Exam 14: Developing and Pricing Goods and Services

Which of the following is a stage in the product life cycle?

_________ is an important part of the total product offer for a product.

Brand __________ refers to the loyalty,perceived quality,and emotions people associate with a given brand name.

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.

Endorsements by sports or movie celebrities can help create a favorable brand association.

When consumer loyalty reaches the point of brand insistence,the product becomes a specialty good.

Which of the following is a characteristic of the decline stage of the product life cycle?

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

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

The product analysis stage of the new-product development process considers the sales forecasts and cost estimates of a new-product idea.

Dewy,Cheatem,and Howe's promotional efforts are intended to increase the public's awareness of its new product's benefits and uses.This effort is consistent with the ________ stage of the product life cycle model.

Felicia wants to know how many units she must sell to cover all of her costs.She indicates to you that her selling price is $20 per unit,her fixed costs are $6,000,and the variable costs per unit are $15.What is her break-even point?

Entice-mint Breath Mints is a new brand of breath fresheners.The company realizes that product location is very important since consumers desire to buy this type product with a minimum of effort.Entice-mint mints represent a:

In the long run the market determines what the price will be.

__________ consists of major capital equipment such as new factories and heavy machinery.

A skimming price strategy involves a low pricing policy intended to attract price-sensitive customers from competitors.

The four-stage theoretical model that describes the evolution of a product from birth to death is referred to as the:

SnackAttack has found that an effective technique to generate ideas for new consumer products is to carefully listen to employees and suppliers.

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

The cost of raw materials used to produce a good or service represent the firm's ________ costs.