Exam 14: Developing and Pricing Goods and Services

__________ presents an idea for a new product to potential customers to test their reactions.

Operating in the southwestern states,Lancer Airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast.The best strategy to avoid severe price competition is to:

June lives in the southern part of Alabama where winters are normally fairly mild. Last January, during an unusually cold spell, the water pipes in her house froze and burst. She had to look in the Yellow Pages to find a plumber who was able to come out and repair the pipes the same day. Prior to the frozen pipes, the plumber's services represented an):

New-product failures are most often caused by excessively high prices.

Firms should listen to their suppliers for new-product ideas.

__________ goods and services represent those products that consumers are unaware of or haven't thought of buying.

Industrial goods and services are used to produce other products.

_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.

In recent years,the packaging of products has been given a greater role in product promotion.

While the Universal Product Code UPC)improves efficiency at the retail check-out counter,it has increased problems in controlling inventory.

A street vendor selling Rolex watches at ridiculously low prices approached Ted.Ted,however,was suspicious that the watches were illegal ________ brands.

One way a small firm can succeed against larger competitors is to:

Successful marketing of convenience and specialty goods require different marketing mixes.

Brand managers have direct responsibility for all the elements of the marketing mix for a particular brand or product line.

When consumers reach the point of brand ________,the product becomes a specialty good.

Most manufacturers hope that their brand names will become a generic name.

Despite the fact that microeconomic theory places a great deal of emphasis on price,marketers often try to find ways to compete on product attributes other than price.

While some products remain in the introductory stage of the product life cycle for years,other products may go through the entire cycle in a few months.

The product life cycle presents a theoretical model describing what happens to sales and profits for a class of products over time.

Price leadership occurs when one or more dominant firms set pricing practices that other firms in the market follow.