Ans t pts 1 ref 304 obj 19 5 type def top aacsb

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ANS: T PTS: 1 REF: 304 OBJ: 19-5 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 23. As products enter the growth stage of the product life cycle, prices generally begin to stabilize. ANS: T PTS: 1 REF: 306 OBJ: 19-6 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 24. The manufacturers that remain in the market toward the end of the maturity stage typically offer simil- ar prices. ANS: T PTS: 1 REF: 306 OBJ: 19-6 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 25. Prices may actually rise for a product in the decline stage of the product life cycle. ANS: F When only one firm is left in the market, prices begin to stabilize, but they may eventually rise dramat- ically if the product survives and moves into the specialty goods category, as horse-drawn carriages and vinyl records have. PTS: 1 REF: 306 OBJ: 19-6 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 26. Adequate distribution for a new product is often obtained by reducing the size of the profit margin for its resellers. ANS: F Adequate distribution for a new product is often obtained by offering a larger-than-usual profit margin to its distributors. PTS: 1 REF: 307 OBJ: 19-6 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 27. Price should not be used as a promotional tool. ANS: F Price is often used as a promotional tool to increase consumer interest. PTS: 1 REF: 308 OBJ: 19-6 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 28. One strategy to get adequate distribution for a new product is to offer dealers a large trade allowance to help offset the costs of promotion.
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ANS: T PTS: 1 REF: 307 OBJ: 19-6 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 29. High purchase prices may create feelings of pleasure and excitement in consumers. ANS: T PTS: 1 REF: 309 OBJ: 19-6 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 30. Research has shown that products that are perceived to be of high quality tend to benefit less from price promotions than products perceived to be of lower quality. ANS: F They tend to benefit more from price promotions that products perceived to be of lower quality. PTS: 1 REF: 309 OBJ: 19-6 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing MULTIPLE CHOICE 1. Price is best described as: a. that which is given up in exchange to acquire a good or service b. money exchanged for a good or service c. the psychological results of purchasing d. the cost in dollars for a good or service as set by the producer e. the value of a barter good in an exchange ANS: A According to the textbook price is that which is given up in exchange to acquire a good or service. PTS: 1 REF: 295 OBJ: 19-1 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing
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