Question 1

Miller Light Beer, Maxwell House Coffee, Jell-O brand gelatin, Kraft mayonnaise, and Marlboro Cigarettes were all at one time products of the Philip Morris Company. These products represented a part of the product line Philip Morris offered.

Accepted Answer

A) True 
 B)False

Question 2

"It tastes better than candy!" is an advertising slogan for a new probiotic gummy. The manufacturer claims that their probiotics is of a higher quality and tastes better than any competing brand. These claims are part of the firm's strategy to achieve

Accepted Answer

A)  deceptive marketing recognition. 
B)  the creation of knockoff products. 
C)  new-product development. 
D)  product differentiation.

Question 3

Which of the following products would most likely be classified as a specialty good or service?

Accepted Answer

A)  a microwave oven 
B)  a limited-edition print signed by the artist 
C)  a sports coat, slacks, and tie 
D)  a car insurance policy

Question 4

Brody asks you to calculate the break-even point for his firm. You respond that you will need the following information

Accepted Answer

A)  the values for all assets and liabilities. 
B)  total fixed costs, selling price per unit, and variable costs per unit. 
C)  forecasted sales volume, operating expenses, and asset values. 
D)  sales revenue and total liabilities.

Question 5

Successful firms always try to maintain consistency in their short-run and long-run pricing objectives.

Accepted Answer

A) True 
 B)False

Question 6

Brand names can significantly impact consumer perceptions of a product.

Accepted Answer

A) True 
 B)False

Question 7

Fast food restaurants must constantly monitor all sources of information for new-product ideas.

Accepted Answer

A) True 
 B)False

Question 8

New-product failures are most often caused by excessively high prices.

Accepted Answer

A) True 
 B)False

Question 9

Today, packaging is:

Accepted Answer

A)  the least important component of the marketing mix. 
B)  assuming an increasingly important role in the promotion of products. 
C)  exclusively intended to protect the product from damage. 
D)  the most expensive component of the production process.

Question 10

Consumer perceptions of product quality are affected by promotions and packaging, but not by the price of the product.

Accepted Answer

A) True 
 B)False

Question 11

Department store owner Brendan McGowan decided to make a gutsy move with his high-end Western Son stores. Rather than focus on the upscale, luxury market that the store attracted earlier in the decade, he focused on bringing in clothing with more mass appeal. The stores succeeded in turning around downward trending sales. In conjunction with your understanding of the product life cycle, which of the following statements summarizes the marketing strategy?

Accepted Answer

A)  Western Son recognized that it was not competing well with its traditional higher income market. It decided to change its product offering and price to appeal to a broader market and increase sales and profits. 
B)  Western Son stores recognized several markets that it could reach with its upscale clothing lines. 
C)  Western Son positioned itself against, rather than with, the competition. It decided to adhere to its price leadership position. 
D)  Western Son knew that in order to re-invent itself, it was going to have to practice the same marketing strategy followed by Walmart and other discount stores. It would make all marketing decisions based on cost. The price on an item need only exceed what it cost to make and ship it. Falling prices became the norm.

Question 12

The strategy of first determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production is called

Accepted Answer

A)  cost-based pricing. 
B)  target costing. 
C)  penetration pricing. 
D)  skimming pricing.

Question 13

Folgers's ________ allows customers to easily identify this product from other coffee products.

Accepted Answer

A)  patent 
B)  trade symbol 
C)  brand name 
D)  brand equity

Question 14

Operating in the southwestern states, PuddleJumper 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.

Question 15

The job performed by brand managers

Accepted Answer

A)  is mainly concerned with the promotion of the entire product mix of their firm. 
B)  involves broad responsibilities for the marketing of a specific brand or product line. 
C)  is likely to become less important in firms that utilize the Internet. 
D)  focuses more on the pricing and promotion of established goods than on the development of new products.

Question 16

The brand names that are used by producers that distribute products nationally are called

Accepted Answer

A)  manufacturers' brands. 
B)  product category brands. 
C)  generic brand names. 
D)  universal brand names.

Question 17

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 bars

Question 18

The company currently markets McDog T-bone, Lapdog Lunchtreats, Rover's Potroast, and Puppy Porterhouse in the dog food market. Prime Cuts will be an addition to the company's ________ in the dog food market.

Accepted Answer

A)  product mix 
B)  product line 
C)  product time 
D)  product screen

Question 19

The break-even point is that level of sales where total revenues equals total costs.

Accepted Answer

A) True 
 B)False

Question 20

Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

Miller Light Beer, Maxwell House Coffee, Jell-O brand gelatin, Kraft mayonnaise, and Marlboro Cigarettes were all at one time products of the Philip Morris Company. These products represented a part of the product line Philip Morris offered.

"It tastes better than candy!" is an advertising slogan for a new probiotic gummy. The manufacturer claims that their probiotics is of a higher quality and tastes better than any competing brand. These claims are part of the firm's strategy to achieve

Which of the following products would most likely be classified as a specialty good or service?

Brody asks you to calculate the break-even point for his firm. You respond that you will need the following information

Successful firms always try to maintain consistency in their short-run and long-run pricing objectives.

Brand names can significantly impact consumer perceptions of a product.

Fast food restaurants must constantly monitor all sources of information for new-product ideas.

New-product failures are most often caused by excessively high prices.

Today, packaging is:

Consumer perceptions of product quality are affected by promotions and packaging, but not by the price of the product.

The strategy of first determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production is called

Folgers's ________ allows customers to easily identify this product from other coffee products.

Operating in the southwestern states, PuddleJumper 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

The job performed by brand managers

The brand names that are used by producers that distribute products nationally are called

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

The company currently markets McDog T-bone, Lapdog Lunchtreats, Rover's Potroast, and Puppy Porterhouse in the dog food market. Prime Cuts will be an addition to the company's ________ in the dog food market.

The break-even point is that level of sales where total revenues equals total costs.

Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.