Question 1

The Internet has ________ the intensity of price competition.

Accepted Answer

A) decreased 
B) increased 
C) had no impact on 
D) stifled 
A) decreased 
B) increased 
C) had no impact on 
D) stifled

Question 2

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.

Accepted Answer

A) 125 
B) 150 
C) 300 
D) 600 
A) 125 
B) 150 
C) 300 
D) 600

Question 3

Papa's Market offers customers tissues,canned vegetables,napkins,and dishwashing detergent in basic packaging with no identified brand.These goods are popular with Papa's cost-conscious shoppers because they are significantly less expensive than nationally known brand names.These types of goods are examples of generic goods.

Accepted Answer

A) True 
 B)False

Question 4

For small businesses,product differentiation:

Accepted Answer

A) is more difficult than it is for larger firms because of the high cost of product research and development. 
B) usually concentrates on the pricing component of the total product offer. 
C) can be an important strategy to gain market share. 
D) is less important than it is for big firms with multiple product lines. 
A) is more difficult than it is for larger firms because of the high cost of product research and development. 
B) usually concentrates on the pricing component of the total product offer. 
C) can be an important strategy to gain market share. 
D) is less important than it is for big firms with multiple product lines.

Question 5

Restaurants,like other businesses,often find that the best way to succeed in the market is to:

Accepted Answer

A) listen to customers and adapt products to their needs. 
B) create a product for which he could charge an exceptionally high price. 
C) create a winning combination of advertising and personal selling for all of the stores in the chain. 
D) open more stores in a single year than other foodservice operators. 
A) listen to customers and adapt products to their needs. 
B) create a product for which he could charge an exceptionally high price. 
C) create a winning combination of advertising and personal selling for all of the stores in the chain. 
D) open more stores in a single year than other foodservice operators.

Question 6

Price leadership occurs when one or more dominant firms set pricing practices that other firms in the market follow.

Accepted Answer

A) True 
 B)False

Question 7

Successful product differentiation:

Accepted Answer

A) of consumer goods is determined exclusively by price. 
B) can be based on either real or perceived differences in products. 
C) is prohibited if it restricts price competition and market access. 
D) is less important due to the growth of the Internet. 
A) of consumer goods is determined exclusively by price. 
B) can be based on either real or perceived differences in products. 
C) is prohibited if it restricts price competition and market access. 
D) is less important due to the growth of the Internet.

Question 8

Most manufacturers hope that their brand names will become a generic name.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a characteristic of the decline stage of the product life cycle?

Accepted Answer

A) falling sales 
B) price reductions 
C) many new firms entering the market 
D) increasing profits 
A) falling sales 
B) price reductions 
C) many new firms entering the market 
D) increasing profits

Question 10

Brand association is the linking of a brand to other favorable images such as a celebrity or geographic location.

Accepted Answer

A) True 
 B)False

Question 11

In the new-product development process,product analysis is completed prior to the product screening stage.

Accepted Answer

A) True 
 B)False

Question 12

Successful businesses develop a mix of price,product,place,and promotion that is consistently applied throughout a product's life cycle.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

According to the product life cycle model,profits tend to:

Accepted Answer

A) remain relatively constant until the decline stage,when they begin to drop. 
B) reach a peak near the end of the maturity stage. 
C) rise rapidly during the market preference stage. 
D) peak before sales reach their highest level. 
A) remain relatively constant until the decline stage,when they begin to drop. 
B) reach a peak near the end of the maturity stage. 
C) rise rapidly during the market preference stage. 
D) peak before sales reach their highest level.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Newspapers are sold daily in a wide variety of locations.This widespread distribution suggests that newspapers are classified as convenience goods.

Accepted Answer

A) True 
 B)False

Question 17

The several product lines that a company offers for sale make up that organization's product mix.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) tariffs 
B) costs 
C) market share 
D) quotas 
A) tariffs 
B) costs 
C) market share 
D) quotas

Question 19

Successful firms coordinate pricing objective strategies with decisions regarding product design,packaging,branding,distribution,and promotion.

Accepted Answer

A) True 
 B)False

Question 20

Which stage of the product life cycle is characterized by rapidly rising sales,very high profit levels,and a growing number of competitors?

Accepted Answer

A) growth 
B) maturity 
C) saturation 
D) decline 
A) growth 
B) maturity 
C) saturation 
D) decline

Exam 14: Developing and Pricing Goods and Services

The Internet has ________ the intensity of price competition.

For small businesses,product differentiation:

Restaurants,like other businesses,often find that the best way to succeed in the market is to:

Price leadership occurs when one or more dominant firms set pricing practices that other firms in the market follow.

Successful product differentiation:

Most manufacturers hope that their brand names will become a generic name.

Which of the following is a characteristic of the decline stage of the product life cycle?

Brand association is the linking of a brand to other favorable images such as a celebrity or geographic location.

In the new-product development process,product analysis is completed prior to the product screening stage.

Successful businesses develop a mix of price,product,place,and promotion that is consistently applied throughout a product's life cycle.

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

According to the product life cycle model,profits tend to:

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

Newspapers are sold daily in a wide variety of locations.This widespread distribution suggests that newspapers are classified as convenience goods.

The several product lines that a company offers for sale make up that organization's product mix.

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

Successful firms coordinate pricing objective strategies with decisions regarding product design,packaging,branding,distribution,and promotion.

Which stage of the product life cycle is characterized by rapidly rising sales,very high profit levels,and a growing number of competitors?

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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