Exam 14: Developing and Pricing Goods and Services

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

Mini-Case Gourmet Pets is an innovative competitor in the billion-dollar pet food industry.In fact,two of its products,Kitty Sirloin and McDog T-bone,each claim over a 30% share in their market segments.The company has done detailed research and discovered that,for a growing number of pet owners,the family pet serves as a "baby substitute." These owners tend to pamper their pets,and are very discriminating in what they purchase.With this in mind,the company has put a great deal of effort into developing a new dog food: Prime Cuts.The new product is packaged in a resealable,microwaveable container and can be purchased in a variety of flavors (including Western BBQ,Teriyaki,Australian Outback,and Hickory Smoked. )Gourmet Pets promotes the product as far superior to "average" dog foods,even though the quality of meat and nutrient content of the food is virtually identical to many other brands.The company faces no competition in this market segment so it plans to charge a high price for the product. -Prime Cuts was the brainchild of Karen Terrier who guided all the marketing efforts of the product.She selected each element of the marketing mix such as the package,brand name,pricing,promotion,and placement decisions.Karen obviously serves in the job of:

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 in the Yellow Pages 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):

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

While the time in each stage may vary,all products progress through each stage of the product life cycle.

The best strategy for brand name manufacturers to respond to the challenge of generic goods is to use price discounts and coupons to price their products more aggressively.

Consumers are best served by providing specialty goods in convenient locations.

The product life cycle consists of __________ stages.

Regardless of changes in packaging,the total product offer remains unchanged.

As a brand manager,Ellen has proposed an aggressive advertising campaign that exaggerates the benefits of their newest product.While Ellen is convinced that this strategy will encourage consumers to try the product,her assistant strongly opposes the idea.Which of the following presents the best explanation for the assistant's opposition to Ellen's proposal?

_______ costs are those costs that increase as the level of production increases.

One of the reasons marketers emphasize non-price differences in their competitive strategies is because:

Which of the following is a relevant criterion for the product screening process?

As a result of increased advertising and well-trained salespeople,packaging is less important than in the past.

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

"I Can't Believe That It's Medicine" is an advertising slogan for a new antacid.The manufacturer claims that their antacid works faster and tastes better than any competing brand.These claims are part of the firm's strategy to achieve:

Thigpen Equipment Company sells used heavy construction equipment such as bulldozers and cranes.Thigpen's products represent examples of an accessory equipment industrial good.

Admiral Motors is the dominant firm in the auto market.When Admiral announces an increase in the prices of its automobiles,Chord and Frysler,the smaller firms in the market,usually quickly announce similar price increases for their own cars.This situation is an example of demand-oriented pricing.

Which of the following products would normally be classified as a shopping good or service?

The several product lines that a company offers for sale make up that organization's product mix.