Online Exam

Part 1 of 2 – 35.0/
50.0 Points

Question 1 of 40
2.5/ 2.5 Points
A consumer products firm manufactures and sells over 200
different sizes and varieties of jams and jellies. We can say that this
manufacturer’s product mix has high:
A. consistency.
B. depth.
C. intensity.
D. range.

Question 2 of 40
0.0/ 2.5 Points
When customers calculate the perceived economic benefits of
a continuously provided service in relationship to the economic costs, they are
gauging the:
A. private equity.
B. brand equity.
C. payment equity.
D. customer-service
equity.

Question 3 of 40
0.0/ 2.5 Points
Services high in __________ are those services that have
characteristics the buyer normally finds hard to evaluate even after
consumption.
A. trial qualities
B. search qualities
C. experience
qualities
D. credence
qualities

Question 4 of 40
2.5/ 2.5 Points
Which of the following is a benefit of product mapping?
A. Studying market
matrices
B. Integrating
target markets
C. Identifying
market segments
D. Educating
consumers

Question 5 of 40
2.5/ 2.5 Points
Companies may wish to implement a(n. __________ to achieve
more growth, to realize higher margins, or simply to position themselves as
full-line manufacturers.
A. up-market stretch

B. rebranding plan
C. outsourcing
strategy
D. disintermediation
policy

Question 6 of 40
2.5/ 2.5 Points
Capital items are long-lasting goods that facilitate
developing or managing the finished product. They include two groups:
installations and:
A. natural products.

B. component
materials.
C. operating
supplies.
D. equipment.

Question 7 of 40
2.5/ 2.5 Points
Customers today want separate prices for each service
element and they also want the right to select the elements they want. The
customers are said to be pressing for:
A. complementary
services.
B. perishable
services.
C. variable
services.
D. unbundled
services.

Question 8 of 40
2.5/ 2.5 Points
Expensive equipment manufacturers not only install the
equipment but also train the staff and undertake the maintenance and repair
activities of the equipment. By doing so, they are providing:
A. payment equity.
B. value-augmenting
services.
C. differential
pricing.
D. facilitating
services.

Question 9 of 40
0.0/ 2.5 Points
Regular maintenance and repair costs are known as:
A. service contract
costs.
B. out-of-pocket
costs.
C. fixed costs.
D. facilitating
services costs.

Question 10 of 40
2.5/ 2.5 Points
__________ is a measure of the probability that a product
will not malfunction or fail within a specified time period.
A. Reparability
B. Durability
C. Reliability
D. Specialty

Question 11 of 40
2.5/ 2.5 Points
A customer judges a product offering by three basic
elements: product features and quality, services mix and quality, and:
A. performance.
B. utility.
C. tangibility.
D. price.

Question 12 of 40
2.5/ 2.5 Points
How a consumer shops for organic foods and how he or she
uses and disposes of the product is part of the consumers’ __________ that is
important for marketers to consider.
A. value proposition

B. consumption
system
C. value system
D. quality perception

Question 13 of 40
2.5/ 2.5 Points
The way the user performs the tasks of getting and using
products and related services is the user’s total:
A. consumption
system.
B. consumable
system.
C. consistent use
system.
D. augmented system.

Question 14 of 40
0.0/ 2.5 Points
Which of the following is an example of a hybrid service?
A. Teaching
B. Car
C. Restaurant meal
D. Soap

Question 15 of 40
2.5/ 2.5 Points
A(n. __________ is defined as a distinct unit within a brand
or product line distinguishable by size, price, appearance, or some other
attribute.
A. stockkeeping unit

B. inventory turn
C. individual brand
D. product type

Question 16 of 40
0.0/ 2.5 Points
__________ refer(s. to logos, symbols, characters, and
slogans that service providers use in order to make the service and its key
benefits more tangible.
A. Brand engagement
B. Brand orientation

C. Brand elements
D. Brand loyalty

Question 17 of 40
0.0/ 2.5 Points
Services high in __________ have characteristics that the
buyers can evaluate before purchase.
A. search qualities
B. experience
qualities
C. credence
qualities
D. privacy qualities

Question 18 of 40
2.5/ 2.5 Points
What types of goods are purchased frequently, immediately,
and with minimum effort by the consumers?
A. Specialty goods
B. Shopping goods
C. Convenience goods

D. Durable goods

Question 19 of 40
2.5/ 2.5 Points
A computer falls into the __________ category of service
mix.
A. pure tangible
good
B. tangible good
with accompanying services
C. hybrid
D. major service
with accompanying minor goods

Question 20 of 40
2.5/ 2.5 Points
Unlike physical products, services cannot be seen, tasted,
felt, heard, or smelled before they are bought. This is known as the __________
aspect of services.
A. inseparability
B. intangibility
C. variability
D. perishability

Part 2 of 2 – 50.0/
50.0 Points

Question 21 of 40
2.5/ 2.5 Points
Which of the following is true regarding price elasticity?
A. The higher the
elasticity, the lesser is the volume growth resulting from a 1 percent price
reduction.
B. Within the price
indifference band, price changes have little or no effect on demand.
C. If demand is
elastic, sellers will consider increasing the price.
D. Price elasticity
does not depend on magnitude and direction of the contemplated price change.

