(1) TRUE OR FALSE: Firm’s must consider the product’s stage in the life cycle, i
ID: 408864 • Letter: #
Question
(1) TRUE OR FALSE: Firm’s must consider the product’s stage in the life cycle, its importance to the firm’s portfolio, the competitor’s intentions and resources, the product’s price and quality sensitivity, when responding to a competitors price change.
2) What issues does a company need to consider when a competitor initiates a price change?
(3) Which of the following products is said to be in the decline stage of its PLC
(Product Life Cycle)?
A)Digital Televisions
B)VHS Video Recorders
C)Third Generation “picture” mobile phones
D)Hand held Navigation Systems
4) TRUE OR FALSE:Market Research should investigate 4 areas: customers, customers needs & wants, competition, and trends.
5) TRUE OR FALSE: The key to effective marketing research is neither technique nor data – it’s useful information. Customers likes and dislikes are shifting constantly so this information must be timely. It’s much better to get there on time with a little than too late with a lot.
6) A firm launches a new and unique product and decides to charge a high price to “cream” the market before competitors respond. What kind of price strategy is this an example of?
A) Price Skimming
B) Product differentiation
C) Penetration Pricing
D) Price discounting
7) TRUE OR FALSE: Most New products succeed in the marketplace.
Explanation / Answer
1. true
Most of the successful firms considers the product's stage in the product life cycle.anticipare competitor price changes and respondby preparing a contingent response.
2. The company has to consider the products:
1) Stage in the life cycle.
2) Its importance in the company's portfolio.
3) The competitor's intentions and resources.
3. B)VHS Video Recorders
with the Introduction of a new, substitute technology VHS Video Recorders have reached their decline stage.
4. True
Market Research should investigate 4 areas: customers, customers requirements, competition, and trends.
5. true
The key to effective marketing research is neither technique nor data – it’s useful information. Customers likes and dislikes are shifting constantly so this information must be timely. It’s much better to get there on time with a little than too late with a lot.
6. A) Price Skimming
Under this strategy a marketer sets a relatively high price for a product or service at first, then lowers the price over time.
7. False
Not all products succeed in market place. The success of the product in a market place depends on several factors internal and external factors.
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