Exam 14: Developing and Pricing Goods and Services

The product life cycle presents a theoretical model describing what happens to sales and profits for a class of products over time.

A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as

Which of the following is a potential problem with a high-low pricing strategy?

Textbook publishers use a packaging strategy known as ________. Often the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.

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

One common way of classifying consumer goods is based on consumer purchasing behavior.

When reviewing the product life cycle model, it is important to remember that

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

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

Knowledge of the product life cycle model can help firms develop marketing strategies and anticipate market changes.

The key to demand-oriented pricing is the recognition that not all producers face the same costs of production.

Which of the following is a popular pricing objective?

________ goods appeal to consumers who are willing to make an extra shopping effort to acquire them.

The marketing efforts for convenience and specialty goods are essentially the same.

From the buyer's perspective, which of the following is a benefit of a product with a well-known brand name?

Producers often use ________ as a primary basis for setting prices on the goods and services they offer the public.

As consumers evaluate a product, price plays a small role.

One of the reasons marketers emphasize nonprice differences in their competitive strategies is because

Big Dog Building is the one of the largest cement companies in the Midwest. When the firm raised its prices by 11 percent, all of its competitors soon announced they too were raising their prices by 11 percent. It appears this industry is influenced by a ________ strategy.

"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.