Question 1

While the time in each stage may vary, all products progress through each stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 2

Convenience goods are products that the consumer wants to purchase frequently and with minimal effort.

Accepted Answer

A) True 
 B)False

Question 3

Jackson is the owner of a small pizzeria and draws a variety of competition-from other local restaurants offering pizza to the large national chains. The small size of Jackson's business prevents him from successfully utilizing a product differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 4

The strategy of charging prices based on consumer demand rather than cost or a predetermined profit margin represents

Accepted Answer

A)  competition-based pricing. 
B)  cost-based pricing. 
C)  target orientation. 
D)  demand-oriented pricing.

Question 5

Ariel owns a company that markets high-quality office supplies to businesses. She faces stiff competition from larger firms like Staples. Which of the following competitive strategies would probably work best for Ariel?

Accepted Answer

A)  Keep costs as low as possible by offering a no-frills approach with little or no extra services. 
B)  Develop a skimming pricing strategy. 
C)  Utilize a high-low approach to pricing with a higher break-even point. 
D)  Focus on nonprice competition by offering better service with customers and work on building good customer relationships.

Question 6

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 goods

Question 7

The benefits provided by a brand name for a buyer include reduced search time, prestige, and quality assurance.

Accepted Answer

A) True 
 B)False

Question 8

Gourmet Pets feels its target market is more concerned with perceived quality than actual product cost. They also feel that the newness of this concept offers an opportunity to make high profits since they are the first firm to enter this market, so they face no direct competition. Their decision to charge a high price is consistent with the ________ strategy.

Accepted Answer

A)  market pricing 
B)  price leadership 
C)  skimming price 
D)  penetration price

Question 9

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 10

Admiral Motors is the dominant firm in the auto market. When Admiral announces an increase in the prices of its automobiles, Chord and Frysler, the smaller firms in the market usually quickly announce similar price increases for their own cars. This situation is an example of demand-oriented pricing.

Accepted Answer

A) True 
 B)False

Question 11

According to the Adapting to Change box, social celebrity-driven mobile games are not making as much money as app developers expected.

Accepted Answer

A) True 
 B)False

Question 12

Creative product differentiation can enable a small business to increase market share.

Accepted Answer

A) True 
 B)False

Question 13

Industrial goods and services are used to produce other products.

Accepted Answer

A) True 
 B)False

Question 14

Eddie has just taken a job with a local microbrewery after several years working as a brand manager for an established product. Now, he is responsible for managing the marketing mix for a new product introduction. In his new job, Eddie will find that while the products may be at different stages of the product life cycle, the marketing strategies will be essentially the same.

Accepted Answer

A) True 
 B)False

Question 15

Associated Supermarkets operates a large chain of stores across several midwestern states. While Associated doesn't actually produce any canned foods, it markets a line of foods under its own brand name that were actually produced by another company. Associated canned foods represent a

Accepted Answer

A)  manufacturers' brand. 
B)  generic brand. 
C)  knockoff brand. 
D)  dealer (private) brand.

Question 16

Nicola works as a manager at Marshall Manufacturing. The innovative staff at the company is regularly encouraged to suggest ideas for new products. Since Nicola works in product screening, she

Accepted Answer

A)  gives the final approval for the commercialization of new products. 
B)  reduces the number of new products being worked on at any one time. 
C)  market tests the product ideas that originate with the staff. 
D)  develops the concept testing to establish the personnel required for each new project.

Question 17

Having just graduated college and about to start a new marketing job, Terry needed transportation. He listed the kinds of things he wanted in a car: the ability to carry some large things; a comfortable back seat for his two dogs; 4-wheel drive for snow and ice; and economical on gas. Marketers know that today's consumers

Accepted Answer

A)  are educated and very savvy and are looking for features and not benefits. 
B)  are willing to pay just about any price if they find the features they want. 
C)  look for the best value (benefits outweigh the cost). 
D)  are always economically sensitive, first.

Question 18

Shopping online allows customers to compare prices of many goods and services. This technology will likely

Accepted Answer

A)  cause businesses to increase their focus on nonprice aspects of their promotional message. 
B)  bring about more emphasis on demand-oriented pricing. 
C)  diminish in importance as quickly as other fads. 
D)  focus government attention on the collusive pricing practices of firms in specific industries.

Question 19

Epic Electronics' promotional efforts are intended to increase the public's awareness of its new product's benefits and uses. This effort is consistent with the ________ stage of the product life cycle model.

Accepted Answer

A)  introduction 
B)  growth 
C)  maturity 
D)  decline

Question 20

The four stages in the product life cycle are introduction, market, exchange, and disposal.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

While the time in each stage may vary, all products progress through each stage of the product life cycle.

Convenience goods are products that the consumer wants to purchase frequently and with minimal effort.

Jackson is the owner of a small pizzeria and draws a variety of competition-from other local restaurants offering pizza to the large national chains. The small size of Jackson's business prevents him from successfully utilizing a product differentiation strategy.

The strategy of charging prices based on consumer demand rather than cost or a predetermined profit margin represents

Ariel owns a company that markets high-quality office supplies to businesses. She faces stiff competition from larger firms like Staples. Which of the following competitive strategies would probably work best for Ariel?

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

The benefits provided by a brand name for a buyer include reduced search time, prestige, and quality assurance.

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

According to the Adapting to Change box, social celebrity-driven mobile games are not making as much money as app developers expected.

Creative product differentiation can enable a small business to increase market share.

Industrial goods and services are used to produce other products.

Associated Supermarkets operates a large chain of stores across several midwestern states. While Associated doesn't actually produce any canned foods, it markets a line of foods under its own brand name that were actually produced by another company. Associated canned foods represent a

Nicola works as a manager at Marshall Manufacturing. The innovative staff at the company is regularly encouraged to suggest ideas for new products. Since Nicola works in product screening, she

Shopping online allows customers to compare prices of many goods and services. This technology will likely

Epic Electronics' promotional efforts are intended to increase the public's awareness of its new product's benefits and uses. This effort is consistent with the ________ stage of the product life cycle model.

The four stages in the product life cycle are introduction, market, exchange, and disposal.