Exam 14: Developing and Pricing Goods and Services

Epic Electronics is considering a strategy to charge a very high introductory price for their automobile video theater. After identifying that their rival firms did not carry this new product, they chose this pricing strategy to achieve maximum profits. Epic Electronics has chosen a ________ strategy.

Knockoff brands are ________ copies of national brand-name goods.

The box, Playing the Name Game explains

The four-stage theoretical model that describes the evolution of a product from birth to death is referred to as the

Product testing is designed to reduce the number of new-product ideas that a firm works on at any one time.

Fast food restaurants, like Carl's Jr., pride themselves on offering precisely the same menu around the world so that customers know exactly what to expect when they eat at one of those restaurants.

Kimberly, a brand manager, has proposed an aggressive advertising campaign that exaggerates the benefits of her company's newest product. While she is convinced that this strategy will encourage consumers to try the product, her assistant strongly opposes the idea. Which of the following presents the best explanation for the assistant's opposition to Kimberly's proposal?

The use of price discounts and coupons may erode the commitment of consumers to brand names.

Winter Cool Mints is a new brand of breath fresheners. The company knows product location is very important since consumers desire to buy this type product with a minimum of effort. Winter Cool Mints represent a

Which of the following statements is the most accurate assessment of the role packaging plays in product offerings?

At the concept testing stage, factors such as packaging, branding, and ingredients should be tested to ensure that a product is acceptable to potential consumers.

Successful businesses constantly monitor consumer wants and needs.

Barker Brothers Pens utilizes a strategy of low-priced pens to attract customers and discourage competition. This represents a ________ strategy.

Which of the following is a popular pricing objective?

Successful firms coordinate pricing objective strategies with decisions regarding product design, packaging, branding, distribution, and promotion.

Brand ________ refers to the loyalty, perceived quality, and emotions people associate with a given brand name.

Eliza, a collector of fine art, particularly loves paintings. She has been looking for an original Jackson Pollack painting for months and has said that she is willing to go to extraordinary efforts to acquire this painting for her collection. Clearly this painting represents a ________ good for Eliza.

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

Gourmet Pets is interested in computing the break-even point for its new product Prime Cuts. The fixed costs of adding this product to the product line amounts to $20,000. Variable costs to produce one package of Prime Cuts are $2. Prime Cuts will sell for $6 per package. The break-even point would be

The Coca-Cola Company produces Diet Coke, Diet Coke with Splenda, and Coke Zero along with a number of other flavors. These products are part of Coca-Cola's