MKT 353 Week 4 Quiz

MKT 353 Week 4 Quiz | University of Phoenix                

               

               

1.            Which of the following is true about pricing?

·                      Price and value should be based on hard evidence of how much a product cost

·                      the company to produce.

·                      Pricing products the same as similar products is typically the best pricing model

·                      because it ensures customers that your product will deliver the same benefits.

·                      Price and value are largely a matter of perception, and the price you ask makes

·                      a statement about the value you are offering to the customer.

·                      Pricing products lower than competitors is typically the best pricing model because customers perceive that the product has greater value for a lower price.

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2.            Which pricing strategy is most useful when there is a range of product options and add-ons, and you want the price to reflect the benefits over different parts of the range?

·                      Value pricing

·                      Product line pricing

·                      Product bundle pricing

·                      Freemium

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3.            Which of the following is key for maximizing your profitability through pricing?

·                      Understanding what your product is objectively worth and setting that as the price point

·                      Having the highest prices possible so you make a greater profit on each sale

·                      Having the lowest prices possible so more customers purchase your product

·                      Understanding what competitive products are selling for in the market

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4.            How can you use the concept of price elasticity to optimize your pricing?

·                      Draw a price elasticity curve to determine the right combination of price and sales

·                      volume to make the most profit.

·                      Conduct a survey to determine how much consumers say they are willing to pay.

·                      Plot a bell curve with the product’s average value at the center and stretch the price out to one standard deviation above that value.

·                      Focus on manufacturing your products as cheaply as possible while maintaining good quality to stretch your operating costs further.

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5.            Which type of pricing is most useful when you can gather a large amount of data about market fluctuations and individual customer behavior?

·                      High-low pricing

·                      Cost-plus pricing

·                      Captive product pricing

·                      Dynamic pricing

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6.            Which pricing strategy is most useful when you want to gain market share rapidly, such as when opening a store in a new location?

·                      Penetration pricing

·                      Psychological pricing

·                      Price discrimination

·                      Market-based pricing

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7.            Which of the following is true of the relationship between life currencies and money?

·                      Money is generally more important in a purchase decision than life currencies, but leveraging life currencies can give your product a boost.

·                      Life currencies are typically relevant for services, but sales of products focus more on monetary value.

·                      Customers will rarely admit to life currencies as a factor in the purchase decision, so it’s best to appeal to them on the basis of pricing.

·                      Life currencies are often more critical to a purchase decision than money is.

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8.            Which of the following is an example of using a life currency discussed in this topic when making a purchase decision? (Select all that apply.)

·                      Subscribing to a meal delivery service because you are too busy to cook every day

·                      Deciding not to buy a boat because you don’t have room in the garage to keep it

·                      Buying almond milk because you are lactose intolerant

·                      Never considering buying a TV because you don’t like to watch TV

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9.            Which life currency comes into play when customers feel that they are inadequate or lacking in knowledge?

·                      Fun

·                      Love

·                      Expertise

·                      Quality

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10.          Which life currency comes into play when customers decide to purchase new products from a brand that has a reputation for high performance?

·                      Quality

·                      Money

·                      Time

·                      Fear

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11.          A packaging brief should contain which of the following items? (Select all that apply.)

·                      An analysis of how well the new packaging has performed in the market

·                      A sketch of the artwork that will be used in the packaging design

·                      Important consumer benefits the product provides

·                      A summary of the competitive environment

·                      The brand positioning strategy for the product

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12.          Which of the following is key for effective product packaging?

·                      Streamline packaging to pass cost savings on to customers and maintain a more

·                      environmentally friendly production process.

·                      Plan to spend about 80% of your product development budget on packaging.

·                      Include only a catchy brand name and required legal information on the packaging

·                      because customers will likely be familiar with the product from advertisements.

·                      Boldly proclaim the benefits of the product on the front of the package to show

·                      customers why they should buy it.

13.          Where is the best place to trumpet the benefits of your product to customers?

·                      In the product concept

·                      On the front of the package

·                      Through advertising

·                      Online

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14.          What is one way you can use packaging to differentiate your product from competitors, as discussed in the text?

·                      Use more packaging to make the product look like it contains more than it really does.

·                      Use packaging that looks like the competitor’s packaging to make your product seem

·                      more legitimate.

·                      Develop packaging that makes the product more convenient to use, such as an

·                      easy-open top.

·                      Include instructions in multiple languages to make your product seem international.

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15.          How can packaging strategies help persuade customers to buy a certain brand? (Select all that apply.)

·                      By creating entirely new product categories that give customers a new way

·                      to interact with the product

·                      By creating and reinforcing a particular brand personality

·                      By creating customer preference through superior product performance

·                      By creating packaging that blends in so customers won’t know the difference between two products

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