1. American Building Products is the largest cement company in the Midwest. When the firm raised its prices by 8 percent, all of its competitors soon announced they too were raising their prices by 8 percent. It appears this industry is influenced by a ________ strategy.
- price skimming
- price leadership
- market pricing
- price discrimination
2. During the ________ stage of the product life cycle sales reach a peak, profits are declining, and the number of competitors starts to decrease.
- growth
- maturity
- saturation
- decline
3. Sears sells batteries under its own Diehard brand name even though another company actually produces these batteries. This is an example of a:
- knockoff brand.
- generic brand.
- dealer (private) brand.
- brand association.
4. Phar-out Pharmacy will advertise a price of an over-the-counter drug at or below their cost. The intended goal of this loss leader strategy is to:
- achieve a target profit.
- reduce the break-even quantity.
- build traffic and increase the customer base.
- create an upscale image.
5. Location is very important in the marketing of ________ because consumers desire to purchase these goods with a minimum of shopping effort.
- unsought goods
- shopping goods
- specialty goods
- convenience goods
6. Sales levels of Armstrong mountain bikes are rising rapidly, profits are very high, and a growing number of competitors are taking aim at Armstrong's market lead. Based on this information, Armstrong mountain bikes are in which stage of the product life cycle?
- introduction
- growth
- maturity
- decline
7. __________ goods appeal to consumers who are willing to make an extra shopping effort to acquire them.
- Specialty
- Shopping
- Convenience
- Consumer
8. Felicia wants to know how many units she must sell to cover all of her costs. She indicates to you that her selling price is $20 per unit, her fixed costs are $6,000, and the variable costs per unit are $15. What is her break-even point?
- 300 units
- 400 units
- 1,200 units
- 1,100 units
9. According to the product life cycle model, profits tend to:
- remain relatively constant until the decline stage, when they begin to drop.
- reach a peak near the end of the maturity stage.
- rise rapidly during the market preference stage.
- peak before sales reach their highest level.
10. Borden, Inc. makes pasta, dairy items, and adhesives. These different types of products are referred to as Borden's:
- product line.
- product mix.
- product differentiation.
- product life cycle.
11. As a product progresses through each stage of the product life cycle, successful marketers recognize that each stage requires:
- a different marketing strategy.
- a consistent application of fundamental marketing practices.
- an increase in the amount spent on advertising.
- more emphasis on personal selling.
12. A skimming pricing strategy:
- allows low income households the ability to purchase a particular good or service.
- drives competitors out of business in order to achieve a monopoly position in the market.
- creates a "common man" image to reach a larger market.
- establishes a high price in order to earn the highest possible profit while there is little competition.
13. The Coca Cola Company produces Diet Coke, Diet Coke with Splenda, and Coke Zero along with a number of other flavors. These products are part of Coke's:
- product line.
- product mix.
- product position.
- product collection.
14. Which of the following is a benefit of a brand name for a seller?
- quality assurance
- reduction in search time
- increased repeat purchases
- additional prestige
15. Products that are used in the production of other goods and services are called ________ goods.
- specialty
- shopping
- industrial
- sponsored
16. The Spotlight on Small Business box titled "Don't Come to Me, I'll Come to You" refers to:
- The emergence of the home healthcare industry making more house calls.
- The increase in small businesses that compete with large companies for the same market.
- New trends in mobile food carts, and the use of social media to let customers know their locations at various times.
- The increase in all sorts of home parties, where patrons buy expensive clothes and novelty items.
17. Today, packaging is:
- the least important component of the marketing mix.
- assuming an increasingly important role in the promotion of products.
- exclusively intended to protect the product from damage.
- the most expensive component of the production process.
18. The __________ on packages were intended to improve inventory control for businesses.
- stars and stripes
- Universal Product Codes
- lightweight adhesives
- Unit Standard Inventory bars
19. As reported on NPR online feed: A 1981 self-portrait of celebrated photographer Cindy Sherman sold at a Christie's auction in 2011 for just short of $4 million dollars. According to Christie's, this was the highest price ever received for a photograph in the history of the auction business. As a student of marketing, you would classify this photo and other rare items sold through Christie's as ____________.
- unsought for goods
- specialty goods
- intangible goods
- shopping goods
20. The purpose of __________ is to create real or perceived product differences.
- niche marketing
- product differentiation
- product mixing
- target marketing
21. Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?
- product matrix
- product line
- product mix
- total product offer
22. The number of units of a product that must be sold for total revenue to equal total costs is called the:
- equilibrium volume.
- balanced quantity.
- contribution margin.
- break-even point.
23. The formula for break-even analysis includes which of the following components?
- depreciation
- forecasted sales
- forecasted cash requirements
- variable cost per unit of output
24. Having completed the first stages of product development of its new low-calorie frozen yogurt breakfast bars, the YaYa Yogurt Company took its product directly to consumers. Marketers partnered with a large theme park in Orlando, FL, to perform _______________. The YaYa marketing department wanted to know if consumers found this product to be a quick way to eat breakfast on the road. Subsequently, they also wanted to determine what customers would be willing to pay for the breakfast bar.
- commercialization
- concept testing
- prototyping
- product screening
25. Some businesses use nostalgic ads to rekindle the memories and emotions of consumers to an earlier time and place. This technique of linking a brand name to a pleasant memory or favorable image is the goal of brand:
- association.
- tie-ins.
- insistence.
- preference.
26. Loundes Enterprises loads its products into truck trailers, then loads the trailers onto ships to transport long distances. Once the ship reaches the port nearest the final destination, the trailers are unloaded and hauled to their final destination by truck. Loundes' practice of transporting truck trailers on ships is known as ____________ shipping.
- waterwheel
- whitecap
- fishyback
- flexed-modal