Principles Spring Concepts Review

When a company introduces a new product into the market, sets the price of the  new product below the competition's price, and then gradually raises it as  popularity for the new product grows, which pricing strategy are they using?

• price skimming 

• price penetration

• competition pricing 

• psychological pricing

What is the establishment of a business in a foreign country called?

• mini-national

• joint venture

• contract manufacturing

• foreign direct investment

Which term describes the number of items a company sells in one particular  product line?

• product mix

• product lines

• product depth

• product categories

What involves hiring a foreign manufacturer to make your products according to  your specifications?

• franchising 

• joint venture

• multi-nationals

• contract manufacturing

Which term describes when a company changes an existing product/promotion to  better suit the characteristics of another country?

• adaptation

• customization

• globalization

• protectionism

Which form of introductory pricing does a company use on its products if they price above the competition

• price skimming

• price penetration

• competition pricing

• psychological pricing

Which state of trade is a country in if it imports more goods than it exports?

• trade default

• trade deficit

• trade surplus

• trade surge

Which term describes the group of people that a company focuses all their  marketing towards?

• focus group

• focus market

• target group

• target market

Which stage of the decision-making process would Jason be in if he were deciding  which toothpaste brand would help him to whiten his teeth?

• problem recognition

•  purchase the product

• evaluation of alternatives

• post purchase evaluation

Which of the following statements best describes the law of diminishing marginal  utility?

•  consumers will only buy a product if it is on sale

• consumers will only buy so much of a product even though prices are low

•  consumers will buy as much of a product as they want to regardless of price

• consumers will buy as much of a product as they want as long as the price is  cheap