Question 1

Which of the following is a potential problem with a high-low pricing strategy?

Accepted Answer

A)  It confuses and frustrates customers. 
B)  It places too much emphasis on non-price competition. 
C)  It teaches customers to wait for sales,and therefore reduces profits. 
D)  It is difficult to implement. 
A)  It confuses and frustrates customers. 
B)  It places too much emphasis on non-price competition. 
C)  It teaches customers to wait for sales,and therefore reduces profits. 
D)  It is difficult to implement.

Question 2

As a promotional strategy,advertising is more important in the marketing of industrial goods than it is in the marketing of consumer goods.

Accepted Answer

A) True 
 B)False

Question 3

The rent a firm pays each month for office space is an example of a(n):

Accepted Answer

A)  fixed cost. 
B)  variable cost. 
C)  mixed cost. 
D)  uncontrollable cost. 
A)  fixed cost. 
B)  variable cost. 
C)  mixed cost. 
D)  uncontrollable cost.

Question 4

A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

Accepted Answer

A)  skimming 
B)  penetration 
C)  target costing 
D)  price leadership 
A)  skimming 
B)  penetration 
C)  target costing 
D)  price leadership

Question 5

The job performed by brand managers:

Accepted Answer

A)  is mainly concerned with the promotion of the entire product mix of their firm. 
B)  involves broad responsibilities for the marketing of a specific brand or product line. 
C)  is likely to become less important in firms that utilize the Internet. 
D)  focuses more on the pricing and promotion of established goods than on the development of new products. 
A)  is mainly concerned with the promotion of the entire product mix of their firm. 
B)  involves broad responsibilities for the marketing of a specific brand or product line. 
C)  is likely to become less important in firms that utilize the Internet. 
D)  focuses more on the pricing and promotion of established goods than on the development of new products.

Question 6

Whole grain breads,bagels,bread sticks,sandwiches,soup,and pastries are products that would be included in the product mix of El Trovodor's Bread Company.

Accepted Answer

A) True 
 B)False

Question 7

While the Universal Product Code (UPC)improves efficiency at the retail check-out counter,it has increased problems in controlling inventory.

Accepted Answer

A) True 
 B)False

Question 8

"If you create a better mouse trap,the world will beat a path to your door." This statement ignores the need for which step in the new-product development process?

Accepted Answer

A)  Commercialization 
B)  Screening 
C)  Idea generation 
D)  Development 
A)  Commercialization 
B)  Screening 
C)  Idea generation 
D)  Development

Question 9

Angie owns a small company that markets high quality office supplies to businesses.Angie faces stiff competition from some much larger firms like Office Depot.Which of the following competitive strategies would probably work best for Angie?

Accepted Answer

A)  Keep costs as low as possible by offering a no frills approach with little or no extra services. 
B)  Develop a skimming pricing strategy. 
C)  Utilize a high-low approach to pricing with a higher break-even point. 
D)  Focus on non-price competition by offering better service with customers and work on building good customer relationships. 
A)  Keep costs as low as possible by offering a no frills approach with little or no extra services. 
B)  Develop a skimming pricing strategy. 
C)  Utilize a high-low approach to pricing with a higher break-even point. 
D)  Focus on non-price competition by offering better service with customers and work on building good customer relationships.

Question 10

The purpose of a brand name is to establish an image of generic goods or services.

Accepted Answer

A) True 
 B)False

Question 11

Some businesses use nostalgic ads to rekindle the memories and emotions of consumers to an earlier time and place.This technique of linking a brand name to a pleasant memory or favorable image is the goal of brand:

Accepted Answer

A)  association. 
B)  tie-ins. 
C)  insistence. 
D)  preference. 
A)  association. 
B)  tie-ins. 
C)  insistence. 
D)  preference.

Question 12

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.
-The company currently markets McDog T-bone,Lapdog Lunchtreats,Rover's Potroast,and Puppy Porterhouse in the dog food market.Prime Cuts will be an addition to the company's ___________ in the dog food market.

Accepted Answer

A)  product mix 
B)  product line 
C)  product time 
D)  product screen 
A)  product mix 
B)  product line 
C)  product time 
D)  product screen

Question 13

In evaluating colleges,students and parents are likely to judge a school:

Accepted Answer

A)  strictly on the basis of major curriculums offered. 
B)  based on the tuition. 
C)  by the collection of benefits offered by the school. 
D)  on the anticipated rate of return on their tuition investment. 
A)  strictly on the basis of major curriculums offered. 
B)  based on the tuition. 
C)  by the collection of benefits offered by the school. 
D)  on the anticipated rate of return on their tuition investment.

Question 14

Paper clips,stationery,and other office supplies used by businesses are types of industrial support goods.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Anheuser-Busch/In Bev Company,Inc.has been given the exclusive right to the name Budweiser and is legally protected from others using this name by the __________ they hold.

