Chap009 - Chapter 09 - Small Business Management: Product...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 09 - Small Business Management: Product and Pricing Strategies Chapter 09 Small Business Management: Product and Pricing Strategies True / False Questions 1. (p. 270) Services are tangible, while goods are intangible. FALSE Difficulty: Easy 2. (p. 272) Hybrid products are balanced combination of goods and services. TRUE Difficulty: Easy 3. (p. 273) The core product has features that differentiate it from the competition but are still closely related to the augmented product. FALSE Difficulty: Medium 4. (p. 275) These simple basic rules apply for company names; being catchy, easy to spell and pronounce and being descriptive are usually the best options. TRUE Difficulty: Medium 5. (p. 275) The first stage of new product development process is idea evaluation/feasibility study. FALSE Difficulty: Medium 9-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 09 - Small Business Management: Product and Pricing Strategies 6. (p. 276) A basic tool for idea evaluation is to create a checklist of important factors to be considered for all ideas. TRUE Difficulty: Medium 7. (p. 279) Only about 30 percent of all new product launches are successful. FALSE Difficulty: Hard 8. (p. 280) The standard product life cycle has four stages: introduction, growth, development and decline. FALSE Difficulty: Medium 9. (p. 281) During the maturity stage, acceptance of the product increases rapidly and sales and profits grow at higher rates than at any other part of the product life cycle. FALSE Difficulty: Medium 10. (p. 282) Once a product begins its permanent decline, this decline can be slow or fast, steady or unsteady. TRUE Difficulty: Medium 9-2
Background image of page 2
Chapter 09 - Small Business Management: Product and Pricing Strategies 11. (p. 283) It is easier to virtually eliminate the decline stage of a service. TRUE Difficulty: Medium 12. (p. 295) Expendables are always fixed costs and must be included upfront in computation of the cost of the product. FALSE Difficulty: Hard 13. (p. 288) Mark-up is the difference between the selling and buying price and should be enough to cover all fixed costs. TRUE Difficulty: Medium 14. (p. 288) Elastic products have no substitutes and are absolute necessities. FALSE Difficulty: Hard 15. (p. 289) Internal reference pricing may come from looking at competitive ads, researching on the Internet, visiting several stores or asking friends. FALSE Difficulty: Medium 9-3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 09 - Small Business Management: Product and Pricing Strategies 16. (p. 292) Studies have shown that companies that compete on product innovations and high quality achieve higher growth than those that try to compete on price. TRUE Difficulty: Hard 17. (p. 293) Most of the times it is a bad idea for a small firm to try to compete on price. TRUE
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 22

Chap009 - Chapter 09 - Small Business Management: Product...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online