Exam 14: Developing and Pricing Goods and Services

Thigpen Equipment Company sells used heavy construction equipment such as bulldozers and cranes. Thigpen's products represent examples of an accessory equipment industrial good.

A is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

goods and services represent those products that consumers are unaware of or haven't thought of buying.

is the process used to determine the profitability of a product at various levels of sales.

One common way of classifying consumer goods is based on consumer purchasing behavior.

Firms utilizing an everyday low pricing (EDLP) strategy establish a policy of special sales on a regular basis.

Community Catering Services, Inc. advertises that they are the "friendliest caterers in town." Their prices are no lower than the rates charged by competing caterers, but they put a lot of emphasis on getting to know the needs of their customers. They tailor their efforts to meet these needs, providing a unique dining experience that exactly matches the customer's expectations. Community Catering is likely to find that this approach is more effective in achieving its goals than the use of aggressive price- cutting.

In the "Thinking Green" box in the chapter, one of the problems companies are facing is informing consumers about their commitment to environmental awareness in the labeling of their products.

When consumers calculate the value of a product, they:

Endorsements by sports or movie celebrities can help create a favorable brand association.

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Costs incurred regardless of the number of units of a product that are produced or sold are called:

One reason many large consumer-product companies make use of is to have greater control over new-product development and product promotion.

Price, appearance, and reputation can influence a consumer's perceptions of quality.

The trend towards self-service retailers has increased the importance of packaging.

When consumers calculate the value of a product, they look at the benefits and then subtract the cost.

The evaluation of packaging as a marketing function indicates that:

Certain brand names, such as Kleenex and Xerox, fear they could become , because they are so commonly identified with a specific product category that consumers use these names to refer to any product in that category regardless of the manufacturer.

Today, packaging is:

Kathy works as a manager at Fantastic Fabricators. The innovative staff at the company is regularly encouraged to suggest ideas for new products. Since Cathy works in product screening, she: