Question 1

Convenience goods are products that the consumer wants to purchase frequently and with a minimum of effort.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is considered a stage of the new-product development process?

Accepted Answer

A) automation 
B) media screening 
C) commercialization 
D) selective perception 
A) automation 
B) media screening 
C) commercialization 
D) selective perception C

Question 3

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 D

Question 4

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 5

Budd's Floral Shoppe is located in a large town that has several other florists.The owner,Rose Budd,is likely to find that the presence of many larger competitors means that the only way she can survive is to charge rock bottom prices.

Accepted Answer

A) True 
 B)False

Question 6

McDonald's prides itself on offering precisely the same menu around the world so that customers know exactly what to expect when they eat at a McDonald's.

Accepted Answer

A) True 
 B)False

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

Manufacturers' brands carry the brand name of the producers that distribute the products nationally.

Accepted Answer

A) True 
 B)False

Question 9

__________ consists of major capital equipment such as new factories and heavy machinery.

Accepted Answer

A) Accessory goods 
B) Specialty goods 
C) Installations 
D) Shopping goods 
A) Accessory goods 
B) Specialty goods 
C) Installations 
D) Shopping goods

Question 10

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

Accepted Answer

A brand is a name,symbol,or design (or c

Question 11

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 12

Beth works for Champion Industries overseeing the marketing mix for the firm's line of calculators.Beth serves as a brand manager for Champion Industries.

Accepted Answer

A) True 
 B)False

Question 13

The number of units of a product that must be sold for total revenue to equal total costs is called the:

Accepted Answer

A) equilibrium volume. 
B) balanced quantity. 
C) contribution margin. 
D) break-even point. 
A) equilibrium volume. 
B) balanced quantity. 
C) contribution margin. 
D) break-even point.

Question 14

Admiral Motors is the dominant firm in the auto market.When Admiral announces an increase in the prices of its automobiles,Chord and Frysler,the smaller firms in the market,usually quickly announce similar price increases for their own cars.This situation is an example of demand-oriented pricing.

Accepted Answer

A) True 
 B)False

Question 15

The formula for break-even analysis includes which of the following components?

Accepted Answer

A) depreciation 
B) forecasted sales 
C) forecasted cash requirements 
D) variable cost per unit of output 
A) depreciation 
B) forecasted sales 
C) forecasted cash requirements 
D) variable cost per unit of output

Question 16

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

Accepted Answer

A) Changes in packaging can improve the product itself and open up large new markets. 
B) Packaging is the least critical element of a firm's promotional strategy. 
C) Technology has had a very limited role in improving packaging. 
D) Packaging has avoided federal regulations. 
A) Changes in packaging can improve the product itself and open up large new markets. 
B) Packaging is the least critical element of a firm's promotional strategy. 
C) Technology has had a very limited role in improving packaging. 
D) Packaging has avoided federal regulations.

Question 17

The image created by advertising is part of the total product offer of a product.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements about non-price competition is most accurate?

Accepted Answer

A) While still important,non-price competition is becoming less critical as a result of the Internet. 
B) Marketers often rely on non-price differences in their competitive strategy to enhance a relatively homogeneous product. 
C) Non-price competition is much more important to large firms than it is to small firms. 
D) As microeconomic theory suggests,firms have found that non-price competition plays a secondary role that supplements the more important competition based on price. 
A) While still important,non-price competition is becoming less critical as a result of the Internet. 
B) Marketers often rely on non-price differences in their competitive strategy to enhance a relatively homogeneous product. 
C) Non-price competition is much more important to large firms than it is to small firms. 
D) As microeconomic theory suggests,firms have found that non-price competition plays a secondary role that supplements the more important competition based on price.

Question 19

The Pillsbury Doughboy is an example of a:

Accepted Answer

A) patent. 
B) trademark. 
C) private brand. 
D) generic label. 
A) patent. 
B) trademark. 
C) private brand. 
D) generic label.

Question 20

Shopping goods and services are purchased only after consumers compare value,quality,style,and price of competing goods and services.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

Convenience goods are products that the consumer wants to purchase frequently and with a minimum of effort.

Which of the following is considered a stage of the new-product development process?

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:

Budd's Floral Shoppe is located in a large town that has several other florists.The owner,Rose Budd,is likely to find that the presence of many larger competitors means that the only way she can survive is to charge rock bottom prices.

McDonald's prides itself on offering precisely the same menu around the world so that customers know exactly what to expect when they eat at a McDonald's.

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.

Manufacturers' brands carry the brand name of the producers that distribute the products nationally.

__________ consists of major capital equipment such as new factories and heavy machinery.

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

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

Beth works for Champion Industries overseeing the marketing mix for the firm's line of calculators.Beth serves as a brand manager for Champion Industries.

The number of units of a product that must be sold for total revenue to equal total costs is called the:

Admiral Motors is the dominant firm in the auto market.When Admiral announces an increase in the prices of its automobiles,Chord and Frysler,the smaller firms in the market,usually quickly announce similar price increases for their own cars.This situation is an example of demand-oriented pricing.

The formula for break-even analysis includes which of the following components?

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

The image created by advertising is part of the total product offer of a product.

Which of the following statements about non-price competition is most accurate?

The Pillsbury Doughboy is an example of a:

Shopping goods and services are purchased only after consumers compare value,quality,style,and price of competing goods and services.

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

Bonus A: Using Technology to Manage Information

Bonus B: Managing Risk

Bonus C: Managing Your Personal Finances

Appendix: Working Within the Legal Environment

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