Lecture Quiz 9-10 Flashcards
(15 cards)
________ is the only element in the marketing mix that produces revenue.
A. Product B. Place C. Positioning D. Price E. Promotion
D. Price
Which of the following involves setting prices based on a rival firm’s strategies, costs, prices, and market offerings?
Competition-based pricing
What sets the ceiling for product prices?
- ceiling is set by customer expectations
- floor is set by the cost to produce the product
Product improvements, product modifications, and original products can all be classified as ________.
A) pioneer products B) new products C) product strategies D) product extensions E) test products
B) new products
Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?
crowd sourcing
A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds of ulcers. The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance?
Value-Based Pricing
The perceived value of different product offers can be reasonably assessed by ________.
conducting surveys and experiments
Companies can legitimately charge a higher price if ________.
Consumers perceive that the company’s product offers greater value
Which of the following is true of value-based pricing?
The targeted value and price drive decisions about what costs can be incurred and the resulting product design.
Which of the following statements is true of the new product development process?
a. It is the last stage of a formal new-product development process.
b. It refrains from adopting ideas suggested by customers and competitors.
c. It provides general guidelines for generating, screening, and evaluating new-product ideas.
d. It is limited to product development and does not play a role in overall marketing strategy.
c
In the context
c. It provides general guidelines for generating, screening, and evaluating new-product ideas.
A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?
Product research was too extensive
Price setting is usually determined by ________ in small companies.
A) top management B) marketing departments C) sales departments D) divisional managers E) cross-functional teams
top management
A detailed version of a new idea stated in meaningful customer terms is called a product ________.
A) product idea B) product concept C) product image D) product proposal E) product movement
B) product concept
In the new product development process, the first idea-reducing stage is ________.
Idea screening
Which of the following is an external source for ideas?
suppliers
