Exam 14: Developing and Pricing Goods and Services

Concept testing involves taking a product idea to consumers to test their reactions.

Sales of generic products are decreasing because consumers prefer the higher quality of the nationally known brands.

The brand names that are used by producers that distribute products nationally are called:

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

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:

Specialty goods are often marketed through specialty magazines.

Small firms often rely on non-price competition when competing against larger firms.

SneezeNoMore markets a group of similar products for people suffering from the common cold. The products in this line are sold under the brand name SneezeNoMore. The products differ mainly in the strength of the dosage and in whether they also contain additional medications to help the consumer sleep. As an employee of SneezeNoMore, Jill is responsible for the marketing mix for the company's products. She is also involved in any major decisions concerning the development of new products that will be included in this product line. Jill serves as a(n):

Beyonce Financial Services purchased several new personal computers and a sophisticated color laser printer for office use. These items would be correctly classified as accessory equipment.

Sales levels of Armstrong mountain bikes are rising rapidly, profits are very high, and a growing number of competitors are taking aim at Armstrong's market lead. Based on this information, Armstrong mountain bikes are in which stage of the product life cycle?

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 Tbone, 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 is 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 hopes to use its special packaging and extensive advertising to create a perception in the minds of consumers that Prime Cuts is a superior product, even though the actual quality of meat used in the product is virtually no different from competing brands. The company is attempting to develop:

Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus. His largest competitors are large nationally known organizations. The small size of Dutch's business prevents him from successfully utilizing a product differentiation strategy.

A leading cause of new-product failure is:

Phar-out 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:

The term product line describes the combination of product mixes offered by a manufacturer.

Industrial goods and services are used to produce other products.

A competition-based pricing strategy called involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

Packaging is an important part of the total product offer.

Some businesses use nostalgic ads to rekindle the memories and emotions of consumers to an earlier time and place. This technique of linking a brand name to a pleasant memory or favorable image is the goal of brand:

The characteristics of specialty goods restrict their effective sale over the Internet.