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

Product portfolio management involves strategically analyzing and managing all of a company's products to balance growth, risk, and profitability.

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

The BCG Growth-Share Matrix categorizes products into Stars (high growth, high share), Cash Cows, Question Marks, and Dogs to guide portfolio strategy.

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

Psychological pricing sets prices at points that create a specific perception, such as $9.99 feeling significantly cheaper than $10 to consumers.

Question 4

What is 'bundle pricing'?

Accepted Answer

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

Answer

Bundle pricing offers multiple products or services together at a discounted total price, encouraging customers to buy more than they otherwise would.

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

Voice of the Customer (VoC) is a research process that gathers customer needs, expectations, and preferences to inform product design and improvements.

CMA - Certified Marketing Analyst Practice Test

CMA - Certified Marketing Analyst Practice Test

CMA Product Development & Pricing Strategy 3