Exam 14: Developing and Pricing Goods and Services

The Coca-Cola Company produces Diet Coke, Diet Coke with Splenda, and Coke Zero along with a number of other flavors. These products are part of Coca-Cola's

Target costing is a cost-based pricing strategy.

When a brand becomes commonplace and identified with a category of goods rather than the unique product of a specific manufacturer, the brand may become a

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

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

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

According to the product life cycle model, profits tend to

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

Which of the following products would normally be classified as a shopping good or service?

Attracting attention, describing contents, explaining benefits, and identifying the uses of a product are all functions of

The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.

According to the product life cycle model, sales are expected to peak in the ________ stage.

Ultimately, the price of a good is determined by the interaction of supply and demand in the marketplace.

Although their names are similar, brand loyalty and brand equity are unrelated.

A shopping good for one consumer could be a specialty good for another consumer.

NoSneeze markets a group of similar products for people suffering from the common cold. The products differ mainly in the strength of the dosage and in whether they also contain additional medications to help the consumer sleep while sick. Sarah, a marketing manager at NoSneeze, is responsible for marketing the company's products and is involved in major decisions concerning the development of new products that will be included in this product line. Sarah serves as a

The legal protection offered to an established brand name prevents that name from being used as a generic name for a product.

Convenience goods are products that the consumer wants to purchase frequently and with minimal effort.

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

Green Giant Green Beans, Chevrolet Corvette, Coca-Cola, Dole Pineapple, and Peter Pan Peanut Butter are all examples of