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Exam 13: A: Creating and Pricing Products That Satisfy Customers

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Question 71

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The strategy of setting a low price for a new product to gain a large market share for the product quickly is called

A) penetration pricing.
B) price skimming.
C) sample pricing.
D) introductory pricing.
E) odd pricing.

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Question 72

Multiple Choice

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If a customer has moderate loyalty toward Heinz ketchup, she likely will

A) buy the product in greater quantities.
B) shop around for the best price for that good.
C) perceive the product as having the same quality level as competitive brands.
D) never buy another brand of ketchup.
E) purchase other products that carry the Heinz name.

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Question 73

Multiple Choice

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If Macy's department store managers looked at Dillard's department store prices for identical national brands and, based on that information, decided to advertise a sale on those products, they would be exercising which pricing method?

Your Way, Inc. Eric buys companies that are small or companies in financial trouble. He helps these companies turn around and develop a competitive advantage. The company that he recently purchased is called Your Way, Inc. The company sells men's clothing and accessories. Your Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling. After looking over the different products available, Eric realized that the company's previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out of date. Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix. To move the company forward, Eric thought of the following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products. -Refer to Your Way, Inc. The sewing machines are considered ____ for Your Way.

If Tyson, a poultry producer, decided to start producing veggie burgers, this would be an example of

If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on

Under what circumstances might a firm use survival pricing objectives? How would a firm implement such a strategy?

To promote an overall company image, Borden dairy products are packaged in similar designs and colors. This approach is known as

A brand that is owned by a producer is called a

What do yo-yo, aspirin, and thermos all have in common in a marketing sense?

Click It, Inc. Travis is a salesperson for Click It, Inc. Click It does not sell products with its own brand name. Instead, its products are created for different retail stores and carry the store brand. Travis thought that several changes needed to be made to a particular product, but Click It management reminded him that the stores, not Click It, owned the brand. However, because Click It had been concerned about dropping sales, management listened to Travis's concerns about the company's pricing. He suggested using a different pricing strategy. More specifically, he felt that the company should incorporate a multiple-unit pricing strategy because it would then allow Click It to set a single price for multiple units. This had the potential of increasing sales and therefore profits, so management agreed to consider Travis's suggestion. -Refer to Click It, Inc. As Click It managers considers the pricing issues, they should know that all of the following are major pricing objectives except

Price competition occurs when a seller emphasizes the

At a busy intersection in Atlanta, there are four competing gas stations. Each of the stations charges about the same for each gallon of gasoline. The pricing objectives of these firms is

If Tiger Mart advertises a 2-liter bottle of Pepsi for $1.29 cents to generate store traffic that will increase the purchasing of other items at regular prices, the grocer is using

A pricing strategy in which a manufacturer pays for the shipping cost of its merchandise to the wholesaler is called ____ pricing.

Razor Company's blades are in the maturity stage of the product life-cycle. How can the company strengthen its market share?

If a company invests $1,000,000 to develop and market a new product with a goal of earning $1,200,000 on the product by the end of the year, it will price the product based on

Price differentiation attempts to sell

For product modification to be effective, all but which of the following conditions must be met?

Is McDonald's "golden arches" symbol a brand name or a brand mark? Define each term, and state how they differ.