Question 1

Variable costs are costs that change with the level of production.

Accepted Answer

A) True 
 B)False

Question 2

Anheuser-Busch/In Bev Company,Inc.has been given the exclusive right to the name Budweiser and is legally protected from others using this name by the __________ they hold.

Accepted Answer

A) licensing agreement 
B) brand name 
C) copyright 
D) trademark 
A) licensing agreement 
B) brand name 
C) copyright 
D) trademark

Question 3

Suits for Success is a men's clothing store in a large suburban shopping mall.The managers of the store know that their customers usually comparison shop,looking carefully at quality and price before deciding to buy.Armed with this information,Suits for Success carries quality clothing,offers competitive pricing,and friendly,helpful service.The target customers apparently view men's suits as a:

Accepted Answer

A) specialty good. 
B) convenience good. 
C) shopping good. 
D) unsought gooD.Shopping goods and services are those products that the consumer buys only after comparing value,quality,and price from a variety of sellers. 
A) specialty good. 
B) convenience good. 
C) shopping good. 
D) unsought gooD.Shopping goods and services are those products that the consumer buys only after comparing value,quality,and price from a variety of sellers.

Question 4

Federal government legislation identifies the type of information that packaging must offer.

Accepted Answer

A) True 
 B)False

Question 5

Pricing is:

Accepted Answer

A) one of the 4 Ps of the marketing mix. 
B) considered to be a part of promotion. 
C) normally a government regulated variable. 
D) totally based on the cost of products. 
A) one of the 4 Ps of the marketing mix. 
B) considered to be a part of promotion. 
C) normally a government regulated variable. 
D) totally based on the cost of products.

Question 6

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 7

Since Kazam Cleaners offers home and office cleaning services no different from competitors,the company can not utilize a product differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 8

One function of effective packaging is to provide information regarding warranties,benefits,and uses of the good inside the package.

Accepted Answer

A) True 
 B)False

Question 9

Product development is a key activity in any modern business,anywhere in the world.

Accepted Answer

A) True 
 B)False

Question 10

Dewy,Cheatem,and Howe's promotional efforts are intended to increase the public's awareness of its new product's benefits and uses.This effort is consistent with the ________ stage of the product life cycle model.

Accepted Answer

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

Question 11

When reviewing the product life cycle model,it is important to remember that:

Accepted Answer

A) although all products go through each stage of the life cycle,the time frame can vary considerably from one product to another. 
B) it is a theoretical model that may not be followed by all products. 
C) the maturity stage accounts for the fastest growth in sales. 
D) companies earn their largest profits in the introduction stage. 
A) although all products go through each stage of the life cycle,the time frame can vary considerably from one product to another. 
B) it is a theoretical model that may not be followed by all products. 
C) the maturity stage accounts for the fastest growth in sales. 
D) companies earn their largest profits in the introduction stage.

Question 12

June lives in the southern part of Alabama where winters are normally fairly mild.Last January,during an unusually cold spell,the water pipes in her house froze and burst.She had to look in the Yellow Pages to find a plumber who was able to come out and repair the pipes the same day.Prior to the frozen pipes,the plumber's services represented a(n):

Accepted Answer

A) unsought service. 
B) industrial service. 
C) specialty service. 
D) convenience service. 
A) unsought service. 
B) industrial service. 
C) specialty service. 
D) convenience service.

Question 13

Jian has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots.The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production.This seems to represent a:

Accepted Answer

A) cost-based pricing strategy. 
B) supply and demand formula. 
C) demand-based pricing strategy. 
D) price leadership pricing strategy. 
A) cost-based pricing strategy. 
B) supply and demand formula. 
C) demand-based pricing strategy. 
D) price leadership pricing strategy.

Question 14

Whole grain breads,bagels,bread sticks,sandwiches,soup,and pastries are products that would be included in the product mix of El Trovodor's Bread Company.

Accepted Answer

A) True 
 B)False

Question 15

Product screening is designed to:

Accepted Answer

A) shorten the product life cycle. 
B) reduce the number of new-product ideas being worked on at any one time. 
C) reduce the time involved in new-product development. 
D) move production to low wage countries. 
A) shorten the product life cycle. 
B) reduce the number of new-product ideas being worked on at any one time. 
C) reduce the time involved in new-product development. 
D) move production to low wage countries.

Question 16

While the time in each stage may vary,all products progress through each stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 17

A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?

Accepted Answer

A) product matrix 
B) product line 
C) product mix 
D) total product offer 
A) product matrix 
B) product line 
C) product mix 
D) total product offer

Question 19

A street vendor selling Rolex watches at ridiculously low prices approached Ted.Ted,however,was suspicious that the watches were illegal ________ brands.

Accepted Answer

A) knockoff 
B) private 
C) generic 
D) look alike 
A) knockoff 
B) private 
C) generic 
D) look alike

Question 20

Regardless of changes in packaging,the total product offer remains unchanged.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

Variable costs are costs that change with the level of production.

Anheuser-Busch/In Bev Company,Inc.has been given the exclusive right to the name Budweiser and is legally protected from others using this name by the __________ they hold.

Federal government legislation identifies the type of information that packaging must offer.

Pricing is:

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

Since Kazam Cleaners offers home and office cleaning services no different from competitors,the company can not utilize a product differentiation strategy.

One function of effective packaging is to provide information regarding warranties,benefits,and uses of the good inside the package.

Product development is a key activity in any modern business,anywhere in the world.

Dewy,Cheatem,and Howe's promotional efforts are intended to increase the public's awareness of its new product's benefits and uses.This effort is consistent with the ________ stage of the product life cycle model.

When reviewing the product life cycle model,it is important to remember that:

Jian has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots.The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production.This seems to represent a:

Whole grain breads,bagels,bread sticks,sandwiches,soup,and pastries are products that would be included in the product mix of El Trovodor's Bread Company.

Product screening is designed to:

While the time in each stage may vary,all products progress through each stage of the product life cycle.

A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?

A street vendor selling Rolex watches at ridiculously low prices approached Ted.Ted,however,was suspicious that the watches were illegal ________ brands.

Regardless of changes in packaging,the total product offer remains unchanged.

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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