Exam 14: Developing and Pricing Goods and Services

Having just graduated college and about to start a new marketing job, Terry needed transportation. He listed the kinds of things he wanted in a car: 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

Associated Supermarkets operates a large chain of stores across several midwestern states. While Associated doesn't actually produce any canned foods, it markets a line of foods under its own brand name that were actually produced by another company. Associated canned foods represent a

Which of the following is a relevant criterion for the product screening process?

As a promotional strategy, advertising is more important in the marketing of industrial goods than it is in the marketing of consumer goods.

Eddie has just taken a job with a local microbrewery after several years working as a brand manager for an established product. Now, he is responsible for managing the marketing mix for a new product introduction. In his new job, Eddie will find that while the products may be at different stages of the product life cycle, the marketing strategies will be essentially the same.

The combination of product lines offered by a manufacturer is called the firm's

Brand equity refers to those factors that people associate with a specific brand name, such as awareness, perceived quality, and loyalty.

In the long run, the cost of production and the length of the firm's supply chain determine the price of a product.

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.

Mini-Case Gourmet Pets is an innovative competitor in the billion-dollar pet food industry. In fact, two of its products, Kitty Sirloin and McDog T-bone, each claim over a 30% share in their market segments. The company has done detailed research and discovered that, for a growing number of pet owners, the family pet serves as a baby substitute. These owners tend to pamper their pets, and are very discriminating in what they purchase. With this in mind, the company has put a great deal of effort into developing a new dog food: Prime Cuts. The new product is packaged in a resealable, microwaveable container and can be purchased in a variety of flavors (including Western BBQ, Teriyaki, Australian Outback, and Hickory Smoked). Gourmet Pets promotes the product as far superior to "average" dog foods, even though the quality of meat and nutrient content of the food are virtually identical to many other brands. The company faces no competition in this market segment so it plans to charge a high price for the product. -Gourmet Pets is interested in computing the break-even point for its new product Prime Cuts. The fixed costs of adding this product to the product line amounts to $20,000. Variable costs to produce one package of Prime Cuts are $2. Prime Cuts will sell for $6 per package. The break-even point would be

Pricing is

Which of the following is a stage in the product life cycle?

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

The image created by advertising is part of the total product offer of a product.

The cost of raw materials used to produce a good or service represent the firm's ________ costs.

While White Glove Cleaners offers home and commercial cleaning services no different from competitors, the company is unable to utilize a product differentiation strategy.

Which stage of the product life cycle does rapidly rising sales, very high profit levels, and a growing number of competitors characterize?

The classification of goods or services into a particular class depends on the individual consumer.

Sweet Tooth Confectioners may use the same ingredients as most other producers of chocolate candies and may not even be much better than other well-known brands of chocolate. However, the company wraps its candies in expensive-looking foil and places them in very attractive boxes. It promotes its products in advertisements as "the ultimate in chocolate experience." Sweet Tooth charges a much higher price than most competitors, but sales continue to grow. This success indicates that

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