Question 1

________ is the process used to determine the profitability of a product at various levels of sales.

Accepted Answer

A)  Cost-based pricing 
B)  Break-even analysis 
C)  Demand-based pricing 
D)  Competition-based pricing

Question 2

Product development is a key activity in any modern business, anywhere in the world.

Accepted Answer

A) True 
 B)False

Question 3

Car dealers realize that consumers focus exclusively on price and warranty.

Accepted Answer

A) True 
 B)False

Question 4

Whether a consumer thinks a product provides the best value depends upon

Accepted Answer

A)  the actual product benefits. 
B)  the consumer's perceptions. 
C)  the global situation. 
D)  the laws covering the product's manufacture.

Question 5

Industrial goods are sold in the B2B market.

Accepted Answer

A) True 
 B)False

Question 6

Department stores often use ________ pricing in which they have regular prices which are relatively high, but offer special sales where prices are set lower than competitors.

Accepted Answer

A)  penetration 
B)  bundling 
C)  strategic 
D)  high-low

Question 7

In order to achieve a social objective, firms use low prices to enable people with low incomes to buy their product.

Accepted Answer

A) True 
 B)False

Question 8

Diego's company was bidding on the construction of a new penguin display at a zoo. When putting together his bid, Diego began by determining what the zoo would be willing to pay for the structure, and then subtracting a reasonable profit for the company. The result would be the cost of production. For example: If price to zoo = $8 million, and company profit margin = $3 million, the cost to produce cannot exceed $5 million. [$8 million - $3 million = $5 million.] The demand-based pricing strategy in this example is called

Accepted Answer

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

Question 9

As a product progresses through each stage of the product life cycle, successful marketers recognize that each stage requires

Accepted Answer

A)  a different marketing strategy. 
B)  a consistent application of fundamental marketing practices. 
C)  an increase in the amount spent on advertising. 
D)  more emphasis on personal selling.

Question 10

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.

Accepted Answer

A) True 
 B)False

Question 11

The combination of product lines offered by a manufacturer is called the firm's

Accepted Answer

A)  product matrix. 
B)  product mix. 
C)  total product offer. 
D)  product portfolio.

Question 12

Which of the following is a stage in the product life cycle?

Accepted Answer

A)  commercialization 
B)  decline 
C)  peak 
D)  acceptance

Question 13

Firms utilizing an everyday low pricing (EDLP) strategy establish a policy of special sales on a regular basis.

Accepted Answer

A) True 
 B)False

Question 14

The apple is Apple Computer's

Accepted Answer

A)  generic name. 
B)  label. 
C)  trademark. 
D)  brand.

Question 15

Artisan breads, bagels, sandwiches, soups, and pastries are products that would be included in the product mix of a cafe.

Accepted Answer

A) True 
 B)False

Question 16

Regina owns and operates the Regal Car Wash. She charges $12 per car wash. Her fixed costs are $850 per month, while her variable costs per car wash amount to $2. Regal Car Wash must service 60 cars to break even.

Accepted Answer

A) True 
 B)False

Question 17

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

Accepted Answer

A) True 
 B)False

Question 18

An advertisement for the Xerox Corporation encourages customers to say, "Copy it" rather than "Xerox it." This indicates that Xerox is fearful that its brand name might become a(n)

Accepted Answer

A)  equity name. 
B)  generic name. 
C)  private brand. 
D)  public domain good.

Question 19

At Affordable Appliances stores, all new products are offered with an extended service contract, as well as free delivery and installation. By offering these value enhancers, Isuzu's has added to their total product offer.

Accepted Answer

A) True 
 B)False

Question 20

Eric is approached by a street vendor selling Rolex watches at ridiculously low prices. Eric, however, was suspicious that the watches were illegal ________ brands.

Accepted Answer

A)  knockoff 
B)  private 
C)  generic 
D)  look alike

Exam 14: Developing and Pricing Goods and Services

________ is the process used to determine the profitability of a product at various levels of sales.

Product development is a key activity in any modern business, anywhere in the world.

Car dealers realize that consumers focus exclusively on price and warranty.

Whether a consumer thinks a product provides the best value depends upon

Industrial goods are sold in the B2B market.

Department stores often use ________ pricing in which they have regular prices which are relatively high, but offer special sales where prices are set lower than competitors.

In order to achieve a social objective, firms use low prices to enable people with low incomes to buy their product.

As a product progresses through each stage of the product life cycle, successful marketers recognize that each stage requires

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.

The combination of product lines offered by a manufacturer is called the firm's

Which of the following is a stage in the product life cycle?

Firms utilizing an everyday low pricing (EDLP) strategy establish a policy of special sales on a regular basis.

The apple is Apple Computer's

Artisan breads, bagels, sandwiches, soups, and pastries are products that would be included in the product mix of a cafe.

Regina owns and operates the Regal Car Wash. She charges $12 per car wash. Her fixed costs are $850 per month, while her variable costs per car wash amount to $2. Regal Car Wash must service 60 cars to break even.

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

An advertisement for the Xerox Corporation encourages customers to say, "Copy it" rather than "Xerox it." This indicates that Xerox is fearful that its brand name might become a(n)

At Affordable Appliances stores, all new products are offered with an extended service contract, as well as free delivery and installation. By offering these value enhancers, Isuzu's has added to their total product offer.

Eric is approached by a street vendor selling Rolex watches at ridiculously low prices. Eric, however, was suspicious that the watches were illegal ________ brands.