Question 9 The Home Depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. The Home Depot is differentiating through product ancillaries. company quality. customer services. company features. product features. Question 10 Why are line extensions more common than new products? They are higher risk and more expensive. They are guaranteed to succeed in the marketplace. They are less expensive and lower-risk. They require no market research. Modifications to existing products are very easy. Question 12 Clive is an engineer involved in the product development of a new plastic laminate that would be sold to manufacturers of kitchen counter tops. Currently, Clive and his colleagues are considering the potential for profitability of the new product. They are likely in the ____ phase of the new product development process. Idea generation Market testing Business analysis Concept testing Compatibility research Question 20 The overall challenge for marketers when developing packaging is to make it as attractive as possible to the target market of the product. create effective, convenient packaging that appeals to customers and keeps costs low. find ways to reduce costs as much as possible for packaging without letting safety suffer. always be more innovative than the competitors in order to make a product stand out. ensure that product damage is minimized during distribution. Question 23 Packaging is most important, as a strategic tool, for consumer convenience products. consumer shopping products. industrial products. consumer specialty products. services. Question 25 Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of internal referencing. cumulative discounts. seasonal discounts. base-point pricing. an external reference price. Question 26 Nicole is out shopping with her friends for the day. While evaluating a decision to purchase a handbag, she says, "People notice when you buy the most expensive brand of a product." Nicole is most likely a _____ consumer. price-conscious quality-conscious value-conscious socially conscious prestige-sensitive Question 27 What assumption does breakeven analysis make that limits its overall usefulness? It focuses on how to achieve a price objective. It assumes a company wants to gain a certain market share. It relies on demand for a product being inelastic. It focuses only on competitive factors and not costs. It assumes demand is elastic for the product. Question 30 If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power, the demand would be elastic. minimal. minor elasticity. variable. inelastic. 2 points Question 31 Westin Hotels, Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a ____ pricing objective. market share cash flow return on investment profit status quo Question 36 If local Shell gasoline stations look at BP stations prices as the primary method of determining its own prices, Shell is using ________ price fixing; which considers competition to be less important than costs. price fixing; which considers costs to be less important than competitors prices. market share pricing; which considers competition to be the ultimate pricing goal. competition-based pricing, which considers profit to be the ultimate pricing goal. competition-based pricing, which considers costs to be less important than competitors prices. Question 38 The Gene & Jean store purchases Lucky Dog blue jeans at a cost of $50 per pair. If Gene & Jean prices Lucky Dog blue jeans using a 45% markup on price, what is the selling price to consumers? 4 points. $90.91 $111.11 $77.50 $72.50 4 points Question 39 KidCo has produced a new video game for young children. KidCo sells the video games to various retailers (who, of course, will then sell to consumers). It costs $28 to produce and package each game. If KidCo prices the product in order to achieve a 60% markup on cost how much will retailers pay for the game? 4 points. $39.20 $44.80 $46.67 $70.00 4 points Question 40 The BigDog company has developed a new video game, which it intends to sell directly to consumers via the internet. At a selling price of $45 BigDog estimates that it can sell 200,000 units. It costs $20 per unit to produce each video game, and another $5 per unit to deliver it. If BigDog incurs fixed overhead expenses per year of $3.4 million, how much net profit will it earn? 4 points. $9,000,000 $4,000,000 $5,600,000 $600,000 4 points Question 41 FlashX company sells hi-end video games to consumers via the internet, each at a price of $75. It buys each game at a cost of $40, and it incurs another $5 per unit in distribution expenses. If FlashX incurs fixed overhead expenses per year of $2.1 million how many units does it need to sell in order to break even? 4 points. 70,000 65,000 52,500 28,000 4 points Question 42 The Blu-Berry Company is preparing to launch its latest "next generation" smart phone to the consumer electronics market. The device, to be called the MiBerry, is loaded with a number of standardized features to include GPS monitoring (e.g., to track children), a radar detector, spectrometer, breathalyzer, medical monitoring and diagnostics, and home security monitoring, etc. The MiBerry will be sold to consumers through major retailers such as Best Buy, Frys, and H.H. Gregg. If you were the marketing manager in charge of the launch of this new device, which factors would you take into consideration when deciding on a suggested retail price? Explain and discuss why each factor is relevant in the pricing decision.