38. Explain the difference between a brand extension and a line extension? In addition,

provide a specific example of each.

37. A company is determining the potential for the introduction of a new product, a

motorized scooter targeted to college students and workers living around major

college campuses with student enrollment of 30,000 or more. The fixed costs for the

development of the scooter equal $1,050,000. The company is planning to charge

$2,800 for the product and has $965 of variable costs for each scooter manufactured.

What is the break-even point in unit sales for the company?

show numerical calculations

35. A marketing manager conducted a price elasticity analysis when the wholesale price

of Blue Bell ice cream was reduced 7% and the and retail price to the consumer was

lowered 10% to $3.79 per pint. After monthly sales were reviewed the percent

change in the quantity of the product sold was +11.5%. Therefore, we would say the

demand for Blue Bell ice cream is:

A. inelastic

B. elastic

C. unitary

D. reverse unitary elastic

E. fixed

33. A company wants to evaluate the potential success of a new product and distributes

the product in groups of stores that have agreed to carry new products for a fee.

This method of new product evaluation is less expensive and faster than other

methods of new product testing as is known as ______________.

1. automated test markets

2. bases test markets

3. controlled test markets

4. leveraged test markets

5. physical-planned test markets

32. The advantage of using a product spacing/perceptual map is that it provides a better

understanding of consumers perceptions about brands, so a company might:

a. evaluate opportunities for new product introductions

b. to specifically and solely realign its packaging and pricing strategies during the Decline stage of the Product Life Cycle as a single function

c. improve product/brand positioning communication and develop new product possibilitie

d. A. & B.

e. A. & C.

31. The success of a new product can be directly related to _____

A. its lower price

B. its distribution among service providers

C. its repurchase frequency

D. its profitability

E. its advertising and other promotional expenditures