Question 1

The evaluation of packaging as a marketing function indicates that:

Accepted Answer

A) the package is less important as the Internet provides consumers with easily obtained information. 
B) packaging carries more of the promotional burden of the product. 
C) consumers are influenced less by packaging. 
D) the primary purpose of packaging is to limit the product liability of businesses. 
A) the package is less important as the Internet provides consumers with easily obtained information. 
B) packaging carries more of the promotional burden of the product. 
C) consumers are influenced less by packaging. 
D) the primary purpose of packaging is to limit the product liability of businesses.

Question 2

Total fixed costs are those costs that change when the volume of production changes.

Accepted Answer

A) True 
 B)False

Question 3

Capital items are industrial goods that are expensive and last a long time.

Accepted Answer

A) True 
 B)False

Question 4

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 5

The two types of industrial goods are production goods and unsought goods.

Accepted Answer

A) True 
 B)False

Question 6

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) competition-based pricing 
B) cost-based pricing 
C) demand collection system 
D) bundling 
A) competition-based pricing 
B) cost-based pricing 
C) demand collection system 
D) bundling

Question 8

For most firms,price competition is the most important way to gain a competitive advantage over rivals.

Accepted Answer

A) True 
 B)False

Question 9

The brand names that are used by producers that distribute products nationally are called:

Accepted Answer

A) manufacturers' brand names. 
B) product category brands. 
C) generic brand names. 
D) universal brand names. 
A) manufacturers' brand names. 
B) product category brands. 
C) generic brand names. 
D) universal brand names.

Question 10

Once an organization surveys the consumer's wants and needs,has designed a group of products to meet those needs,and begun to market them in stores,the organization is assured of success.

Accepted Answer

A) True 
 B)False

Question 11

Sales of generic products are decreasing because consumers prefer the higher quality of the nationally known brands.

Accepted Answer

A) True 
 B)False

Question 12

Webster Industries is one of the first producers of a unique consumer product.The company has chosen a low price strategy,hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market.Webster's approach to pricing is a classic example of the skimming strategy.

Accepted Answer

A) True 
 B)False

Question 13

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

Accepted Answer

A) True 
 B)False

Question 14

Buccaneer Industries manufactures and markets expensive industrial cranes.This long lasting heavy equipment would be classified as a(n)__________ good.

Accepted Answer

A) specialty 
B) capital 
C) accessory 
D) consumer 
A) specialty 
B) capital 
C) accessory 
D) consumer

Question 15

The cost of raw materials used to produce a good or service represent the firm's ________ costs.

Accepted Answer

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

Question 16

Despite the fact that microeconomic theory places a great deal of emphasis on price,marketers often try to find ways to compete on product attributes other than price.

Accepted Answer

A) True 
 B)False

Question 17

Currently,which of the following products would most likely be considered in the growth stage of the product life cycle?

Accepted Answer

A) VCRs 
B) Welch's grape jelly 
C) HDTV (High-Definition TV) 
D) Camel filtered cigarettes 
A) VCRs 
B) Welch's grape jelly 
C) HDTV (High-Definition TV) 
D) Camel filtered cigarettes

Question 18

The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.

Accepted Answer

A) True 
 B)False

Question 19

One of the reasons marketers emphasize non-price differences in their competitive strategies is because:

Accepted Answer

A) consumers aren't concerned about prices. 
B) these methods have no impact on the cost of production. 
C) non-price differences are tax deductible. 
D) relatively similar products can be enhanced. 
A) consumers aren't concerned about prices. 
B) these methods have no impact on the cost of production. 
C) non-price differences are tax deductible. 
D) relatively similar products can be enhanced.

Question 20

From a marketing management perspective,what is the meaning of a total product offer? What are the important elements in the total product offer of your college or university?

Accepted Answer

A total product offer consists of everyt

Exam 14: Developing and Pricing Goods and Services

The evaluation of packaging as a marketing function indicates that:

Total fixed costs are those costs that change when the volume of production changes.

Capital items are industrial goods that are expensive and last a long time.

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 two types of industrial goods are production goods and unsought goods.

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

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

For most firms,price competition is the most important way to gain a competitive advantage over rivals.

The brand names that are used by producers that distribute products nationally are called:

Once an organization surveys the consumer's wants and needs,has designed a group of products to meet those needs,and begun to market them in stores,the organization is assured of success.

Sales of generic products are decreasing because consumers prefer the higher quality of the nationally known brands.

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

Buccaneer Industries manufactures and markets expensive industrial cranes.This long lasting heavy equipment would be classified as a(n)__________ good.

The cost of raw materials used to produce a good or service represent the firm's ________ costs.

Despite the fact that microeconomic theory places a great deal of emphasis on price,marketers often try to find ways to compete on product attributes other than price.

Currently,which of the following products would most likely be considered in the growth stage of the product life cycle?

The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.

One of the reasons marketers emphasize non-price differences in their competitive strategies is because:

From a marketing management perspective,what is the meaning of a total product offer? What are the important elements in the total product offer of your college or university?

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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