Principle of Marketing Unit 3 MCQ’s and 1 written Q
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. What are the two ways that a company can obtain new products?
a. New-product development and acquisition
b. Line extension and brand management
c. Market mix modification and research and development
d. Service development and product extension
e. Internal development and brand management
2. Your firm added three new products earlier this year to increase variety for customers. Two of them failed to reach even minimal sales. Which of the following is LEAST likely to have been the cause of their failure?
a. Competitors fought back harder than expected.
b. The products were priced too high.
c. The product launch was ill-timed.
d. The products were advertised incorrectly.
e. Research was too extensive.
3. Your firm asks you to consult external sources for new product ideas. All of the following are common external sources EXCEPT________.
a. trade shows and magazines
e. the firm’s executives
4. A ________ is the way consumers perceive an actual or potential product.
a. concept test
b. test market
c. product concept
d. product image
e. product idea
5. A review of the sales, costs and profit projections for a new product to find out whether they satisfy the company’s objectives is called a________.
b. product acceptance
c. marketing strategy development
d. business analysis
e. business feasibility plan
6. In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called________.
a. sequential product development
b. phased-in new-product development
c. team-based new-product development
d. simulated new-product development
e. market development
7. Some products that have entered the decline stage have been cycled back to the growth stage through________.
a. customer-centered product development
b. promotion or repositioning
c. concept testing
d. business analysis
e. innovation management
8. In which stage of the PLC will promotional expenditures be high in an attempt to respond to increasing competition?
d. Product development
9. Most products in the marketplace are in the________ stage of the product life cycle.
10. Although test marketing costs can be high, they are often small when compared with________.
a. the costs of a major mistake
b. the costs of idea generation
c. business analysis costs
d. research and development costs
e. prototype development costs
11. ________ uses buyers’ perceptions of what a product is worth, not the seller’s cost, as the key to pricing.
a. Variable cost
b. Product image
c. Price elasticity
d. Customer value-based pricing
e. Cost-based pricing
12. Costs that do not vary with production or sales level are referred to as ________.
a. variable costs
b. fixed costs
c. unit costs
d. total costs
e. target costs
13. Rent, electricity and executive salaries are examples of ________.
a. variable costs
b. marketing costs
c. accumulated costs
d. total costs
e. fixed costs
14. Costs that vary directly with the level of production are referred to as________.
a. target costs
b. unit costs
c. fixed costs
d. variable costs
e. total costs
15. Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the profit it is seeking.
a. value-based pricing
b. customer-based pricing
c. target return pricing
d. competition-based pricing
e. fixed cost pricing
16. Which of the following involves setting prices based on competitors’ strategies, costs, prices and market offerings?
a. Competition-based pricing
b. Market-based pricing
c. Target return pricing
d. Added-value pricing
e. Good-value pricing
17. If demand changes greatly with a small change in price, we say the demand is ________.
18. By definition, ________ is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.
a. variable pricing
b. reference pricing
c. cost-plus pricing
d. segmented pricing
e. flexible pricing
19. The Sherman, Clayton and Robinson-Patman Acts are all federal laws that were enacted to curb the formation of ________.
c. competitive markets
d. limited partnerships
e. international markets
20. The Robinson-Patman Act seeks to prevent unfair________ by ensuring that sellers offer the same price terms to customers at a given price level.
a. treatment of small retailers
b. price discrimination
c. dynamic pricing
d. price collusion
21. A corporate VMS has the advantage of controlling the entire distribution chain through________.
a. contracts among separate members
b. mass distribution
c. franchise agreements
d. a profit-maximizing strategic plan
e. single ownership
22. In a ________, two or more companies at one level join together to develop a newmarketing opportunity.
b. horizontal marketing system
c. corporate VMS
d. conventional distribution channel
e. multichannel distribution system
23. Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products?
24. Steve’s Physco Skates sells its products to Walmart, who then sells them to the consumer. This is an example of a(n) ________.
a. direct marketing channel
b. indirect marketing channel
c. retailer channel
d. corporate vertical marketing system
e. producer channel
25. Which product will most likely be exclusively distributed?
a. BMW cars
b. Levi’s blue jeans
c. Bazooka bubble gum
e. Prairie Farms yogurt
Written Assignment for Unit Three
• Include your name, student number, course number, course title and unit number on each page of your written assignment (this is for your protection in case your materials become separated). • Begin each written assignment by identifying the question number you are answering followed by the actual question itself (in bold type). • Use a standard essay format for responses to all questions (i.e. an introduction, middle paragraphs and conclusion). • Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.
Word count is NOT one of the criteria that is used in assigning points to written assignments. However, students who are successful in earning the maximum number of points tend to submit written assignments that fall in the following ranges:
Undergraduate courses: 350 – 500 words or 1 – 2 pages
Plagiarism All work must be free of any form of plagiarism. Put written answers into your own words. Do not simply cut and paste your answers from the Internet and do not copy your answers from the textbook. Be sure to refer to the course Syllabus for more details on plagiarism and proper citation styles.
Please answer ONE of the following:
1) Distinguish among a product idea, a product concept, and a product image.
2) Describe the differences between dynamic and fixed pricing.
3) Explain the factors involved in setting international pricing.