Question 1

Admiral Motors is the dominant firm in the auto market. When Admiral announces an increase in the prices of its automobiles, Chord and Frysler, the smaller firms in the market usually quickly announce similar price increases for their own cars. This situation is an example of demand-oriented pricing.

Accepted Answer

A) True 
 B)False

Question 2

The greatest source of ideas for new products is

Accepted Answer

A)  consumer suggestions. 
B)  suggestions from competitors. 
C)  employee ideas. 
D)  research and development.

Question 3

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.

Question 4

A penetration strategy calls for a firm to charge low prices with the intent of attracting a large number of customers and discouraging competition.

Accepted Answer

A) True 
 B)False

Question 5

The purpose of a brand name is to establish an image of generic goods or services.

Accepted Answer

A) True 
 B)False

Question 6

A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

Accepted Answer

A) True 
 B)False

Question 7

Small firms often rely on nonprice competition when competing against larger firms.

Accepted Answer

A) True 
 B)False

Question 8

Many products are promoted by emphasizing their key benefits, rather than setting the price lower than that of competitive goods. This emphasis on the product's benefits illustrates a(n) ________ strategy.

Accepted Answer

A)  penetration 
B)  nonprice competition 
C)  industry leader 
D)  bundled package

Question 9

As more sales move to online retailers, it is likely that firms will adopt a high-low pricing strategy.

Accepted Answer

A) True 
 B)False

Question 10

Haruto, owner and operator of a sushi bar, is working on a break-even analysis. His fixed costs would include rent, insurance, and property taxes.

Accepted Answer

A) True 
 B)False

Question 11

Successful marketing of convenience and specialty goods require different marketing mixes.

Accepted Answer

A) True 
 B)False

Question 12

The term product line describes the combination of product mixes offered by a manufacturer.

Accepted Answer

A) True 
 B)False

Question 13

A single product line may contain several competing brands.

Accepted Answer

A) True 
 B)False

Question 14

Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message has been identified.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Epic Electronics' promotional efforts are intended to increase the public's awareness of its new product's benefits and uses. This effort is consistent with the ________ stage of the product life cycle model.

Accepted Answer

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

Question 17

________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Accepted Answer

A)  Price discrimination 
B)  Price leadership 
C)  Target costing 
D)  Cost-based pricing

Question 18

Jackson is the owner of a small pizzeria and draws a variety of competition-from other local restaurants offering pizza to the large national chains. The small size of Jackson's business prevents him from successfully utilizing a product differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 19

Once an organization surveys the consumer's wants and needs, has designed a group of products to meet those needs, and begun to market them in stores, the organization is assured of success.

Accepted Answer

A) True 
 B)False

Question 20

Industrial goods and services are used to produce other products.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

The greatest source of ideas for new products is

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

A penetration strategy calls for a firm to charge low prices with the intent of attracting a large number of customers and discouraging competition.

The purpose of a brand name is to establish an image of generic goods or services.

A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

Small firms often rely on nonprice competition when competing against larger firms.

Many products are promoted by emphasizing their key benefits, rather than setting the price lower than that of competitive goods. This emphasis on the product's benefits illustrates a(n) ________ strategy.

As more sales move to online retailers, it is likely that firms will adopt a high-low pricing strategy.

Haruto, owner and operator of a sushi bar, is working on a break-even analysis. His fixed costs would include rent, insurance, and property taxes.

Successful marketing of convenience and specialty goods require different marketing mixes.

The term product line describes the combination of product mixes offered by a manufacturer.

A single product line may contain several competing brands.

Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message has been identified.

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

Epic Electronics' promotional efforts are intended to increase the public's awareness of its new product's benefits and uses. This effort is consistent with the ________ stage of the product life cycle model.

________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Jackson is the owner of a small pizzeria and draws a variety of competition-from other local restaurants offering pizza to the large national chains. The small size of Jackson's business prevents him from successfully utilizing a product differentiation strategy.

Once an organization surveys the consumer's wants and needs, has designed a group of products to meet those needs, and begun to market them in stores, the organization is assured of success.

Industrial goods and services are used to produce other products.