Question 1

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

Question 2

Which of the following are products consumers buy after comparing quality,price,and style from a variety of sellers?

Accepted Answer

A) shopping goods 
B) specialty goods 
C) convenience goods 
D) unsought goods

Question 3

Which of the following is a potential problem with a high-low pricing strategy?

Accepted Answer

A) It confuses and frustrates customers. 
B) It places too much emphasis on non-price competition. 
C) It teaches customers to wait for sales,and therefore reduces profits. 
D) It is difficult to implement.

Question 4

Restaurants,like other businesses,often find that the best way to succeed in the market is to:

Accepted Answer

A) listen to customers and adapt products to their needs. 
B) create a product for which he could charge an exceptionally high price. 
C) create a winning combination of advertising and personal selling for all of the stores in the chain. 
D) open more stores in a single year than other foodservice operators.

Question 5

While the time in each stage may vary,all products progress through each stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 6

Having completed the first stages of product development of its new low-calorie frozen yogurt breakfast bars,the YaYa Yogurt Company took its product directly to consumers.Marketers partnered with a large theme park in Orlando,FL,to perform ________________.The YaYa marketing department wanted to know if consumers found this product to be a quick way to eat breakfast on the road.Subsequently,they also wanted to determine what customers would be willing to pay for the breakfast bar.

Accepted Answer

A) commercialization 
B) concept testing 
C) prototyping 
D) product screening

Question 7

Knowledge of the product life cycle model can help firms develop marketing strategies and anticipate market changes.

Accepted Answer

A) True 
 B)False

Question 8

Paper clips,stationery,and other office supplies used by businesses are types of industrial support goods.

Accepted Answer

A) True 
 B)False

Question 9

The formula for break-even analysis includes which of the following components?

Accepted Answer

A) depreciation 
B) forecasted sales 
C) forecasted cash requirements 
D) variable cost per unit of output

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

Accepted Answer

A) True 
 B)False

Question 12

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.

Question 13

Price leadership is a demand based pricing strategy.

Accepted Answer

A) True 
 B)False

Question 14

Sales of cell phones in the United States are still increasing,but the rate of growth has slowed.Sales are expected to peak somewhat soon in the U.S.Based on this information,cellular phones are in what stage of the product life cycle in the U.S.?

Accepted Answer

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

Question 15

Gill's Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin.Gill's strategy is known as target costing.

Accepted Answer

A) True 
 B)False

Question 16

One of the reasons why companies create the position of brand manager is to:

Accepted Answer

A) have greater control over new-product development and promotion. 
B) cut expenses associated with the marketing of products. 
C) limit the amount of market research expenses products required. 
D) identify and prosecute firms that violate trademark protection.

Question 17

Which of the following statements about non-price competition is most accurate?

Accepted Answer

A) While still important,non-price competition is becoming less critical as a result of the Internet. 
B) Marketers often rely on non-price differences in their competitive strategy to enhance a relatively homogeneous product. 
C) Non-price competition is much more important to large firms than it is to small firms. 
D) As microeconomic theory suggests,firms have found that non-price competition plays a secondary role that supplements the more important competition based on price.

Question 18

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

Accepted Answer

A) cause businesses to increase their focus on non-price aspects of their promotional message. 
B) bring about more emphasis on demand-oriented pricing. 
C) diminish in importance as quickly as other fads. 
D) focus government attention on the collusive pricing practices of firms in specific industries.

Question 19

The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.

Accepted Answer

A) True 
 B)False

Question 20

In the long run,the price of a product is determined by the cost of production and the length of the firm's supply chain.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

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.

Which of the following are products consumers buy after comparing quality,price,and style from a variety of sellers?

Which of the following is a potential problem with a high-low pricing strategy?

Restaurants,like other businesses,often find that the best way to succeed in the market is to:

While the time in each stage may vary,all products progress through each stage of the product life cycle.

Knowledge of the product life cycle model can help firms develop marketing strategies and anticipate market changes.

Paper clips,stationery,and other office supplies used by businesses are types of industrial support goods.

The formula for break-even analysis includes which of the following components?

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

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

In marketing today,packaging carries the added responsibility of:

Price leadership is a demand based pricing strategy.

Sales of cell phones in the United States are still increasing,but the rate of growth has slowed.Sales are expected to peak somewhat soon in the U.S.Based on this information,cellular phones are in what stage of the product life cycle in the U.S.?

Gill's Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin.Gill's strategy is known as target costing.

One of the reasons why companies create the position of brand manager is to:

Which of the following statements about non-price competition is most accurate?

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

The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.

In the long run,the price of a product is determined by the cost of production and the length of the firm's supply chain.