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attributed to OpenStax, Rice University and any changes must be noted.
Chapter 11 CREATING PRODUCTS AND PRICING STRATEGIES TO MEET CUSTOMERS’ NEEDS
TRUE-FALSE QUESTIONS
Title: ANSWER: T REFERENCE: The Marketing Concept LEARNING OUTCOME: 1
1. Marketing is the process of combining the conception, pricing, promotion, and distribution of goods or
services to create exchanges that satisfy individual and organizational objectives.
a. True
b. False
Title: ANSWER: T REFERENCE: The Marketing Concept LEARNING OUTCOME: 1
2. The marketing concept emphasizes a consumer orientation.
a. True
b. False
Title: ANSWER: T REFERENCE: The Marketing Concept LEARNING OUTCOME: 1
3. Frequent-buyer clubs are common tools in relationship marketing.
a. True
b. False
Title: ANSWER: F REFERENCE: Creating a Marketing Strategy LEARNING OUTCOME: 2
RATIONALE: The goal in environmental scanning is to collect information about the external environment.
4. The goal in environmental scanning is to gather internal environmental data to identify future market
opportunities and threats.
a. True
b. False
Title: ANSWER: T REFERENCE: Creating a Marketing Strategy LEARNING OUTCOME: 2
5. A target market is a specific group of consumers toward whom a firm directs its marketing effort.
a. True
b. False
Title: ANSWER: F REFERENCE: Developing a Marketing Mix LEARNING OUTCOME: 3
RATIONALE: The five P's are product, price, promotion, people and place.
6. The five P's are product, promotion, price, people and possession.
a. True
b. False
Title: ANSWER: T REFERENCE: Developing a Marketing Mix LEARNING OUTCOME: 3
7. The strategy that is based on the demand for the product and the cost of producing it is called the
pricing strategy.
a. True
b. False
Title: ANSWER: T REFERENCE: Developing a Marketing Mix LEARNING OUTCOME: 3
8. Distribution strategy is another term for place strategy.
a. True
b. False
,Title: ANSWER: F REFERENCE: Developing a Marketing Mix LEARNING OUTCOME: 3
RATIONALE: Personal selling is an element of the promotion strategy.
9. Personal selling is an element of the product strategy.
a. True
b. False
Title: ANSWER: T REFERENCE: Developing a Marketing Mix LEARNING OUTCOME: 3
10. Sales promotion, advertising, and public relations are elements of the promotion strategy.
a. True
b. False
Title: ANSWER: F REFERENCE: Buyer Behavior LEARNING OUTCOME: 4
RATIONALE: This is the definition of buyer behavior
11. Market behavior is a term used to describe the actions people take in buying and using goods and
services.
a. True
b. False
.
Title: ANSWER: T REFERENCE: Buyer Behavior LEARNING OUTCOME: 4
12. The first step in the consumer decision-making process for buying sandals would be for the weather to
turn hot and me to realize I have no footwear that doesn't make my feet sweat.
a. True
b. False
Title: ANSWER: F REFERENCE: Buyer Behavior LEARNING OUTCOME: 4
RATIONALE: The text lists four differences--purchase volume, number of customers, location of buyers, and
direct distribution.
13. There are no significant differences between the consumer market and the business-to-business
market.
a. True
b. False
Title: ANSWER: T REFERENCE: Market Segmentation LEARNING OUTCOME: 5
14. Selling retirement plans to people over the age of 50 is an example of demographic segmentation.
a. True
b. False
Title: ANSWER: F REFERENCE: Market Segmentation LEARNING OUTCOME: 5
RATIONALE: Benefits segmentation is based on what the product can do for me.
15. Buying Canon brand cameras because quarterback Archie Manning promotes that brand is an example
of the use of benefit segmentation.
a. True
b. False
Title: ANSWER: T REFERENCE: Market Segmentation LEARNING OUTCOME: 5
October 22, 2018 2
,16. Basing market decisions on what a product will do rather than on consumer characteristics is called
benefit segmentation.
a. True
b. False
Title: ANSWER: T REFERENCE: Market Segmentation LEARNING OUTCOME: 5
17. When Clorox targets heavy users of bleach, it is using volume segmentation.
a. True
b. False
Title: ANSWER: F REFERENCE: Market Segmentation LEARNING OUTCOME: 5
RATIONALE: He is doing survey research
18. Verna Knight is doing observation research when he asks people to describe how to fold sheets, towels,
and pillowcases.
a. True
b. False
.
Title: ANSWER: T REFERENCE: What is a Product? LEARNING OUTCOME: 6
19. A product is any good or service, along with its perceived attributes and benefits, that satisfies wants.
a. True
b. False
Title: ANSWER: T REFERENCE: What is a Product? LEARNING OUTCOME: 6
20. Chewing gum, flashlight batteries, sewing needles, and adhesive tape are considered convenience
products.
a. True
b. False
Title: ANSWER: F REFERENCE: What is a Product? LEARNING OUTCOME: 6
RATIONALE: The two types of business products are classified as capital products and expense items.
