Exam 14: Developing and Pricing Goods and Services

The two types of industrial goods are production goods and unsought goods.

The classification of goods or services into a particular class depends on the individual consumer.

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 is consistent with the growth stage of the product life cycle?

The Procter & Gamble Company is a major producer of bar soaps. In fact, Procter & Gamble produces Ivory, Camay, Lava, Safeguard, Zest, and Coast bar soaps that all claim a variety of benefits. These products are part of Procter & Gamble's ________ in bar soaps.

Variable costs are costs that change with the level of production.

The U.S. legal system does not offer trademark protection.

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

Certain brand names, such as Kleenex and Rollerblade, 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.

Many supermarkets carry plain packages that only identify the name of the product that is inside. For example, a label may read simply "peaches" or "green beans." These goods represent

Newspapers are sold daily in a wide variety of locations. This widespread distribution suggests that newspapers are classified as convenience goods.

Packaging is an important part of the total product offer.

Although their names are similar, brand loyalty and brand equity are unrelated.

The purpose of a brand name is to establish an image of generic goods or services.

Textbook publishers use a packaging strategy known as ________. Often the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.

The critical component of a total product offer is always a low price.

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

The New Era Cap Company understands the importance of ________. In the mid-1990s, the company's products became very popular when film director Spike Lee requested a red Yankees cap, instead of the traditional blue cap. It did not take long for Yankees' fans who were also fans of Spike Lee to want to wear a similar cap.

CarryOn, a manufacturer and seller of luggage and briefcases, has found marketing research indicates durability is the attribute that consumers most desire in their products. CarryOn now emphasizes durability in all of their promotional efforts. This strategy is intended to build brand equity.

Sweet Tooth Confectioners may use the same ingredients as most other producers of chocolate candies and may not even be much better than other well-known brands of chocolate. However, the company wraps its candies in expensive-looking foil and places them in very attractive boxes. It promotes its products in advertisements as "the ultimate in chocolate experience." Sweet Tooth charges a much higher price than most competitors, but sales continue to grow. This success indicates that