QUIZ 3 - Marketing Principles: Multiple Choice Questions

Name of student:…Luyện Minh Thư

1. Which of the following statements describes why new products fail?
A. Since most products today have a longer product life, there is less need for new
products.
B. Social and governmental deregulations have made new-product development costs
more expensive, and therefore, producers avoid new product ventures.
C. Marketers tend to underestimate market size and market demand, which results in lost
customers.
D. New-product development costs are higher than anticipated and competitors respond
more effectively than predicted.
E. The underpricing of the product causes customers to overstock and depletes all future
demand for the product.
2. Which of the following is NOT the external factor that affects a pricing decision?
A. Nature of the market and demand
B. Costs
C. Economic situation
D. Competition
E. Retailers
3. A product can be .....................
A. an item
B. an idea
C. a location
D. A and B
E. all of the above.
4. During the maturity stage of PLC, profit ......... while sales volume ......................
A. increases .... slows or declines
B. declines ..... remains the same
C. increases .... slows or remains the same
D. declines .... slows or declines
5. Which of the following combinations of stages represents the PLC?
A. Introduction – Growth – Maturity – Decline
B. Introduction – Maturity - Growth – Decline
C. Introduction - Decline – Growth – Maturity –
D. Decline – Introduction – Growth – Maturity
6. Skimming pricing means .....
A. setting initial price low and retaining it
B. setting initial price high, then reducing it gradually
C. setting initial price high and retaining it
D. setting initial price low, then increasing it gradually
7. Which of the following is NOT a good condition to use penetration pricing?
A. Market is sensitive to price thus low price helps expand market share
B. Unit costs increase when production increases
C. Distribution costs decreases when sales volume increases
 D. Low price is not attractive for competitors

8. When McCormiks Restaurant store offers a 15 percent discount on all purchase to individual
55 years of age or older, McCormiks is practicing
A. discriminatory pricing
B. promotional pricing
C. psychological pricing
D. product pricing

9. ____ may be given the responsibility for new-product development.

A. A new-product department
B. A product manager
C. A new-product manager
D. A venture team
E. Any of the above

10. In terms of new-product development, Pillsbury’s annual Bake-Off contest brings together
cooks of all ages from all over the U.S. Each one hopes his or her idea for a new recipe will
win the grand prize. In terms of the new-product development process, the Bake-Off serves as
_____ for Pillsbury.
A. idea screening
B. idea generation
C. concept development
D. prototype development
E. business analysis

11. The fact that services are used or consumed at the time of their creation is an example of the
service characteristic of:
A. intangibility
B. inseparability
C. inconsistency
D. variability
E. perishability

12. Perishability is a problem for service providers. One way to deal with this is to:
A. use a constant pricing strategy
B. provide a tangible cue through physical setting, communications, or choice of symbols
C. standardize the service process
D. eliminate any complementary services so that all workers can be focused on delivering the
primary service
E. offer incentives to customers to use the service at non-peak use times