Exam 14: Developing and Pricing Goods and Services

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

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

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

Andrea lives in southern Mississippi where winters are normally fairly mild. Last January, during an unusually cold spell, the water pipes in her house froze and burst. She looked 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)

Green Giant Green Beans, Chevrolet Corvette, Coca-Cola, Dole Pineapple, and Peter Pan Peanut Butter are all examples of

When a company establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin, it is known as target costing.

Rather than having frequent special sales, a company maintains lower prices than competitors all the time. This pricing strategy is known as everyday low prices (EDLP).

Price leadership is a demand-based pricing strategy.

A brand that has been given exclusive legal protection, such as the McDonald's golden arches, is a

Cost-based pricing adds a desired profit margin to the cost of producing a product.

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

From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and excludes any intangible attributes.

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

A leading cause of new-product failure is

From the buyer's perspective, which of the following is a benefit of a product with a well-known brand name?

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.

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

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

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

Demand-based pricing is another name for cost-based pricing.