Question 1

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 2

Most manufacturers hope that their brand names will become a generic name.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 online retailing 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 5

The Procter & Gamble Company is a major producer of bar soaps. In fact, Procter & Gamble produces Ivory, Camay, Lava, Safeguard, Zest, and Coast bar soaps that all claim a variety of benefits. These products are part of Procter & Gamble's ________ in bar soaps.

Accepted Answer

A)  product mix 
B)  product concentration 
C)  product store 
D)  product line

Question 6

Consumer goods and services are generally classified into four specific categories. What are the four categories, and how do they differ? Illustrate by giving examples of products that are often included in each category.

Accepted Answer

The answer of Consumer goods and services are generally classified...

Question 7

Regina owns and operates the Regal Car Wash. She charges $12 per car wash. Her fixed costs are $850 per month, while her variable costs per car wash amount to $2. Regal Car Wash must service 60 cars to break even.

Accepted Answer

A) True 
 B)False

Question 8

_______ costs are those costs that increase as the level of production increases.

Accepted Answer

A)  Fixed 
B)  Mixed 
C)  Variable 
D)  Uncontrollable

Question 9

Manufacturers' brands carry the brand name of the producers that distribute the products nationally.

Accepted Answer

A) True 
 B)False

Question 10

From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and excludes any intangible attributes.

Accepted Answer

A) True 
 B)False

Question 11

Successful firms always try to maintain consistency in their short-run and long-run pricing objectives.

Accepted Answer

A) True 
 B)False

Question 12

Cheryl is considering adding a rack of greeting cards to her product offerings at The Bitty Bookstore. Her fixed costs associated with adding the greeting cards would be $400. Variable costs per card are $1 each. The greeting cards will sell for $3 each. Helen's break-even point would occur at ________ cards sold.

Accepted Answer

A)  150 
B)  200 
C)  300 
D)  450

Question 13

The U.S. legal system does not offer trademark protection.

Accepted Answer

A) True 
 B)False

Question 14

Isla is a marketing manager for Marshall Manufacturing. Her boss has asked her to evaluate a new-product idea. One of the things Isla wants to determine is how much of this product her firm would have to sell in order to break even. In order to compute this break-even level of sales, she will need to know the price of the good, the total fixed costs, and variable cost of producing each unit.

Accepted Answer

A) True 
 B)False

Question 15

Microchippers Computer Company thinks it will make a splash with galaxy-themed laptop cover designs scheduled for release next year. The computers do not reveal any other feature differences from what Microchippers currently offers. This effort is an example of using ________ to differentiate a product as new.

Accepted Answer

A)  packaging 
B)  incremental coloring 
C)  incremental channeling 
D)  brand extension

Question 16

Shopping goods and services are purchased only after consumers compare value, quality, style, and price of competing goods and services.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a characteristic of the decline stage of the product life cycle?

Accepted Answer

A)  falling sales 
B)  price reductions 
C)  many new firms entering the market 
D)  increasing profits

Question 18

Successful businesses constantly monitor consumer wants and needs.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

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

Most manufacturers hope that their brand names will become a generic name.

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

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

The Procter & Gamble Company is a major producer of bar soaps. In fact, Procter & Gamble produces Ivory, Camay, Lava, Safeguard, Zest, and Coast bar soaps that all claim a variety of benefits. These products are part of Procter & Gamble's ________ in bar soaps.

Consumer goods and services are generally classified into four specific categories. What are the four categories, and how do they differ? Illustrate by giving examples of products that are often included in each category.

Regina owns and operates the Regal Car Wash. She charges $12 per car wash. Her fixed costs are $850 per month, while her variable costs per car wash amount to $2. Regal Car Wash must service 60 cars to break even.

_______ costs are those costs that increase as the level of production increases.

Manufacturers' brands carry the brand name of the producers that distribute the products nationally.

From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and excludes any intangible attributes.

Successful firms always try to maintain consistency in their short-run and long-run pricing objectives.

The U.S. legal system does not offer trademark protection.

Shopping goods and services are purchased only after consumers compare value, quality, style, and price of competing goods and services.

Which of the following is a characteristic of the decline stage of the product life cycle?

Successful businesses constantly monitor consumer wants and needs.

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

Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.