EN103: English for Academic Purposes                                               Name _____________
for Critical Thinking and Communication in Business (BU113)
Ch. Bauer-Ramazani

Product & Price

1.      Products can be divided into ________________ and __________________ products.

2.      An example of a core product is ________________ because its main function is to generate heat.

3.  The total product includes

  1. warranties
  2. appearance
  3. craftsmanship
  4. quality
  5. none of the above
  6. all of the above

4.      The difference between consumer products and industrial products is that

  1.  industrial products are products used for everyday consumption
  2. consumer products are unfinished
  3. industrial products are consumed by large companies/industries
  4. none of the above

5.  T/F              Many products could be either industrial or consumer products, depending on their user and their purpose.

6.  GIVE AN EXAMPLE of a consumer product and an industrial product. (2 pts)


7.       Automobile dealerships are clustered along Shelburne Road in order to foster

  1. customer satisfaction
  2. competition
  3. industrial products
  4. consumer products
  5.  a and b

8.      LIST the stages of the product life cycle and ILLUSTRATE them on a graph.  GIVE AN EXAMPLE of and BRIEFLY CHARACTERIZE each stage. (6 pts)





9.  T/F            CDs are an example of a product in the maturity stage.

10.    In the product life cycle curve, profits peak before sales because

  1. revenue decreases but costs stay the same or even increase.
  2. promotion costs increase but sales do not increase.
  3. Competitors lower prices (and thereby revenue) and others follow suit.
  4. All of the above
  5. None of the above
  6. A and b

11.  T/F            During the idea generation stage, all product ideas are considered; there is no bad idea.

12.  T/F            During the screening stage, engineers and marketers review which ideas "hold water" and which ones donít.

13.  T/F            During the business analysis stage marketers conduct demand and economic viability studies.

14.  T/F            Developing a prototype means mass-producing a new product.

15.  T/F            Product testing occurs with simulations and dummies.

16.  T/F            The pricing of a product depends on demand projections.

17.    Companies usually test-market their products

  1. anywhere in the U.S.
  2. in major urban areas
  3.  in rural areas
  4. in areas where the majority of core customers are located

18.    Market planning involves

  1. planning and organizing
  2. planning the product life cycle
  3. planning the introduction of new product lines
  4. planning the research of a market
  5. a and d
  6. b and c

19.  T/F            A company's product mix is the number of different product lines it has in its array of offerings. 

20.  T/F            The product mix of companies increases with mergers and acquisitions. 

21.  T/F            Estee Lauder has an array of product lines.

22.    Product lines can be defined as different items used for ________________ things, but all items are related to the basic ______________.

23.  A brand name is the name associated with

  1. the consumer
  2. the seller
  3. the manufacturer
  4.  the producer
  5.  the buyer
  6. a and e
  7. b, c, d

24.  T/F            A store brand is the name of a product associated with a national chain or a local store.

25.    Establishing brand equity means

  1.  increasing the company's control (leverage) as a result of the demand based on its brand name
  2. the added value gained from the brand name.
  3. Gains from ownership of a brand name
  4. All of the above
  5. None of the above

26.  T/F            The package can be considered a "silent salesperson."

27.  T/F            A good marketer derives maximum advantage from packaging by adding flashy graphics that catch the eye.

28.    The two approaches to pricing are ______________________ and ___________________.

29.  T/F            Demand-based pricing is the easier and less sophisticated of the two approaches.

30.  T/F            Cost-based pricing means that marketers must gauge demand properly.

31.    The costs in breakeven analysis are __________ costs and _____________ costs.

32.  T/F            The intersection of the revenue line and the variable cost line is the breakeven point.

33.   Breaking even means _____________________________________________________.

34.  The formula for calculating the breakeven point is  _________________________.

35.  T/F            Fixed costs change with sales.

36.  An example of a variable cost is ________________________________.

37.  The three types of pricing strategies are ___________________, ____________________, and ______________________.  (3 pts)

38.  In order to penetrate a market, companies

  1. lower costs
  2.  increase volume
  3. often sacrifice quality
  4.  increase prices
  5. decrease volume
  6. d and e
  7.  a, b, c

39.  A company that uses a skimming strategy tries to attract the _____________________ customer.

©2004  Christine Bauer-Ramazani, Saint Michael's College.  Last updated: Tuesday, September 05, 2017