Question 1

When consumers decide to purchase a particular product, they:

Accepted Answer

A)  will search for the retailer that offers the lowest price. 
B)  consider the total collection of benefits that the product offers. 
C)  base their decision on a brand name nearly all of the time. 
D)  initially evaluate the product's package.

Question 2

A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

Accepted Answer

A)  skimming 
B)  penetration 
C)  target costing 
D)  price leadership

Question 3

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 4

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 5

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 6

Chevrolet is an example of a generic name in the automobile market.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

In evaluating colleges, students and parents are likely to judge a school:

Accepted Answer

A)  strictly on the basis of major curriculums offered. 
B)  based on the tuition. 
C)  by the collection of benefits offered by the school. 
D)  on the anticipated rate of return on their tuition investment.

Question 9

Gabe intends to visit a variety of retailers of sound equipment comparing features, quality, and prices of different brands at each store. This behavior indicates that for Gabe a sound system is a shopping good.

Accepted Answer

A) True 
 B)False

Question 10

For small businesses, product differentiation:

Accepted Answer

A)  is more difficult than it is for larger firms because of the high cost of product research and development. 
B)  usually concentrates on the pricing component of the total product offer. 
C)  can be an important strategy to gain market share. 
D)  is less important than it is for big firms with multiple product lines.

Question 11

LoRider Wheels sells high-quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of the ___________ offered by LoRider.

Accepted Answer

A)  total product offer 
B)  product line 
C)  competitive environment 
D)  marginal utility package

Question 12

Product development is a key activity in any modern business, anywhere in the world.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 they 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 food-service operators.

Question 15

Once a good or service nears the end of its product life cycle, the firm recognizes that:

Accepted Answer

A)  it is impossible to revert to an earlier stage of the model. 
B)  it can return to an earlier stage through creative marketing. 
C)  it will enjoy relatively high profits. 
D)  marketing dollars spent now will provide little benefit.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

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.

Question 19

Federated Grocery Stores operates a large chain of stores across several midwestern states. While Federated doesn't actually produce any canned foods, it markets a line of foods under its own brand name that were actually produced by another company. Federated canned foods represent a:

Accepted Answer

A)  manufacturers' brand. 
B)  generic brand. 
C)  knockoff brand. 
D)  dealer (private) brand.

Question 20

The break-even point is that level of sales where total revenues equals total costs.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

When consumers decide to purchase a particular product, they:

A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

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

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.

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.

Chevrolet is an example of a generic name in the automobile market.

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

In evaluating colleges, students and parents are likely to judge a school:

Gabe intends to visit a variety of retailers of sound equipment comparing features, quality, and prices of different brands at each store. This behavior indicates that for Gabe a sound system is a shopping good.

For small businesses, product differentiation:

LoRider Wheels sells high-quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of the ___________ offered by LoRider.

Product development is a key activity in any modern business, anywhere in the world.

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

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

Once a good or service nears the end of its product life cycle, the firm recognizes that:

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

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.

Today, packaging is:

Federated Grocery Stores operates a large chain of stores across several midwestern states. While Federated doesn't actually produce any canned foods, it markets a line of foods under its own brand name that were actually produced by another company. Federated canned foods represent a:

The break-even point is that level of sales where total revenues equals total costs.