Question 1

From the buyer's perspective, which of the following is a benefit of a product with a well-known brand name?

Accepted Answer

A)   quality assurance
B)   helps in promotional efforts
C)   adds to repeat purchases
D)   differentiates products so that prices can be set higherE) B) and D)
F) B) and C)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Knowledge of the product life cycle model can help firms develop marketing strategies and anticipate market changes.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

Producers often use ________ as a primary basis for setting prices on the goods and services they offer the public.

Accepted Answer

A)   tariffs
B)   costs
C)   market share
D)   quotasE) A) and B)
F) B) and D)

Question 6

What does a break-even point of 100 units mean to a firm?

Accepted Answer

A)   The firm must sell 100 units to maximize its profits.
B)   Fixed costs plus variable costs equals 100 units.
C)   By producing 100 units, the firm can ensure that variable costs completely cancel its fixed costs.
D)   If the firm sells 100 units, its total revenues will equal its total costs.E) A) and D)
F) B) and D)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

________ goods appeal to consumers who are willing to make an extra shopping effort to acquire them.

Accepted Answer

A)   Specialty
B)   Shopping
C)   Convenience
D)   ConsumerE) None of the above
F) A) and C)

Question 9

When reviewing the product life cycle model, it is important to remember that

Accepted Answer

A)   although all products go through each stage of the life cycle, the time frame can vary considerably from one product to another.
B)   it is a theoretical model that may not be followed by all products.
C)   the maturity stage accounts for the fastest growth in sales.
D)   companies earn their largest profits in the introduction stage.E) A) and B)
F) C) and D)

Question 10

"Create a better mousetrap and the world will beat a path to your door." This statement is consistent with the idea behind the commercialization of products.

Accepted Answer

A) True 
 B)False

Question 11

Textbook publishers use a packaging strategy known as ________. Often the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.

Accepted Answer

A)   proformatting
B)   bartering
C)   bundling
D)   trademarketingE) A) and D)
F) A) and B)

Question 12

The product life cycle presents a theoretical model describing what happens to sales and profits for a class of products over time.

Accepted Answer

A) True 
 B)False

Question 13

One of the reasons marketers emphasize nonprice 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)   nonprice differences are tax deductible.
D)   relatively similar products can be enhanced.E) A) and D)
F) All of the above

Question 14

A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as

Accepted Answer

A)   market fixing.
B)   price penetration.
C)   price leadership.
D)   primary pricing.E) A) and B)
F) A) and C)

Question 15

In order for product differentiation to be effective, real product differences must be identified so that one product is clearly better than others.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a potential problem with a high-low pricing strategy?

Accepted Answer

A)   It confuses and frustrates customers.
B)   It places too much emphasis on nonprice competition.
C)   It teaches customers to wait for sales, and therefore reduces profits.
D)   It is difficult to implement.E) None of the above
F) All of the above

Question 17

The key to demand-oriented pricing is the recognition that not all producers face the same costs of production.

Accepted Answer

A) True 
 B)False

Question 18

The marketing efforts for convenience and specialty goods are essentially the same.

Accepted Answer

A) True 
 B)False

Question 19

As consumers evaluate a product, price plays a small role.

Accepted Answer

A) True 
 B)False

Question 20

Big Dog Building is the one of the largest cement companies in the Midwest. When the firm raised its prices by 11 percent, all of its competitors soon announced they too were raising their prices by 11 percent. It appears this industry is influenced by a ________ strategy.

Accepted Answer

A)   price skimming
B)   price leadership
C)   market pricing
D)   price discriminationE) None of the above
F) All of the above

Exam 14: Developing and Pricing Goods and Services

Which of the following is a popular pricing objective?

Correct AnswerverifiedShow Answer

When reviewing the product life cycle model, it is important to remember that

Correct AnswerverifiedShow Answer

Producers often use ________ as a primary basis for setting prices on the goods and services they offer the public.

Correct AnswerverifiedShow Answer

The product life cycle presents a theoretical model describing what happens to sales and profits for a class of products over time.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Textbook publishers use a packaging strategy known as ________. Often the publisher will combine highly complementary products such as a new textbook and access code for online software that students can use to test themselves on new concepts and principles.

Correct AnswerverifiedShow Answer

As consumers evaluate a product, price plays a small role.

Correct AnswerverifiedShow Answer

One of the reasons marketers emphasize nonprice differences in their competitive strategies is because

Correct AnswerverifiedShow Answer

The marketing efforts for convenience and specialty goods are essentially the same.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In order for product differentiation to be effective, real product differences must be identified so that one product is clearly better than others.

Correct AnswerverifiedShow Answer

Knowledge of the product life cycle model can help firms develop marketing strategies and anticipate market changes.

Correct AnswerverifiedShow Answer

A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as

Correct AnswerverifiedShow Answer

What does a break-even point of 100 units mean to a firm?

Correct AnswerverifiedShow Answer

________ goods appeal to consumers who are willing to make an extra shopping effort to acquire them.

Correct AnswerverifiedShow Answer

Which of the following is a potential problem with a high-low pricing strategy?

Correct AnswerverifiedShow Answer

Big Dog Building is the one of the largest cement companies in the Midwest. When the firm raised its prices by 11 percent, all of its competitors soon announced they too were raising their prices by 11 percent. It appears this industry is influenced by a ________ strategy.

Correct AnswerverifiedShow Answer

"Create a better mousetrap and the world will beat a path to your door." This statement is consistent with the idea behind the commercialization of products.

Correct AnswerverifiedShow Answer

The key to demand-oriented pricing is the recognition that not all producers face the same costs of production.

Correct AnswerverifiedShow Answer

From the buyer's perspective, which of the following is a benefit of a product with a well-known brand name?

Correct AnswerverifiedShow Answer

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