CPM CPM Product Development & Pricing Strategy

Question 1

Which stage of the new product development process involves filtering out ideas that do not align with company objectives?

Accepted Answer

Idea screening

Answer

Concept testing

Answer

Market testing

Answer

Commercialization

Question 2

In the BCG Growth-Share Matrix, a product with high market share in a low-growth market is classified as a:

Accepted Answer

Cash Cow

Answer

Star

Answer

Question Mark

Answer

Dog

Question 3

Which pricing strategy sets an initial high price to capture early adopters before gradually lowering it?

Accepted Answer

Skimming pricing

Answer

Penetration pricing

Answer

Cost-plus pricing

Answer

Competitive pricing

Question 4

The concept of 'price elasticity of demand' measures:

Accepted Answer

How quantity demanded changes relative to a price change

Answer

How supply responds to a price change

Answer

The total revenue impact of a discount

Answer

The cost to produce one additional unit

Question 5

A company launches a new product at a low price to quickly capture market share. This is called:

Accepted Answer

Penetration pricing

Answer

Value-based pricing

Answer

Skimming pricing

Answer

Bundle pricing

Question 6

Which product life cycle stage typically sees the highest level of promotional spending relative to sales?

Accepted Answer

Introduction

Answer

Maturity

Answer

Decline

Answer

Growth