Question 1

A single product line may contain several competing brands.

Accepted Answer

A) True 
 B)False

Question 2

The trend toward self-service retailers has increased the importance of packaging.

Accepted Answer

A) True 
 B)False

Question 3

The marketing efforts for convenience and specialty goods are essentially the same.

Accepted Answer

A) True 
 B)False

Question 4

A competition-based pricing strategy called ________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

Accepted Answer

A)   skimming
B)   penetration
C)   target costing
D)   price leadershipE) A) and B)
F) None of the above

Question 5

________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Accepted Answer

A)   Price discrimination
B)   Price leadership
C)   Target costing
D)   Cost-based pricingE) B) and C)
F) A) and B)

Question 6

According to the Reaching Beyond Our Borders box, brand names must hold great meaning or customers will not acknowledge them.

Accepted Answer

A) True 
 B)False

Question 7

Isla is a marketing manager for Marshall Manufacturing. Her boss has asked her to evaluate a new-product idea. One of the things Isla wants to determine is how much of this product her firm would have to sell in order to break even. In order to compute this break-even level of sales, she will need to know the price of the good, the total fixed costs, and variable cost of producing each unit.

Accepted Answer

A) True 
 B)False

Question 8

Sandy works for Epic Electronics and oversees the marketing mix for the firm's line of HDTVs. Sandy serves as a brand manager for Epic Electronics.

Accepted Answer

A) True 
 B)False

Question 9

Sales levels of Spokes mountain bikes are rising rapidly, profits are very high, and a growing number of competitors are taking aim at Spokes' market lead. Based on this information, Spokes mountain bikes are in which stage of the product life cycle?

Accepted Answer

A)   introduction
B)   growth
C)   maturity
D)   declineE) B) and D)
F) A) and D)

Question 10

Psychological pricing utilizes high prices to create the image of a high-quality product.

Accepted Answer

A) True 
 B)False

Question 11

In evaluating colleges, students and parents are likely to judge a school

Accepted Answer

A)   strictly on the basis of major curriculums offered.
B)   based on the tuition.
C)   by the collection of benefits offered by the school.
D)   on the anticipated rate of return on their tuition investment.E) B) and D)
F) A) and B)

Question 12

Specialty goods are often marketed through specialty magazines.

Accepted Answer

A) True 
 B)False

Question 13

When consumers decide to purchase a particular product, they

Accepted Answer

A)   will search for the retailer that offers the lowest price.
B)   consider the total collection of benefits that the product offers.
C)   base their decision on a brand name nearly all of the time.
D)   initially evaluate the product's package.E) All of the above
F) B) and D)

Question 14

Successful product differentiation

Accepted Answer

A)   of consumer goods is determined exclusively by price.
B)   can be based on either real or perceived differences in products.
C)   is prohibited if it restricts price competition and market access.
D)   is less important due to the growth of the Internet.E) A) and D)
F) A) and C)

Question 15

New-product commercialization includes promoting the product to distributors and retailers as well as developing strong advertising and sales campaigns.

Accepted Answer

A) True 
 B)False

Question 16

A skimming pricing strategy

Accepted Answer

A)   allows low-income households the ability to purchase a particular good or service.
B)   drives competitors out of business in order to achieve a monopoly position in the market.
C)   creates a "common man" image to reach a larger market.
D)   establishes a high price in order to earn the highest possible profit while there is little competition.E) B) and C)
F) A) and B)

Question 17

Which of the following is a benefit of a brand name for a seller?

Accepted Answer

A)   quality assurance
B)   reduction in search time
C)   increased repeat purchases
D)   additional prestigeE) B) and D)
F) B) and C)

Question 18

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Accepted Answer

A) True 
 B)False

Question 19

Some goods have a product life cycle that is completed in a shorter amount of time than other goods.

