Question 1

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

Accepted Answer

A) True 
 B)False

Question 2

The apple is Apple Computer's:

Accepted Answer

A)   generic name.
B)   label.
C)   trademark.
D)   brand.E) A) and D)
F) A) and C)

Question 3

Sales of mobile phones in the United States are still increasing, but the rate of growth has slowed. Sales are expected to peak somewhat soon in the U.S. Based on this information, mobile phones are in what stage of the product life cycle in the U.S.?

Accepted Answer

A)   introduction
B)   growth
C)   maturity
D)   declineE) A) and D)
F) B) and C)

Question 4

Pattie Bunz operates the Zestee Burgers restaurant. The cost of pickles, onions, buns, catsup, and meat patties would all be considered variable costs for her type of business.

Accepted Answer

A) True 
 B)False

Question 5

Firms utilize ________ when they attempt to add value to their product by offering service after the sale, product demonstrations, or interactive customer websites.

Accepted Answer

A)   nonprice competition
B)   relationship branding
C)   niche marketing
D)   break-even segmentationE) A) and B)
F) B) and D)

Question 6

The stages of the product life cycle are:

Accepted Answer

A)   production, inventory, exchange, usage, and disposal.
B)   conception, testing, production, commercialization, and obsolescence.
C)   introduction, growth, maturity, and decline.
D)   opportunity recognition, concept testing, production, market acceptance, brand insistence, and obsolescence.E) B) and D)
F) A) and D)

Question 7

One of the reasons why companies create the position of brand manager is to:

Accepted Answer

A)   have greater control over new-product development and promotion.
B)   cut expenses associated with the marketing of products.
C)   limit the amount of market research expenses products require.
D)   identify and prosecute firms that violate trademark protection.E) C) and D)
F) A) and B)

Question 8

Brand __________ refers to the loyalty, perceived quality, and emotions people associate with a given brand name.

Accepted Answer

A)   equity
B)   identification
C)   positioning
D)   ownershipE) B) and D)
F) A) and B)

Question 9

The two types of industrial goods are production goods and unsought goods.

Accepted Answer

A) True 
 B)False

Question 10

A ________ has direct responsibility for all the elements of the marketing mix for one brand or product line.

Accepted Answer

A)   channel specialist
B)   brand manager
C)   product engineer
D)   brand specialistE) A) and B)
F) B) and C)

Question 11

A pickup truck can be classified as either a consumer good or an industrial good.

Accepted Answer

A) True 
 B)False

Question 12

The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:

Accepted Answer

A)   total product offer.
B)   product mix.
C)   product differentiation.
D)   product package.E) B) and D)
F) B) and C)

Question 13

Operating in the southwestern states, Lancer Airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast. The best strategy to avoid severe price competition is to:

Accepted Answer

A)   provide frequent travelers the added value of special fringe benefits.
B)   cut costs and services in order to maintain profit margins.
C)   reduce flights and in-flight services, and lay off employees.
D)   determine the break-even price and charge slightly more than that.E) A) and B)
F) A) and D)

Question 14

American Building Products is the largest cement company in the Midwest. When the firm raised its prices by 8 percent, all of its competitors soon announced they too were raising their prices by 8 percent. It appears this industry is influenced by a ________ strategy.

Accepted Answer

A)   price skimming
B)   price leadership
C)   market pricing
D)   price discriminationE) A) and B)
F) A) and C)

Question 15

Shuichi owns and operates his own sushi bar. His fixed costs would include rent, insurance, and property taxes.

Accepted Answer

A) True 
 B)False

Question 16

The __________ on packages were intended to improve inventory control for businesses.

Accepted Answer

A)   stars and stripes
B)   UPCs
C)   lightweight adhesives
D)   Unit Standard Inventory barsE) None of the above
F) A) and B)

Question 17

The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.

Accepted Answer

A) True 
 B)False

Question 18

Capital items are industrial goods that are expensive and last a long time.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a relevant criterion for the product screening process?

Accepted Answer

A)   sales forecasts for the product
B)   production capacity of competitors
C)   profit potential
D)   the stage of the product life cycleE) A) and D)
F) C) and D)

Question 20

Suits for Success is a men's clothing store in a large suburban shopping mall. The managers of the store know that their customers usually comparison shop, looking carefully at quality and price before deciding to buy. Armed with this information, Suits for Success carries quality clothing, offers competitive pricing, and friendly, helpful service. The target customers apparently view men's suits as a:

Accepted Answer

A)   specialty good.
B)   convenience good.
C)   shopping good.
D)   unsought good.E) B) and C)
F) A) and D)

Exam 14: Developing and Pricing Goods and Services

Pattie Bunz operates the Zestee Burgers restaurant. The cost of pickles, onions, buns, catsup, and meat patties would all be considered variable costs for her type of business.

