Question 1

During the ________ stage of the product life cycle sales reach a peak,profits are declining,and the number of competitors starts to decrease.

Accepted Answer

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

Question 2

In recent years,the packaging of products has been given a greater role in product promotion.

Accepted Answer

A) True 
 B)False

Question 3

Demand-based pricing is another name for cost-based pricing.

Accepted Answer

A) True 
 B)False

Question 4

The marketing efforts for convenience and specialty goods are essentially the same.

Accepted Answer

A) True 
 B)False

Question 5

Car dealers realize that consumers focus exclusively on price and warranty.

Accepted Answer

A) True 
 B)False

Question 6

Employees,not the firm's research and development department,are the number one source of ideas for new industrial products.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a benefit of a brand name for a seller?

Accepted Answer

A) quality assurance 
B) reduction in search time 
C) increased repeat purchases 
D) additional prestige 
A) quality assurance 
B) reduction in search time 
C) increased repeat purchases 
D) additional prestige

Question 8

According to the Spotlight on Small Business box in Chapter 14,Let's Dish and Dream Diners knew that even though its target market valued home-cooked meals and family time spent enjoying them they lacked the time to adequately prepare such meals.

Accepted Answer

A) True 
 B)False

Question 9

One function of effective packaging is to attract the attention of consumers.

Accepted Answer

A) True 
 B)False

Question 10

One common way of classifying consumer goods is based on consumer purchasing behavior.

Accepted Answer

A) True 
 B)False

Question 11

As a result of increased advertising and well-trained salespeople,packaging is less important than in the past.

Accepted Answer

A) True 
 B)False

Question 12

The four-stage theoretical model that describes the evolution of a product from birth to death is referred to as the:

Accepted Answer

A) growth-share matrix. 
B) developmental life span analysis. 
C) product life cycle. 
D) product market progression index. 
A) growth-share matrix. 
B) developmental life span analysis. 
C) product life cycle. 
D) product market progression index.

Question 13

As firms develop their marketing mix,it is important to remember that:

Accepted Answer

A) prices must be linked directly to the cost of production. 
B) instincts and past history are the best guides in determining price. 
C) regardless of the strategy used,prices ultimately reflect the forces of supply and demand. 
D) firms are often restricted in creating pricing strategies by relevant government rules and guidelines. 
A) prices must be linked directly to the cost of production. 
B) instincts and past history are the best guides in determining price. 
C) regardless of the strategy used,prices ultimately reflect the forces of supply and demand. 
D) firms are often restricted in creating pricing strategies by relevant government rules and guidelines.

Question 14

Stella strongly prefers a specific brand of gourmet coffee.Because there is only one store in her area that sells this brand,she makes an extra effort to purchase this item.Stella's purchasing behavior indicates for her this product is a specialty good.

Accepted Answer

A) True 
 B)False

Question 15

The use of price discounts and coupons may erode the commitment of consumers to brand names.

Accepted Answer

A) True 
 B)False

Question 16

The _________ pricing strategy maintains low prices and avoids the use of special sales.

Accepted Answer

A) everyday low pricing (EDLP) 
B) cost-based 
C) target-based 
D) skimming 
A) everyday low pricing (EDLP) 
B) cost-based 
C) target-based 
D) skimming

Question 17

While the Universal Product Code (UPC)improves efficiency at the retail check-out counter,it has increased problems in controlling inventory.

Accepted Answer

A) True 
 B)False

Question 18

New products often fail because they don't deliver to consumers their promised benefits.

Accepted Answer

A) True 
 B)False

Question 19

Some goods have a product life cycle that is completed in a shorter amount of time than other goods.

Accepted Answer

A) True 
 B)False

Question 20

Healthy Pick designed a new type of packaging that significantly improves taste and texture of food when defrosted.Unfortunately,firms seldom find that improvements in packaging impact market share and profits.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

During the ________ stage of the product life cycle sales reach a peak,profits are declining,and the number of competitors starts to decrease.

In recent years,the packaging of products has been given a greater role in product promotion.

Demand-based pricing is another name for cost-based pricing.

The marketing efforts for convenience and specialty goods are essentially the same.

Car dealers realize that consumers focus exclusively on price and warranty.

Employees,not the firm's research and development department,are the number one source of ideas for new industrial products.

Which of the following is a benefit of a brand name for a seller?

According to the Spotlight on Small Business box in Chapter 14,Let's Dish and Dream Diners knew that even though its target market valued home-cooked meals and family time spent enjoying them they lacked the time to adequately prepare such meals.

One function of effective packaging is to attract the attention of consumers.

One common way of classifying consumer goods is based on consumer purchasing behavior.

As a result of increased advertising and well-trained salespeople,packaging is less important than in the past.

The four-stage theoretical model that describes the evolution of a product from birth to death is referred to as the:

As firms develop their marketing mix,it is important to remember that:

Stella strongly prefers a specific brand of gourmet coffee.Because there is only one store in her area that sells this brand,she makes an extra effort to purchase this item.Stella's purchasing behavior indicates for her this product is a specialty good.

The use of price discounts and coupons may erode the commitment of consumers to brand names.

The _________ pricing strategy maintains low prices and avoids the use of special sales.

While the Universal Product Code (UPC)improves efficiency at the retail check-out counter,it has increased problems in controlling inventory.

New products often fail because they don't deliver to consumers their promised benefits.

Some goods have a product life cycle that is completed in a shorter amount of time than other goods.

Healthy Pick designed a new type of packaging that significantly improves taste and texture of food when defrosted.Unfortunately,firms seldom find that improvements in packaging impact market share and profits.

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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