1) A company sets not a single price, but rather a ________ that covers different items in its line

that change over time as products move through their life cycles.
A) pricing by-product
B) pricing structure
C) pricing loop
D) pricing cycle
E) pricing bundle

2) Companies facing the challenge of setting prices for the first time can choose between two
broad strategies: market-penetration pricing and ________.
A) market-level pricing
B) market-competitive pricing
C) market-skimming pricing
D) market-price lining
E) market-price filling

3) Of the following, which statement would NOT support a market-skimming policy for a new
product?
A) The product's quality and image support its higher price.
B) Enough buyers want the products at that price.
C) Competitors are not able to undercut the high price.
D) Competitors can enter the market easily.
E) C and D

4) A firm is using ________ when it charges a high, premium price for a new product with the
intention of reducing the price in the future.
A) price skimming
B) trial pricing
C) value pricing
D) market-penetration pricing
E) prestige pricing

5) ________ pricing is the approach of setting a low initial price in order to attract a large
number of buyers quickly and win a large market share.
A) Market-skimming
B) Market-penetration
C) Below-market
D) Value-based
E) Leader

6) Accent Software faces the conditions below, all of which support Accent's use of a market-
penetration pricing strategy EXCEPT that ________.
A) the market is highly price sensitive
B) production and distribution costs will fall as sales volume increases
C) the product's quality and image support a high price
D) a low price would help keep out the competition
E) A and C

7) Which of the following is a reason that a marketer would choose a penetration pricing
strategy?
A) to ensure the company has the ability to increase prices once demand decreases
B) to focus on the rapid achievement of profit objectives
C) to appeal to different consumer segments with different levels of price sensitivity
D) to create markets for highly technical products
E) to discourage competition from entering the market

8) Which of the following is NOT a typical supply chain member?

A) resellers
B) customers
C) intermediaries
D) government agencies
E) raw materials supplier

9) ________ the manufacturer or service provider is the set of firms that supply the raw
materials, components, parts, information, finances, and expertise needed to create a product or
service.
A) Downstream from
B) Upstream from
C) Separated from
D) Congruous to
E) Parallel with

10) Another term for the supply chain that suggests a sense and respond view of the market is
________.
A) supply and demand chain
B) demand chain
C) channel of distribution
D) distribution channel
E) physical distribution

11) When suppliers, distributors, and customers partner with each other to improve the
performance of the entire system, they are participating in a ________.
A) value delivery network
B) channel of distribution
C) supply chain
D) demand chain
E) all of the above

12) Most producers today sell their goods to ________.

A) final users
B) final users and marketing members
C) intermediaries
D) the government at various levels
E) competitors

13) A company's channel decisions directly affect every ________.

A) channel member
B) marketing decision
C) customer's choices
D) employee in the channel
E) competitor's actions

14) Distribution channel decisions often involve ________ with other firms, particularly those
that involve contracts or relationships with channel partners.
A) short-term commitments
B) long-term commitments
C) major problems
D) financial losses
E) disagreements

15) Joe Blanco, like other producers, has discovered that his intermediaries usually offer his firm
more than it can achieve on its own. Which of the following is most likely an advantage that Joe
creates by working with intermediaries?
A) financial support
B) fast service
C) scale of operation
D) working relationships with foreign distributors
E) promotional assistance

16) From the economic system's point of view, the role of marketing intermediaries is to
transform the assortment of products made by producers into the assortment of products wanted
by ________.
A) channel members
B) distributors
C) consumers
D) manufacturers
E) marketers

17) Producers benefit from using intermediaries because they ________.

A) offer greater efficiency in making goods available to target markets
B) bring a fresh point of view to strategy development
C) eliminate risk
D) are generally backlogged with orders
E) refuse to store products for longer than a few days

18) You are directed to study the factors close to the company that affect its ability to serve its
customers-departments within the company, suppliers, marketing intermediaries, customer
markets, competitors, and publics. What are you studying?
A) the macroenvironment
B) the microenvironment
C) the marketing environment
D) the demographic environment
E) the global environment

19) Which of the following terms is used to describe the factors and forces outside marketing
that affect marketing management's ability to build and maintain successful relationships with
target customers?
A) the marketing environment
B) the cultural environment
C) strategic planning
D) target markets
E) the marketing mix

20) You are directed to study the demographic, economic, natural, technological, political, and
cultural factors that are larger societal forces affecting your company. What are you studying?
A) the macroenvironment
B) the microenvironment
C) the external environment
D) the marketing mix
E) the global environment

21) Which of the following is NOT a type of factor in a company's macroenvironment?

A) demographic
B) economic
C) technological
D) competitive
E) political

22) All of the groups within a company are called the ________.
A) culture
B) diversity
C) internal environment
D) climate
E) range

23) Which type of organization helps companies to stock and move goods from their points of
origin to their destination?
A) financial intermediaries
B) physical distribution firms
C) marketing services agencies
D) resellers
E) suppliers

24) Banks, credit companies, insurance companies, and other businesses that help finance
transactions or insure against the risks associated with the buying and selling of goods and
services are referred to as ________.
A) financial intermediaries
B) physical distribution firms
C) marketing services agencies
D) resellers
E) wholesalers

25) Currently, Diego Calabresa is employed by a firm that conducts marketing research and
creates ads for other companies that help them target and promote their products to the right
markets. Who is Diego's employer?
A) a financial intermediary
B) a physical distribution firm
C) a marketing service agency
D) a reseller
E) a green marketer

26) We define a ________ as anything that can be offered to a market for attention, acquisition,
use, or consumption and that might satisfy a want or need.
A) private brand
B) service variability
C) service
D) product
E) service encounter

27) ________ are a form of product that consists of activities, benefits, or satisfactions offered
for sale that are essentially intangible and do not result in the ownership of anything.
A) Line extensions
B) Services
C) Brands
D) Consumer products
E) Supplements

28) A product is a key element in the ________. At one extreme, it may consist of pure tangible
goods or at the other extreme, pure services.
A) market offering
B) brand equity
C) brand extension
D) co-branding
E) value chain

29) To differentiate themselves, many companies are going beyond products and services, they
are developing and delivering customer ________.
A) quality
B) experiences
C) brands
D) product lines
E) events

30) Product planners need to consider products and services on three levels. Each level adds
more customer value. The most basic level is the ________, which addresses the question, "What
is the buyer really buying?"
A) actual product
B) augmented product
C) core customer value
D) co-branding
E) exchange

31) The third level of a product that product planners must consider is a(n) ________ around the
core benefit and actual product that offers additional consumer services and benefits.
A) brand equity
B) augmented product
C) brand extension
D) industrial product
E) image

32) Product planners must design the actual product and find ways to ________ it in order to
create the bundle of benefits that will provide the most satisfying customer experience.
A) promote
B) package
C) brand
D) argument
E) present

33) Products and services fall into two broad classifications based on the types of consumers that
use them. Which is one of these broad classes?
A) industrial products
B) specialty products
C) supplies and services
D) materials and parts
E) convenience products

34) What are the two ways that a company can obtain new products?
A) line extension and brand management
B) internal development and brand management
C) new-product development and acquisition
D) service development and product extension
E) market mix modification and research and development