Exam 14: Developing and Pricing Goods and Services

The Spotlight on Small Business box in Chapter 14 suggests the product offered by Dream Dinners is the:

The pricing objectives of a firm should be set independently of the other elements of their marketing mix.

The purpose of __________ is to create real or perceived product differences.

When consumers reach the point of brand _______,the product becomes a specialty good.

Rebates and zero-percent financing are pricing strategies to create an image of status and exclusivity.

Successful marketing of convenience and specialty goods require different marketing mixes.

The product life cycle presents a theoretical model describing what happens to sales and profits for a class of products over time.

___________ is the stage of new product development that involves promoting a product to distributors,and developing advertising and sales campaigns in order to generate and maintain consumer interest.

Carlotta owns and manages the Carlite Car Wash.She charges $8 per car wash.Her fixed costs are $600 per month,while her variable costs per car wash amount to $2.Carlotta must wash 60 cars to break even.

Mystic Beverages,a producer of soft drinks,wants to differentiate its products from those of other soft drink providers.To implement this strategy successfully will require Mystic to create tangible differences in the physical product it offers.

The rainbow colored apple is Apple Computer's:

SneezeNoMore markets a group of similar products for people suffering from the common cold.The products in this line are sold under the brand name SneezeNoMore.The products differ mainly in the strength of the dosage and in whether they also contain additional medications to help the consumer sleep.As an employee of SneezeNoMore,Jill is responsible for the marketing mix for the company's products.She is also involved in any major decisions concerning the development of new products that will be included in this product line.Jill serves as a(n):

While the packaging of services has not yet captured the attention of businesses,technological improvements will likely create new opportunities.

Equipment maintenance and repair of equipment used by businesses is an industrial support good.

The product life cycle model helps marketers realize that:

In evaluating a total product offer,value enhancers such as service,guarantees,reputation of the seller,etc.are as important to customers as the basic product.

The Internet allows customers to compare prices of many goods and services.This technology will likely:

Marketers use pricing,advertising,and packaging to differentiate their products from competitors' products even when actual differences are quite small.

Barker Brothers Pens utilizes a strategy of low priced pens to attract customers and discourage competition.This represents a _______ strategy.

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.