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Exam 14: Developing and Pricing Goods and Services

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Question 61

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The uniqueness of convenience goods and services stimulates consumers to make an extra effort to purchase them.

A) True
B) False

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Question 62

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What does a break-even point of 100 units mean to a firm?

A) The firm must sell 100 units to maximize its profits.
B) Fixed costs plus variable costs equals 100 units.
C) By producing 100 units, the firm can ensure that variable costs completely cancel its fixed costs.
D) If the firm sells 100 units, its total revenues will equal its total costs.

E) None of the above
F) A) and B)

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Question 63

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A brand includes practically all means of identifying a product.

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

The ________ is a theoretical model that describes the sales and profit performance of a product class over time.

As a graphic artist, Randy has just finished a new calendar. The calendar cost him $1.00 for the glossy paper, $3.00 for the six color production, and $.50 for the plastic wire that holds it together at the top. The labor in developing the design was 4 hours of work at $50/hour, and labor is being added to the rest of the fixed costs of $500.00. At a price of $15.00 per calendar, how many calendars will Nate need to produce and sell in order to break even (cover all his costs, but not make a profit) ?

The Sweet Temptations Yogurt Company just completed the first stages of product development of its new low-calorie frozen yogurt breakfast bars and immediately took its product directly to consumers. Marketers partnered with a large theme park in Orlando, FL, to perform ________. The Sweet Temptations 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.

While some products remain in the introductory stage of the product life cycle for years, other products may go through the entire cycle in a few months.

When a brand becomes commonplace and identified with a category of goods rather than the unique product of a specific manufacturer, the brand may become a

Cool Down Drinks, a national producer of soft drinks, wants to differentiate its products from those of other providers. To implement this strategy successfully will require Cool Down to create tangible differences in the physical product it offers.

Pricing is

As a manager at IceCold Foods, Oscar is responsible for the firm's S'Cream brand of ice cream. He recently approved a proposal to test market new ice cream flavors. He is also considering the possibility of lowering the price of the ice cream and initiating a new advertising campaign. Oscar serves as a

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and discouraging competitors?

In the long run the market determines what the price will be.

A traditional McDonald's and a McCafe are examples of the McDonald's Corporation product mix.

The evaluation of packaging as a marketing function indicates that

Sherrie's Snacks has found that an effective technique to generate ideas for new consumer products is to carefully listen to employees and suppliers.

Hammer's Hardware, a nationwide chain of hardware stores, sells a line of tools under the Hammer's brand even though they were actually produced by another firm. Since the products are actually produced by another firm, the Hammer's Hardware brand is an example of a knockoff brand.

A long-run pricing objective of almost all firms is to optimize profit.

One function of effective packaging is to provide information regarding warranties, benefits, and uses of the good inside the package.