Question 1

A brand that has been given exclusive legal protection, such as the McDonald's golden arches, is a:

Accepted Answer

A)  private brand. 
B)  promotional mark. 
C)  dealer brand. 
D)  trademark. 
A)  private brand. 
B)  promotional mark. 
C)  dealer brand. 
D)  trademark.

Question 2

From the buyer's perspective, which of the following is a benefit of a product with a well-known brand name?

Accepted Answer

A)  quality assurance 
B)  helps in promotional efforts 
C)  adds to repeat purchases 
D)  differentiates products so that prices can be set higher 
A)  quality assurance 
B)  helps in promotional efforts 
C)  adds to repeat purchases 
D)  differentiates products so that prices can be set higher

Question 3

One way a small firm can succeed against larger competitors is to:

Accepted Answer

A)  determine their break-even point price. 
B)  add value to their product offering. 
C)  eliminate the fringe benefits offered to frequent customers. 
D)  use break-even segmentation. 
A)  determine their break-even point price. 
B)  add value to their product offering. 
C)  eliminate the fringe benefits offered to frequent customers. 
D)  use break-even segmentation.

Question 4

The Spotlight on Small Business box showed us through the example of Randy Hetrick's TRX Suspension Trainer that in order to remain successful, sometimes expanding the product mix is essential.

Accepted Answer

A) True 
 B)False

Question 5

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Accepted Answer

A)  mixed costs. 
B)  controllable costs. 
C)  fixed costs. 
D)  variable costs. 
A)  mixed costs. 
B)  controllable costs. 
C)  fixed costs. 
D)  variable costs.

Question 6

Brand names can significantly impact consumer perceptions of a product.

Accepted Answer

A) True 
 B)False

Question 7

Computers, copiers, and fax machines used by businesses would be classified as:

Accepted Answer

A)  installations. 
B)  shopping goods. 
C)  specialty goods. 
D)  accessory equipment. 
A)  installations. 
B)  shopping goods. 
C)  specialty goods. 
D)  accessory equipment.

Question 8

A __________ is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

Accepted Answer

A)  trademark 
B)  brand 
C)  logo 
D)  copyright 
A)  trademark 
B)  brand 
C)  logo 
D)  copyright

Question 9

The key to demand-oriented pricing is the recognition that not all producers face the same costs of production.

Accepted Answer

A) True 
 B)False

Question 10

According to the Adapting to Change box, a social media presence isn't needed for small businesses to connect with customers.

Accepted Answer

A) True 
 B)False

Question 11

Soprano Manufacturing acquired several pieces of expensive heavy machinery it intends to use in its operations. As an industrial good, this heavy machinery represents:

Accepted Answer

A)  an installation. 
B)  accessory equipment. 
C)  an intermediate good. 
D)  a shopping good. 
A)  an installation. 
B)  accessory equipment. 
C)  an intermediate good. 
D)  a shopping good.

Question 12

When consumers calculate the value of a product, they:

Accepted Answer

A)  subtract the cost of production from the market price. 
B)  eliminate all nontangible elements that might affect their perception of the product. 
C)  look at the benefits the product provides then subtract the cost. 
D)  identify the variable and the fixed components of the product's benefits. 
A)  subtract the cost of production from the market price. 
B)  eliminate all nontangible elements that might affect their perception of the product. 
C)  look at the benefits the product provides then subtract the cost. 
D)  identify the variable and the fixed components of the product's benefits.

Question 13

Virtual Electronics is considering a strategy to charge a very high introductory price for their automobile video theater. After identifying that their rival firms did not carry this new product, they chose this pricing strategy to achieve maximum profits. Virtual Electronics has chosen a ________ strategy.

Accepted Answer

A)  high-low pricing 
B)  penetration 
C)  bundling 
D)  skimming 
A)  high-low pricing 
B)  penetration 
C)  bundling 
D)  skimming

Question 14

Target costing adds a profit margin to estimated cost of production to determine the optimal price.

Accepted Answer

A) True 
 B)False

Question 15

In marketing today, packaging carries the added responsibility of:

Accepted Answer

A)  promotion and sales. 
B)  minimizing product liability. 
C)  gaining access to international markets. 
D)  keeping product costs down. 
A)  promotion and sales. 
B)  minimizing product liability. 
C)  gaining access to international markets. 
D)  keeping product costs down.

Question 16

Gill's Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin. Gill's strategy is known as target costing.

Accepted Answer

A) True 
 B)False

Question 17

_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.

Accepted Answer

A)  High-low pricing 
B)  Everyday low pricing (EDLP) 
C)  Bundling 
D)  Psychological pricing 
A)  High-low pricing 
B)  Everyday low pricing (EDLP) 
C)  Bundling 
D)  Psychological pricing

Question 18

Whether a consumer thinks a product provides the best value depends upon:

Accepted Answer

A)  the actual product benefits. 
B)  the consumer's perceptions. 
C)  the global situation. 
D)  the laws covering the product's manufacture. 
A)  the actual product benefits. 
B)  the consumer's perceptions. 
C)  the global situation. 
D)  the laws covering the product's manufacture.

Question 19

__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Accepted Answer

A)  Price discrimination 
B)  Price leadership 
C)  Target costing 
D)  Cost-based pricing 
A)  Price discrimination 
B)  Price leadership 
C)  Target costing 
D)  Cost-based pricing

Question 20

Nonbranded products that sell below the price of national brands, have very basic packaging, and are backed with little or no advertising are called:

Accepted Answer

A)  universal goods. 
B)  distributor brands. 
C)  house brands. 
D)  generic goods. 
A)  universal goods. 
B)  distributor brands. 
C)  house brands. 
D)  generic goods.

Exam 14: Developing and Pricing Goods and Services

A brand that has been given exclusive legal protection, such as the McDonald's golden arches, is a:

From the buyer's perspective, which of the following is a benefit of a product with a well-known brand name?

One way a small firm can succeed against larger competitors is to:

The Spotlight on Small Business box showed us through the example of Randy Hetrick's TRX Suspension Trainer that in order to remain successful, sometimes expanding the product mix is essential.

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Brand names can significantly impact consumer perceptions of a product.

Computers, copiers, and fax machines used by businesses would be classified as:

A __________ is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

The key to demand-oriented pricing is the recognition that not all producers face the same costs of production.

According to the Adapting to Change box, a social media presence isn't needed for small businesses to connect with customers.

Soprano Manufacturing acquired several pieces of expensive heavy machinery it intends to use in its operations. As an industrial good, this heavy machinery represents:

When consumers calculate the value of a product, they:

Target costing adds a profit margin to estimated cost of production to determine the optimal price.

In marketing today, packaging carries the added responsibility of:

Gill's Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin. Gill's strategy is known as target costing.

_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.

Whether a consumer thinks a product provides the best value depends upon:

__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Nonbranded products that sell below the price of national brands, have very basic packaging, and are backed with little or no advertising are called:

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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