Question 1

For small businesses, product differentiation:

Accepted Answer

A)   is more difficult than it is for larger firms because of the high cost of product research and development.
B)   usually concentrates on the pricing component of the total product offer.
C)   can be an important strategy to gain market share.
D)   is less important than it is for big firms with multiple product lines.E) All of the above
F) B) and C)

Question 2

When consumers decide to purchase a particular product, they:

Accepted Answer

A)   will search for the retailer that offers the lowest price.
B)   consider the total collection of benefits that the product offers.
C)   base their decision on a brand name nearly all of the time.
D)   initially evaluate the product's package.E) All of the above
F) A) and D)

Question 3

Consumer goods and services are generally classified into four specific categories. What are the four categories, and how do they differ? Illustrate by giving examples of products that are often included in each category.

Accepted Answer

Consumer goods and services are classifi...

Question 4

New products often fail because they don't deliver to consumers their promised benefits.

Accepted Answer

A) True 
 B)False

Question 5

Restaurants, like other businesses, often find that the best way to succeed in the market is to:

Accepted Answer

A)   listen to customers and adapt products to their needs.
B)   create a product for which they could charge an exceptionally high price.
C)   create a winning combination of advertising and personal selling for all of the stores in the chain.
D)   open more stores in a single year than other food-service operators.E) A) and B)
F) None of the above

Question 6

LoRider Wheels sells high-quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of the ___________ offered by LoRider.

Accepted Answer

A)   total product offer
B)   product line
C)   competitive environment
D)   marginal utility packageE) B) and D)
F) A) and D)

Question 7

The U.S. legal system does not offer trademark protection.

Accepted Answer

A) True 
 B)False

Question 8

Chevrolet is an example of a generic name in the automobile market.

Accepted Answer

A) True 
 B)False

Question 9

Federated Grocery Stores operates a large chain of stores across several midwestern states. While Federated 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. Federated canned foods represent a:

Accepted Answer

A)   manufacturers' brand.
B)   generic brand.
C)   knockoff brand.
D)   dealer (private)  brand.E) None of the above
F) A) and D)

Question 10

Once a good or service nears the end of its product life cycle, the firm recognizes that:

Accepted Answer

A)   it is impossible to revert to an earlier stage of the model.
B)   it can return to an earlier stage through creative marketing.
C)   it will enjoy relatively high profits.
D)   marketing dollars spent now will provide little benefit.E) B) and D)
F) All of the above

Question 11

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) None of the above
F) B) and C)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

Accepted Answer

A)   skimming
B)   penetration
C)   target costing
D)   price leadershipE) A) and D)
F) A) and C)

Question 14

Gabe intends to visit a variety of retailers of sound equipment comparing features, quality, and prices of different brands at each store. This behavior indicates that for Gabe a sound system is a shopping good.

Accepted Answer

A) True 
 B)False

Question 15

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) B) and D)
F) All of the above

Question 16

The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Once an organization surveys the consumer's wants and needs, has designed a group of products to meet those needs, and begun to market them in stores, the organization is assured of success.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 14: Developing and Pricing Goods and Services

Consumer goods and services are generally classified into four specific categories. What are the four categories, and how do they differ? Illustrate by giving examples of products that are often included in each category.

Correct AnswerverifiedConsumer goods and services are classifi...View AnswerShow Answer

For small businesses, product differentiation:

Correct AnswerverifiedShow Answer

When consumers decide to purchase a particular product, they:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

New products often fail because they don't deliver to consumers their promised benefits.

Correct AnswerverifiedShow Answer

Chevrolet is an example of a generic name in the automobile market.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

Correct AnswerverifiedShow Answer

Gabe intends to visit a variety of retailers of sound equipment comparing features, quality, and prices of different brands at each store. This behavior indicates that for Gabe a sound system is a shopping good.

Correct AnswerverifiedShow Answer

LoRider Wheels sells high-quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of the ___________ offered by LoRider.

Correct AnswerverifiedShow Answer

The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Once an organization surveys the consumer's wants and needs, has designed a group of products to meet those needs, and begun to market them in stores, the organization is assured of success.

Correct AnswerverifiedShow Answer

Restaurants, like other businesses, often find that the best way to succeed in the market is to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Today, packaging is:

Correct AnswerverifiedShow Answer

Federated Grocery Stores operates a large chain of stores across several midwestern states. While Federated 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. Federated canned foods represent a:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Once a good or service nears the end of its product life cycle, the firm recognizes that:

Correct AnswerverifiedShow Answer

The U.S. legal system does not offer trademark protection.

Correct AnswerverifiedShow Answer

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