21. The two types of business products are classified as expense and non-expense items.
a. True
b. False
Title: ANSWER: T REFERENCE: What is a Product? LEARNING OUTCOME: 6
22. Transmissions purchased by the Snapper Inc. to build riding lawn mowers are called component parts.
a. True
b. False
Title: ANSWER: T REFERENCE: Creating Products That Deliver Value LEARNING OUTCOME: 7
23. When the manufacturer of Dove soap introduced Dove moisturizing body wash, it was an example of
the use of a line extension strategy.
a. True
b. False
Title: ANSWER: T REFERENCE: Creating Products That Deliver Value LEARNING OUTCOME: 7
24. In the product development process, most companies utilize the concepts of brainstorming, screening,
and test marketing.
October 22, 2018 3
, a. True
b. False
Title: ANSWER: F REFERENCE: The Product Life Cycle LEARNING OUTCOME: 8
25. A good marketing strategy should carry a product through all stages of the product life cycle.
a. True
b. False
Title: ANSWER: F REFERENCE: Pricing Strategies LEARNING OUTCOME: 9 RATIONALE: Price is the perceived
value that is exchanged for something else.
26. Quality is the perceived value that is exchanged for something else.
a. True
b. False
Title: ANSWER: F REFERENCE: Pricing Strategies LEARNING OUTCOME: 9
27. Price skimming is a price strategy often used in the maturity stage of the product life cycle.
a. True
b. False
Title: ANSWER: F REFERENCE: Pricing Strategies LEARNING OUTCOME: 9
28. Price skimming is often used as an inducement to get consumers to switch brands or companies.
a. True
b. False
Title: ANSWER: F REFERENCE: Pricing Strategies LEARNING OUTCOME: 9 RATIONALE: Pricing products
below the normal markup or even below cost to attract customers is called leader pricing.
29. Pricing products below the normal markup or even below cost to attract customers is called bait
pricing.
a. True
b. False
Title: ANSWER: T REFERENCE: Pricing Strategies LEARNING OUTCOME: 9
30. The idea behind bundling is to reach a segment of the market that would not be reached as effectively
if the product were sold separately.
a. True
b. False
Title: ANSWER: F REFERENCE: Pricing Strategies LEARNING OUTCOME: 9
31. Prestige pricing is the pricing strategy of selling a new product at a low price in hopes of achieving a
large sales volume and prestige for the product.
a. True
b. False
Title: ANSWER: F REFERENCE: Trends in Developing Products and Pricing LEARNING OUTCOME: 10
RATIONALE: The ability to engage in one-to-one marketing is based on the existence of databases.
32. One-to-one marketing is synonymous with database marketing.
a. True
b. False
October 22, 2018 4
attributed to OpenStax, Rice University and any changes must be noted.
Chapter 11 CREATING PRODUCTS AND PRICING STRATEGIES TO MEET CUSTOMERS’ NEEDS
TRUE-FALSE QUESTIONS
Title: ANSWER: T REFERENCE: The Marketing Concept LEARNING OUTCOME: 1
1. Marketing is the process of combining the conception, pricing, promotion, and distribution of goods or
services to create exchanges that satisfy individual and organizational objectives.
a. True
b. False
Title: ANSWER: T REFERENCE: The Marketing Concept LEARNING OUTCOME: 1
2. The marketing concept emphasizes a consumer orientation.
a. True
b. False
Title: ANSWER: T REFERENCE: The Marketing Concept LEARNING OUTCOME: 1
3. Frequent-buyer clubs are common tools in relationship marketing.
a. True
b. False
Title: ANSWER: F REFERENCE: Creating a Marketing Strategy LEARNING OUTCOME: 2
RATIONALE: The goal in environmental scanning is to collect information about the external environment.
4. The goal in environmental scanning is to gather internal environmental data to identify future market
opportunities and threats.
a. True
b. False
Title: ANSWER: T REFERENCE: Creating a Marketing Strategy LEARNING OUTCOME: 2
5. A target market is a specific group of consumers toward whom a firm directs its marketing effort.
a. True
b. False
Title: ANSWER: F REFERENCE: Developing a Marketing Mix LEARNING OUTCOME: 3
RATIONALE: The five P's are product, price, promotion, people and place.
6. The five P's are product, promotion, price, people and possession.
a. True
b. False
Title: ANSWER: T REFERENCE: Developing a Marketing Mix LEARNING OUTCOME: 3
7. The strategy that is based on the demand for the product and the cost of producing it is called the
pricing strategy.
a. True
b. False
Title: ANSWER: T REFERENCE: Developing a Marketing Mix LEARNING OUTCOME: 3
8. Distribution strategy is another term for place strategy.
a. True
b. False
,Title: ANSWER: F REFERENCE: Developing a Marketing Mix LEARNING OUTCOME: 3
RATIONALE: Personal selling is an element of the promotion strategy.
9. Personal selling is an element of the product strategy.
a. True
b. False
Title: ANSWER: T REFERENCE: Developing a Marketing Mix LEARNING OUTCOME: 3
10. Sales promotion, advertising, and public relations are elements of the promotion strategy.
a. True
b. False
Title: ANSWER: F REFERENCE: Buyer Behavior LEARNING OUTCOME: 4
RATIONALE: This is the definition of buyer behavior
11. Market behavior is a term used to describe the actions people take in buying and using goods and
services.
a. True
b. False
.
