Exam 14: Developing and Pricing Goods and Services

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

________ is the stage of new-product development that involves promoting a product to distributors, and developing advertising and sales campaigns in order to generate and maintain consumer interest.

The product analysis stage of the new-product development process considers the sales forecasts and cost estimates of a new-product idea.

A product line is a group of products that are physically similar or are intended for a similar market.

PharmaSave Pharmacy will advertise a price of an over-the-counter drug at or below their cost. The intended goal of this loss leader strategy is to

Firms utilizing an everyday low pricing (EDLP) strategy establish a policy of special sales on a regular basis.

Which of the following would a firm most likely use to differentiate its product?

While the packaging of services has not yet captured the attention of businesses, technological improvements will likely create new opportunities.

Successful product differentiation

The trend away from personal salespeople to self-service in many retail outlets has caused firms to

The formula for break-even analysis includes which of the following components?

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.

Demand-based pricing is another name for cost-based pricing.

At the break-even point

Which of the following strategies establishes a price based on the actions of rival firms?

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

The exclusive goal companies expect of packaging is to protect the product from damage in transit.

Unsought goods and services are products consumers do not actively seek out for purchase on a regular basis.

Consumer perceptions of product quality are affected by promotions and packaging, but not by the price of the product.

More than any other component of a total product offer, technology has reduced the importance of packaging.