Question 1

While service providers offer product lines,they are unable to offer product mixes.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is the most accurate assessment of the role packaging plays in product offerings?

Accepted Answer

A) The importance of packaging has diminished as the use of the Internet has grown. 
B) While packaging plays an important role in marketing goods,it is not relevant to the marketing of services. 
C) Effective packaging eliminates the potential of product liability suits. 
D) The importance of packaging is greater now than ever. 
A) The importance of packaging has diminished as the use of the Internet has grown. 
B) While packaging plays an important role in marketing goods,it is not relevant to the marketing of services. 
C) Effective packaging eliminates the potential of product liability suits. 
D) The importance of packaging is greater now than ever.

Question 3

A brand that has been given exclusive legal protection,such as the McDonald's golden arches is a:

Accepted Answer

A) private brand. 
B) promotional mark. 
C) dealer brand. 
D) trademark. 
A) private brand. 
B) promotional mark. 
C) dealer brand. 
D) trademark.

Question 4

A traditional McDonald's and a McCafe (the outlet that sells premium coffee and pastries similar to a Starbucks)are examples of the McDonald's Corporation product mix.

Accepted Answer

A) True 
 B)False

Question 5

As a brand manager,Ellen has proposed an aggressive advertising campaign that exaggerates the benefits of their newest product.While Ellen is convinced that this strategy will encourage consumers to try the product,her assistant strongly opposes the idea.Which of the following presents the best explanation for the assistant's opposition to Ellen's proposal?

Accepted Answer

A) If a firm produces a quality product,the best advertising is word-of-mouth to generate excitement for a new product. 
B) The best way to promote new consumer products is with personal selling. 
C) Exaggerating the benefits of a product may backfire and injure the product's potential for success. 
D) Effective advertising for new consumer products should be subtle and low key.Ellen's proposal is more appropriate for the B2B market. 
A) If a firm produces a quality product,the best advertising is word-of-mouth to generate excitement for a new product. 
B) The best way to promote new consumer products is with personal selling. 
C) Exaggerating the benefits of a product may backfire and injure the product's potential for success. 
D) Effective advertising for new consumer products should be subtle and low key.Ellen's proposal is more appropriate for the B2B market.

Question 6

Which of the following is expected during the maturity stage of a product life cycle?

Accepted Answer

A) a rapid increase in profits 
B) a rapid increase in the number of competitors 
C) peak sales 
D) reduced emphasis on promoting the product's brand name 
A) a rapid increase in profits 
B) a rapid increase in the number of competitors 
C) peak sales 
D) reduced emphasis on promoting the product's brand name

Question 7

Sears sells batteries under its own Diehard brand name even though another company actually produces these batteries.This is an example of a:

Accepted Answer

A) knockoff brand. 
B) generic brand. 
C) dealer (private)brand. 
D) brand association. 
A) knockoff brand. 
B) generic brand. 
C) dealer (private)brand. 
D) brand association.

Question 8

"Create a better mousetrap and the world will beat a path to your door." This statement is consistent with the idea behind the commercialization of products.

Accepted Answer

A) True 
 B)False

Question 9

A skimming price strategy involves a low pricing policy intended to attract price-sensitive customers from competitors.

Accepted Answer

A) True 
 B)False

Question 10

Certain brand names,such as Kleenex and Xerox,fear they could become ________,because they are so commonly identified with a specific product category that consumers use these names to refer to any product in that category regardless of the manufacturer.

Accepted Answer

A) family brands 
B) generic names 
C) universal products 
D) knockoff names 
A) family brands 
B) generic names 
C) universal products 
D) knockoff names

Question 11

Concept testing involves taking a product idea to consumers to test their reactions.

Accepted Answer

A) True 
 B)False

Question 12

Competition-based pricing is a strategy based on what all the other competitors are doing.

Accepted Answer

A) True 
 B)False

Question 13

A __________ is a name,symbol,or design (or combination of these)that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

Accepted Answer

A) trademark 
B) brand 
C) logo 
D) copyright 
A) trademark 
B) brand 
C) logo 
D) copyright

Question 14

Which of the following is the best example of a product line?