Title: ANSWER: T REFERENCE: Buyer Behavior LEARNING OUTCOME: 4
12. The first step in the consumer decision-making process for buying sandals would be for the weather to
turn hot and me to realize I have no footwear that doesn't make my feet sweat.
a. True
b. False
Title: ANSWER: F REFERENCE: Buyer Behavior LEARNING OUTCOME: 4
RATIONALE: The text lists four differences--purchase volume, number of customers, location of buyers, and
direct distribution.
13. There are no significant differences between the consumer market and the business-to-business
market.
a. True
b. False
Title: ANSWER: T REFERENCE: Market Segmentation LEARNING OUTCOME: 5
14. Selling retirement plans to people over the age of 50 is an example of demographic segmentation.
a. True
b. False
Title: ANSWER: F REFERENCE: Market Segmentation LEARNING OUTCOME: 5
RATIONALE: Benefits segmentation is based on what the product can do for me.
15. Buying Canon brand cameras because quarterback Archie Manning promotes that brand is an example
of the use of benefit segmentation.
a. True
b. False
Title: ANSWER: T REFERENCE: Market Segmentation LEARNING OUTCOME: 5
October 22, 2018 2
,16. Basing market decisions on what a product will do rather than on consumer characteristics is called
benefit segmentation.
a. True
b. False
Title: ANSWER: T REFERENCE: Market Segmentation LEARNING OUTCOME: 5
17. When Clorox targets heavy users of bleach, it is using volume segmentation.
a. True
b. False
Title: ANSWER: F REFERENCE: Market Segmentation LEARNING OUTCOME: 5
RATIONALE: He is doing survey research
18. Verna Knight is doing observation research when he asks people to describe how to fold sheets, towels,
and pillowcases.
a. True
b. False
.
Title: ANSWER: T REFERENCE: What is a Product? LEARNING OUTCOME: 6
19. A product is any good or service, along with its perceived attributes and benefits, that satisfies wants.
a. True
b. False
Title: ANSWER: T REFERENCE: What is a Product? LEARNING OUTCOME: 6
20. Chewing gum, flashlight batteries, sewing needles, and adhesive tape are considered convenience
products.
a. True
b. False
Title: ANSWER: F REFERENCE: What is a Product? LEARNING OUTCOME: 6
RATIONALE: The two types of business products are classified as capital products and expense items.
21. The two types of business products are classified as expense and non-expense items.
a. True
b. False
Title: ANSWER: T REFERENCE: What is a Product? LEARNING OUTCOME: 6
22. Transmissions purchased by the Snapper Inc. to build riding lawn mowers are called component parts.
a. True
b. False
Title: ANSWER: T REFERENCE: Creating Products That Deliver Value LEARNING OUTCOME: 7
23. When the manufacturer of Dove soap introduced Dove moisturizing body wash, it was an example of
the use of a line extension strategy.
a. True
b. False
Title: ANSWER: T REFERENCE: Creating Products That Deliver Value LEARNING OUTCOME: 7
24. In the product development process, most companies utilize the concepts of brainstorming, screening,
and test marketing.
October 22, 2018 3
, a. True
b. False
Title: ANSWER: F REFERENCE: The Product Life Cycle LEARNING OUTCOME: 8
25. A good marketing strategy should carry a product through all stages of the product life cycle.
a. True
b. False
Title: ANSWER: F REFERENCE: Pricing Strategies LEARNING OUTCOME: 9 RATIONALE: Price is the perceived
value that is exchanged for something else.
26. Quality is the perceived value that is exchanged for something else.
a. True
b. False
Title: ANSWER: F REFERENCE: Pricing Strategies LEARNING OUTCOME: 9
27. Price skimming is a price strategy often used in the maturity stage of the product life cycle.
a. True
b. False
Title: ANSWER: F REFERENCE: Pricing Strategies LEARNING OUTCOME: 9
28. Price skimming is often used as an inducement to get consumers to switch brands or companies.
a. True
b. False
Title: ANSWER: F REFERENCE: Pricing Strategies LEARNING OUTCOME: 9 RATIONALE: Pricing products
below the normal markup or even below cost to attract customers is called leader pricing.
29. Pricing products below the normal markup or even below cost to attract customers is called bait
pricing.
a. True
b. False
Title: ANSWER: T REFERENCE: Pricing Strategies LEARNING OUTCOME: 9
30. The idea behind bundling is to reach a segment of the market that would not be reached as effectively
if the product were sold separately.
a. True
b. False
Title: ANSWER: F REFERENCE: Pricing Strategies LEARNING OUTCOME: 9
31. Prestige pricing is the pricing strategy of selling a new product at a low price in hopes of achieving a
large sales volume and prestige for the product.
a. True
b. False
Title: ANSWER: F REFERENCE: Trends in Developing Products and Pricing LEARNING OUTCOME: 10
RATIONALE: The ability to engage in one-to-one marketing is based on the existence of databases.
32. One-to-one marketing is synonymous with database marketing.
a. True
b. False
October 22, 2018 4
