Question

41. The “funnel” view of new product development suggests that: -    each new product idea must...

41. The “funnel” view of new product development suggests that:

-    each new product idea must pass a series of increasingly stringent tests in order to be introduced into the market.

-    early stages should be finished quickly in order to get to the really good ideas.

-    new product ideas fail at about the same rate at each level of the funnel.

-    profitable new product ideas are easy to come up with but hard to recognize.

44. Calculate the break-even point for a new line of shirts. Selling price will be $48 per shirt. Labor costs will be $12 per shirt. Administrative costs allocated to the shirt line are estimated to be $80,000 annually and the sales and marketing expenses are $40,000 a year for the shirt line. Cost of materials will be $20 per shirt. What is the break-even quantity? The break-even quantity lies in the range:

-    more than 8,000 shirts.

-    6,001 to 8,000 shirts.

-    3,500 to 6,000 shirts.

-    fewer than 3,500 shirts.

47. In comparing penetration and skimming price policies:

-    the former is useful when the firm has excess production capacity.

-    the former sets a price without considering competition.

-    the latter discourages the entrance of competitors.

-    the latter is appropriate when demand is price elastic.

49. Reebok has developed a marketing strategy designed to produce inelastic cross-elasticity for their brand. What is the major reason Reebok is attempting to accomplish this?

-    it wants to show the value of each brand attribute and relate it to the price of its brand.

-    it wants to have more success when it puts its products on sale at season or year-end.

-    it wants price to be less important to buyers than other brand attributes.

-    it wants to be able to use price as a key tool to take market share away from Nike.

50. The price-quality association is most likely to occur when buyers:

-    know the names of the major brands in a product category.

-    can readily judge the overall quality of a product.

-    have little experience in judging quality.

-    perceive small differences in quality among brands.

51. Phoebe is the marketing manager for a fast food restaurant chain. She uses a target return pricing strategy because her firm’s primary objective is to:

-    build customer satisfaction.

-    increase profits.

-    increase sales.

-    decrease competition.

52. Trade or functional discounts are offered by manufacturers to which of the following?

-    channel members who perform tasks that the manufacturer would otherwise have to perform

-    consumers who earn a price reduction for buying in bulk

-    intermediaries such as financing institutions as a cost of doing business with them

-    manufacturers that agree to exclusive distribution contracts

53. Price discrimination is legal under which of the following conditions?

-    if a seller advertises prices that are not actually available to consumers

-    if a seller can prove its costs per unit are different when selling to different retailers

-    when a manufacturer and reseller have agreed upon a specified retail price for a product

-    when a manufacturer sells to retailers in different markets

Can some please help me out and answer these questions? If possible can you bold the answer choice you select or highlight it.

Homework Answers

Answer #1

44. 6,001 to 8,000 shirts.

Break even occurs at the point where Total revenue (Price x Qauntity) is same as Total cost

12x + 20x + 80000 + 40000 = 48x

48x - 32x = 120000

x = 120000/16

x = 7500

50. c. have little experience in judging quality.

52. c. intermediaries such as financing institutions as a cost of doing business with them

53. -    if a seller can prove its costs per unit are different when selling to different retailers

Price discrimination is the practice of selling same product to different customers at different prices.

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