Question 1

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.

Accepted Answer

A) True 
 B)False

Question 2

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 3

In order for product differentiation to be effective, real product differences must be identified so that one product is clearly better than others.

Accepted Answer

A) True 
 B)False

Question 4

Packaging is an important part of the total product offer.

Accepted Answer

A) True 
 B)False

Question 5

Convenience goods are products that the consumer wants to purchase frequently and with a minimum of effort.

Accepted Answer

A) True 
 B)False

Question 6

A product line is a group of products that are physically similar or are intended for a similar market.

Accepted Answer

A) True 
 B)False

Question 7

Employees, not the firm's research and development department, are the number one source of ideas for new industrial products.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Travelwell manufactures and sells luggage and briefcases. Their marketing research indicates that durability is the attribute that consumers most desire in their luggage and briefcases. Travelwell now emphasizes durability in all of their promotional efforts. This strategy is intended to build brand equity.

Accepted Answer

A) True 
 B)False

Question 10

___________ is the stage of new-product development that involves promoting a product to distributors, and developing advertising and sales campaigns in order to generate and maintain consumer interest.

Accepted Answer

A)  Commercialization 
B)  Brand identification 
C)  Product differentiation 
D)  Merchandising 
A)  Commercialization 
B)  Brand identification 
C)  Product differentiation 
D)  Merchandising

Question 11

Unsought goods and services are products consumers do not actively seek out for purchase on a regular basis.

Accepted Answer

A) True 
 B)False

Question 12

Rather than having frequent special sales, Walt's Warehouse has a pricing strategy that maintains lower prices than competitors all the time. Walt's pricing strategy is known as everyday low prices (EDLP).

Accepted Answer

A) True 
 B)False

Question 13

__________ presents an idea for a new product to potential customers to test their reactions.

Accepted Answer

A)  Idea generation 
B)  Concept testing 
C)  Screening 
D)  Prototype development 
A)  Idea generation 
B)  Concept testing 
C)  Screening 
D)  Prototype development

Question 14

Which of the following are products consumers buy after comparing quality, price, and style from a variety of sellers?

Accepted Answer

A)  shopping goods 
B)  specialty goods 
C)  convenience goods 
D)  unsought goods 
A)  shopping goods 
B)  specialty goods 
C)  convenience goods 
D)  unsought goods

Question 15

Brand equity refers to those factors that people associate with a specific brand name, such as awareness, perceived quality, and loyalty.

Accepted Answer

A) True 
 B)False

Question 16

Webster 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. Webster's approach to pricing is a classic example of the skimming strategy.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Sales of generic products are decreasing because consumers prefer the higher quality of the nationally known brands.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

In recent years, the packaging of products has been given a greater role in product promotion.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.

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

In order for product differentiation to be effective, real product differences must be identified so that one product is clearly better than others.

Packaging is an important part of the total product offer.

Convenience goods are products that the consumer wants to purchase frequently and with a minimum of effort.

A product line is a group of products that are physically similar or are intended for a similar market.

Employees, not the firm's research and development department, are the number one source of ideas for new industrial products.

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

___________ is the stage of new-product development that involves promoting a product to distributors, and developing advertising and sales campaigns in order to generate and maintain consumer interest.

Unsought goods and services are products consumers do not actively seek out for purchase on a regular basis.

Rather than having frequent special sales, Walt's Warehouse has a pricing strategy that maintains lower prices than competitors all the time. Walt's pricing strategy is known as everyday low prices (EDLP).

__________ presents an idea for a new product to potential customers to test their reactions.

Which of the following are products consumers buy after comparing quality, price, and style from a variety of sellers?

Brand equity refers to those factors that people associate with a specific brand name, such as awareness, perceived quality, and loyalty.

According to the product life cycle model, profits tend to:

Sales of generic products are decreasing because consumers prefer the higher quality of the nationally known brands.

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

In recent years, the packaging of products has been given a greater role in product promotion.

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

Filters