Developing and Pricing Products
Multiple Choice

1 .       Consumers regard a product as a bundle of attributes which, when taken together, marketers refer to as the: 

 
 
 
 


2 .       Goods or services that are consumed within a year by firms producing other goods and supplying other services are referred to as: 

 
 
 
 


3 .       The first step in the new product development process is the generation of new product ideas. This step is followed by: 

 
 
 
 


4 .       Business analysts at Ace Products have noticed that sales growth has begun to slow for their Commander product. Profits, which had been at their highest level, have begun to fall with increased competition and price cutting. Based on the product life cycle, this product is in the: 

 
 
 
 


5 .       Village Imports has a warehouse full of cassette tape players. Though virtually obsolete in the United States, Village Imports hopes to sell these in South America through a strategy of: 

 
 
 
 


6 .       In 2001, the earnings boost associated with the Coca-Cola brand name was estimated to be: 

 
 
 
 


7 .       A brand that is produced by, widely distributed by, and carrying the name of a manufacturer is a: 

 
 
 
 


8 .       Which of the following is not a common pricing objective? 

 
 
 
 


9 .       When setting prices, companies often consider the percentage of total market sales for a specific company or product known as: 

 
 
 
 


10 .       Weight Loss Systems is considering pricing options for its new diet product, Lose Fast. Each month, Weight Loss Systems anticipates that they will incur $25,000 in fixed costs. The actual variable cost of the product is $10 per bottle (25 caplets). If a bottle of Lose Fast sells for $15, what is the breakeven point? 

 
 
 
 


11 .       Entrees at the Coconut Grill are priced at $9.99, $12.99, $14.99, $15.99, $17.99, $19.99, and $25.99. The Coconut Grill is using the pricing tactic referred to as: 

 
 
 
 


12 .       A reduction in price offered as an incentive to purchase is a: 

 
 
 
 






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