Exam 14: Developing and Pricing Goods and Services

Firms utilize when they attempt to add value to their product by offering service after the sale, product demonstrations, or interactive customer Web sites.

McDonald's prides itself on offering precisely the same menu around the world so that customers know exactly what to expect when they eat at a McDonald's.

Which of the following strategies establishes a price based on the actions of rival firms?

The greatest source of ideas for new products is:

As a promotional strategy, advertising is more important in the marketing of industrial goods than it is in the marketing of consumer goods.

A single product line may contain several competing brands.

costs are those costs that increase as the level of production increases.

Gill's Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin. Gill's strategy is known as target costing.

The number of units of a product that must be sold for total revenue to equal total costs is called the:

A trademark is a brand that has been given exclusive legal protection for both the brand name and the pictorial design.

Event sponsorship like the FedEx Orange Bowl football game helps improve brand awareness.

Federated Grocery Stores operates a large chain of stores across several mid western states. While Federated doesn't actually produce any canned foods, it markets a line of foods under its own brand name that were actually produced by another company. Federated canned foods represent a:

More than any other component of a total product offer, technology has reduced the importance of packaging.

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?

Dealer (private) brands are products that do not carry the manufacturer's name, but rather carry the name of a distributor or retailer.

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:

Unsought goods and services are products consumers do not actively seek out for purchase on a regular basis.

The pricing strategy maintains low prices and avoids the use of special sales.

Mystic Beverages, a producer of soft drinks, wants to differentiate its products from those of other soft drink providers. To implement this strategy successfully will require Mystic to create tangible differences in the physical product it offers.

Industrial goods are sold in the B2B market.