Exam 14: Developing and Pricing Goods and Services

Producers often use ________ as a primary basis for setting prices on the goods and services they offer the public.

When consumers calculate the value of a product,they look at the benefits and then subtract the cost.

A knockoff brand is a brand name that has lost its exclusive legal protection.

Which of the following products would most likely be classified as a specialty good or service?

Discuss the role of packaging in a firm's total product offer.

More than any other component of a total product offer,technology has reduced the importance of packaging.

Comet Computer Company is creating a new splash with psychedelic laptop cover designs scheduled for release next year.The computers do not reveal any other feature differences from what Comet currently offers.This effort is an example of using __________________ to differentiate a product as new.

The strategy of first determining what the market is willing to pay,then subtracting a desired profit margin to determine a desired cost of production is called:

As consumers evaluate a product,price plays a small role.

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.

The Connecting with Small Business box titled "Keep on Food Truckin'" refers to:

Textbook publishers use a packaging strategy known as _____________.Often times the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.

Stella strongly prefers a specific brand of gourmet coffee.Because there is only one store in her area that sells this brand,she makes an extra effort to purchase this item.Stella's purchasing behavior indicates for her this product is a specialty good.

Which of the following products would be considered an unsought good or service by a typical college student?

Unsought goods and services are purchased on impulse and provide no added value to consumers.

One reason many large consumer-product companies make use of __________ is to have greater control over new-product development and product promotion.

Federal legislation requires that the brand name of a product clearly identify the manufacturer of that product.

__________ is the process used to determine the profitability of a product at various levels of sales.