Question 1

When consumers calculate the value of a product, they:

Accepted Answer

A)  subtract the cost of production from the market price.
B)   eliminate all nontangible elements that might affect their perception of the product.
C)  look at the benefits the product provides then subtract the cost.
D)  identify the variable and the fixed components of the product's benefits.E) A) and B)
F) None of the above

Question 2

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 pricingE) C) and D)
F) B) and D)

Question 3

Price, appearance, and reputation can influence a consumer's perceptions of quality.

Accepted Answer

A) True 
 B)False

Question 4

In the "Thinking Green" box in the chapter, one of the problems companies are facing is informing consumers about their commitment to environmental awareness in the labeling of their products.

Accepted Answer

A) True 
 B)False

Question 5

Thigpen Equipment Company sells used heavy construction equipment such as bulldozers and cranes. Thigpen's products represent examples of an accessory equipment industrial good.

Accepted Answer

A) True 
 B)False

Question 6

When consumers calculate the value of a product, they look at the benefits and then subtract the cost.

Accepted Answer

A) True 
 B)False

Question 7

One common way of classifying consumer goods is based on consumer purchasing behavior.

Accepted Answer

A) True 
 B)False

Question 8

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Accepted Answer

A)  mixed costs.
B)   controllable costs.
C)  fixed costs.
D)  variable costs.E) None of the above
F) A) and C)

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.E) C) and D)
F) A) and D)

Question 10

Certain brand names, such as Kleenex and Xerox, fear they could become , because they are so commonly identified with a specific product category that consumers use these names to refer to any product in that category regardless of the manufacturer.

Accepted Answer

A)  family brands
B)  generic names
C)   universal products
D)  knockoff namesE) None of the above
F) C) and D)

Question 11

A is a name, symbol, or design (or combination of these)  that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

Accepted Answer

A)  trademark
B)  brand
C)   logo
D)  copyrightE) B) and C)
F) A) and B)

Question 12

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 13

One reason many large consumer-product companies make use of is to have greater control over new-product development and product promotion.

Accepted Answer

A)  brand equity teams
B)   equity specialists
C)   product consultants
D)  brand management teamsE) None of the above
F) B) and C)

Question 14

Kathy works as a manager at Fantastic Fabricators. The innovative staff at the company is regularly encouraged to suggest ideas for new products. Since Cathy 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.E) A) and D)
F) A) and C)

Question 15

The trend towards self-service retailers has increased the importance of packaging.

Accepted Answer

A) True 
 B)False

Question 16

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)  UnsoughtE) A) and B)
F) B) and C)

Question 17

The evaluation of packaging as a marketing function indicates that:

Accepted Answer

A)  the package is less important as the Internet provides consumers with easily obtained information.
B)  packaging carries more of the promotional burden of the product.
C)   consumers are influenced less by packaging.
D)  the primary purpose of packaging is to limit the product liability of businesses.E) A) and B)
F) None of the above

Question 18

Endorsements by sports or movie celebrities can help create a favorable brand association.

Accepted Answer

A) True 
 B)False

Question 19

Community Catering Services, Inc. advertises that they are the "friendliest caterers in town." Their prices are no lower than the rates charged by competing caterers, but they put a lot of emphasis on getting to know the needs of their customers. They tailor their efforts to meet these needs, providing a unique dining experience that exactly matches the customer's expectations. Community Catering is likely to find that this approach is more effective in achieving its goals than the use of aggressive price- cutting.

Accepted Answer

A) True 
 B)False

Question 20

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

Correct Answer
verified

The trend towards self-service retailers has increased the importance of packaging.

Correct Answer
verified

Certain brand names, such as Kleenex and Xerox, fear they could become , because they are so commonly identified with a specific product category that consumers use these names to refer to any product in that category regardless of the manufacturer.

Correct Answer
verified

Thigpen Equipment Company sells used heavy construction equipment such as bulldozers and cranes. Thigpen's products represent examples of an accessory equipment industrial good.

Correct Answer
verified

When consumers calculate the value of a product, they:

Correct Answer
verified

When consumers calculate the value of a product, they look at the benefits and then subtract the cost.

Correct Answer
verified

One common way of classifying consumer goods is based on consumer purchasing behavior.

Correct Answer
verified

Kathy works as a manager at Fantastic Fabricators. The innovative staff at the company is regularly encouraged to suggest ideas for new products. Since Cathy works in product screening, she:

Correct Answer
verified

Price, appearance, and reputation can influence a consumer's perceptions of quality.

Correct Answer
verified

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

One reason many large consumer-product companies make use of is to have greater control over new-product development and product promotion.

Correct Answer
verified

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

Correct Answer
verified

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Correct Answer
verified

In the "Thinking Green" box in the chapter, one of the problems companies are facing is informing consumers about their commitment to environmental awareness in the labeling of their products.

Correct Answer
verified

The evaluation of packaging as a marketing function indicates that:

Correct Answer
verified

A is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

Correct Answer
verified

Endorsements by sports or movie celebrities can help create a favorable brand association.

Correct Answer
verified

Today, packaging is:

Correct Answer
verified

Exam 14: Developing and Pricing Goods and Services

Correct AnswerverifiedShow Answer

The trend towards self-service retailers has increased the importance of packaging.

Correct AnswerverifiedShow Answer

Certain brand names, such as Kleenex and Xerox, fear they could become , because they are so commonly identified with a specific product category that consumers use these names to refer to any product in that category regardless of the manufacturer.

Correct AnswerverifiedShow Answer

Thigpen Equipment Company sells used heavy construction equipment such as bulldozers and cranes. Thigpen's products represent examples of an accessory equipment industrial good.

Correct AnswerverifiedShow Answer

When consumers calculate the value of a product, they:

Correct AnswerverifiedShow Answer

When consumers calculate the value of a product, they look at the benefits and then subtract the cost.

Correct AnswerverifiedShow Answer

One common way of classifying consumer goods is based on consumer purchasing behavior.

Correct AnswerverifiedShow Answer

Kathy works as a manager at Fantastic Fabricators. The innovative staff at the company is regularly encouraged to suggest ideas for new products. Since Cathy works in product screening, she:

Correct AnswerverifiedShow Answer

Price, appearance, and reputation can influence a consumer's perceptions of quality.

Correct AnswerverifiedShow Answer

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One reason many large consumer-product companies make use of is to have greater control over new-product development and product promotion.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Correct AnswerverifiedShow Answer

In the "Thinking Green" box in the chapter, one of the problems companies are facing is informing consumers about their commitment to environmental awareness in the labeling of their products.

Correct AnswerverifiedShow Answer

The evaluation of packaging as a marketing function indicates that:

Correct AnswerverifiedShow Answer

A is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

Correct AnswerverifiedShow Answer

Endorsements by sports or movie celebrities can help create a favorable brand association.

Correct AnswerverifiedShow Answer

Today, packaging is:

Correct AnswerverifiedShow Answer

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