Exam 14: Developing and Pricing Goods and Services

One way firms can gain a competitive advantage without relying on low prices is by developing close,friendly relationships with their customers.

The most common classification of consumer goods and services is based on producer or manufacturer behavior in the market.

Sweet Dream Confectioners uses the same ingredients as most other producers of chocolate candies.In fact,taste tests suggest that the candy itself,while quite good,isn't much better than other well-known brands of chocolate.However,the company wraps its candies in expensive looking foil and places them in very attractive boxes.It promotes its products in advertisements as "the ultimate in chocolate experience." Sweet Dream charges a much higher price than most competitors,but sales continue to grow.This success indicates that:

Brand __________ refers to the linking of a brand to other favorable images,such as a celebrity.

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

The legal protection offered to an established brand name prevents that name from being used as a generic name for a product.

Low prices can often help retailers create an attractive total product offer.

The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:

The product life cycle model helps marketers realize that:

The rainbow colored apple is Apple Computer's:

Capital items are industrial goods that are expensive and last a long time.

Consumer perceptions of product quality are affected by promotions and packaging,but not by the price of the product.

Miranda is a marketing manager for a large manufacturer.Her boss has asked her to evaluate a new product idea.One of the things Miranda wants to determine is how much of this product her firm would have to sell in order to break even.In order to compute this break-even level of sales,she will need to know the price of the good,the total fixed costs,and variable cost of producing each unit.

Equipment maintenance and repair of equipment used by businesses is an industrial support good.

Successful firms always try to maintain consistency in the short-run and long-run pricing objectives.

Which of the following statements about packaging is the most accurate?

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

Suits for Success is a men's clothing store in a large suburban shopping mall.The managers of the store know that their customers usually comparison shop,looking carefully at quality and price before deciding to buy.Armed with this information,Suits for Success carries quality clothing,offers competitive pricing,and friendly,helpful service.The target customers apparently view men's suits as a:

The classification of goods or services into a particular class depends on the individual consumer.

Car dealers realize that consumers focus exclusively on price and warranty.