Exam 13: B: Creating and Pricing Products That Satisfy Customers

The sum of the fixed costs and the variable costs attributed to the units produced is the selling price.

Markup pricing is easy to apply, although it is difficult to determine an effective markup percentage.

The three levels of brand loyalty are preference, recognition, and insistence.

A name, term, symbol, design, or any combination of these that identifies a product and distinguishes it from a competitor's product is called packaging.

There are two dimensions to a firm's product mix: volume and breadth.

A trademark is legally protected from use by anyone except its owner.

Price allocates goods and services among those who are willing and able to pay for them.

Brand equity refers to making all of a company's brands approximately equal with respect to brand loyalty.

The same price will be charged no matter what pricing objective is used.

A brand mark is the part of a brand that consists of a symbol or distinctive design.

A trade discount is the price producers set to draw the public's attention to new products.

Innovations are much less common than imitations and adaptations.

Setting prices for organizational buyers is very similar to setting prices for consumers.

In some cases, prices are assigned to goods on the basis of nothing more than customs and traditions.

Texaco, Exxon, and Ford are examples of a store brand.

A major reason why retailers use markup pricing is because it is easy to apply.

Multiple-unit pricing is packaging together two or more complementary products and selling them for a single price.

Even if a grocery item is a generic product, a consumer can tell who produced it by examining the package carefully.

An early bird special offered by a restaurant during off-peak hours is an example of a secondary-market pricing strategy.

The depth of a product mix is a measure of the average number of individual products within each line.