1) In the new-product development process the first step is ________.

a. idea generation

b. idea screening

c. concept development and testing

d. concept testing and clearing

e. test marketing

2) ________ can influence setting the pricing objectives and policies of that company.

a. the sales manager

b. top management

c. nothing

d. the finance manager

e. no one

3) All of the following except ________ can increase a business scope.

a. The company can add new product lines.

b. It can extend its existing product lines.

c. It can add more versions of each product.

d. The company can discontinue some of its lines.

e. None of the above

4) When customers know that the price is lower than the products value, they will buy more, and the seller loses ________.

a. variable costs

b. elasticity level

c. profit opportunities

d. break-even pricing

e. market share