Question 1

The job performed by brand managers:

Accepted Answer

A) is mainly concerned with the promotion of the entire product mix of their firm. 
B) involves broad responsibilities for the marketing of a specific brand or product line. 
C) is likely to become less important in firms that utilize the Internet. 
D) focuses more on the pricing and promotion of established goods than on the development of new products. 
A) is mainly concerned with the promotion of the entire product mix of their firm. 
B) involves broad responsibilities for the marketing of a specific brand or product line. 
C) is likely to become less important in firms that utilize the Internet. 
D) focuses more on the pricing and promotion of established goods than on the development of new products.

Question 2

LoRider Wheels sells high quality bicycles and accessories.The store is known for a pleasant environment,friendly salespeople and an excellent service department.All of these elements are part of the ___________ offered by LoRider.

Accepted Answer

A) total product offer 
B) product line 
C) competitive environment 
D) marginal utility package 
A) total product offer 
B) product line 
C) competitive environment 
D) marginal utility package

Question 3

The purpose of a brand name is to establish an image of generic goods or services.

Accepted Answer

A) True 
 B)False

Question 4

New-product failures are most often caused by excessively high prices.

Accepted Answer

A) True 
 B)False

Question 5

Many supermarkets carry plain packages that only identify the name of the product that is inside.For example,a label may read simply "peaches" or "green beans." These goods represent:

Accepted Answer

A) private labels. 
B) manufacturers' brands. 
C) generic goods. 
D) universal code branding. 
A) private labels. 
B) manufacturers' brands. 
C) generic goods. 
D) universal code branding.

Question 6

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

Accepted Answer

A) True 
 B)False

Question 7

Price,store surroundings,service,and brand name are all elements that consumers evaluate in a total product offer.

Accepted Answer

A) True 
 B)False

Question 8

Community Catering Services,Inc.advertises that they are the "friendliest caterers in town." Their prices are no lower than the rates charged by competing caterers,but they put a lot of emphasis on getting to know the needs of their customers.They tailor their efforts to meet these needs,providing a unique dining experience that exactly matches the customer's expectations.Community Catering is likely to find that this approach is more effective in achieving its goals than the use of aggressive price-cutting.

Accepted Answer

A) True 
 B)False

Question 9

Shuichi owns and operates his own sushi bar.His fixed costs would include rent,insurance,and property taxes.

Accepted Answer

A) True 
 B)False

Question 10

The four stages in the product life cycle are introduction,market,exchange,and disposal.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following products would most likely be classified as a specialty good or service?

Accepted Answer

A) a microwave oven 
B) a limited-edition print signed by the artist 
C) a sports coat,slacks,and tie 
D) a car insurance policy 
A) a microwave oven 
B) a limited-edition print signed by the artist 
C) a sports coat,slacks,and tie 
D) a car insurance policy

Question 12

Successful businesses constantly monitor consumer wants and needs.

Accepted Answer

A) True 
 B)False

Question 13

When consumers decide to purchase a particular product,they:

Accepted Answer

A) will search for the retailer that offers the lowest price. 
B) consider the total collection of benefits that the product offers. 
C) base their decision on a brand name nearly all of the time. 
D) initially evaluate the product's package. 
A) will search for the retailer that offers the lowest price. 
B) consider the total collection of benefits that the product offers. 
C) base their decision on a brand name nearly all of the time. 
D) initially evaluate the product's package.

Question 14

Borden,Inc.makes pasta,dairy items,and adhesives.These different types of products are referred to as Borden's:

Accepted Answer

A) product line. 
B) product mix. 
C) product differentiation. 
D) product life cycle. 
A) product line. 
B) product mix. 
C) product differentiation. 
D) product life cycle.

Question 15

Phil asks you to calculate the break-even point for his firm.You respond that you will need the following information:

Accepted Answer

A) the values for all assets and liabilities. 
B) total fixed costs,selling price per unit,and variable costs per unit. 
C) forecasted sales volume,operating expenses,and asset values. 
D) sales revenue and total liabilities. 
A) the values for all assets and liabilities. 
B) total fixed costs,selling price per unit,and variable costs per unit. 
C) forecasted sales volume,operating expenses,and asset values. 
D) sales revenue and total liabilities.

Question 16

In the Thinking Green box in the chapter,it's become apparent that many companies are:

Accepted Answer

A) ignoring the green movement as just a temporary trend being embraced. 
B) taking advantage of environmental awareness to help promote their products. 
C) becoming the target of government regulators demanding more control. 
D) pricing products at a higher price due to environmental requirements. 
A) ignoring the green movement as just a temporary trend being embraced. 
B) taking advantage of environmental awareness to help promote their products. 
C) becoming the target of government regulators demanding more control. 
D) pricing products at a higher price due to environmental requirements.

Question 17

What does a break-even point of 100 units mean to a firm?

Accepted Answer

A) The firm must sell 100 units to maximize its profits. 
B) Fixed costs plus variable costs equals 100 units. 
C) By producing 100 units,the firm can ensure that variable costs completely cancel its fixed costs. 
D) If the firm sells 100 units,its total revenues will equal its total costs. 
A) The firm must sell 100 units to maximize its profits. 
B) Fixed costs plus variable costs equals 100 units. 
C) By producing 100 units,the firm can ensure that variable costs completely cancel its fixed costs. 
D) If the firm sells 100 units,its total revenues will equal its total costs.

Question 18

Target costing is a cost-based pricing strategy.

Accepted Answer

A) True 
 B)False

Question 19

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.
-Gourmet Pets is interested in computing the break-even point for its new product Prime Cuts.The fixed costs of adding this product to the product line amounts to $20,000.Variable costs to produce one package of Prime Cuts are $2.Prime Cuts will sell for $6 per package.The break-even point would be:

Accepted Answer

A) 900 units. 
B) 2,800 units. 
C) 5,000 units. 
D) There is not enough information to find the correct answer. 
A) 900 units. 
B) 2,800 units. 
C) 5,000 units. 
D) There is not enough information to find the correct answer.

Question 20

A brand includes practically all means of identifying a product.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

The job performed by brand managers:

LoRider Wheels sells high quality bicycles and accessories.The store is known for a pleasant environment,friendly salespeople and an excellent service department.All of these elements are part of the ___________ offered by LoRider.

The purpose of a brand name is to establish an image of generic goods or services.

New-product failures are most often caused by excessively high prices.

Many supermarkets carry plain packages that only identify the name of the product that is inside.For example,a label may read simply "peaches" or "green beans." These goods represent:

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

Price,store surroundings,service,and brand name are all elements that consumers evaluate in a total product offer.

Shuichi owns and operates his own sushi bar.His fixed costs would include rent,insurance,and property taxes.

The four stages in the product life cycle are introduction,market,exchange,and disposal.

Which of the following products would most likely be classified as a specialty good or service?

Successful businesses constantly monitor consumer wants and needs.

When consumers decide to purchase a particular product,they:

Borden,Inc.makes pasta,dairy items,and adhesives.These different types of products are referred to as Borden's:

Phil asks you to calculate the break-even point for his firm.You respond that you will need the following information:

In the Thinking Green box in the chapter,it's become apparent that many companies are:

What does a break-even point of 100 units mean to a firm?

Target costing is a cost-based pricing strategy.

A brand includes practically all means of identifying a product.

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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