Question 22 of 40
2.5/ 2.5 Points
When a company introduces a product at a very high price and
then gradually drops the price over time, it is pursuing a __________ strategy.
A.
market-penetration pricing
B. market-skimming
pricing
C. value-pricing
D. switching cost

Question 23 of 40
2.5/ 2.5 Points
Costs that differ directly with the level of production are
known as:
A. fixed costs.
B. overhead costs.
C. opportunity
costs.
D. variable costs.

Question 24 of 40
2.5/ 2.5 Points
While shopping at the mall, Jane is asked by one of the
sales representatives at the cosmetics counter to try out a new lipstick that
her company is test marketing. The company representative asks her how much she
would be willing to pay for the lipstick. After trying it out, Jane is of the
opinion that $5 is just the right price for it. What type of a reference price
is Jane using?
A. Usual discounted
price
B. Fair price
C. Maximum retail
price
D. Last price paid

Question 25 of 40
2.5/ 2.5 Points
Many consumers are willing to pay $100 for a perfume that
contains $10 worth of scent because the perfume is from a well-known brand.
What kind of a pricing is the company depending on?
A. Going-rate
pricing
B. Image pricing
C. Market-skimming
pricing
D. Target pricing

Question 26 of 40
2.5/ 2.5 Points
A firm that is plagued with overcapacity, intense
competition, or changing wants would do better if it pursues __________ as its
major objective.
A. market skimming
B. product-quality
leadership
C. survival
D. profit
maximization

Question 27 of 40
2.5/ 2.5 Points
In which of the following auctions does the auctioneer first
announce a high price for a product and then slowly decrease the price until a
bidder accepts?
A. A Dutch auction with
one buyer and many sellers
B. An English
auction with one seller and many buyers
C. An ascending bid
auction
D. A Dutch auction
with one seller and many buyers

Question 28 of 40
2.5/ 2.5 Points
A company must make payments each month for rent, heat,
interest, and salaries. These are:
A. total costs.
B. fixed costs.
C. variable costs.
D. opportunity
costs.

Question 29 of 40
2.5/ 2.5 Points
Deducting the desired profit margin from the price at which
a product will sell, given its appeal and competitors’ prices, is known as:
A. overhead costing.

B. target costing.
C. activity based
costing.
D. benefit analysis.

Question 30 of 40
2.5/ 2.5 Points
Companies that aim to __________ strive to be affordable
luxuries.
A. survive in the
market
B. partially recover
their costs
C. maximize their
market share
D. be
product-quality leaders

Question 31 of 40
2.5/ 2.5 Points
Everyday low pricing is most suitable if:
A. consumers are
willing to perform activities such as clip coupons to avail of discounts.
B. consumers tend to
associate price with quality.
C. customers are
insensitive to changes in price.
D. the cost of
conducting frequent sales and promotions is high.

Question 32 of 40
2.5/ 2.5 Points
When consumers examine products, they often compare an
observed price to an internal price they remember. This is known as a(n.
__________ price.
A. markup
B. reference
C. market-skimming
D. accumulated

Question 33 of 40
2.5/ 2.5 Points
__________ let would-be suppliers submit only one bid; they
cannot know the other bids.
A. Descending bid
auctions
B. Sealed-bid
auctions
C. English auctions
D. Dutch auctions

Question 34 of 40
2.5/ 2.5 Points
The reservation price or the maximum that most consumers
would pay for a given product is known as the __________ price.
A. expected future
B. usual discounted
C. upper-bound
D. typical

Question 35 of 40
2.5/ 2.5 Points
A manufacturer has invested $750,000 in a new product and
wants to set a price to earn a 15 percent ROI. The cost per unit is $18 and the
company expects to sell 50,000 units in the first year. Calculate the company’s
target-return price for this product.

A. $20.25
B. $18.23
C. $18.10
D. $20.70

Question 36 of 40
2.5/ 2.5 Points
__________ consist of the sum of the fixed and variable
costs for any given level of production.
A. Total costs
B. Average costs
C. Opportunity costs

D. Learning costs

Question 37 of 40
2.5/ 2.5 Points
Which of the following auctions is characterized by one
seller and many buyers?
A. Walrasian
auctions
B. Ascending bid
auctions
C. Closed auctions
D. Sealed-bid
auctions

Question 38 of 40
2.5/ 2.5 Points
Which of the following is the first step in setting a
pricing policy?
A. Selecting a
pricing method
B. Selecting the
pricing objective
C. Determining
demand
D. Estimating cost

Question 39 of 40
2.5/ 2.5 Points
The first step in estimating demand is to:
A. analyze
competitors’ cost.
B. select a pricing
method.
C. understand what
affects price sensitivity.
D. calculate fixed
costs.

Question 40 of 40
2.5/ 2.5 Points
__________ price refers to what the consumers feel the
product should cost.
A. Fair
B. Typical
C. Usual discounted
D. List