Question 1

In order for product differentiation to be effective,real product differences must be identified so that one product is clearly better than others.

Accepted Answer

A) True 
 B)False

Question 2

Helen is considering adding a rack of greeting cards to her product offerings at Litton Books Unlimited.Her fixed costs associated with adding the greeting cards would be $300.Variable costs per card are $1 each.The greeting cards will sell for $2 each.Helen's break-even point would occur at ________ cards sold.

Accepted Answer

A) 125 
B) 150 
C) 300 
D) 600 
A) 125 
B) 150 
C) 300 
D) 600

Question 3

What does a break-even point of 100 units mean to a firm?

Accepted Answer

A) The firm must sell 100 units to maximize its profits. 
B) Fixed costs plus variable costs equals 100 units. 
C) By producing 100 units,the firm can ensure that variable costs completely cancel its fixed costs. 
D) If the firm sells 100 units,its total revenues will equal its total costs. 
A) The firm must sell 100 units to maximize its profits. 
B) Fixed costs plus variable costs equals 100 units. 
C) By producing 100 units,the firm can ensure that variable costs completely cancel its fixed costs. 
D) If the firm sells 100 units,its total revenues will equal its total costs.

Question 4

Comet Computer Company is creating a new splash with psychedelic laptop cover designs scheduled for release next year.The computers do not reveal any other feature differences from what Comet 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 extension 
A) packaging 
B) incremental coloring 
C) incremental channeling 
D) brand extension

Question 5

An advertisement for the Xerox Corporation encourages customers to say,"Copy it" rather than "Xerox it".This indicates that Xerox is fearful that its brand name might become an):

Accepted Answer

A) equity name. 
B) generic name. 
C) private brand. 
D) public domain good. 
A) equity name. 
B) generic name. 
C) private brand. 
D) public domain good.

Question 6

Car dealers realize that consumers focus exclusively on price and warranty.

Accepted Answer

A) True 
 B)False

Question 7

Dewy,Cheatem,and Howe's promotional efforts are intended to increase the public's awareness of its new product's benefits and uses.This effort is consistent with the ________ stage of the product life cycle model.

Accepted Answer

A) introduction 
B) growth 
C) maturity 
D) decline 
A) introduction 
B) growth 
C) maturity 
D) decline

Question 8

The number of units of a product that must be sold for total revenue to equal total costs is called the:

Accepted Answer

A) equilibrium volume. 
B) balanced quantity. 
C) contribution margin. 
D) break-even point. 
A) equilibrium volume. 
B) balanced quantity. 
C) contribution margin. 
D) break-even point.

Question 9

The U.S.legal system does not offer trademark protection.

Accepted Answer

A) True 
 B)False

Question 10

One function of effective packaging is to protect the goods inside during handling and storage,as well as deter product tampering and theft.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Product screening is designed to:

Accepted Answer

A) shorten the product life cycle. 
B) reduce the number of new-product ideas being worked on at any one time. 
C) reduce the time involved in new-product development. 
D) move production to low wage countries. 
A) shorten the product life cycle. 
B) reduce the number of new-product ideas being worked on at any one time. 
C) reduce the time involved in new-product development. 
D) move production to low wage countries.

Question 13

Which of the following statements regarding convenience goods and services is accurate?

Accepted Answer

A) Shoppers will exert lots of effort to obtain the product. 
B) Consumers purchase the product on an infrequent basis. 
C) Consumers buy only after carefully comparing quality and value. 
D) Brand awareness and image are important in marketing these products. 
A) Shoppers will exert lots of effort to obtain the product. 
B) Consumers purchase the product on an infrequent basis. 
C) Consumers buy only after carefully comparing quality and value. 
D) Brand awareness and image are important in marketing these products.

Question 14

Miranda is a marketing manager for a large manufacturer.Her boss has asked her to evaluate a new product ide
A.One of the things Miranda 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 15

Some goods can be classified as either consumer goods or as industrial goods.

Accepted Answer

A) True 
 B)False

Question 16

One function of effective packaging is to provide information regarding warranties,benefits,and uses of the good inside the package.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is considered a stage of the new-product development process?

Accepted Answer

A) automation 
B) media screening 
C) commercialization 
D) selective perception 
A) automation 
B) media screening 
C) commercialization 
D) selective perception

Question 18

Equipment maintenance and repair of equipment used by businesses is an industrial support good.

Accepted Answer

A) True 
 B)False

Question 19

The evaluation of packaging as a marketing function indicates that:

Accepted Answer

A) the package is less important as the Internet provides consumers with easily obtained information. 
B) packaging carries more of the promotional burden of the product. 
C) consumers are influenced less by packaging. 
D) the primary purpose of packaging is to limit the product liability of businesses. 
A) the package is less important as the Internet provides consumers with easily obtained information. 
B) packaging carries more of the promotional burden of the product. 
C) consumers are influenced less by packaging. 
D) the primary purpose of packaging is to limit the product liability of businesses.

Question 20

In the long run the market determines what the price will be.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

In order for product differentiation to be effective,real product differences must be identified so that one product is clearly better than others.

What does a break-even point of 100 units mean to a firm?

Comet Computer Company is creating a new splash with psychedelic laptop cover designs scheduled for release next year.The computers do not reveal any other feature differences from what Comet currently offers.This effort is an example of using __________________ to differentiate a product as new.

An advertisement for the Xerox Corporation encourages customers to say,"Copy it" rather than "Xerox it".This indicates that Xerox is fearful that its brand name might become an):

Car dealers realize that consumers focus exclusively on price and warranty.

Dewy,Cheatem,and Howe's promotional efforts are intended to increase the public's awareness of its new product's benefits and uses.This effort is consistent with the ________ stage of the product life cycle model.

The number of units of a product that must be sold for total revenue to equal total costs is called the:

The U.S.legal system does not offer trademark protection.

One function of effective packaging is to protect the goods inside during handling and storage,as well as deter product tampering and theft.

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

Product screening is designed to:

Which of the following statements regarding convenience goods and services is accurate?

Some goods can be classified as either consumer goods or as industrial goods.

One function of effective packaging is to provide information regarding warranties,benefits,and uses of the good inside the package.

Which of the following is considered a stage of the new-product development process?

Equipment maintenance and repair of equipment used by businesses is an industrial support good.

The evaluation of packaging as a marketing function indicates that:

In the long run the market determines what the price will be.

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

Filters