Exam 14: Developing and Pricing Goods and Services

When consumers decide to purchase a particular product, they:

A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

Product testing is designed to reduce the number of new-product ideas that a firm works on at any one time.

Once an organization surveys the consumer's wants and needs, has designed a group of products to meet those needs, and begun to market them in stores, the organization is assured of success.

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.

Chevrolet is an example of a generic name in the automobile market.

The trend toward self-service retailers has increased the importance of packaging.

In evaluating colleges, students and parents are likely to judge a school:

Gabe intends to visit a variety of retailers of sound equipment comparing features, quality, and prices of different brands at each store. This behavior indicates that for Gabe a sound system is a shopping good.

For small businesses, product differentiation:

LoRider Wheels sells high-quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of the ___________ offered by LoRider.

Product development is a key activity in any modern business, anywhere in the world.

New products often fail because they don't deliver to consumers their promised benefits.

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

Once a good or service nears the end of its product life cycle, the firm recognizes that:

The U.S. legal system does not offer trademark protection.

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.

Today, packaging is:

Federated Grocery Stores operates a large chain of stores across several midwestern states. While Federated doesn't actually produce any canned foods, it markets a line of foods under its own brand name that were actually produced by another company. Federated canned foods represent a:

The break-even point is that level of sales where total revenues equals total costs.