Question 1

Shopping goods and services are purchased only after consumers compare value, quality, style, and price of competing goods and services.

Accepted Answer

A) True 
 B)False

Question 2

A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the role of packaging in a firm's total product offer.

Accepted Answer

Packaging performs several important fun

Question 4

Jameson noticed that the vending machine soda bottles had changed shape. Upon further investigation, he saw that each bottle contained 2 ounces less than the previous bottles. But the price remained the same! The pricing objective of the beverage company is to

Accepted Answer

A)  increase profits by reducing the amount provided in each bottle. 
B)  build traffic at the vending machines by changing the shape of the bottle. 
C)  undercut the competition by changing the shape of the bottle. 
D)  increase market share by reducing the amount provided in each bottle. 
A)  increase profits by reducing the amount provided in each bottle. 
B)  build traffic at the vending machines by changing the shape of the bottle. 
C)  undercut the competition by changing the shape of the bottle. 
D)  increase market share by reducing the amount provided in each bottle.

Question 5

According to the product life cycle model, profits tend to

Accepted Answer

A)  remain relatively constant until the decline stage, when they begin to drop. 
B)  reach a peak near the end of the maturity stage. 
C)  rise rapidly during the market preference stage. 
D)  peak before sales reach their highest level. 
A)  remain relatively constant until the decline stage, when they begin to drop. 
B)  reach a peak near the end of the maturity stage. 
C)  rise rapidly during the market preference stage. 
D)  peak before sales reach their highest level.

Question 6

The concepts of product lines and product mixes apply to marketers of both products and services.

Accepted Answer

A) True 
 B)False

Question 7

________ consist of major capital equipment such as new factories and heavy machinery.

Accepted Answer

A)  Accessory goods 
B)  Specialty goods 
C)  Installations 
D)  Shopping goods 
A)  Accessory goods 
B)  Specialty goods 
C)  Installations 
D)  Shopping goods

Question 8

As consumers evaluate a product, price plays a small role.

Accepted Answer

A) True 
 B)False

Question 9

Concept testing involves taking a product idea to consumers to test their reactions.

Accepted Answer

A) True 
 B)False

Question 10

The purpose of ________ is to create real or perceived product differences.

Accepted Answer

A)  niche marketing 
B)  product differentiation 
C)  product mixing 
D)  target marketing 
A)  niche marketing 
B)  product differentiation 
C)  product mixing 
D)  target marketing

Question 11

Newport Industries is one of the first producers of a unique consumer product. The company has chosen a low-price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Newport's approach to pricing is a classic example of the skimming strategy.

Accepted Answer

A) True 
 B)False

Question 12

Cheryl is considering adding a rack of greeting cards to her product offerings at The Bitty Bookstore. Her fixed costs associated with adding the greeting cards would be $400. Variable costs per card are $1 each. The greeting cards will sell for $3 each. Helen's break-even point would occur at ________ cards sold.

Accepted Answer

A)  150 
B)  200 
C)  300 
D)  450 
A)  150 
B)  200 
C)  300 
D)  450

Question 13

Small firms often rely on nonprice competition when competing against larger firms.

Accepted Answer

A) True 
 B)False

Question 14

Most manufacturers hope that their brand names will become a generic name.

Accepted Answer

A) True 
 B)False

Question 15

Consumer goods and services are generally classified into four specific categories. What are the four categories, and how do they differ? Illustrate by giving examples of products that are often included in each category.

Accepted Answer

Consumer goods and services are classifi

Question 16

A skimming price strategy involves a low pricing policy intended to attract price-sensitive customers from competitors.

Accepted Answer

A) True 
 B)False

Question 17

At the break-even point

Accepted Answer

A)  profits are maximized. 
B)  variable costs are equal to total fixed costs. 
C)  target profit is achieved. 
D)  total revenue is equal to total cost. 
A)  profits are maximized. 
B)  variable costs are equal to total fixed costs. 
C)  target profit is achieved. 
D)  total revenue is equal to total cost.

Question 18

________ is an important part of the total product offer for a product.

Accepted Answer

A)  Consumer income 
B)  Management style 
C)  Employee personality 
D)  Packaging 
A)  Consumer income 
B)  Management style 
C)  Employee personality 
D)  Packaging

Question 19

Restaurants, like other businesses, often find that the best way to succeed in the market is to

Accepted Answer

A)  listen to customers and adapt products to their needs. 
B)  create a product for which they could charge an exceptionally high price. 
C)  create a winning combination of advertising and personal selling for all of the stores in the chain. 
D)  open more stores in a single year than other food-service operators. 
A)  listen to customers and adapt products to their needs. 
B)  create a product for which they could charge an exceptionally high price. 
C)  create a winning combination of advertising and personal selling for all of the stores in the chain. 
D)  open more stores in a single year than other food-service operators.

Question 20

According to the Making Ethical Decisions box, there is more and more confusion growing around what makes a product "natural." What is the Food and Drug Administration (FDA) considering doing to alleviate the confusion?

Accepted Answer

A)  banning companies from using "natural" 
B)  allowing all companies to claim products are "natural" 
C)  creating a definition for "natural" 
D)  limiting the use of "natural" to only cleaning products 
A)  banning companies from using "natural" 
B)  allowing all companies to claim products are "natural" 
C)  creating a definition for "natural" 
D)  limiting the use of "natural" to only cleaning products

Exam 14: Developing and Pricing Goods and Services

Shopping goods and services are purchased only after consumers compare value, quality, style, and price of competing goods and services.

A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

Discuss the role of packaging in a firm's total product offer.

Jameson noticed that the vending machine soda bottles had changed shape. Upon further investigation, he saw that each bottle contained 2 ounces less than the previous bottles. But the price remained the same! The pricing objective of the beverage company is to

According to the product life cycle model, profits tend to

The concepts of product lines and product mixes apply to marketers of both products and services.

________ consist of major capital equipment such as new factories and heavy machinery.

As consumers evaluate a product, price plays a small role.

Concept testing involves taking a product idea to consumers to test their reactions.

The purpose of ________ is to create real or perceived product differences.

Small firms often rely on nonprice competition when competing against larger firms.

Most manufacturers hope that their brand names will become a generic name.

Consumer goods and services are generally classified into four specific categories. What are the four categories, and how do they differ? Illustrate by giving examples of products that are often included in each category.

A skimming price strategy involves a low pricing policy intended to attract price-sensitive customers from competitors.

At the break-even point

________ is an important part of the total product offer for a product.

Restaurants, like other businesses, often find that the best way to succeed in the market is to

According to the Making Ethical Decisions box, there is more and more confusion growing around what makes a product "natural." What is the Food and Drug Administration (FDA) considering doing to alleviate the confusion?

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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