Exam 14: Developing and Pricing Goods and Services

Gill's Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin.Gill's strategy is known as target costing.

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.

Some goods can be classified as either consumer goods or as industrial goods.

While the product life cycle is a good theory,it's not important for marketers to recognize what life cycle stage a product is in.

Miller Light Beer,Maxwell House Coffee,Jell-O brand gelatin,Kraft Mayonnaise,and Marlboro Cigarettes,were all at one time products of the Philip Morris Company.These products represented a part of the product line Philip Morris offered.

The combination of product lines offered by a manufacturer is called the firm's:

Firms utilizing an everyday low pricing (EDLP)strategy establish a policy of special sales on a regular basis.

As a product progresses through each stage of the product life cycle,successful marketers recognize that each stage requires:

Once a good or service nears the end of its product life cycle,the firm recognizes that:

A pickup truck can be classified as either a consumer good or an industrial good.

The ____________ is a theoretical model that describes the sales and profit performance of a product class over time.

Helen is considering adding a rack of greeting cards to her product offerings at Litton Books Unlimited.Her fixed costs associated with adding the greeting cards would be $300.Variable costs per card are $1 each.The greeting cards will sell for $2 each.Helen's break-even point would occur at ________ cards sold.

Successful businesses constantly monitor consumer wants and needs.

Which of the following strategies establishes a price based on the actions of rival firms?

The evaluation of packaging as a marketing function indicates that:

According to the product life cycle model,sales are expected to peak in the _________ stage.

Sometimes a firm will lower prices below their costs in order to build a customer base.

Which of the following statements regarding convenience goods and services is accurate?

What is a brand? What is a brand name? What is meant by brand equity?

A traditional McDonald's and a McCafe (the outlet that sells premium coffee and pastries similar to a Starbucks)are examples of the McDonald's Corporation product mix.