Question 1

Which of the following is a popular pricing objective?

Accepted Answer

A)  increasing sales 
B)  increasing brand awareness 
C)  fixing prices among competitors 
D)  achieving less market share 
A)  increasing sales 
B)  increasing brand awareness 
C)  fixing prices among competitors 
D)  achieving less market share

Question 2

While the UPC improves efficiency at the retail checkout counter, it has increased problems in controlling inventory.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a potential problem with a high-low pricing strategy?

Accepted Answer

A)  It confuses and frustrates customers. 
B)  It places too much emphasis on nonprice competition. 
C)  It teaches customers to wait for sales, and therefore reduces profits. 
D)  It is difficult to implement. 
A)  It confuses and frustrates customers. 
B)  It places too much emphasis on nonprice competition. 
C)  It teaches customers to wait for sales, and therefore reduces profits. 
D)  It is difficult to implement.

Question 4

Textbook publishers use a packaging strategy known as ______________. Often the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.

Accepted Answer

A)  proformatting 
B)  bartering 
C)  bundling 
D)  trademarketing 
A)  proformatting 
B)  bartering 
C)  bundling 
D)  trademarketing

Question 5

The evaluation of packaging as a marketing function indicates that:

Accepted Answer

A)  the package is less important as the Internet provides consumers with easily obtained information. 
B)  packaging carries more of the promotional burden of the product. 
C)  consumers are influenced less by packaging. 
D)  the primary purpose of packaging is to limit the product liability of businesses. 
A)  the package is less important as the Internet provides consumers with easily obtained information. 
B)  packaging carries more of the promotional burden of the product. 
C)  consumers are influenced less by packaging. 
D)  the primary purpose of packaging is to limit the product liability of businesses.

Question 6

John needed transportation. Now that his new marketing job was on the horizon, it was time to go shopping. New was probably going to be out of the question. As he reviewed his options, he listed the kinds of things he wanted in a vehicle: the ability to carry some large things; a comfortable back seat for his two dogs; 4-wheel drive for snow and ice; and economical on gas. Marketers know that today's consumers:

Accepted Answer

A)  are educated and very savvy and are looking for features and not benefits. 
B)  are willing to pay just about any price if they find the features they want. 
C)  look for the best value (benefits outweigh the cost). 
D)  are always economically sensitive, first. 
A)  are educated and very savvy and are looking for features and not benefits. 
B)  are willing to pay just about any price if they find the features they want. 
C)  look for the best value (benefits outweigh the cost). 
D)  are always economically sensitive, first.

Question 7

"Create a better mousetrap and the world will beat a path to your door." This statement is consistent with the idea behind the commercialization of products.

Accepted Answer

A) True 
 B)False

Question 8

Successful businesses constantly monitor consumer wants and needs.

Accepted Answer

A) True 
 B)False

Question 9

The job performed by brand managers:

Accepted Answer

A)  is mainly concerned with the promotion of the entire product mix of their firm. 
B)  involves broad responsibilities for the marketing of a specific brand or product line. 
C)  is likely to become less important in firms that utilize the Internet. 
D)  focuses more on the pricing and promotion of established goods than on the development of new products. 
A)  is mainly concerned with the promotion of the entire product mix of their firm. 
B)  involves broad responsibilities for the marketing of a specific brand or product line. 
C)  is likely to become less important in firms that utilize the Internet. 
D)  focuses more on the pricing and promotion of established goods than on the development of new products.

Question 10

Which of the following would a firm most likely use to differentiate its product?

Accepted Answer

A)  financial differences 
B)  increased production 
C)  elaborate packaging 
D)  manual warehousing 
A)  financial differences 
B)  increased production 
C)  elaborate packaging 
D)  manual warehousing

Question 11

A skimming pricing strategy:

Accepted Answer

A)  allows low-income households the ability to purchase a particular good or service. 
B)  drives competitors out of business in order to achieve a monopoly position in the market. 
C)  creates a "common man" image to reach a larger market. 
D)  establishes a high price in order to earn the highest possible profit while there is little competition. 
A)  allows low-income households the ability to purchase a particular good or service. 
B)  drives competitors out of business in order to achieve a monopoly position in the market. 
C)  creates a "common man" image to reach a larger market. 
D)  establishes a high price in order to earn the highest possible profit while there is little competition.

Question 12

Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.

Accepted Answer

A) True 
 B)False

Question 13

Target costing is a cost-based pricing strategy.

Accepted Answer

A) True 
 B)False

Question 14

June lives in the southern part of Alabama where winters are normally fairly mild. Last January, during an unusually cold spell, the water pipes in her house froze and burst. She had to look online to find a plumber who was able to come out and repair the pipes the same day. Prior to the frozen pipes, the plumber's services represented a(n):

Accepted Answer

A)  unsought service. 
B)  industrial service. 
C)  specialty service. 
D)  convenience service. 
A)  unsought service. 
B)  industrial service. 
C)  specialty service. 
D)  convenience service.

Question 15

Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus. His largest competitors are large nationally known organizations. The small size of Dutch's business prevents him from successfully utilizing a product differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 16

Industrial goods are sold in the B2B market.

Accepted Answer

A) True 
 B)False

Question 17

For most firms, price competition is the most important way to gain a competitive advantage over rivals.

Accepted Answer

A) True 
 B)False

Question 18

Total fixed costs are those costs that change when the volume of production changes.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

One of the reasons marketers emphasize nonprice differences in their competitive strategies is because:

Accepted Answer

A)  consumers aren't concerned about prices. 
B)  these methods have no impact on the cost of production. 
C)  nonprice differences are tax deductible. 
D)  relatively similar products can be enhanced. 
A)  consumers aren't concerned about prices. 
B)  these methods have no impact on the cost of production. 
C)  nonprice differences are tax deductible. 
D)  relatively similar products can be enhanced.

Exam 14: Developing and Pricing Goods and Services

Which of the following is a popular pricing objective?

While the UPC improves efficiency at the retail checkout counter, it has increased problems in controlling inventory.

Which of the following is a potential problem with a high-low pricing strategy?

Textbook publishers use a packaging strategy known as ______________. Often the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.

The evaluation of packaging as a marketing function indicates that:

"Create a better mousetrap and the world will beat a path to your door." This statement is consistent with the idea behind the commercialization of products.

Successful businesses constantly monitor consumer wants and needs.

The job performed by brand managers:

Which of the following would a firm most likely use to differentiate its product?

A skimming pricing strategy:

Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.

Target costing is a cost-based pricing strategy.

Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus. His largest competitors are large nationally known organizations. The small size of Dutch's business prevents him from successfully utilizing a product differentiation strategy.

Industrial goods are sold in the B2B market.

For most firms, price competition is the most important way to gain a competitive advantage over rivals.

Total fixed costs are those costs that change when the volume of production changes.

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

One of the reasons marketers emphasize nonprice differences in their competitive strategies is because:

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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