Question 1

_______ costs are those costs that increase as the level of production increases.

Accepted Answer

A) Fixed 
B) Mixed 
C) Variable 
D) Uncontrollable 
A) Fixed 
B) Mixed 
C) Variable 
D) Uncontrollable

Question 2

Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus.His largest competitors are large nationally known organizations.The small size of Dutch's business prevents him from successfully utilizing a product differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 3

John needed transportation.Now that his new marketing job was "in the bag," it was time to go shopping."New" was probably going to be out of the question.He wasn't planning on going into debt with a fancy car! As he reviewed his options,he listed the kinds of things he wanted in a vehicle: the ability to carry some large things;a comfortable back seat for his two dogs;4-wheel drive for snow and ice;and economical on gas.Marketers know that today's consumers ___________________.

Accepted Answer

A) are educated and very savvy and are looking for features and not benefits. 
B) are willing to pay just about any price if they find the features they want. 
C) look for the best value benefits outweigh the cost). 
D) are always economically sensitive,first. 
A) are educated and very savvy and are looking for features and not benefits. 
B) are willing to pay just about any price if they find the features they want. 
C) look for the best value benefits outweigh the cost). 
D) are always economically sensitive,first.

Question 4

A pickup truck can be classified as either a consumer good or an industrial good.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is consistent with the introduction stage of the product life cycle?

Accepted Answer

A) decreasing sales volume 
B) large number of competitors 
C) low profit levels or a potential loss 
D) minimum use of advertising 
A) decreasing sales volume 
B) large number of competitors 
C) low profit levels or a potential loss 
D) minimum use of advertising

Question 6

Target costing adds a profit margin to estimated cost of production to determine the optimal price.

Accepted Answer

A) True 
 B)False

Question 7

New products often fail because they don't deliver to consumers their promised benefits.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a characteristic of the decline stage of the product life cycle?

Accepted Answer

A) falling sales 
B) price reductions 
C) many new firms entering the market 
D) increasing profits 
A) falling sales 
B) price reductions 
C) many new firms entering the market 
D) increasing profits

Question 9

Currently,which of the following products would most likely be considered in the growth stage of the product life cycle?

Accepted Answer

A) VCRs 
B) Welch's grape jelly 
C) HDTV High-Definition TV) 
D) Camel filtered cigarettes 
A) VCRs 
B) Welch's grape jelly 
C) HDTV High-Definition TV) 
D) Camel filtered cigarettes

Question 10

Whether a consumer thinks a product provides the best value depends upon:

Accepted Answer

A) the actual product benefits. 
B) the consumer's perceptions. 
C) the global situation. 
D) the laws covering the product's manufacture. 
A) the actual product benefits. 
B) the consumer's perceptions. 
C) the global situation. 
D) the laws covering the product's manufacture.

Question 11

One reason many large consumer-product companies make use of __________ is to have greater control over new-product development and product promotion.

Accepted Answer

A) brand equity teams 
B) equity specialists 
C) product consultants 
D) brand management teams 
A) brand equity teams 
B) equity specialists 
C) product consultants 
D) brand management teams

Question 12

Carlotta owns and manages the Carlite Car Wash.She charges $8 per car wash.Her fixed costs are $600 per month,while her variable costs per car wash amount to $2.Carlotta must wash 60 cars to break even.

Accepted Answer

A) True 
 B)False

Question 13

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 prestige 
A) quality assurance 
B) reduction in search time 
C) increased repeat purchases 
D) additional prestige

Question 14

Profits peak during the maturity stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 15

Break-even analysis determines profitability of a firm at various levels of sales.

Accepted Answer

A) True 
 B)False

Question 16

At the concept testing stage,factors such as packaging,branding,ingredients,etc.should be tested to ensure that a product is acceptable to potential consumers.

Accepted Answer

A) True 
 B)False

Question 17

"Create a better mousetrap and the world will beat a path to your door." This statement is consistent with the idea behind the commercialization of products.

Accepted Answer

A) True 
 B)False

Question 18

For small businesses,product differentiation:

Accepted Answer

A) is more difficult than it is for larger firms because of the high cost of product research and development. 
B) usually concentrates on the pricing component of the total product offer. 
C) can be an important strategy to gain market share. 
D) is less important than it is for big firms with multiple product lines. 
A) is more difficult than it is for larger firms because of the high cost of product research and development. 
B) usually concentrates on the pricing component of the total product offer. 
C) can be an important strategy to gain market share. 
D) is less important than it is for big firms with multiple product lines.

Question 19

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

Accepted Answer

A) True 
 B)False

Question 20

While service providers offer product lines,they are unable to offer product mixes.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

_______ costs are those costs that increase as the level of production increases.

Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus.His largest competitors are large nationally known organizations.The small size of Dutch's business prevents him from successfully utilizing a product differentiation strategy.

A pickup truck can be classified as either a consumer good or an industrial good.

Which of the following is consistent with the introduction stage of the product life cycle?

Target costing adds a profit margin to estimated cost of production to determine the optimal price.

New products often fail because they don't deliver to consumers their promised benefits.

Which of the following is a characteristic of the decline stage of the product life cycle?

Currently,which of the following products would most likely be considered in the growth stage of the product life cycle?

Whether a consumer thinks a product provides the best value depends upon:

One reason many large consumer-product companies make use of __________ is to have greater control over new-product development and product promotion.

Carlotta owns and manages the Carlite Car Wash.She charges $8 per car wash.Her fixed costs are $600 per month,while her variable costs per car wash amount to $2.Carlotta must wash 60 cars to break even.

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

Profits peak during the maturity stage of the product life cycle.

Break-even analysis determines profitability of a firm at various levels of sales.

At the concept testing stage,factors such as packaging,branding,ingredients,etc.should be tested to ensure that a product is acceptable to potential consumers.

"Create a better mousetrap and the world will beat a path to your door." This statement is consistent with the idea behind the commercialization of products.

For small businesses,product differentiation:

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

While service providers offer product lines,they are unable to offer product mixes.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Union and Employeemanagement Issues

Marketing: Helping Buyers Buy

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money,financial Institutions,and the Federal Reserve

test Planning Table for Bonus Chapter A

Using Technology to Manage Information

Managing Risk

Managing Personal Finances

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