Accepted Answer

A) General Motors offers passenger cars,small trucks,and tractor trailers. 
B) Sony offers DVD players,compact disk players,and video games. 
C) Kellogg offers Special K,Raisin Bran,Corn Flakes,and a variety of other cold ready-to-eat cereals. 
D) Hewlett Packard offers scanners,printers and personal computers. 
A) General Motors offers passenger cars,small trucks,and tractor trailers. 
B) Sony offers DVD players,compact disk players,and video games. 
C) Kellogg offers Special K,Raisin Bran,Corn Flakes,and a variety of other cold ready-to-eat cereals. 
D) Hewlett Packard offers scanners,printers and personal computers.

Question 15

Dealer (private)brands are products that do not carry the manufacturer's name,but rather carry the name of a distributor or retailer.

Accepted Answer

A) True 
 B)False

Question 16

The product life cycle consists of __________ stages.

Accepted Answer

A) 3 
B) 4 
C) 5 
D) 6 
A) 3 
B) 4 
C) 5 
D) 6

Question 17

__________ is the process used to determine the profitability of a product at various levels of sales.

Accepted Answer

A) Cost-based pricing 
B) Break-even analysis 
C) Demand-based pricing 
D) Competition-based pricing 
A) Cost-based pricing 
B) Break-even analysis 
C) Demand-based pricing 
D) Competition-based pricing

Question 18

According to the Spotlight on Small Business box in Chapter 14,Let's Dish and Dream Dinners have become successful in their market by:

Accepted Answer

A) offering their dinner menus at a price that no other retailers,caterers,or restaurants can match. 
B) successfully targeting the top one percent of earners in each market in which they compete. 
C) offering their customers low-rate financing as a value enhancement if they agree to a full year dinner plan. 
D) creating a service that allows them to meet others,saves them time in preparing meals,and lessens stress. 
A) offering their dinner menus at a price that no other retailers,caterers,or restaurants can match. 
B) successfully targeting the top one percent of earners in each market in which they compete. 
C) offering their customers low-rate financing as a value enhancement if they agree to a full year dinner plan. 
D) creating a service that allows them to meet others,saves them time in preparing meals,and lessens stress.

Question 19

Firms utilize ________ when they attempt to add value to their product by offering service after the sale,product demonstrations,or interactive customer Web sites.

Accepted Answer

A) nonprice competition 
B) relationship branding 
C) niche marketing 
D) break-even segmentation 
A) nonprice competition 
B) relationship branding 
C) niche marketing 
D) break-even segmentation

Question 20

Brand __________ refers to the linking of a brand to other favorable images,such as a celebrity.

Accepted Answer

A) association 
B) loyalty 
C) awareness 
D) insistence 
A) association 
B) loyalty 
C) awareness 
D) insistence

Exam 14: Developing and Pricing Goods and Services

While service providers offer product lines,they are unable to offer product mixes.

Which of the following statements is the most accurate assessment of the role packaging plays in product offerings?

A brand that has been given exclusive legal protection,such as the McDonald's golden arches is a:

A traditional McDonald's and a McCafe (the outlet that sells premium coffee and pastries similar to a Starbucks)are examples of the McDonald's Corporation product mix.

Which of the following is expected during the maturity stage of a product life cycle?

Sears sells batteries under its own Diehard brand name even though another company actually produces these batteries.This is an example of a:

"Create a better mousetrap and the world will beat a path to your door." This statement is consistent with the idea behind the commercialization of products.

A skimming price strategy involves a low pricing policy intended to attract price-sensitive customers from competitors.

Certain brand names,such as Kleenex and Xerox,fear they could become ________,because they are so commonly identified with a specific product category that consumers use these names to refer to any product in that category regardless of the manufacturer.

Concept testing involves taking a product idea to consumers to test their reactions.

Competition-based pricing is a strategy based on what all the other competitors are doing.

A __________ is a name,symbol,or design (or combination of these)that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

Which of the following is the best example of a product line?

Dealer (private)brands are products that do not carry the manufacturer's name,but rather carry the name of a distributor or retailer.

The product life cycle consists of __________ stages.

__________ is the process used to determine the profitability of a product at various levels of sales.

According to the Spotlight on Small Business box in Chapter 14,Let's Dish and Dream Dinners have become successful in their market by:

Firms utilize ________ when they attempt to add value to their product by offering service after the sale,product demonstrations,or interactive customer Web sites.

Brand __________ refers to the linking of a brand to other favorable images,such as a celebrity.

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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