Exam 14: Developing and Pricing Goods and Services

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.

Product development is a key activity in any modern business, anywhere in the world.

Successful firms always try to maintain consistency in the short-run and long-run pricing objectives.

Total fixed costs are those costs that change when the volume of production changes.

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

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

The Internet has the intensity of price competition.

Manufacturers' brands carry the brand name of the producers that distribute the products nationally.

The target costing strategy establishes a selling price that consumers are willing to pay for a product, and then subtracts a desired profit margin to determine a target cost of production.

In order to achieve a social objective, firms use low prices to enable people with low incomes to buy their product.

Which of the following statements about packaging is the most accurate?

Restaurants, like other businesses, often find that the best way to succeed in the market is to:

Which of the following are products consumers buy after comparing quality, price, and style from a variety of sellers?

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

At Isuzu's Appliance Store, all new products are offered with an extended service contract, as well as free delivery and installation. By offering these value enhancers, Isuzu's has added to their total product offer.

Whether a consumer thinks a product provides the best value depends upon:

A skimming pricing strategy:

The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:

While the time in each stage may vary, all products progress through each stage of the product life cycle.

Using a sports or movie celebrity as a spokesperson for your product is an attempt to build favorable: