Marketing

Which of the following is NOT a challenge presented by the product life cycle that a firm must face?

• All products eventually decline.

• Changing tastes, technologies, and competition affect the marketing of the product as it passes through life-cycle stages.

• A firm must be good at developing new products to replace aging ones.

• A firm must be good at adapting its marketing strategies.

• It is difficult to plot the stages as a product goes through them.

What are the two ways that a company can obtain new products?

• line extension and brand management

• internal development and brand management

• new-product development and acquisition

• service development and product extension

• market mix modification and research and development

Product improvements, product modifications, and original products can all be classified as ______

• pioneer products

• new products

• product strategies

• product extensions

• test products

Which of the following is NOT a potential reason for a new product to fail?

• an underestimated market size

• a poorly designed product

• an incorrectly positioned product

• higher than anticipated costs of product development

• ineffective advertising

Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the

• perceived

• value-based

• variable

• demand curve

• price-floor

If a seller charges____than the buyer's perceived value, the company's sales will____

• more; benefit

• more; suffer

• less; increase

• less; suffer

• none of the above

Some companies have adopted a strategy, offering just the right combination of quality and good service at a fair price.

• value-based pricing

• good-value pricing

• cost-plus pricing

• low-price image

• none of the above

Fixed costs ____ as the number of units produced increases.

• decrease

• increase

• divide in half

• remain the same

• increase at a diminishing rate

Costs that do not vary with production or sales level are referred to as ____.

• fixed costs

• variable costs

• target costs

• total costs

• unit costs

Rent, interest, and executive salaries are examples of ____.

• fixed costs

• variable costs

• accumulated costs

• total costs

• marketing costs