CMA Product Development & Pricing Strategy 3

Question 1

What does 'product portfolio management' involve?

Accepted Answer

Strategically overseeing a company's entire range of products to maximize overall performance

Answer

Managing employee portfolios of benefits

Answer

Selecting product photography for marketing materials

Answer

Setting individual product budgets

Question 2

Which framework uses four quadrants — Stars, Cash Cows, Question Marks, and Dogs — to analyze a product portfolio?

Accepted Answer

BCG Growth-Share Matrix

Answer

SWOT Analysis

Answer

Ansoff Matrix

Answer

Porter's Five Forces

Question 3

What is 'psychological pricing'?

Accepted Answer

Setting prices that have a psychological impact on consumers, such as $9.99 instead of $10

Answer

Pricing products based on psychological research on cost

Answer

Pricing based on the psychology of competitor behavior

Answer

A pricing strategy used exclusively in mental health services

Question 4

What is 'bundle pricing'?

Accepted Answer

Offering multiple products together at a lower combined price than if purchased separately

Answer

Selling individual products at a premium price

Answer

Packaging products in bulk for wholesale

Answer

Setting tiered prices based on quantity purchased

Question 5

In product development, what is the 'voice of the customer' (VoC)?

Accepted Answer

A research process to capture customers' needs, expectations, and preferences to guide product development

Answer

Celebrity endorsements in advertising

Answer

The tone of voice used in product descriptions

Answer

Customer service call transcripts

Question 6

Which pricing strategy charges different prices to different customer segments for the same product?

Accepted Answer

Price discrimination (differential pricing)

Answer

Cost-plus pricing

Answer

Competitive pricing

Answer

Break-even pricing