Exam 14: Developing and Pricing Goods and Services

One way firms can gain a competitive advantage without relying on low prices is by developing close,friendly relationships with their customers.

Once a good or service nears the end of its product life cycle,the firm recognizes that:

After several years as a brand manager for an established product,Pete has taken a job with a microbrewery.He is responsible for managing the marketing mix for a new product introduction.In his new job,Pete will find that while the products may be at different stages of the product life cycle,the marketing strategies will be essentially the same.

Entice-mint Breath Mints is a new brand of breath fresheners.The company realizes that product location is very important since consumers desire to buy this type product with a minimum of effort.Entice-mint mints represent a:

At Isuzu's Appliance Store,all new products are offered with an extended service contract,as well as free delivery and installation.By offering these value enhancers,Isuzu's has added to their total product offer.

A leading cause of new-product failure is:

When consumer loyalty reaches the point of brand insistence,the product becomes a specialty good.

Specialty goods are often marketed through specialty magazines.

A pickup truck can be classified as either a consumer good or an industrial good.

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. -The company currently markets McDog T-bone,Lapdog Lunchtreats,Rover's Potroast,and Puppy Porterhouse in the dog food market.Prime Cuts will be an addition to the company's ___________ in the dog food market.

The concepts of product lines and product mixes apply to marketers of products and services.

__________ presents an idea for a new product to potential customers to test their reactions.

Products that carry the name of a distributor or a retailer instead of the manufacturer's name are called:

Creative product differentiation can enable a small business to increase market share.

Pattie Bunz operates the Zestee Burgers restaurant.The cost of pickles,onions,buns,catsup,and meat patties would all be considered variable costs for her type of business.

A recent trend in packaging is:

Which of the following is a stage in the product life cycle?

The Procter & Gamble (P&G)Company produces bar soap,disposable diapers,deodorants,laundry detergents,cookies,cake mix,shampoo,shortening,and many other products.These products are part of P&G's:

Felicia wants to know how many units she must sell to cover all of her costs.She indicates to you that her selling price is $20 per unit,her fixed costs are $6,000,and the variable costs per unit are $15.What is her break-even point?

The most common classification of consumer goods and services is based on producer or manufacturer behavior in the market.