MKT 304 KEYANI EXAM 2 QUESTIONS WITH
CORRECT ANSWERS
Product life cycle - ANSWER introduction
growth
maturity
decline
introduction stage - ANSWER sales grow slowly
profit is minimal
trial - ANSWER the initial purchase of a product by a consumer
primary demand - ANSWER the desire for the product class rather than for a
specific brand
selective demand - ANSWER the preference for a specific brand
skimming strategy - ANSWER help the company recover the costs of
development as well as capitalize on the price insensitivity of early buyers
penetration pricing - ANSWER used to discourage competitive entry, a company
can price low
examples of introductory stage products - ANSWER smart tv's
all-electric automobiles
growth stage - ANSWER rapid increases in sales
profit usually peaks
This is where competitors appear
repeat purchasers - ANSWER people who tried the product, were satisfied, and
bought again
examples of growth stage products - ANSWER smartphones
e-book readers
other tablet devices (iPad)
maturity stage - ANSWER a slowing of total industry sales or product class
revenue
Sales increase at a decreasing rate
Fierce price competition amongst many sellers
, decline stage - ANSWER when sales drop
product enters this stage due to environmental changes
4 sales curves for different products - ANSWER high learning
low learning
fashion
fad
high learning - ANSWER customer education is required with an extended
introductory period
low learning - ANSWER sales begin immediately because little learning is
required
fashion product - ANSWER a style of the times
fad product - ANSWER rapid sales on introduction and equally rapid decline
multiproduct branding - ANSWER a branding strategy in which a company uses
one name for all its products in a product class
Value - ANSWER the ratio of perceived benefits to price
value=perceived benefits/price
profit equation - ANSWER profit equals total revenue minus total cost
4 approaches to selecting an appropriate price level - ANSWER Demand
oriented
cost oriented
profit oriented
competition oriented
demand oriented pricing approaches - ANSWER skimming
penetration
prestige
odd-even
target
bundle
yield management
skimming - ANSWER setting the highest initial price
penetration - ANSWER setting a low initial price
CORRECT ANSWERS
Product life cycle - ANSWER introduction
growth
maturity
decline
introduction stage - ANSWER sales grow slowly
profit is minimal
trial - ANSWER the initial purchase of a product by a consumer
primary demand - ANSWER the desire for the product class rather than for a
specific brand
selective demand - ANSWER the preference for a specific brand
skimming strategy - ANSWER help the company recover the costs of
development as well as capitalize on the price insensitivity of early buyers
penetration pricing - ANSWER used to discourage competitive entry, a company
can price low
examples of introductory stage products - ANSWER smart tv's
all-electric automobiles
growth stage - ANSWER rapid increases in sales
profit usually peaks
This is where competitors appear
repeat purchasers - ANSWER people who tried the product, were satisfied, and
bought again
examples of growth stage products - ANSWER smartphones
e-book readers
other tablet devices (iPad)
maturity stage - ANSWER a slowing of total industry sales or product class
revenue
Sales increase at a decreasing rate
Fierce price competition amongst many sellers
, decline stage - ANSWER when sales drop
product enters this stage due to environmental changes
4 sales curves for different products - ANSWER high learning
low learning
fashion
fad
high learning - ANSWER customer education is required with an extended
introductory period
low learning - ANSWER sales begin immediately because little learning is
required
fashion product - ANSWER a style of the times
fad product - ANSWER rapid sales on introduction and equally rapid decline
multiproduct branding - ANSWER a branding strategy in which a company uses
one name for all its products in a product class
Value - ANSWER the ratio of perceived benefits to price
value=perceived benefits/price
profit equation - ANSWER profit equals total revenue minus total cost
4 approaches to selecting an appropriate price level - ANSWER Demand
oriented
cost oriented
profit oriented
competition oriented
demand oriented pricing approaches - ANSWER skimming
penetration
prestige
odd-even
target
bundle
yield management
skimming - ANSWER setting the highest initial price
penetration - ANSWER setting a low initial price
