MKT 300 Final Exam |90 Verified Questions and Answers
1. 6 Stages of the new product development process - -Idea Generation
Concept Testing
Product Development
Market Testing
Product Launch
Evaluation of Results
-Idea Generation - -development of viable new product ideas
-Concept Testing - -testing the new product idea among a set of potential customers
-Product Development - -development of prototypes and/r the product
-Market Testing - -testing the actual products in a few test markets
-Product Launch - -full-scale commercialization of the product
-Evaluation of Results - -analysis of the performance for the new product and making
appropriate modifications
-4. Service - -any intangible offering that involves a deed, performance of effort that
cannot be physically possessed
-5. Service Characteristics differentiating services from goods - -Intangibility
Variability
Inseparable
-Variability - -because we are human, we are prone to lose control of our
emotions...causing error
-Knowledge Gap - -the difference between customers' expectations and the firm's
perception of those customer expectations
-Delivery Gap - -the difference between the firms service standards and the actual service
it provides to customers
-Communication Gap - -the difference between the actual services provided to customers
and the service that the firm's promotion program promises.
-7. What is price - -the overall sacrifice a consumer is willing to make to acquire a specific
product or service.
-8. 4 Types of pricing objectives - -Profit Orientation
, Sales Orientation
Competitor Orientation
Customer Orientation
-Profit Orientation - -focus on target profit pricing, maximize profit or target return
pricing
-Sales Orientation - -to set prices believe that increasing sales will help the firm more than
will increasing profits.
-Competitor Orientation - -setting prices similar to those of your competition
-Customer Orientation - -invokes the concept of value
-9. Demand curves and pricing - -shows how many units of a product or service
consumers will demand during a specific period of time at different prices
-10. Price elasticity - -measures how changes in a price affect the quantity of the product
demanded
-Elastic - -price sensitive...small changes in price=large changes in quantity demanded
-Inelastic - -price insensitive....lowering price does not affect quantity demanded
-11. What is a break-even point - -the point at which total revenue = total expenses
-12. Fixed costs - -cost that are not changed due to an increase or decrease in production
-13. Variable costs - -cost that are increased and decreased with production
-14. 4 Levels of competition - -Monopoly
Oligopoly
Monopolistic
Pure Competition
-Monopoly - -one firm controls the market (less price competition—fewer firms)
-Oligopoly - -a handful firms control the market (more price competition—fewer firms)
-Monopolistic - -many firms selling differentiated products at different prices (less
competition-many firms)
-Pure Competition - -many firms selling commodities for the same prices (more price
competition-many firms)
-Cost-based pricing - -determine the final price to charge by starting with t cost
1. 6 Stages of the new product development process - -Idea Generation
Concept Testing
Product Development
Market Testing
Product Launch
Evaluation of Results
-Idea Generation - -development of viable new product ideas
-Concept Testing - -testing the new product idea among a set of potential customers
-Product Development - -development of prototypes and/r the product
-Market Testing - -testing the actual products in a few test markets
-Product Launch - -full-scale commercialization of the product
-Evaluation of Results - -analysis of the performance for the new product and making
appropriate modifications
-4. Service - -any intangible offering that involves a deed, performance of effort that
cannot be physically possessed
-5. Service Characteristics differentiating services from goods - -Intangibility
Variability
Inseparable
-Variability - -because we are human, we are prone to lose control of our
emotions...causing error
-Knowledge Gap - -the difference between customers' expectations and the firm's
perception of those customer expectations
-Delivery Gap - -the difference between the firms service standards and the actual service
it provides to customers
-Communication Gap - -the difference between the actual services provided to customers
and the service that the firm's promotion program promises.
-7. What is price - -the overall sacrifice a consumer is willing to make to acquire a specific
product or service.
-8. 4 Types of pricing objectives - -Profit Orientation
, Sales Orientation
Competitor Orientation
Customer Orientation
-Profit Orientation - -focus on target profit pricing, maximize profit or target return
pricing
-Sales Orientation - -to set prices believe that increasing sales will help the firm more than
will increasing profits.
-Competitor Orientation - -setting prices similar to those of your competition
-Customer Orientation - -invokes the concept of value
-9. Demand curves and pricing - -shows how many units of a product or service
consumers will demand during a specific period of time at different prices
-10. Price elasticity - -measures how changes in a price affect the quantity of the product
demanded
-Elastic - -price sensitive...small changes in price=large changes in quantity demanded
-Inelastic - -price insensitive....lowering price does not affect quantity demanded
-11. What is a break-even point - -the point at which total revenue = total expenses
-12. Fixed costs - -cost that are not changed due to an increase or decrease in production
-13. Variable costs - -cost that are increased and decreased with production
-14. 4 Levels of competition - -Monopoly
Oligopoly
Monopolistic
Pure Competition
-Monopoly - -one firm controls the market (less price competition—fewer firms)
-Oligopoly - -a handful firms control the market (more price competition—fewer firms)
-Monopolistic - -many firms selling differentiated products at different prices (less
competition-many firms)
-Pure Competition - -many firms selling commodities for the same prices (more price
competition-many firms)
-Cost-based pricing - -determine the final price to charge by starting with t cost
