Question 1

Most consumers view specialty goods as having a variety of acceptable substitutes.

Accepted Answer

A) True 
 B)False

Question 2

The stages of the product life cycle are:

Accepted Answer

A) production,inventory,exchange,usage,and disposal. 
B) conception,testing,production,commercialization,and obsolescence. 
C) introduction,growth,maturity,and decline. 
D) opportunity recognition,concept testing,production,market acceptance,brand insistence,and obsolescence. 
A) production,inventory,exchange,usage,and disposal. 
B) conception,testing,production,commercialization,and obsolescence. 
C) introduction,growth,maturity,and decline. 
D) opportunity recognition,concept testing,production,market acceptance,brand insistence,and obsolescence.

Question 3

A pricing strategy that uses bundling groups two or more related products together.

Accepted Answer

A) True 
 B)False

Question 4

Mini-Case
Gourmet Pets is an innovative competitor in the billion-dollar pet food industry.In fact,two of its products,Kitty Sirloin and McDog T-bone,each claim over a 30% share in their market segments.The company has done detailed research and discovered that,for a growing number of pet owners,the family pet serves as a "baby substitute." These owners tend to pamper their pets,and are very discriminating in what they purchase.With this in mind,the company has put a great deal of effort into developing a new dog food: Prime Cuts.The new product is packaged in a resealable,microwaveable container and can be purchased in a variety of flavors (including Western BBQ,Teriyaki,Australian Outback,and Hickory Smoked. )Gourmet Pets promotes the product as far superior to "average" dog foods,even though the quality of meat and nutrient content of the food is virtually identical to many other brands.The company faces no competition in this market segment so it plans to charge a high price for the product.
-Prime Cuts was the brainchild of Karen Terrier who guided all the marketing efforts of the product.She selected each element of the marketing mix such as the package,brand name,pricing,promotion,and placement decisions.Karen obviously serves in the job of:

Accepted Answer

A) marketing consultant. 
B) brand manager. 
C) operations analyst. 
D) marketing intermediary. 
A) marketing consultant. 
B) brand manager. 
C) operations analyst. 
D) marketing intermediary.

Question 5

Psychological pricing utilizes high prices to create the image of a high quality product.

Accepted Answer

A) True 
 B)False

Question 6

Sales of cell phones in the United States are still increasing,but the rate of growth has slowed.Sales are expected to peak somewhat soon in the U.S.Based on this information,cellular phones are in what stage of the product life cycle in the U.S?

Accepted Answer

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

Question 7

One reason many large consumer-product companies make use of __________ is to have greater control over new-product development and product promotion.

Accepted Answer

A) brand equity teams 
B) equity specialists 
C) product consultants 
D) brand management teams 
A) brand equity teams 
B) equity specialists 
C) product consultants 
D) brand management teams

Question 8

Location is very important in the marketing of ________ because consumers desire to purchase these goods with a minimum of shopping effort.

Accepted Answer

A) unsought goods 
B) shopping goods 
C) specialty goods 
D) convenience goods 
A) unsought goods 
B) shopping goods 
C) specialty goods 
D) convenience goods

Question 9

_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.

Accepted Answer

A) High-low pricing 
B) Everyday low pricing (EDLP) 
C) Bundling 
D) Psychological pricing 
A) High-low pricing 
B) Everyday low pricing (EDLP) 
C) Bundling 
D) Psychological pricing

Question 10

A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as:

Accepted Answer

A) market fixing. 
B) price penetration. 
C) price leadership. 
D) primary pricing. 
A) market fixing. 
B) price penetration. 
C) price leadership. 
D) primary pricing.

Question 11

The __________ on packages were intended to improve inventory control for businesses.

Accepted Answer

A) stars and stripes 
B) Universal Product Codes 
C) lightweight adhesives 
D) Unit Standard Inventory bars 
A) stars and stripes 
B) Universal Product Codes 
C) lightweight adhesives 
D) Unit Standard Inventory bars

Question 12

Consumer perceptions of product quality are affected by promotions and packaging,but not by the price of the product.

Accepted Answer

A) True 
 B)False

Question 13

From a strategic marketing viewpoint,a total product offer includes all of the tangible attributes of a good or service,and excludes any intangible attributes.

Accepted Answer

A) True 
 B)False

Question 14

A knockoff brand is a brand name that has lost its exclusive legal protection.

Accepted Answer

A) True 
 B)False

Question 15

Grandpa's Burger Haven sells a medium soda for $1.50,a "Single Meat" burger for $1.99,and onion rings for $1.83.However if you buy the "Single Meat Meal" the price is $5.00.Grandpa's is practicing price bundling with the "Single Meat Meal."

Accepted Answer

A) True 
 B)False

Question 16

The legal protection offered to an established brand name prevents that name from being used as a generic name for a product.

Accepted Answer

A) True 
 B)False

Question 17

Ultimately,the price of a good is determined by the interaction of supply and demand in the marketplace.

Accepted Answer

A) True 
 B)False

Question 18

Low prices can often help retailers create an attractive total product offer.

Accepted Answer

A) True 
 B)False

Question 19

At the break-even point:

Accepted Answer

A) profits are maximized. 
B) variable costs are equal to total fixed costs. 
C) target profit is achieved. 
D) total revenue is equal to total cost. 
A) profits are maximized. 
B) variable costs are equal to total fixed costs. 
C) target profit is achieved. 
D) total revenue is equal to total cost.

Question 20

Price leadership is a demand based pricing strategy.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

Most consumers view specialty goods as having a variety of acceptable substitutes.

The stages of the product life cycle are:

A pricing strategy that uses bundling groups two or more related products together.

Psychological pricing utilizes high prices to create the image of a high quality product.

Sales of cell phones in the United States are still increasing,but the rate of growth has slowed.Sales are expected to peak somewhat soon in the U.S.Based on this information,cellular phones are in what stage of the product life cycle in the U.S?

One reason many large consumer-product companies make use of __________ is to have greater control over new-product development and product promotion.

Location is very important in the marketing of ________ because consumers desire to purchase these goods with a minimum of shopping effort.

_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.

A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as:

The __________ on packages were intended to improve inventory control for businesses.

Consumer perceptions of product quality are affected by promotions and packaging,but not by the price of the product.

From a strategic marketing viewpoint,a total product offer includes all of the tangible attributes of a good or service,and excludes any intangible attributes.

A knockoff brand is a brand name that has lost its exclusive legal protection.

Grandpa's Burger Haven sells a medium soda for $1.50,a "Single Meat" burger for $1.99,and onion rings for $1.83.However if you buy the "Single Meat Meal" the price is $5.00.Grandpa's is practicing price bundling with the "Single Meat Meal."

The legal protection offered to an established brand name prevents that name from being used as a generic name for a product.

Ultimately,the price of a good is determined by the interaction of supply and demand in the marketplace.

Low prices can often help retailers create an attractive total product offer.

At the break-even point:

Price leadership is a demand based pricing strategy.

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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