Accepted Answer

A) True 
 B)False

Question 20

Microchippers Computer Company thinks it will make a splash with galaxy-themed laptop cover designs scheduled for release next year. The computers do not reveal any other feature differences from what Microchippers currently offers. This effort is an example of using ________ to differentiate a product as new.

Accepted Answer

A)   packaging
B)   incremental coloring
C)   incremental channeling
D)   brand extensionE) A) and B)
F) C) and D)

Exam 14: Developing and Pricing Goods and Services

________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Correct Answer
verified

Psychological pricing utilizes high prices to create the image of a high-quality product.

Correct Answer
verified

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Correct Answer
verified

A skimming pricing strategy

Correct Answer
verified

A single product line may contain several competing brands.

Correct Answer
verified

When consumers decide to purchase a particular product, they

Correct Answer
verified

The trend toward self-service retailers has increased the importance of packaging.

Correct Answer
verified

Sales levels of Spokes mountain bikes are rising rapidly, profits are very high, and a growing number of competitors are taking aim at Spokes' market lead. Based on this information, Spokes mountain bikes are in which stage of the product life cycle?

Correct Answer
verified

Specialty goods are often marketed through specialty magazines.

Correct Answer
verified

A competition-based pricing strategy called ________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

Correct Answer
verified

Successful product differentiation

Correct Answer
verified

Sandy works for Epic Electronics and oversees the marketing mix for the firm's line of HDTVs. Sandy serves as a brand manager for Epic Electronics.

Correct Answer
verified

The marketing efforts for convenience and specialty goods are essentially the same.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following is a benefit of a brand name for a seller?

Correct Answer
verified

In evaluating colleges, students and parents are likely to judge a school

Correct Answer
verified

New-product commercialization includes promoting the product to distributors and retailers as well as developing strong advertising and sales campaigns.

Correct Answer
verified

Some goods have a product life cycle that is completed in a shorter amount of time than other goods.

Correct Answer
verified

According to the Reaching Beyond Our Borders box, brand names must hold great meaning or customers will not acknowledge them.

Correct Answer
verified

Exam 14: Developing and Pricing Goods and Services

________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Correct AnswerverifiedShow Answer

Psychological pricing utilizes high prices to create the image of a high-quality product.

Correct AnswerverifiedShow Answer

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Correct AnswerverifiedShow Answer

A skimming pricing strategy

Correct AnswerverifiedShow Answer

A single product line may contain several competing brands.

Correct AnswerverifiedShow Answer

When consumers decide to purchase a particular product, they

Correct AnswerverifiedShow Answer

The trend toward self-service retailers has increased the importance of packaging.

Correct AnswerverifiedShow Answer

Sales levels of Spokes mountain bikes are rising rapidly, profits are very high, and a growing number of competitors are taking aim at Spokes' market lead. Based on this information, Spokes mountain bikes are in which stage of the product life cycle?

Correct AnswerverifiedShow Answer

Specialty goods are often marketed through specialty magazines.

Correct AnswerverifiedShow Answer

A competition-based pricing strategy called ________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

Correct AnswerverifiedShow Answer

Successful product differentiation

Correct AnswerverifiedShow Answer

Sandy works for Epic Electronics and oversees the marketing mix for the firm's line of HDTVs. Sandy serves as a brand manager for Epic Electronics.

Correct AnswerverifiedShow Answer

The marketing efforts for convenience and specialty goods are essentially the same.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a benefit of a brand name for a seller?

Correct AnswerverifiedShow Answer

In evaluating colleges, students and parents are likely to judge a school

Correct AnswerverifiedShow Answer

New-product commercialization includes promoting the product to distributors and retailers as well as developing strong advertising and sales campaigns.

Correct AnswerverifiedShow Answer

Some goods have a product life cycle that is completed in a shorter amount of time than other goods.

Correct AnswerverifiedShow Answer

According to the Reaching Beyond Our Borders box, brand names must hold great meaning or customers will not acknowledge them.

Correct AnswerverifiedShow Answer

Correct Answer
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