Question 1

At the concept testing stage,factors such as packaging,branding,ingredients,etc.should be tested to ensure that a product is acceptable to potential consumers.

Accepted Answer

A) True 
 B)False

Question 2

While packaging innovations benefit the consumer,they have vastly increased the workload of retailers.

Accepted Answer

A) True 
 B)False

Question 3

Beyonce Financial Services purchased several new personal computers and a sophisticated color laser printer for office use.These items would be correctly classified as accessory equipment.

Accepted Answer

A) True 
 B)False

Question 4

The strategy of first determining what the market is willing to pay,then subtracting a desired profit margin to determine a desired cost of production is called:

Accepted Answer

A) cost-based pricing. 
B) target costing. 
C) penetration pricing. 
D) skimming pricing.

Question 5

Fast-food organizations must constantly monitor all sources of information for new product ideas.

Accepted Answer

A) True 
 B)False

Question 6

Brand equity refers to those factors that people associate with a specific brand name,such as awareness,perceived quality,and loyalty.

Accepted Answer

A) True 
 B)False

Question 7

Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus.His largest competitors are large nationally known organizations.The small size of Dutch's business prevents him from successfully utilizing a product differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would a firm most likely use to differentiate its product?

Accepted Answer

A) financial differences 
B) increased production 
C) elaborate packaging 
D) manual warehousing

Question 9

In order for product differentiation to be effective,real product differences must be identified so that one product is clearly better than others.

Accepted Answer

A) True 
 B)False

Question 10

From the buyer's perspective,which of the following is a benefit of a product with a well known brand name?

Accepted Answer

A) quality assurance 
B) helps in promotional efforts 
C) adds to repeat purchases 
D) differentiates products so that prices can be set higher

Question 11

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 12

More than any other component of a total product offer,technology has reduced the importance of packaging.

Accepted Answer

A) True 
 B)False

Question 13

Unsought goods and services fail to provide the benefits consumers expect.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Firms utilizing an everyday low pricing (EDLP)strategy establish a policy of special sales on a regular basis.

Accepted Answer

A) True 
 B)False

Question 16

Using a sports or movie celebrity as a spokesperson for your product is an attempt to build favorable:

Accepted Answer

A) brand reputation. 
B) publicity. 
C) brand association. 
D) manufacturers' brands.

Question 17

The rent a firm pays each month for office space is an example of a(n):

Accepted Answer

A) fixed cost. 
B) variable cost. 
C) mixed cost. 
D) uncontrollable cost.

Question 18

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 19

When consumers calculate the value of a product,they look at the benefits and then subtract the cost.

Accepted Answer

A) True 
 B)False

Question 20

A shopping good for one consumer could be a specialty good for another consumer.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

At the concept testing stage,factors such as packaging,branding,ingredients,etc.should be tested to ensure that a product is acceptable to potential consumers.

While packaging innovations benefit the consumer,they have vastly increased the workload of retailers.

Beyonce Financial Services purchased several new personal computers and a sophisticated color laser printer for office use.These items would be correctly classified as accessory equipment.

The strategy of first determining what the market is willing to pay,then subtracting a desired profit margin to determine a desired cost of production is called:

Fast-food organizations must constantly monitor all sources of information for new product ideas.

Brand equity refers to those factors that people associate with a specific brand name,such as awareness,perceived quality,and loyalty.

Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus.His largest competitors are large nationally known organizations.The small size of Dutch's business prevents him from successfully utilizing a product differentiation strategy.

Which of the following would a firm most likely use to differentiate its product?

In order for product differentiation to be effective,real product differences must be identified so that one product is clearly better than others.

From the buyer's perspective,which of the following is a benefit of a product with a well known brand name?

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.

More than any other component of a total product offer,technology has reduced the importance of packaging.

Unsought goods and services fail to provide the benefits consumers expect.

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

Firms utilizing an everyday low pricing (EDLP)strategy establish a policy of special sales on a regular basis.

Using a sports or movie celebrity as a spokesperson for your product is an attempt to build favorable:

The rent a firm pays each month for office space is an example of a(n) :

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

When consumers calculate the value of a product,they look at the benefits and then subtract the cost.

A shopping good for one consumer could be a specialty good for another consumer.