Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Which of the following products would normally be classified as a shopping good or service?

Accepted Answer

A)  laptop computers
B)  newspapers
C)  fur coats
D)  chewing gumE) A) and C)
F) A) and D)

Question 3

The trend away from personal salespeople to self-service in many retail outlets has caused firms to:

Accepted Answer

A)  reduce their advertising promotional budgets.
B)  rely more on personal sales efforts.
C)  place a greater promotional importance on packaging.
D)  decrease expenditures on interactive Web pages.E) None of the above
F) A) and B)

Question 4

Rather than having frequent special sales,Walt's Warehouse has a pricing strategy that maintains lower prices than competitors all the time.Walt's pricing strategy is known as everyday low prices (EDLP).

Accepted Answer

A) True 
 B)False

Question 5

Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message has been identified.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a popular pricing objective?

Accepted Answer

A)  increasing sales
B)  increasing brand awareness
C)  fixing prices among competitors
D)  achieving less market shareE) A) and B)
F) A) and C)

Question 7

Business sponsorship of events,such as the Winston-Salem stock car races or NASCAR's Nextel Cup Series,is intended to increase:

Accepted Answer

A)  brand awareness.
B)  the quality of the event.
C)  the promotional budget.
D)  the availability of knockoff brands.E) A) and B)
F) A) and C)

Question 8

Successful firms maintain consistency in their marketing mix strategies throughout the product life cycle.

Accepted Answer

A) True 
 B)False

Question 9

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) B) and C)
F) A) and D)

Question 10

"If you create a better mouse trap,the world will beat a path to your door." This statement ignores the need for which step in the new-product development process?

Accepted Answer

A)  commercialization
B)  screening
C)  idea generation
D)  developmentE) None of the above
F) A) and B)

Question 11

As a promotional strategy,advertising is more important in the marketing of industrial goods than it is in the marketing of consumer goods.

Accepted Answer

A) True 
 B)False

Question 12

The Spotlight on Small Business box in Chapter 14 mentions Dream Dinners as a company that has succeeded by finding an unmet need and creating a satisfying total product offer.

Accepted Answer

A) True 
 B)False

Question 13

Cost-based pricing adds a desired profit margin to the cost of producing a product.

Accepted Answer

A) True 
 B)False

Question 14

American Building Products is the largest cement company in the Midwest.When the firm raised its prices by 8 percent,all of its competitors soon announced they too were raising their prices by 8 percent.It appears this industry is influenced by a ________ strategy.

Accepted Answer

A)  price skimming
B)  price leadership
C)  market pricing
D)  price discriminationE) All of the above
F) B) and C)

Question 15

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.When a brand name becomes so completely identified with a product category,the producer runs the risk of losing the legal protection of a trademarked brand name.If that indeed happens,then the brand name becomes a generic name.E) All of the above
F) A) and D)

Question 16

The ____________ is a theoretical model that describes the sales and profit performance of a product class over time.

Accepted Answer

A)  product life cycle
B)  marketing template
C)  market stages model
D)  commercialization time lineE) A) and B)
F) A) and C)

Question 17

Brand loyalty refers to the degree to which customers are satisfied with a brand and are committed to further purchases.

Accepted Answer

A) True 
 B)False

Question 18

Federated Grocery Stores operates a large chain of stores across several mid western 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.Dealer brands are products that carry a distributor's or retailer's name rather than the name of the actual manufacturer.(Dealer brands are also called private brands,distributor brands or house brands. ) E) A) and D)
F) B) and D)

Question 19

Which of the following would be included in evaluating the total product offer of benefits that consumers consider when buying a good or service?

Accepted Answer

A)  U.S.economy
B)  consumer's income
C)  competitive offerings
D)  store atmosphereE) C) and D)
F) B) and D)

Question 20

Products that are used in the production of other goods and services are called ________ goods.

Accepted Answer

A)  specialty
B)  shopping
C)  industrial
D)  sponsoredE) None of the above
F) B) and D)

Exam 14: Developing and Pricing Goods and Services

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

Correct AnswerverifiedShow Answer

Brand loyalty refers to the degree to which customers are satisfied with a brand and are committed to further purchases.

Correct AnswerverifiedShow Answer

"If you create a better mouse trap,the world will beat a path to your door." This statement ignores the need for which step in the new-product development process?

Correct AnswerverifiedShow Answer

Cost-based pricing adds a desired profit margin to the cost of producing a product.

Correct AnswerverifiedShow Answer

Federated Grocery Stores operates a large chain of stores across several mid western 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

Rather than having frequent special sales,Walt's Warehouse has a pricing strategy that maintains lower prices than competitors all the time.Walt's pricing strategy is known as everyday low prices (EDLP).

Correct AnswerverifiedShow Answer

Products that are used in the production of other goods and services are called ________ goods.

Correct AnswerverifiedShow Answer

Business sponsorship of events,such as the Winston-Salem stock car races or NASCAR's Nextel Cup Series,is intended to increase:

Correct AnswerverifiedShow Answer

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) :

Correct AnswerverifiedShow Answer

As a promotional strategy,advertising is more important in the marketing of industrial goods than it is in the marketing of consumer goods.

Correct AnswerverifiedShow Answer

Which of the following would be included in evaluating the total product offer of benefits that consumers consider when buying a good or service?

Correct AnswerverifiedShow Answer

American Building Products is the largest cement company in the Midwest.When the firm raised its prices by 8 percent,all of its competitors soon announced they too were raising their prices by 8 percent.It appears this industry is influenced by a ________ strategy.

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

Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message has been identified.

Correct AnswerverifiedShow Answer

The trend away from personal salespeople to self-service in many retail outlets has caused firms to:

Correct AnswerverifiedShow Answer

Which of the following is a popular pricing objective?

Correct AnswerverifiedShow Answer

Successful firms maintain consistency in their marketing mix strategies throughout the product life cycle.

Correct AnswerverifiedShow Answer

The ____________ is a theoretical model that describes the sales and profit performance of a product class over time.

Correct AnswerverifiedShow Answer

Which of the following products would normally be classified as a shopping good or service?

Correct AnswerverifiedShow Answer

The Spotlight on Small Business box in Chapter 14 mentions Dream Dinners as a company that has succeeded by finding an unmet need and creating a satisfying total product offer.

Correct AnswerverifiedShow Answer

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