Exam 14: Developing and Pricing Goods and Services

While the packaging of services has not yet captured the attention of businesses, technological improvements will likely create new opportunities.

Jian has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This seems to represent a:

Computers, copiers, and fax machines used by businesses would be classified as:

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

Most manufacturers hope that their brand names will become a generic name.

Firms should listen to their suppliers for new-product ideas.

"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.

Non-branded products that sell below the price of national brands, have very basic packaging, and are backed with little or no advertising are called:

A pickup truck can be classified as either a consumer good or an industrial good.

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

Which of the following products would normally be classified as a shopping good or service?

Which of the following is a stage in the product life cycle?

Low prices can often help retailers create an attractive total product offer.

Knockoff brands are copies of national brand-name goods.

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. -Prime Cuts was the brainchild of Karen Terrier who guided all the marketing efforts of the product. She selected each element of the marketing mix such as the package, brand name, pricing, promotion, and placement decisions. Karen obviously serves in the job of:

Psychological pricing utilizes high prices to create the image of a high quality product.

Department stores often use pricing in which they have regular prices which are relatively high, but offer special sales where prices are set lower than competitors.

As firms develop their marketing mix, it is important to remember that:

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

A high-low pricing strategy may condition consumers to avoid paying the regular prices by waiting for sale prices.