
87) The breakeven point is the price at which a company earns the maximum profits.
Answer: FALSE
88) The only goal of determining prices is to maximize profit for the firm.
Answer: FALSE
89) How has e-business contributed to lower prices?

Answer: Doing business online can lower the cost of making products available to buyers for
example, by avoiding the added costs of wholesalers and retailers. Comparison shopping is
easier online, so consumers can find the best price. Customers also may join together online for
greater purchasing power. When pricing for Internet sales, marketers must consider different
kinds of costs and different forms of consumer awareness. Many e-businesses reduce both costs
and prices because of the Internet's unique marketing capabilities.
90) Differentiate between fixed costs and variable costs.

Answer: Fixed costs remain constant with varying levels of production or sales. Variable costs
change with the quantity of a product produced or sold. Examples of fixed costs include rent,
insurance, and utilities whereas examples of variable costs include those for raw materials, sales
commissions, and shipping.
91) What is cost-oriented pricing?

Answer: Cost-oriented pricing considers the firm's desire to make a profit and takes into account
the need to cover production costs. In its simplest formulation, cost-oriented pricing would
determine the selling price by adding together seller's cost and profit.
92) Describe a situation in which a company might adopt a pricing objective other than profit
maximization.
Answer: Sometimes a firm may value establishing market share over making immediate profits.
Companies may set an initially lower price to get buyers to try products. In such a case, the firm
would defer profits to a later time. In addition, companies are also influenced by the need to
compete in the marketplace, by social and ethical concerns, and by corporate image. Pricing
objectives are the goals that sellers hope to achieve in pricing products for sale. Some companies
have profit-maximizing pricing objectives, while others have market share pricing objectives.
93) Odd-even pricing falls under the category of which of the following?
A) Price fixing
B) Psychological pricing
C) Market pricing
D) Price lining
E) Price skimming
Answer: B
LO: 12.5: Discuss pricing strategies that can be used for different competitive situations and
identify the pricing tactics that can be used for setting prices.
94) Which of the following pricing strategies has stimulation of sales as a higher priority than
maximization of profits?
A) Price fixing
B) Penetration pricing
C) Price skimming
D) Price pointing
E) Price lining
Answer: B
95) Which of the following strategies is involved with price skimming?
A) Setting an initial low price to establish a new product in the market
B) Setting an initial low price to cover new product costs and still generate a profit
C) Setting a limited number of prices for certain categories or products
D) Setting an initial high price to establish a new product in the market
E) Setting an initial high price to cover new product costs and still generate a profit
Answer: E
96) Which of the following strategies is involved with penetration pricing?

B) Setting an initial low price to cover new product costs and still generate a profit
C) Setting a limited number of prices for certain categories or products
D) Setting an initial high price to establish a new product in the market
E) Setting an initial high price to cover new product costs and still generate a profit.
Answer: A
97) Which of the following pricing strategies is used by many e-tailers in order to provide
flexibility between buyers and sellers in setting a price?
A) Penetration pricing
B) Psychological pricing
C) Breakeven pricing
D) Fixed pricing
E) Dynamic pricing
Answer: E
98) Which of the following pricing strategies BEST describes price lining?
B) Setting an initial high price to cover new product costs and generate a profit
C) Setting individually negotiated prices for certain categories of products
D) Setting a limited number of prices for certain categories of products
E) Setting individually negotiated prices for all categories of products
Answer: D
99) Which of the following assumptions is the strategy of pricing above the market based on?
A) Higher price implies higher quality.
B) Higher price means higher customer support.
C) Higher prices mean higher customer satisfaction.
D) Higher price creates higher demand.
E) Higher price means easier distribution.
Answer: A
100) Which of the following scenarios would allow a firm to price below prevailing market price
and still succeed?
A) The public does not learn that the firm's product is indeed inferior.
B) The firm can offer a product of acceptable quality.
C) The firm can offer an entirely new product.
D) The firm can effectively copy competitors' promotional tactics and marketing strategies.
E) The firm can effectively criticize its competitors' products and quality.
Answer: B
101) Which of the following options BEST describes an example of price lining?
A) Having the price of each individual song on an online music store be determined by length of
song
B) Having the price of each individual song on an online music store be determined by
popularity of the band
C) Having the price of each individual song on an online music store be determined by user
auction
D) Having the price of each individual song on an online music store be determined by reverse
auction
E) Having the price of each individual song on an online music store be determined by which of
several categories the song falls into
Answer: E
102) How can a good or service provider stimulate demand during off-peak seasons?
A) Price lining
B) Discounts
C) Skimming
D) Odd-even pricing
E) Bundling
Answer: B
103) What is the practice of selling products in a foreign market for less than in its home
country?
A) Countervailing duties
B) Skimming
C) Odd-even pricing
D) Dumping
E) Price lining
Answer: D
104) If a company offers several products that are similar in nature, how could the company
increase sales while saving the consumer money?
A) Use a bundling strategy
B) Incorporate dynamic pricing
C) Sell at a reverse auction
D) Use a penetration pricing strategy
E) Incorporate a price skimming option
Answer: A
105) Why would a company use a bundling strategy when selling goods or services?
A) To decrease packaging costs
B) To increase the sales of bundled items
C) To introduce a new product to the market
D) To offer all products at a limited range of prices
E) To take advantage of psychological pricing
Answer: B
106) Price skimming occurs when a company sets an initially low price to establish a new
product in the market.
Answer: FALSE
Difficulty: Easy
107) Companies using price lining offer all items in certain categories at a limited number of
prices.
Answer: TRUE
Difficulty: Easy
108) Products priced above the market play on the common assumption that a higher price
means higher quality.
Answer: TRUE
Difficulty: Easy
109) Using the odd-even psychological pricing strategy, a restaurant would price an entree at
$10.00 rather than $9.95.
Answer: FALSE
Difficulty: Easy
110) Why would a firm want to set its price above competitors' prices?
Answer: Firms set prices above the market price to create the impression that the product with
the higher price is of far greater quality. Two examples are Godiva chocolates and Patek Philippe
watches, which are priced high to promote images of prestige and quality.

Chapter 12

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 12

Uploaded by

Copyright:

Available Formats

Business Essentials, 12e (Ebert/Griffin)

Chapter 12 Developing and Pricing Products

5) Which of the following BEST describes product features?

9) What is the grouping of products available for sale by a company called?

17) A product's features may be intangible.

23) How does a product mix differ from a product line?

24) How do expense items differ from capital items?

29) What is frequently the most time-consuming stage of product development?

32) How can a company establish market leadership for a product?

33) Why is speed to market critical to market demand?

36) Why do firms conduct product testing?

41) The process of product development begins with concept testing.

44) Why is new product development expensive?

45) Where do organizations get new product ideas?

46) What is involved in service process design?

54) What is one of the key benefits to successful branding?

58) Which of the following best describes a private label brand?

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

78) Which of the following best describes pricing objectives?

89) How has e-business contributed to lower prices?

90) Differentiate between fixed costs and variable costs.

91) What is cost-oriented pricing?

96) Which of the following strategies is involved with penetration pricing?

You might also like