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Consumers are more likely to perceive the value of a product to be less than its cost if:​

a. ​in consumers' minds, the product's price is set too high.
b. ​the product's manufacturer gains very little profit from the product.
c. ​the product has an inelastic demand.
d. ​the product's demand and supply attain the state of price equilibrium.

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Joshua Stredder
Joshua StredderLv10
15 Mar 2021

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Related questions

Assignment Demand & Supply




In each of the following scenarios decide if the product is moving along the curve ( The price of diamonds has gone from $ 1,000 a karat to $ 2,000 a karat, this represents movement along the curve. Higher the price less of the demand.) OR If the product's determinants have shifted the curve. (flat screen TVs have become more popular (notice no mention of price). The demand curve has shifted to the right.)

If it helps you may want to think of product B as Butter or Baby dolls

What effect will each of the following have on the demand for product B?



A. Product B becomes more fashionable

B. The price subsitute product C Falls

C. Income declines and product B is an inferior good

D. Consumers anticipate that the price of B will be lower in the near futre.

E. The price of complementary product D falls

What effect will each of the following have on the supply of product B?


a. A technological advance in the methods producing product B.

b. A decline in the number of firms in industry B.

c. An increase in the prices of resources required in the production of B.

d. The expectation that the equilibrium price of B will be lower in the future than it is currently.

e. A decline in the price of product A, a good whose production requires substantially the same techniques and resources as does the production of B.

f. The levying of specific sales tax on B.

g. The granting of a 50-cent-per-unit subsidy for each unit of B produced.

.

The sales and profits of an individual product may not follow the life cycle pattern.

True
False

During the sales decline stage of the product life cycle, no firm can earn a profit.

True
False

During the introduction stage of the product life cycle:

none of the above.
most products achieve intensive distribution.
promotion is likely to be needed to increase primary demand.
"me too" products quickly take market share away from the innovator.
industry profits are at their highest.

During the introduction stage, what would hinder acceptance of a new product?

consumers may not see the new product as offering a superior alternative to whatever they are currently using.
risk in buying something for the first time.
all of the above.
the new product may not be compatible with the buyer's values.
problems communicating or demonstrating the new product's benefits.

During the market growth stage of the product life cycle:

industry sales grow slowly.
industry profits fall, then rise.
the market begins to fragment into sub-markets or segments.
all of the above.
the industry experiences the smallest profits


What is the most important reason why industry sales level off in the market maturity stage of the product life cycle?
persuasive promotion.
pool of potential users is exhausted.
aggressive competitors entering the markets.
less efficient firms leaving the market.
price cutting.

Gerhard Company has seen most of its competitors drop out of its product market due to declining sales and profits. However Gerhard still has much demand for its products from a small group of loyal customers. In which stage of the product life cycle is this product market?

sales decline.
market maturity.
market growth.
market development.
market introduction.

The length of a product's life cycle:

depends on the ease of entry to the market for competitors.
may be as short as 90 days.
may be as long as 100 years.
varies widely across products.
all of the above.

Regarding product life cycles, a good marketing manager knows that:

all of the above.
once a market goes into sales decline, oligopoly conditions set in.
a company's marketing mix usually should be kept constant over the product life cycle.
industry profits are increasing well after sales start to decline.
entirely different target markets may be involved at different stages of the product life cycle.

Generating "socially responsible" new product ideas:

reduces the long-term welfare of consumers.
is done by all companies.
is easy for new product planners.
is unprofitable and should not be done.
is promoted by consumer groups.

Which of the following is true of price discrimination as a part of international pricing strategy?

A. The more competitors there are, the lesser consumers bargaining power will be

B. The more competitors there are, the less likely consumers will be to buy from the firm that

C. A firm may charge a higher price for its product in a country where competition is limited than

D. Many competitors cause low elasticity of demand.

E. If a firm raises its prices above those of its competitors, consumers will refuse to switch to the

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