Exam 14: Developing and Pricing Goods and Services

The several product lines that a company offers for sale make up that organization's product mix.

Lily's Floral Creations is located in a large town that has several other florists. Lily is likely to find that the presence of many larger competitors means that the only way she can survive is to charge rock-bottom prices.

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

At the concept testing stage, factors such as packaging, branding, and ingredients should be tested to ensure that a product is acceptable to potential consumers.

Knockoff brands are ________ copies of national brand-name goods.

The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.

Despite the fact that microeconomic theory places a great deal of emphasis on price, marketers often try to find ways to compete on product attributes other than price.

One way a small firm can succeed against larger competitors is to

As a result of increased advertising and well-trained salespeople, packaging is less important than in the past.

Louis expects to visit a variety of retailers and websites to compare features, quality, and prices of different speaker equipment brands. This behavior indicates that for Louis a speaker system is a shopping good.

The uniqueness of convenience goods and services stimulates consumers to make an extra effort to purchase them.

Barker Brothers Pens utilizes a strategy of low-priced pens to attract customers and discourage competition. This represents a ________ strategy.

Andrea lives in southern Mississippi where winters are normally fairly mild. Last January, during an unusually cold spell, the water pipes in her house froze and burst. She looked online to find a plumber who was able to come out and repair the pipes the same day. Prior to the frozen pipes, the plumber's services represented a(n)

Cost-based pricing adds a desired profit margin to the cost of producing a product.

When consumer loyalty reaches the point of brand insistence, the product becomes a specialty good.

Which of the following is a benefit of a brand name for a seller?

The four stages in the product life cycle are introduction, market, exchange, and disposal.

The degree to which customers are satisfied and are committed to future purchases of a desired brand is called

The two types of industrial goods are production goods and unsought goods.

________ presents an idea for a new product to potential customers to test their reactions.