Question 1

Product testing is designed to reduce the number of new product ideas that a firm works on at any one time.

Accepted Answer

A) True 
 B)False  False

Question 2

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 3

Some goods can be classified as either consumer goods or as industrial goods.

Accepted Answer

A) True 
 B)False

Question 4

Miranda is a marketing manager for a large manufacturer. Her boss has asked her to evaluate a new product idea. One of the things Miranda wants to determine is how much of this product her firm would have to sell in order to break even. In order to compute this break-even level of sales, she will need to know the price of the good, the total fixed costs, and variable cost of producing each unit.

Accepted Answer

A) True 
 B)False

Question 5

One of the reasons marketers emphasize non-price differences in their competitive strategies is because:

Accepted Answer

A)  consumers aren't concerned about prices.
B)   these methods have no impact on the cost of production.
C)   non-price differences are tax deductible.
D)  relatively similar products can be enhanced.E) C) and D)
F) B) and C)

Question 6

One function of effective packaging is to attract the attention of consumers.

Accepted Answer

A) True 
 B)False

Question 7

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  financial differences
B)   increased production
C)  elaborate packaging
D)  manual warehousingE) A) and B)
F) A) and C)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

In evaluating colleges, students and parents are likely to judge a school:

Accepted Answer

A)  strictly on the basis of major curriculums offered.
B)   based on the tuition.
C)  by the collection of benefits offered by the school.
D)  on the anticipated rate of return on their tuition investment.E) None of the above
F) A) and D)

Question 11

Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package.

Accepted Answer

A) True 
 B)False  True

Question 12

Brand association is the linking of a brand to other favorable images such as a celebrity or geographic location.

Accepted Answer

A) True 
 B)False  True

Question 13

Mini-Case
Gourmet Pets is an innovative competitor in the billion-dollar pet food industry. In fact, two of its products, Kitty Sirloin and McDog Tbone, each claim over a 30% share in their market segments. The company has done detailed research and discovered that, for a growing number of pet owners, the family pet serves as a "baby substitute." These owners tend to pamper their pets, and are very discriminating in what they purchase. With this in mind, the company has put a great deal of effort into developing a new dog food: Prime Cuts. The new product is packaged in a resealable, microwaveable container and can be purchased in a variety of flavors (including Western BBQ, Teriyaki, Australian Outback, and Hickory Smoked.)  Gourmet Pets promotes the product as far superior to "average" dog foods, even though the quality of meat and nutrient content of the food is virtually identical to many other brands. The company faces no competition in this market segment so it plans to charge a high price for the product.
-Gourmet Pets is interested in computing the break-even point for its new product Prime Cuts. The fixed costs of adding this product to the product line amounts to $20,000. Variable costs to produce one package of Prime Cuts are $2. Prime Cuts will sell for $6 per package. The break-even point would be:

Accepted Answer

A)  900 units.
B)  2,800 units.
C)  5,000 units.
D)  There is not enough information to find the correct answer.E) None of the above
F) B) and D)

Question 14

Equipment maintenance and repair of equipment used by businesses is an industrial support good.

Accepted Answer

A) True 
 B)False

Question 15

For most firms, price competition is the most important way to gain a competitive advantage over rivals.

Accepted Answer

A) True 
 B)False

Question 16

The classification of goods or services into a particular class depends on the individual consumer.

Accepted Answer

A) True 
 B)False

Question 17

The purpose of a brand name is to establish an image of generic goods or services.

Accepted Answer

A) True 
 B)False

Question 18

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 19

A pricing strategy that uses bundling groups two or more related products together.

Accepted Answer

A) True 
 B)False

Question 20

Successful product differentiation:

Accepted Answer

A)  of consumer goods is determined exclusively by price.
B)  can be based on either real or perceived differences in products.
C)   is prohibited if it restricts price competition and market access.
D)  is less important due to the growth of the Internet.E) None of the above
F) A) and B)

Exam 14: Developing and Pricing Goods and Services

Product testing is designed to reduce the number of new product ideas that a firm works on at any one time.

Correct Answer
verified
False

Correct Answer
verified

Some goods can be classified as either consumer goods or as industrial goods.

Correct Answer
verified

Correct Answer
verified

One of the reasons marketers emphasize non-price differences in their competitive strategies is because:

Correct Answer
verified

One function of effective packaging is to attract the attention of consumers.

Correct Answer
verified

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

In evaluating colleges, students and parents are likely to judge a school:

Correct Answer
verified

Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package.

Correct Answer
verified
True

Brand association is the linking of a brand to other favorable images such as a celebrity or geographic location.

Correct Answer
verified
True

Correct Answer
verified

Equipment maintenance and repair of equipment used by businesses is an industrial support good.

Correct Answer
verified

For most firms, price competition is the most important way to gain a competitive advantage over rivals.

Correct Answer
verified

The classification of goods or services into a particular class depends on the individual consumer.

Correct Answer
verified

The purpose of a brand name is to establish an image of generic goods or services.

Correct Answer
verified

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

Correct Answer
verified

A pricing strategy that uses bundling groups two or more related products together.

Correct Answer
verified

Successful product differentiation:

Correct Answer
verified

Exam 14: Developing and Pricing Goods and Services

Product testing is designed to reduce the number of new product ideas that a firm works on at any one time.

Correct AnswerverifiedFalse

Correct AnswerverifiedShow Answer

Some goods can be classified as either consumer goods or as industrial goods.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

One of the reasons marketers emphasize non-price differences in their competitive strategies is because:

Correct AnswerverifiedShow Answer

One function of effective packaging is to attract the attention of consumers.

Correct AnswerverifiedShow Answer

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In evaluating colleges, students and parents are likely to judge a school:

Correct AnswerverifiedShow Answer

Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package.

Correct AnswerverifiedTrue

Brand association is the linking of a brand to other favorable images such as a celebrity or geographic location.

Correct AnswerverifiedTrue

Correct AnswerverifiedShow Answer

Equipment maintenance and repair of equipment used by businesses is an industrial support good.

Correct AnswerverifiedShow Answer

For most firms, price competition is the most important way to gain a competitive advantage over rivals.

Correct AnswerverifiedShow Answer

The classification of goods or services into a particular class depends on the individual consumer.

Correct AnswerverifiedShow Answer

The purpose of a brand name is to establish an image of generic goods or services.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A pricing strategy that uses bundling groups two or more related products together.

Correct AnswerverifiedShow Answer

Successful product differentiation:

Correct AnswerverifiedShow Answer

Correct Answer
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False

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

Correct Answer
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True

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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