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Exam 14: Developing and Pricing Goods and Services

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Question 111

True/False

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Webster Industries is one of the first producers of a unique consumer product. The company has chosen a low-price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Webster's approach to pricing is a classic example of the skimming strategy.

A) True
B) False

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Question 112

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Unsought goods and services are products consumers do not actively seek out for purchase on a regular basis.

A) True
B) False

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Question 113

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

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.

A product line is a group of products that are physically similar or are intended for a similar market.

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

Packaging is an important part of the total product offer.

A knockoff brand is a brand name that has lost its exclusive legal protection.

__________ presents an idea for a new product to potential customers to test their reactions.

Convenience goods are products that the consumer wants to purchase frequently and with a minimum of effort.

Travelwell manufactures and sells luggage and briefcases. Their marketing research indicates that durability is the attribute that consumers most desire in their luggage and briefcases. Travelwell now emphasizes durability in all of their promotional efforts. This strategy is intended to build brand equity.

Employees, not the firm's research and development department, are the number one source of ideas for new industrial products.

Rather than having frequent special sales, Walt's Warehouse has a pricing strategy that maintains lower prices than competitors all the time. Walt's pricing strategy is known as everyday low prices (EDLP).

Sales of generic products are decreasing because consumers prefer the higher quality of the nationally known brands.

In recent years, the packaging of products has been given a greater role in product promotion.

According to the product life cycle model, profits tend to:

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

Which of the following is considered a stage of the new-product development process?

___________ is the stage of new-product development that involves promoting a product to distributors, and developing advertising and sales campaigns in order to generate and maintain consumer interest.

Newspapers are sold daily in a wide variety of locations. This widespread distribution suggests that newspapers are classified as convenience goods.