Exam 14: Developing and Pricing Goods and Services

__________ is the process used to determine the profitability of a product at various levels of sales.

The target costing strategy establishes a selling price that consumers are willing to pay for a product,and then subtracts a desired profit margin to determine a target cost of production.

The strategy of first determining what the market is willing to pay,then subtracting a desired profit margin to determine a desired cost of production is called:

The break-even point is that level of sales where total revenues equals total costs.

The greatest source of ideas for new products is:

One way firms can gain a competitive advantage without relying on low prices is by developing close,friendly relationships with their customers.

Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package.

Event sponsorship like the FedEx Orange Bowl football game helps improve brand awareness.

American Building Products is the largest cement company in the Midwest.When the firm raised its prices by 8 percent,all of its competitors soon announced they too were raising their prices by 8 percent.It appears this industry is influenced by a ________ strategy.

Location is very important in the marketing of ________ because consumers desire to purchase these goods with a minimum of shopping effort.

As a manager at Excitement Foods,Mark is responsible for the firm's Kool'nKreamy brand of ice cream.Recently,he approved a proposal to test market new ice cream flavors.He is also considering the possibility of lowering the price of the ice cream and initiating a new advertising campaign.Mark appears to be a:

The __________ on packages were intended to improve inventory control for businesses.

Barker Brothers Pens utilizes a strategy of low priced pens to attract customers and discourage competition.This represents a _______ strategy.

Specialty goods are often marketed through specialty magazines.

A traditional McDonald's and a McCafe the outlet that sells premium coffee and pastries similar to a Starbucks)are examples of the McDonald's Corporation product mix.

When consumers calculate the value of a product,they:

Most consumers view specialty goods as having a variety of acceptable substitutes.

The New Era Cap Company of Buffalo,New York,understands the importance of _______________.In the mid-1990s,the company's products became very popular when film director Spike Lee requested a red Yankees cap,instead of the traditional blue cap.It did not take long for Yankees' fans who were also fans of Spike Lee to want to wear a similar cap.

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors?

Certain brand names,such as Kleenex and Xerox,fear they could become _________,because they are so commonly identified with a specific product category that consumers use these names to refer to any product in that category regardless of the manufacturer.