Question 1

Competition-based pricing is a strategy based on what all the other competitors are doing.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?

Accepted Answer

A)   Product matrix
B)   Product line
C)   Product mix
D)   Total product offerE) A) and B)
F) A) and D)

Question 3

Despite the fact that microeconomic theory places a great deal of emphasis on price,marketers often try to find ways to compete on product attributes other than price.

Accepted Answer

A) True 
 B)False

Question 4

In the new-product development process,product analysis is completed prior to the product screening stage.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is the most accurate assessment of the role packaging plays in product offerings?

Accepted Answer

A)   The importance of packaging has diminished as the use of the Internet has grown.
B)   While packaging plays an important role in marketing goods,it is not relevant to the marketing of services.
C)   Effective packaging eliminates the potential of product liability suits.
D)   The importance of packaging is greater now than ever.E) A) and D)
F) All of the above

Question 6

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 layoff employees.
D)   determine the breakeven price and charge slightly more than that.E) B) and C)
F) None of the above

Question 7

Brand names help sellers with new-product introductions and create an opportunity for higher prices.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is consistent with the introduction stage of the product life cycle?

Accepted Answer

A)   Decreasing sales volume
B)   Large number of competitors
C)   Low profit levels or a potential loss
D)   Minimum use of advertisingE) All of the above
F) None of the above

Question 9

The Connecting Across Borders box titled "What's in a Name?" explains:

Accepted Answer

A)   The importance of reality TV,and the various TV programs that have become international phenomena.
B)   The procedure a business goes through to register its domain name.
C)   How the positive appeal of a name can go a long way,all the way around the cyber-world.
D)   How it is important for businesses to play a name game with its customers.A company should produce a product and give it a different name in each country where it is solD.E) B) and D)
F) A) and B)

Question 10

One way a small firm can succeed against larger competitors is to:

Accepted Answer

A)   determine their break-even point price.
B)   add value to their product offering.
C)   eliminate the fringe benefits offered to frequent customers.
D)   use break-even segmentation.E) A) and D)
F) A) and B)

Question 11

Price leadership occurs when one or more dominant firms set pricing practices that other firms in the market follow.

Accepted Answer

A) True 
 B)False

Question 12

Dealer (private)brands are products that do not carry the manufacturer's name,but rather carry the name of a distributor or retailer.

Accepted Answer

A) True 
 B)False

Question 13

Location is very important in the marketing of ________ because consumers desire to purchase these goods with a minimum of shopping effort.

Accepted Answer

A)   unsought goods
B)   shopping goods
C)   specialty goods
D)   convenience goodsE) A) and B)
F) All of the above

Question 14

The Procter & Gamble Company is a major producer of bar soaps.In fact,Procter & Gamble produces Ivory,Camay,Lava,Safeguard,Zest,and Coast bar soaps that all claim a variety of benefits.These products are part of Procter & Gamble's __________ in bar soaps.

Accepted Answer

A)   product mix
B)   product concentration
C)   product store
D)   product lineE) A) and D)
F) None of the above

Question 15

A trademark is a brand that has been given exclusive legal protection for both the brand name and the pictorial design.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Carlotta owns and manages the Carlite Car Wash.She charges $8 per car wash.Her fixed costs are $600 per month,while her variable costs per car wash amount to $2.Carlotta must wash 60 cars to break even.

Accepted Answer

A) True 
 B)False

Question 18

A leading cause of new-product failure is:

Accepted Answer

A)   insufficient competition.
B)   product promises that are not delivered.
C)   the automation of the product development process.
D)   excessive product differentiation.E) C) and D)
F) B) and C)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Restaurants,like other businesses,often find that the best way to succeed in the market is to:

Accepted Answer

A)   listen to customers and adapt products to their needs.
B)   create a product for which he could charge an exceptionally high price.
C)   create a winning combination of advertising and personal selling for all of the stores in the chain.
D)   open more stores in a single year than other foodservice operators.E) All of the above
F) C) and D)

Exam 14: Developing and Pricing Goods and Services

Restaurants,like other businesses,often find that the best way to succeed in the market is to:

Correct AnswerverifiedShow Answer

Which of the following is consistent with the introduction stage of the product life cycle?

Correct AnswerverifiedShow Answer

Location is very important in the marketing of ________ because consumers desire to purchase these goods with a minimum of shopping effort.

Correct AnswerverifiedShow Answer

One way a small firm can succeed against larger competitors is to:

Correct AnswerverifiedShow Answer

The Connecting Across Borders box titled "What's in a Name?" explains:

Correct AnswerverifiedShow Answer

Competition-based pricing is a strategy based on what all the other competitors are doing.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Brand names help sellers with new-product introductions and create an opportunity for higher prices.

Correct AnswerverifiedShow Answer

In the new-product development process,product analysis is completed prior to the product screening stage.

Correct AnswerverifiedShow Answer

Price leadership occurs when one or more dominant firms set pricing practices that other firms in the market follow.

Correct AnswerverifiedShow Answer

The Procter & Gamble Company is a major producer of bar soaps.In fact,Procter & Gamble produces Ivory,Camay,Lava,Safeguard,Zest,and Coast bar soaps that all claim a variety of benefits.These products are part of Procter & Gamble's __________ in bar soaps.

Correct AnswerverifiedShow Answer

A leading cause of new-product failure is:

Correct AnswerverifiedShow Answer

A trademark is a brand that has been given exclusive legal protection for both the brand name and the pictorial design.

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

Dealer (private)brands are products that do not carry the manufacturer's name,but rather carry the name of a distributor or retailer.

Correct AnswerverifiedShow Answer

Which of the following statements is the most accurate assessment of the role packaging plays in product offerings?

Correct AnswerverifiedShow Answer

Carlotta owns and manages the Carlite Car Wash.She charges $8 per car wash.Her fixed costs are $600 per month,while her variable costs per car wash amount to $2.Carlotta must wash 60 cars to break even.

Correct AnswerverifiedShow Answer

Despite the fact that microeconomic theory places a great deal of emphasis on price,marketers often try to find ways to compete on product attributes other than price.

Correct AnswerverifiedShow Answer

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?

Correct AnswerverifiedShow Answer

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

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