Product Management and Pricing

Competing in Internet time calls for a more flexible product development process.

True
False
True
Auction and reverse-auction sites are likely to make it easier to justify premium pricing.

True
False
False
Branding is just an issue for consumer products.

True
False
False
A strong brand can provide a defense against commoditization.

True
False
True
Search engine placement indicates how customers perceive a brand in relation to an ideal product and/or competitive offering.

True
False
False
In the case of auctions, reverse auctions, and aggregate buying models the market forces determine the price.

True
False
True
Marginal cost pricing allows firms to generate positive cash flows or profits in the short term.

True
False
False
Micro-pricing allows marketers to sell unbundled low-value items as separate units using micropayment methods.

True
False
True
Cost transparency will increase the seller's margins.

True
False
False
The Internet offers B-2-B firms the ability to build long-term relationships with their customers.

True
False
True
The domain name is not an overly important component of a firm's online branding strategy.

True
False
False
All prices online are lower.

True
False
Branding:
An integral part of product strategy that allows companies to differentiate their offerings from competitors' products by name, term, sign, symbol, or a combination of these.

Co-branding:
Two brands jointly promote a product or service, which carries the names of both brands.

Cost transparency:
The ability of consumers to use the Internet to easily find the seller's cost, which impacts on the seller's ability to manipulate the price of the product.

Internet time:
The telescoping of normal phases of business development into shorter time spans.

Micro-pricing:
The selling of unbundled low-value items as separate units using micropayment methods.

Micropayment:
Allows for marketers to sell products online for just a few cents, often charging a single-usage-based price.

Positioning:
A company's strategies and actions related to favourably distinguishing itself and its products from competitors in the minds (and hearts) of selected groups of consumers.

Price discrimination:
The practice of selling a product at different prices to different buyers, even though the cost of the product is the same in each case.

Real-time pricing:
The actual time during which something takes place, i.e., both ends of the communication are chronologically tuned and running on the same clock.

Virtual product development:
The tapping of globally-dispersed expertise to innovate and develop products using different team members working in different countries and across many time zones.