Value-based pricing is when costs vary directly with the level of product.

• A) True
• B) False
• C)
• D)

Dove marketers can go beyond the brand’s cleansing cream attributes and talk about the resulting benefit of softer skin. This is known as product attributes in brand positioning.

• A) True
• B) False
• C)
• D)

Style is a larger concept than design. Design describes the appearance of a product.

• A) False
• B) True
• C)
• D)

Unsought products are products and services that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

• A) False
• B) True
• C)
• D)

If demand changes greatly, we say the demand is inelastic.

• A) True
• B) False
• C)
• D)

Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

• A) False
• B) True
• C)
• D)

Demand and consumer value perceptions set the floor for prices.

• A) True
• B) False
• C)
• D)

If Canon Camera Company follows a high-price, high-margin strategy, it may attract competition from Nikon, Minolta, and Pentax.

• A) True
• B) False
• C)
• D)

The service-profit chain means the set of all product lines and items that a particular seller offers for sale.

• A) True
• B) False
• C)
• D)

Customer retention is perhaps the best measure of quality—a service firm’s ability to hang on to its customers depends on how consistently it delivers value to them.

• A) False
• B) True
• C)
• D)

An increasing number of retailers and wholesalers have created their own brands—such as Hyper Star offering variety of food products. This is called co-branding.

• A) False
• B) True
• C)
• D)

When a company introduces a new brand name in the same product category, it is called line extension.

• A) False
• B) True
• C)
• D)

Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided.

• A) False
• B) True
• C)
• D)

Yusra always feels super excited after purchasing trendy clothes from Sapphire Store is an example of a new task buying situation.

• A) True
• B) False
• C)
• D)

Asif regularly purchasing dairy products from his nearest milk shop is an example of a straight rebuy situation.

• A) True
• B) False
• C)
• D)

Raheela works for the Aftab Beverage Company. She helps define product specifications and also provides information for evaluating alternatives. Raheela plays the role of gatekeeper.

• A) False
• B) True
• C)
• D)

Gatekeepers have formal or informal power to select or approve the final suppliers.

• A) True
• B) False
• C)
• D)

Business demand ultimately derives from the demand for consumer goods.

• A) True
• B) False
• C)
• D)

In the supplier selection stage, the buyer reviews supplier performance.

• A) False
• B) True
• C)
• D)

At a recent marketing seminar, the featured speaker stated that a target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. You believe this is a correct definition.

• A) True
• B) False
• C)
• D)