Question 1

Shopping online allows customers to compare prices of many goods and services. This technology will likely:

Accepted Answer

A)  cause businesses to increase their focus on nonprice aspects of their promotional message. 
B)  bring about more emphasis on demand-oriented pricing. 
C)  diminish in importance as quickly as other fads. 
D)  focus government attention on the collusive pricing practices of firms in specific industries. 
A)  cause businesses to increase their focus on nonprice aspects of their promotional message. 
B)  bring about more emphasis on demand-oriented pricing. 
C)  diminish in importance as quickly as other fads. 
D)  focus government attention on the collusive pricing practices of firms in specific industries.

Question 2

A leading cause of new-product failure is:

Accepted Answer

A)  insufficient competition. 
B)  product promises that are not delivered. 
C)  the automation of the product development process. 
D)  excessive product differentiation. 
A)  insufficient competition. 
B)  product promises that are not delivered. 
C)  the automation of the product development process. 
D)  excessive product differentiation.

Question 3

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and discouraging competitors?

Accepted Answer

A)  penetration strategy 
B)  odd-even pricing strategy 
C)  skimming strategy 
D)  price lining strategy 
A)  penetration strategy 
B)  odd-even pricing strategy 
C)  skimming strategy 
D)  price lining strategy

Question 4

Miranda is a marketing manager for a large manufacturer. Her boss has asked her to evaluate a new-product idea. One of the things Miranda 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 5

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 6

A self-portrait of a celebrated photographer sold at a Christie's auction for about $4 million dollars. According to Christie's, this was the highest price ever received for a photograph in the history of the auction business. As a student of marketing, you would classify this photo and other rare items sold through Christie's as____________.

Accepted Answer

A)  unsought for goods 
B)  specialty goods 
C)  intangible goods 
D)  shopping goods 
A)  unsought for goods 
B)  specialty goods 
C)  intangible goods 
D)  shopping goods

Question 7

Marketers use pricing, advertising, and packaging to differentiate their products from competitors' products even when actual differences are quite small.

Accepted Answer

A) True 
 B)False

Question 8

Thigpen Equipment Company sells used heavy construction equipment such as bulldozers and cranes. Thigpen's products represent examples of an accessory equipment industrial good.

Accepted Answer

A) True 
 B)False

Question 9

The brand names that are used by producers that distribute products nationally are called:

Accepted Answer

A)  manufacturers' brands. 
B)  product category brands. 
C)  generic brand names. 
D)  universal brand names. 
A)  manufacturers' brands. 
B)  product category brands. 
C)  generic brand names. 
D)  universal brand names.

Question 10

The Spotlight on Small Business box showed us that as time passes, marketing plans should be reevaluated and:

Accepted Answer

A)  successful products need a complete redesign. 
B)  no product changes should occur. 
C)  product lines should be abandoned. 
D)  product mixes expanded. 
A)  successful products need a complete redesign. 
B)  no product changes should occur. 
C)  product lines should be abandoned. 
D)  product mixes expanded.

Question 11

Angie owns a small company that markets high-quality office supplies to businesses. Angie faces stiff competition from some much larger firms like Office Depot. Which of the following competitive strategies would probably work best for Angie?

Accepted Answer

A)  Keep costs as low as possible by offering a no-frills approach with little or no extra services. 
B)  Develop a skimming pricing strategy. 
C)  Utilize a high-low approach to pricing with a higher break-even point. 
D)  Focus on nonprice competition by offering better service with customers and work on building good customer relationships. 
A)  Keep costs as low as possible by offering a no-frills approach with little or no extra services. 
B)  Develop a skimming pricing strategy. 
C)  Utilize a high-low approach to pricing with a higher break-even point. 
D)  Focus on nonprice competition by offering better service with customers and work on building good customer relationships.

Question 12

In the new-product development process, product analysis is completed prior to the product screening stage.

Accepted Answer

A) True 
 B)False

Question 13

Comet Computer Company will make a splash with psychedelic laptop cover designs scheduled for release next year. The computers do not reveal any other feature differences from what Comet 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

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

Accepted Answer

A) True 
 B)False

Question 15

Unsought goods and services are purchased on impulse and provide no added value to consumers.

Accepted Answer

A) True 
 B)False

Question 16

From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and excludes any intangible attributes.

Accepted Answer

A) True 
 B)False

Question 17

Products that are used in the production of other goods and services are called ________ goods.

Accepted Answer

A)  specialty 
B)  shopping 
C)  industrial 
D)  sponsored 
A)  specialty 
B)  shopping 
C)  industrial 
D)  sponsored

Question 18

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 19

Interactive websites are useful in the commercialization process for new products.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 14: Developing and Pricing Goods and Services

Shopping online allows customers to compare prices of many goods and services. This technology will likely:

A leading cause of new-product failure is:

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and discouraging competitors?

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

Marketers use pricing, advertising, and packaging to differentiate their products from competitors' products even when actual differences are quite small.

Thigpen Equipment Company sells used heavy construction equipment such as bulldozers and cranes. Thigpen's products represent examples of an accessory equipment industrial good.

The brand names that are used by producers that distribute products nationally are called:

The Spotlight on Small Business box showed us that as time passes, marketing plans should be reevaluated and:

Angie owns a small company that markets high-quality office supplies to businesses. Angie faces stiff competition from some much larger firms like Office Depot. Which of the following competitive strategies would probably work best for Angie?

In the new-product development process, product analysis is completed prior to the product screening stage.

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

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

Unsought goods and services are purchased on impulse and provide no added value to consumers.

From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and excludes any intangible attributes.

Products that are used in the production of other goods and services are called ________ goods.

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

Interactive websites are useful in the commercialization process for new products.

At the break-even point:

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 Union and 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

Managing the Marketing Mix: Product, Price, Place and Promotion

Extension: Working Within the Legal Environment

Extension: Using Technology to Manage Information

Extension: Managing Risk

Extension: Managing Personal Finances

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