Question 1

A shopping good for one consumer could be a specialty good for another consumer.

Accepted Answer

A) True 
 B)False

Question 2

Products that are used in the production of other goods and services are called ________ goods.

Accepted Answer

A)  specialty 
B)  shopping 
C)  industrial 
D)  sponsored 
A)  specialty 
B)  shopping 
C)  industrial 
D)  sponsored

Question 3

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. 
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.

Question 4

Ultimately, the price of a good is determined by the interaction of supply and demand in the marketplace.

Accepted Answer

A) True 
 B)False

Question 5

The product life cycle model helps marketers realize that

Accepted Answer

A)  consumers are always ready to try a new product if it is priced correctly. 
B)  different stages in the life cycle call for different marketing strategies. 
C)  sales and profit levels can be forecasted accurately. 
D)  careful product screening will increase profits over the life of a product. 
A)  consumers are always ready to try a new product if it is priced correctly. 
B)  different stages in the life cycle call for different marketing strategies. 
C)  sales and profit levels can be forecasted accurately. 
D)  careful product screening will increase profits over the life of a product.

Question 6

From a marketing management perspective, what is the meaning of a total product offer? What are the important elements in the total product offer of your college or university?

Accepted Answer

A total product offer consists of everyt

Question 7

Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message has been identified.

Accepted Answer

A) True 
 B)False

Question 8

While White Glove Cleaners offers home and commercial cleaning services no different from competitors, the company is unable to utilize a product differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 9

________ goods and services represent those products that consumers are unaware of or haven't thought of buying.

Accepted Answer

A)  Inferior 
B)  Convenience 
C)  Shopping 
D)  Unsought 
A)  Inferior 
B)  Convenience 
C)  Shopping 
D)  Unsought

Question 10

Target costing is a cost-based pricing strategy.

Accepted Answer

A) True 
 B)False

Question 11

A high-low pricing strategy may condition consumers to avoid paying the regular prices by waiting for sale prices.

Accepted Answer

A) True 
 B)False

Question 12

The ________ pricing strategy maintains low prices and avoids the use of special sales.

Accepted Answer

A)  everyday low pricing (EDLP) 
B)  cost-based 
C)  target-based 
D)  skimming 
A)  everyday low pricing (EDLP) 
B)  cost-based 
C)  target-based 
D)  skimming

Question 13

Haruto, owner and operator of a sushi bar, is working on a break-even analysis. His fixed costs would include rent, insurance, and property taxes.

Accepted Answer

A) True 
 B)False

Question 14

The number of units of a product that must be sold for total revenue to equal total costs is called the

Accepted Answer

A)  equilibrium volume. 
B)  balanced quantity. 
C)  contribution margin. 
D)  break-even point. 
A)  equilibrium volume. 
B)  balanced quantity. 
C)  contribution margin. 
D)  break-even point.

Question 15

While packaging innovations benefit the consumer, they have vastly increased the workload of retailers.

Accepted Answer

A) True 
 B)False

Question 16

NiceIce Meals designed a new type of packaging that significantly improves taste and texture of food when defrosted. Unfortunately, firms seldom find that improvements in packaging impact market share and profits.

Accepted Answer

A) True 
 B)False

Question 17

The pricing objectives of a firm should be set independently of the other elements of their marketing mix.

Accepted Answer

A) True 
 B)False

Question 18

Successful marketing of convenience and specialty goods require different marketing mixes.

Accepted Answer

A) True 
 B)False

Question 19

Social media and company websites are useful in the commercialization process for new products.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

A shopping good for one consumer could be a specialty good for another consumer.

Products that are used in the production of other goods and services are called ________ goods.

The best product development strategy for most firms is to

Ultimately, the price of a good is determined by the interaction of supply and demand in the marketplace.

The product life cycle model helps marketers realize that

From a marketing management perspective, what is the meaning of a total product offer? What are the important elements in the total product offer of your college or university?

Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message has been identified.

While White Glove Cleaners offers home and commercial cleaning services no different from competitors, the company is unable to utilize a product differentiation strategy.

________ goods and services represent those products that consumers are unaware of or haven't thought of buying.

Target costing is a cost-based pricing strategy.

A high-low pricing strategy may condition consumers to avoid paying the regular prices by waiting for sale prices.

The ________ pricing strategy maintains low prices and avoids the use of special sales.

Haruto, owner and operator of a sushi bar, is working on a break-even analysis. His fixed costs would include rent, insurance, and property taxes.

The number of units of a product that must be sold for total revenue to equal total costs is called the

While packaging innovations benefit the consumer, they have vastly increased the workload of retailers.

NiceIce Meals designed a new type of packaging that significantly improves taste and texture of food when defrosted. Unfortunately, firms seldom find that improvements in packaging impact market share and profits.

The pricing objectives of a firm should be set independently of the other elements of their marketing mix.

Successful marketing of convenience and specialty goods require different marketing mixes.

Social media and company websites are useful in the commercialization process for new products.

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

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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