Question 1

The product life cycle consists of ________ stages.

Accepted Answer

A)  3 
B)  4 
C)  5 
D)  6 
A)  3 
B)  4 
C)  5 
D)  6

Question 2

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

Accepted Answer

A) True 
 B)False

Question 3

The stages of the product life cycle are

Accepted Answer

A)  production, inventory, exchange, usage, and disposal. 
B)  conception, testing, production, commercialization, and obsolescence. 
C)  introduction, growth, maturity, and decline. 
D)  opportunity recognition, concept testing, production, market acceptance, brand insistence, and obsolescence. 
A)  production, inventory, exchange, usage, and disposal. 
B)  conception, testing, production, commercialization, and obsolescence. 
C)  introduction, growth, maturity, and decline. 
D)  opportunity recognition, concept testing, production, market acceptance, brand insistence, and obsolescence.

Question 4

Suitorium is a men's clothing store in a large suburban shopping mall. The managers of the store know that their customers usually comparison shop, looking carefully at quality and price before deciding to buy. With this information, Suitorium carries quality clothing, offers competitive pricing, and friendly, helpful service. The target customers apparently view men's suits as a

Accepted Answer

A)  specialty good. 
B)  convenience good. 
C)  shopping good. 
D)  unsought good. 
A)  specialty good. 
B)  convenience good. 
C)  shopping good. 
D)  unsought good.

Question 5

The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.

Accepted Answer

A) True 
 B)False

Question 6

Currently, which of the following products would most likely be considered in the growth stage of the product life cycle?

Accepted Answer

A)  DVD players 
B)  Welch's grape jelly 
C)  VR games 
D)  Camel cigarettes 
A)  DVD players 
B)  Welch's grape jelly 
C)  VR games 
D)  Camel cigarettes

Question 7

Which of the following is considered a stage of the new-product development process?

Accepted Answer

A)  automation 
B)  media screening 
C)  commercialization 
D)  selective perception 
A)  automation 
B)  media screening 
C)  commercialization 
D)  selective perception

Question 8

A knockoff brand is a brand name that has lost its exclusive legal protection.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following strategies establishes a price based on the actions of rival firms?

Accepted Answer

A)  competition-based pricing 
B)  cost-based pricing 
C)  demand collection system 
D)  bundling 
A)  competition-based pricing 
B)  cost-based pricing 
C)  demand collection system 
D)  bundling

Question 10

Sometimes a firm will lower prices below their costs in order to build a customer base.

Accepted Answer

A) True 
 B)False

Question 11

Price, store surroundings, service, and brand name are all elements that consumers evaluate in a total product offer.

Accepted Answer

A) True 
 B)False

Question 12

One of the reasons why companies create the position of brand manager is to

Accepted Answer

A)  have greater control over new-product development and promotion. 
B)  cut expenses associated with the marketing of products. 
C)  limit the amount of market research expenses products require. 
D)  identify and prosecute firms that violate trademark protection. 
A)  have greater control over new-product development and promotion. 
B)  cut expenses associated with the marketing of products. 
C)  limit the amount of market research expenses products require. 
D)  identify and prosecute firms that violate trademark protection.

Question 13

Products that carry the name of a distributor or a retailer instead of the manufacturer's name are called

Accepted Answer

A)  dealer (private) brands. 
B)  knockoff brands. 
C)  generic brands. 
D)  equity brands. 
A)  dealer (private) brands. 
B)  knockoff brands. 
C)  generic brands. 
D)  equity brands.

Question 14

During the ________ stage of the product life cycle sales reach a peak, profits are declining, and the number of competitors starts to decrease.

Accepted Answer

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

Question 15

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

Accepted Answer

A)  brand awareness. 
B)  brand relations. 
C)  brand loyalty. 
D)  brand intensity. 
A)  brand awareness. 
B)  brand relations. 
C)  brand loyalty. 
D)  brand intensity.

Question 16

In marketing today, packaging carries the added responsibility of:

Accepted Answer

A)  promotion and sales. 
B)  minimizing product liability. 
C)  gaining access to international markets. 
D)  keeping product costs down. 
A)  promotion and sales. 
B)  minimizing product liability. 
C)  gaining access to international markets. 
D)  keeping product costs down.

Question 17

Which of the following is expected during the maturity stage of a product life cycle?

Accepted Answer

A)  a rapid increase in profits 
B)  a rapid increase in the number of competitors 
C)  peak sales 
D)  reduced emphasis on promoting the product's brand name 
A)  a rapid increase in profits 
B)  a rapid increase in the number of competitors 
C)  peak sales 
D)  reduced emphasis on promoting the product's brand name

Question 18

Brand managers have direct responsibility for all the elements of the marketing mix for a particular brand or product line.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

As more sales move to online retailers, it is likely that firms will adopt a high-low pricing strategy.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

The product life cycle consists of ________ stages.

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

The stages of the product life cycle are

The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.

Currently, which of the following products would most likely be considered in the growth stage of the product life cycle?

Which of the following is considered a stage of the new-product development process?

A knockoff brand is a brand name that has lost its exclusive legal protection.

Which of the following strategies establishes a price based on the actions of rival firms?

Sometimes a firm will lower prices below their costs in order to build a customer base.

Price, store surroundings, service, and brand name are all elements that consumers evaluate in a total product offer.

One of the reasons why companies create the position of brand manager is to

Products that carry the name of a distributor or a retailer instead of the manufacturer's name are called

During the ________ stage of the product life cycle sales reach a peak, profits are declining, and the number of competitors starts to decrease.

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

In marketing today, packaging carries the added responsibility of:

Which of the following is expected during the maturity stage of a product life cycle?

Brand managers have direct responsibility for all the elements of the marketing mix for a particular brand or product line.

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

As more sales move to online retailers, it is likely that firms will adopt a high-low pricing strategy.

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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