Accepted Answer

A)  licensing agreement 
B)  brand name 
C)  copyright 
D)  trademark 
A)  licensing agreement 
B)  brand name 
C)  copyright 
D)  trademark

Question 17

The benefits provided by a brand name for a buyer include reduced search time,prestige,and quality assurance.

Accepted Answer

A) True 
 B)False

Question 18

As the Internet grows in popularity,it is likely that more firms will adopt a high-low pricing strategy.

Accepted Answer

A) True 
 B)False

Question 19

While service providers offer product lines,they are unable to offer product mixes.

Accepted Answer

A) True 
 B)False

Question 20

At Isuzu's Appliance Store,all new products are offered with an extended service contract,as well as free delivery and installation.By offering these value enhancers,Isuzu's has added to their total product offer.

Accepted Answer

A) True 
 B)False

Which of the following is a potential problem with a high-low pricing strategy?

As a promotional strategy,advertising is more important in the marketing of industrial goods than it is in the marketing of consumer goods.

The rent a firm pays each month for office space is an example of a(n):

A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

The job performed by brand managers:

Whole grain breads,bagels,bread sticks,sandwiches,soup,and pastries are products that would be included in the product mix of El Trovodor's Bread Company.

While the Universal Product Code (UPC)improves efficiency at the retail check-out counter,it has increased problems in controlling inventory.

"If you create a better mouse trap,the world will beat a path to your door." This statement ignores the need for which step in the new-product development process?

Angie owns a small company that markets high quality office supplies to businesses.Angie faces stiff competition from some much larger firms like Office Depot.Which of the following competitive strategies would probably work best for Angie?

The purpose of a brand name is to establish an image of generic goods or services.

Some businesses use nostalgic ads to rekindle the memories and emotions of consumers to an earlier time and place.This technique of linking a brand name to a pleasant memory or favorable image is the goal of brand:

In evaluating colleges,students and parents are likely to judge a school:

Paper clips,stationery,and other office supplies used by businesses are types of industrial support goods.

Anheuser-Busch/In Bev Company,Inc.has been given the exclusive right to the name Budweiser and is legally protected from others using this name by the __________ they hold.

The benefits provided by a brand name for a buyer include reduced search time,prestige,and quality assurance.

As the Internet grows in popularity,it is likely that more firms will adopt a high-low pricing strategy.

While service providers offer product lines,they are unable to offer product mixes.

At Isuzu's Appliance Store,all new products are offered with an extended service contract,as well as free delivery and installation.By offering these value enhancers,Isuzu's has added to their total product offer.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding How Economics 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

Adapting Organizations to Todays Markets

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employee-Management Issues and Relationships

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

Appendix A: Using Technology to Manage Information

Appendix B: Managing Risk

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Exam 14: Developing and Pricing Goods and Services

Which of the following is a potential problem with a high-low pricing strategy?

As a promotional strategy,advertising is more important in the marketing of industrial goods than it is in the marketing of consumer goods.

The rent a firm pays each month for office space is an example of a(n):

A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

The job performed by brand managers:

Whole grain breads,bagels,bread sticks,sandwiches,soup,and pastries are products that would be included in the product mix of El Trovodor's Bread Company.

While the Universal Product Code (UPC)improves efficiency at the retail check-out counter,it has increased problems in controlling inventory.

"If you create a better mouse trap,the world will beat a path to your door." This statement ignores the need for which step in the new-product development process?

Angie owns a small company that markets high quality office supplies to businesses.Angie faces stiff competition from some much larger firms like Office Depot.Which of the following competitive strategies would probably work best for Angie?

The purpose of a brand name is to establish an image of generic goods or services.

Some businesses use nostalgic ads to rekindle the memories and emotions of consumers to an earlier time and place.This technique of linking a brand name to a pleasant memory or favorable image is the goal of brand:

In evaluating colleges,students and parents are likely to judge a school:

Paper clips,stationery,and other office supplies used by businesses are types of industrial support goods.

Anheuser-Busch/In Bev Company,Inc.has been given the exclusive right to the name Budweiser and is legally protected from others using this name by the __________ they hold.

The benefits provided by a brand name for a buyer include reduced search time,prestige,and quality assurance.

As the Internet grows in popularity,it is likely that more firms will adopt a high-low pricing strategy.

While service providers offer product lines,they are unable to offer product mixes.

At Isuzu's Appliance Store,all new products are offered with an extended service contract,as well as free delivery and installation.By offering these value enhancers,Isuzu's has added to their total product offer.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding How Economics 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

Adapting Organizations to Todays Markets

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employee-Management Issues and Relationships

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

Appendix A: Using Technology to Manage Information

Appendix B: Managing Risk

Filters