Question 1

When consumers decide to purchase a particular product, they

Accepted Answer

A)  will search for the retailer that offers the lowest price. 
B)  consider the total collection of benefits that the product offers. 
C)  base their decision on a brand name nearly all of the time. 
D)  initially evaluate the product's package. 
A)  will search for the retailer that offers the lowest price. 
B)  consider the total collection of benefits that the product offers. 
C)  base their decision on a brand name nearly all of the time. 
D)  initially evaluate the product's package.

Question 2

Isla is a marketing manager for Marshall Manufacturing. Her boss has asked her to evaluate a new-product idea. One of the things Isla wants to determine is how much of this product her firm would have to sell in order to break even. In order to compute this break-even level of sales, she will need to know the price of the good, the total fixed costs, and variable cost of producing each unit.

Accepted Answer

A) True 
 B)False

Question 3

A single product line may contain several competing brands.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

New-product commercialization includes promoting the product to distributors and retailers as well as developing strong advertising and sales campaigns.

Accepted Answer

A) True 
 B)False

Question 6

According to the Reaching Beyond Our Borders box, brand names must hold great meaning or customers will not acknowledge them.

Accepted Answer

A) True 
 B)False

Question 7

________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Accepted Answer

A)  Price discrimination 
B)  Price leadership 
C)  Target costing 
D)  Cost-based pricing 
A)  Price discrimination 
B)  Price leadership 
C)  Target costing 
D)  Cost-based pricing

Question 8

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

Accepted Answer

A)  introduction 
B)  growth 
C)  maturity 
D)  decline 
A)  introduction 
B)  growth 
C)  maturity 
D)  decline

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The marketing efforts for convenience and specialty goods are essentially the same.

Accepted Answer

A) True 
 B)False

Question 11

Sandy works for Epic Electronics and oversees the marketing mix for the firm's line of HDTVs. Sandy serves as a brand manager for Epic Electronics.

Accepted Answer

A) True 
 B)False

Question 12

Specialty goods are often marketed through specialty magazines.

Accepted Answer

A) True 
 B)False

Question 13

Microchippers Computer Company thinks it will make a splash with galaxy-themed laptop cover designs scheduled for release next year. The computers do not reveal any other feature differences from what Microchippers currently offers. This effort is an example of using ________ to differentiate a product as new.

Accepted Answer

A)  packaging 
B)  incremental coloring 
C)  incremental channeling 
D)  brand extension 
A)  packaging 
B)  incremental coloring 
C)  incremental channeling 
D)  brand extension

Question 14

A skimming pricing strategy

Accepted Answer

A)  allows low-income households the ability to purchase a particular good or service. 
B)  drives competitors out of business in order to achieve a monopoly position in the market. 
C)  creates a "common man" image to reach a larger market. 
D)  establishes a high price in order to earn the highest possible profit while there is little competition. 
A)  allows low-income households the ability to purchase a particular good or service. 
B)  drives competitors out of business in order to achieve a monopoly position in the market. 
C)  creates a "common man" image to reach a larger market. 
D)  establishes a high price in order to earn the highest possible profit while there is little competition.

Question 15

In evaluating colleges, students and parents are likely to judge a school

Accepted Answer

A)  strictly on the basis of major curriculums offered. 
B)  based on the tuition. 
C)  by the collection of benefits offered by the school. 
D)  on the anticipated rate of return on their tuition investment. 
A)  strictly on the basis of major curriculums offered. 
B)  based on the tuition. 
C)  by the collection of benefits offered by the school. 
D)  on the anticipated rate of return on their tuition investment.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Some goods have a product life cycle that is completed in a shorter amount of time than other goods.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  quality assurance 
B)  reduction in search time 
C)  increased repeat purchases 
D)  additional prestige 
A)  quality assurance 
B)  reduction in search time 
C)  increased repeat purchases 
D)  additional prestige

Question 19

Successful product differentiation

Accepted Answer

A)  of consumer goods is determined exclusively by price. 
B)  can be based on either real or perceived differences in products. 
C)  is prohibited if it restricts price competition and market access. 
D)  is less important due to the growth of the Internet. 
A)  of consumer goods is determined exclusively by price. 
B)  can be based on either real or perceived differences in products. 
C)  is prohibited if it restricts price competition and market access. 
D)  is less important due to the growth of the Internet.

Question 20

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

Accepted Answer

A)  skimming 
B)  penetration 
C)  target costing 
D)  price leadership 
A)  skimming 
B)  penetration 
C)  target costing 
D)  price leadership

Exam 14: Developing and Pricing Goods and Services

When consumers decide to purchase a particular product, they

A single product line may contain several competing brands.

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

New-product commercialization includes promoting the product to distributors and retailers as well as developing strong advertising and sales campaigns.

According to the Reaching Beyond Our Borders box, brand names must hold great meaning or customers will not acknowledge them.

________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

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

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

The marketing efforts for convenience and specialty goods are essentially the same.

Sandy works for Epic Electronics and oversees the marketing mix for the firm's line of HDTVs. Sandy serves as a brand manager for Epic Electronics.

Specialty goods are often marketed through specialty magazines.

A skimming pricing strategy

In evaluating colleges, students and parents are likely to judge a school

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

Some goods have a product life cycle that is completed in a shorter amount of time than other goods.

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

Successful product differentiation

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

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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