Correct Answer
verified

Capital items are industrial goods that are expensive and last a long time.

Correct Answer
verified

A ________ has direct responsibility for all the elements of the marketing mix for one brand or product line.

Correct Answer
verified

Firms utilize ________ when they attempt to add value to their product by offering service after the sale, product demonstrations, or interactive customer websites.

Correct Answer
verified

One of the reasons why companies create the position of brand manager is to:

Correct Answer
verified

The apple is Apple Computer's:

Correct Answer
verified

Shuichi owns and operates his own sushi bar. His fixed costs would include rent, insurance, and property taxes.

Correct Answer
verified

Correct Answer
verified

American Building Products is the largest cement company in the Midwest. When the firm raised its prices by 8 percent, all of its competitors soon announced they too were raising their prices by 8 percent. It appears this industry is influenced by a ________ strategy.

Correct Answer
verified

The two types of industrial goods are production goods and unsought goods.

Correct Answer
verified

Sales of mobile phones in the United States are still increasing, but the rate of growth has slowed. Sales are expected to peak somewhat soon in the U.S. Based on this information, mobile phones are in what stage of the product life cycle in the U.S.?

Correct Answer
verified

The stages of the product life cycle are:

Correct Answer
verified

The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:

Correct Answer
verified

Which of the following is a relevant criterion for the product screening process?

Correct Answer
verified

A pickup truck can be classified as either a consumer good or an industrial good.

Correct Answer
verified

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

Correct Answer
verified

The __________ on packages were intended to improve inventory control for businesses.

Correct Answer
verified

Brand __________ refers to the loyalty, perceived quality, and emotions people associate with a given brand name.

Correct Answer
verified

The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.

Correct Answer
verified

Operating in the southwestern states, Lancer Airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast. The best strategy to avoid severe price competition is to:

Correct Answer
verified

Exam 14: Developing and Pricing Goods and Services

Pattie Bunz operates the Zestee Burgers restaurant. The cost of pickles, onions, buns, catsup, and meat patties would all be considered variable costs for her type of business.

Correct AnswerverifiedShow Answer

Capital items are industrial goods that are expensive and last a long time.

Correct AnswerverifiedShow Answer

A ________ has direct responsibility for all the elements of the marketing mix for one brand or product line.

Correct AnswerverifiedShow Answer

Firms utilize ________ when they attempt to add value to their product by offering service after the sale, product demonstrations, or interactive customer websites.

Correct AnswerverifiedShow Answer

One of the reasons why companies create the position of brand manager is to:

Correct AnswerverifiedShow Answer

The apple is Apple Computer's:

Correct AnswerverifiedShow Answer

Shuichi owns and operates his own sushi bar. His fixed costs would include rent, insurance, and property taxes.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

American Building Products is the largest cement company in the Midwest. When the firm raised its prices by 8 percent, all of its competitors soon announced they too were raising their prices by 8 percent. It appears this industry is influenced by a ________ strategy.

Correct AnswerverifiedShow Answer

The two types of industrial goods are production goods and unsought goods.

Correct AnswerverifiedShow Answer

Sales of mobile phones in the United States are still increasing, but the rate of growth has slowed. Sales are expected to peak somewhat soon in the U.S. Based on this information, mobile phones are in what stage of the product life cycle in the U.S.?

Correct AnswerverifiedShow Answer

The stages of the product life cycle are:

Correct AnswerverifiedShow Answer

The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:

Correct AnswerverifiedShow Answer

Which of the following is a relevant criterion for the product screening process?

Correct AnswerverifiedShow Answer

A pickup truck can be classified as either a consumer good or an industrial good.

Correct AnswerverifiedShow Answer

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

Correct AnswerverifiedShow Answer

The __________ on packages were intended to improve inventory control for businesses.

Correct AnswerverifiedShow Answer

Brand __________ refers to the loyalty, perceived quality, and emotions people associate with a given brand name.

Correct AnswerverifiedShow Answer

The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.

Correct AnswerverifiedShow Answer

Operating in the southwestern states, Lancer Airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast. The best strategy to avoid severe price competition is to:

Correct AnswerverifiedShow Answer

Correct Answer
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