Question 1

The concepts of product lines and product mixes apply to marketers of products and services.

Accepted Answer

A) True 
 B)False

Question 2

A skimming pricing strategy:

Accepted Answer

A)   allows low-income households the ability to purchase a particular good or service.
B)   drives competitors out of business in order to achieve a monopoly position in the market.
C)   creates a "common man" image to reach a larger market.
D)   establishes a high price in order to earn the highest possible profit while there is little competition.E) None of the above
F) A) and C)

Question 3

June lives in the southern part of Alabama where winters are normally fairly mild. Last January, during an unusually cold spell, the water pipes in her house froze and burst. She had to look online to find a plumber who was able to come out and repair the pipes the same day. Prior to the frozen pipes, the plumber's services represented a(n) :

Accepted Answer

A)   unsought service.
B)   industrial service.
C)   specialty service.
D)   convenience service.E) A) and C)
F) All of the above

Question 4

The evaluation of packaging as a marketing function indicates that:

Accepted Answer

A)   the package is less important as the Internet provides consumers with easily obtained information.
B)   packaging carries more of the promotional burden of the product.
C)   consumers are influenced less by packaging.
D)   the primary purpose of packaging is to limit the product liability of businesses.E) C) and D)
F) A) and B)

Question 5

John needed transportation. Now that his new marketing job was on the horizon, it was time to go shopping. New was probably going to be out of the question. As he reviewed his options, he listed the kinds of things he wanted in a vehicle: the ability to carry some large things; a comfortable back seat for his two dogs; 4-wheel drive for snow and ice; and economical on gas. Marketers know that today's consumers:

Accepted Answer

A)   are educated and very savvy and are looking for features and not benefits.
B)   are willing to pay just about any price if they find the features they want.
C)   look for the best value (benefits outweigh the cost) .
D)   are always economically sensitive, first.E) A) and C)
F) A) and D)

Question 6

Successful businesses constantly monitor consumer wants and needs.

Accepted Answer

A) True 
 B)False

Question 7

Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.

Accepted Answer

A) True 
 B)False

Question 8

One of the reasons marketers emphasize nonprice differences in their competitive strategies is because:

Accepted Answer

A)   consumers aren't concerned about prices.
B)   these methods have no impact on the cost of production.
C)   nonprice differences are tax deductible.
D)   relatively similar products can be enhanced.E) C) and D)
F) B) and C)

Question 9

"Create a better mousetrap and the world will beat a path to your door." This statement is consistent with the idea behind the commercialization of products.

Accepted Answer

A) True 
 B)False

Question 10

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 warehousingE) A) and B)
F) A) and C)

Question 11

Which of the following is a popular pricing objective?

Accepted Answer

A)   increasing sales
B)   increasing brand awareness
C)   fixing prices among competitors
D)   achieving less market shareE) None of the above
F) A) and B)

Question 12

Total fixed costs are those costs that change when the volume of production changes.

Accepted Answer

A) True 
 B)False

Question 13

The job performed by brand managers:

Accepted Answer

A)   is mainly concerned with the promotion of the entire product mix of their firm.
B)   involves broad responsibilities for the marketing of a specific brand or product line.
C)   is likely to become less important in firms that utilize the Internet.
D)   focuses more on the pricing and promotion of established goods than on the development of new products.E) B) and D)
F) C) and D)

Question 14

Textbook publishers use a packaging strategy known as ______________. Often the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.

Accepted Answer

A)   proformatting
B)   bartering
C)   bundling
D)   trademarketingE) B) and C)
F) A) and D)

Question 15

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 16

For most firms, price competition is the most important way to gain a competitive advantage over rivals.

Accepted Answer

A) True 
 B)False

Question 17

Industrial goods are sold in the B2B market.

Accepted Answer

A) True 
 B)False

Question 18

Target costing is a cost-based pricing strategy.

Accepted Answer

A) True 
 B)False

Question 19

While the UPC improves efficiency at the retail checkout counter, it has increased problems in controlling inventory.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a potential problem with a high-low pricing strategy?

Accepted Answer

A)   It confuses and frustrates customers.
B)   It places too much emphasis on nonprice competition.
C)   It teaches customers to wait for sales, and therefore reduces profits.
D)   It is difficult to implement.E) None of the above
F) A) and D)

Exam 14: Developing and Pricing Goods and Services

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.

Correct Answer
verified

One of the reasons marketers emphasize nonprice differences in their competitive strategies is because:

Correct Answer
verified

Industrial goods are sold in the B2B market.

Correct Answer
verified

Which of the following is a potential problem with a high-low pricing strategy?

Correct Answer
verified

Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.

Correct Answer
verified

Correct Answer
verified

Which of the following is a popular pricing objective?

Correct Answer
verified

A skimming pricing strategy:

Correct Answer
verified

Total fixed costs are those costs that change when the volume of production changes.

Correct Answer
verified

While the UPC improves efficiency at the retail checkout counter, it has increased problems in controlling inventory.

Correct Answer
verified

Successful businesses constantly monitor consumer wants and needs.

Correct Answer
verified

Target costing is a cost-based pricing strategy.

Correct Answer
verified

Textbook publishers use a packaging strategy known as ______________. Often the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.

Correct Answer
verified

"Create a better mousetrap and the world will beat a path to your door." This statement is consistent with the idea behind the commercialization of products.

Correct Answer
verified

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

Correct Answer
verified

The concepts of product lines and product mixes apply to marketers of products and services.

Correct Answer
verified

For most firms, price competition is the most important way to gain a competitive advantage over rivals.

Correct Answer
verified

The job performed by brand managers:

Correct Answer
verified

Correct Answer
verified

The evaluation of packaging as a marketing function indicates that:

Correct Answer
verified

Exam 14: Developing and Pricing Goods and Services

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.

Correct AnswerverifiedShow Answer

One of the reasons marketers emphasize nonprice differences in their competitive strategies is because:

Correct AnswerverifiedShow Answer

Industrial goods are sold in the B2B market.

Correct AnswerverifiedShow Answer

Which of the following is a potential problem with a high-low pricing strategy?

Correct AnswerverifiedShow Answer

Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a popular pricing objective?

Correct AnswerverifiedShow Answer

A skimming pricing strategy:

Correct AnswerverifiedShow Answer

Total fixed costs are those costs that change when the volume of production changes.

Correct AnswerverifiedShow Answer

While the UPC improves efficiency at the retail checkout counter, it has increased problems in controlling inventory.

Correct AnswerverifiedShow Answer

Successful businesses constantly monitor consumer wants and needs.

Correct AnswerverifiedShow Answer

Target costing is a cost-based pricing strategy.

Correct AnswerverifiedShow Answer

Textbook publishers use a packaging strategy known as ______________. Often the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.

Correct AnswerverifiedShow Answer

"Create a better mousetrap and the world will beat a path to your door." This statement is consistent with the idea behind the commercialization of products.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The concepts of product lines and product mixes apply to marketers of products and services.

Correct AnswerverifiedShow Answer

For most firms, price competition is the most important way to gain a competitive advantage over rivals.

Correct AnswerverifiedShow Answer

The job performed by brand managers:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The evaluation of packaging as a marketing function indicates that:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified