Question 1

As a product progresses through each stage of the product life cycle,successful marketers recognize that each stage requires:

Accepted Answer

A) a different marketing strategy. 
B) a consistent application of fundamental marketing practices. 
C) an increase in the amount spent on advertising. 
D) more emphasis on personal selling. 
A) a different marketing strategy. 
B) a consistent application of fundamental marketing practices. 
C) an increase in the amount spent on advertising. 
D) more emphasis on personal selling.

Question 2

The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.

Accepted Answer

A) True 
 B)False

Question 3

In marketing today,packaging carries the added responsibility of:

Accepted Answer

A) promotion and sales. 
B) minimizing product liability. 
C) gaining access to international markets. 
D) keeping product costs down. 
A) promotion and sales. 
B) minimizing product liability. 
C) gaining access to international markets. 
D) keeping product costs down.

Question 4

Product testing is designed to reduce the number of new product ideas that a firm works on at any one time.

Accepted Answer

A) True 
 B)False

Question 5

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 feels its target market is more concerned with perceived quality than actual product cost.They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market,so they face no direct competition.Their decision to charge a high price is consistent with the ________ strategy.

Accepted Answer

A) market pricing 
B) price leadership 
C) skimming price 
D) penetration price 
A) market pricing 
B) price leadership 
C) skimming price 
D) penetration price

Question 6

While the product life cycle is a good theory,it's not important for marketers to recognize what life cycle stage a product is in.

Accepted Answer

A) True 
 B)False

Question 7

The trend towards self-service retailers has increased the importance of packaging.

Accepted Answer

A) True 
 B)False

Question 8

__________ goods and services represent those products that consumers are unaware of or haven't thought of buying.

Accepted Answer

A) Inferior 
B) Convenience 
C) Shopping 
D) Unsought 
A) Inferior 
B) Convenience 
C) Shopping 
D) Unsought

Question 9

According to the product life cycle model,sales are expected to peak in the _________ stage.

Accepted Answer

A) introduction 
B) maturity 
C) growth 
D) commercialization 
A) introduction 
B) maturity 
C) growth 
D) commercialization

Question 10

As the Internet grows in popularity,it is likely that more firms will adopt a high-low pricing strategy.

Accepted Answer

A) True 
 B)False

Question 11

Whether a consumer thinks a product provides the best value depends upon:

Accepted Answer

A) the actual product benefits. 
B) the consumer's perceptions. 
C) the global situation. 
D) the laws covering the product's manufacture. 
A) the actual product benefits. 
B) the consumer's perceptions. 
C) the global situation. 
D) the laws covering the product's manufacture.

Question 12

Today,packaging is:

Accepted Answer

A) the least important component of the marketing mix. 
B) assuming an increasingly important role in the promotion of products. 
C) exclusively intended to protect the product from damage. 
D) the most expensive component of the production process. 
A) the least important component of the marketing mix. 
B) assuming an increasingly important role in the promotion of products. 
C) exclusively intended to protect the product from damage. 
D) the most expensive component of the production process.

Question 13

Miller Light Beer,Maxwell House Coffee,Jell-O brand gelatin,Kraft Mayonnaise,and Marlboro Cigarettes,were all at one time products of the Philip Morris Company.These products represented a part of the product line Philip Morris offered.

Accepted Answer

A) True 
 B)False

Question 14

Break-even analysis determines profitability of a firm at various levels of sales.

Accepted Answer

A) True 
 B)False

Question 15

In the long run the market determines what the price will be.

Accepted Answer

A) True 
 B)False

Question 16

The classification of goods or services into a particular class depends on the individual consumer.

Accepted Answer

A) True 
 B)False

Question 17

A single product line may contain several competing brands.

Accepted Answer

A) True 
 B)False

Question 18

Price,appearance,and reputation can influence a consumer's perceptions of quality.

Accepted Answer

A) True 
 B)False

Question 19

Interactive Web sites are useful in the commercialization process for new products.

Accepted Answer

A) True 
 B)False

Question 20

Sweet Dream Confectioners uses the same ingredients as most other producers of chocolate candies.In fact,taste tests suggest that the candy itself,while quite good,isn't much better than other well-known brands of chocolate.However,the company wraps its candies in expensive looking foil and places them in very attractive boxes.It promotes its products in advertisements as "the ultimate in chocolate experience." Sweet Dream charges a much higher price than most competitors,but sales continue to grow.This success indicates that:

Accepted Answer

A) consumers always behave in an irrational manner. 
B) there is more to the total product offer than the physical product. 
C) consumers seldom consider price when making a buying decision for goods such as chocolate. 
D) chocolate is best classified as a convenience gooD.When making purchasing decisions,consumers look at a variety of factors,collectively known as a total product offer.The package,price,and the image created by the firm's advertising are all part of this package. 
A) consumers always behave in an irrational manner. 
B) there is more to the total product offer than the physical product. 
C) consumers seldom consider price when making a buying decision for goods such as chocolate. 
D) chocolate is best classified as a convenience gooD.When making purchasing decisions,consumers look at a variety of factors,collectively known as a total product offer.The package,price,and the image created by the firm's advertising are all part of this package.

Exam 14: Developing and Pricing Goods and Services

As a product progresses through each stage of the product life cycle,successful marketers recognize that each stage requires:

The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.

In marketing today,packaging carries the added responsibility of:

Product testing is designed to reduce the number of new product ideas that a firm works on at any one time.

While the product life cycle is a good theory,it's not important for marketers to recognize what life cycle stage a product is in.

The trend towards self-service retailers has increased the importance of packaging.

__________ goods and services represent those products that consumers are unaware of or haven't thought of buying.

According to the product life cycle model,sales are expected to peak in the _________ stage.

As the Internet grows in popularity,it is likely that more firms will adopt a high-low pricing strategy.

Whether a consumer thinks a product provides the best value depends upon:

Today,packaging is:

Miller Light Beer,Maxwell House Coffee,Jell-O brand gelatin,Kraft Mayonnaise,and Marlboro Cigarettes,were all at one time products of the Philip Morris Company.These products represented a part of the product line Philip Morris offered.

Break-even analysis determines profitability of a firm at various levels of sales.

In the long run the market determines what the price will be.

The classification of goods or services into a particular class depends on the individual consumer.

A single product line may contain several competing brands.

Price,appearance,and reputation can influence a consumer's perceptions of quality.

Interactive Web sites are useful in the commercialization process for new products.

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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