Question 1

Small firms often rely on non-price competition when competing against larger firms.

Accepted Answer

A) True 
 B)False

Question 2

__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Accepted Answer

A)  Price discrimination
B)  Price leadership
C)  Target costing
D)  Cost-based pricingE) None of the above
F) B) and C)

Question 3

Knockoff brands are ________ copies of national brand-name goods.

Accepted Answer

A)  exact
B)  Web-based
C)  illegal
D)  licensedE) None of the above
F) A) and B)

Question 4

Phar-out Pharmacy will advertise a price of an over-the-counter drug at or below their cost.The intended goal of this loss leader strategy is to:

Accepted Answer

A)  achieve a target profit.
B)  reduce the break-even quantity.
C)  build traffic and increase the customer base.
D)  create an upscale image.E) A) and B)
F) None of the above

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Non-branded products that sell below the price of national brands,have very basic packaging,and are backed with little or no advertising are called:

Accepted Answer

A)  universal goods.
B)  distributor brands.
C)  house brands.
D)  generic goods.E) A) and C)
F) B) and C)

Question 7

Supermarkets and discount stores often advertise products at prices at or below their cost to attract people to the store.These products represent:

Accepted Answer

A)  market leaders.
B)  price leaders.
C)  revenue enhancers.
D)  loss leaders.E) A) and D)
F) C) and D)

Question 8

The best product development strategy for most firms is to:

Accepted Answer

A)  develop a small number of products that achieve market success and stick with them,because constantly changing old products (or introducing new ones) can confuse and frustrate customers.
B)  maintain one product line while adding regularly to that product line over time to sustain customer interest.
C)  constantly monitor consumer wants and needs and be willing to develop new products and adapt policies and services as those consumer needs begin to change.
D)  focus on the actual product or service and don't worry too much about factors such as image,price,and service.E) B) and C)
F) None of the above

Question 9

Chevrolet is an example of a generic name in the automobile market.

Accepted Answer

A) True 
 B)False

Question 10

Karen is a collector of fine art,particularly paintings.She has been looking for an original Lady Molly painting for months and has said that she is willing to go to extraordinary efforts to acquire this painting for her collection.Clearly this painting represents a __________ good for Karen.

Accepted Answer

A)  shopping
B)  specialty
C)  unsought
D)  luxuryE) C) and D)
F) B) and C)

Question 11

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Accepted Answer

A)  mixed costs.
B)  controllable costs.
C)  fixed costs.
D)  variable costs.E) None of the above
F) C) and D)

Question 12

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 required.
D)  identify and prosecute firms that violate trademark protection.E) A) and D)
F) All of the above

Question 13

Attracting attention,describing contents,explaining benefits and identifying the uses of a product are all functions of:

Accepted Answer

A)  target marketing.
B)  Universal Product Codes.
C)  packaging.
D)  market segmentation.E) None of the above
F) B) and C)

Question 14

The term product line describes the combination of product mixes offered by a manufacturer.

Accepted Answer

A) True 
 B)False

Question 15

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) C) and D)
F) All of the above

Question 16

Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy.

Accepted Answer

A)  penetration
B)  bundling
C)  skimming
D)  cost-basedE) C) and D)
F) B) and D)

Question 17

Profits peak during the maturity stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 18

When people consider purchasing a good,they:

Accepted Answer

A)  are responding to the market forces of supply and demand.
B)  are most influenced by the price of the product or service.
C)  will not consider goods that require them to make a special effort to purchase.
D)  may evaluate and compare a variety of factors.E) All of the above
F) A) and D)

Question 19

A bank's product line may include safety deposit boxes,car loans,and traveler's checks.

Accepted Answer

A) True 
 B)False

Question 20

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) None of the above

Exam 14: Developing and Pricing Goods and Services

Supermarkets and discount stores often advertise products at prices at or below their cost to attract people to the store.These products represent:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Profits peak during the maturity stage of the product life cycle.

Correct AnswerverifiedShow Answer

Small firms often rely on non-price competition when competing against larger firms.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Non-branded products that sell below the price of national brands,have very basic packaging,and are backed with little or no advertising are called:

Correct AnswerverifiedShow Answer

The term product line describes the combination of product mixes offered by a manufacturer.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Attracting attention,describing contents,explaining benefits and identifying the uses of a product are all functions of:

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

Phar-out Pharmacy will advertise a price of an over-the-counter drug at or below their cost.The intended goal of this loss leader strategy is to:

Correct AnswerverifiedShow Answer

Knockoff brands are ________ copies of national brand-name goods.

Correct AnswerverifiedShow Answer

The best product development strategy for most firms is to:

Correct AnswerverifiedShow Answer

Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy.

Correct AnswerverifiedShow Answer

Chevrolet is an example of a generic name in the automobile market.

Correct AnswerverifiedShow Answer

Karen is a collector of fine art,particularly paintings.She has been looking for an original Lady Molly painting for months and has said that she is willing to go to extraordinary efforts to acquire this painting for her collection.Clearly this painting represents a __________ good for Karen.

Correct AnswerverifiedShow Answer

A bank's product line may include safety deposit boxes,car loans,and traveler's checks.

Correct AnswerverifiedShow Answer

__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Correct AnswerverifiedShow Answer

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Correct AnswerverifiedShow Answer

When people consider purchasing a good,they:

Correct AnswerverifiedShow Answer

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