Question 1

Which of the following is a benefit of a brand name for a seller?

Accepted Answer

A)  quality assurance
B)  reduction in search time
C)  increased repeat purchases
D)  additional prestigeE) None of the above
F) A) and C)

Question 2

As firms develop their marketing mix,it is important to remember that:

Accepted Answer

A)  prices must be linked directly to the cost of production.
B)  instincts and past history are the best guides in determining price.
C)  regardless of the strategy used,prices ultimately reflect the forces of supply and demand.
D)  firms are often restricted in creating pricing strategies by relevant government rules and guidelines.E) A) and B)
F) B) and C)

Question 3

During the ________ stage of the product life cycle sales reach a peak,profits are declining,and the number of competitors starts to decrease.

Accepted Answer

A)  growth
B)  maturity
C)  saturation
D)  declineE) All of the above
F) B) and C)

Question 4

Stella strongly prefers a specific brand of gourmet coffee.Because there is only one store in her area that sells this brand,she makes an extra effort to purchase this item.Stella's purchasing behavior indicates for her this product is a specialty good.

Accepted Answer

A) True 
 B)False

Question 5

Some goods have a product life cycle that is completed in a shorter amount of time than other goods.

Accepted Answer

A) True 
 B)False

Question 6

While the Universal Product Code (UPC)improves efficiency at the retail check-out counter,it has increased problems in controlling inventory.

Accepted Answer

A) True 
 B)False

Question 7

As a result of increased advertising and well-trained salespeople,packaging is less important than in the past.

Accepted Answer

A) True 
 B)False

Question 8

Employees,not the firm's research and development department,are the number one source of ideas for new industrial products.

Accepted Answer

A) True 
 B)False

Question 9

The _________ pricing strategy maintains low prices and avoids the use of special sales.

Accepted Answer

A)  everyday low pricing (EDLP) 
B)  cost-based
C)  target-based
D)  skimmingE) B) and C)
F) None of the above

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Car dealers realize that consumers focus exclusively on price and warranty.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Healthy Pick designed a new type of packaging that significantly improves taste and texture of food when defrosted.Unfortunately,firms seldom find that improvements in packaging impact market share and profits.

Accepted Answer

A) True 
 B)False

Question 14

In recent years,the packaging of products has been given a greater role in product promotion.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Demand-based pricing is another name for cost-based pricing.

Accepted Answer

A) True 
 B)False

Question 17

The four-stage theoretical model that describes the evolution of a product from birth to death is referred to as the:

Accepted Answer

A)  growth-share matrix.
B)  developmental life span analysis.
C)  product life cycle.
D)  product market progression index.E) A) and D)
F) A) and C)

Question 18

The use of price discounts and coupons may erode the commitment of consumers to brand names.

Accepted Answer

A) True 
 B)False

Question 19

According to the Spotlight on Small Business box in Chapter 14,Let's Dish and Dream Diners knew that even though its target market valued home-cooked meals and family time spent enjoying them they lacked the time to adequately prepare such meals.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

Car dealers realize that consumers focus exclusively on price and warranty.

Correct AnswerverifiedShow Answer

Employees,not the firm's research and development department,are the number one source of ideas for new industrial products.

Correct AnswerverifiedShow Answer

Healthy Pick designed a new type of packaging that significantly improves taste and texture of food when defrosted.Unfortunately,firms seldom find that improvements in packaging impact market share and profits.

Correct AnswerverifiedShow Answer

As a result of increased advertising and well-trained salespeople,packaging is less important than in the past.

Correct AnswerverifiedShow Answer

In recent years,the packaging of products has been given a greater role in product promotion.

Correct AnswerverifiedShow Answer

According to the Spotlight on Small Business box in Chapter 14,Let's Dish and Dream Diners knew that even though its target market valued home-cooked meals and family time spent enjoying them they lacked the time to adequately prepare such meals.

Correct AnswerverifiedShow Answer

While the Universal Product Code (UPC)improves efficiency at the retail check-out counter,it has increased problems in controlling inventory.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The _________ pricing strategy maintains low prices and avoids the use of special sales.

Correct AnswerverifiedShow Answer

Which of the following is a benefit of a brand name for a seller?

Correct AnswerverifiedShow Answer

Some goods have a product life cycle that is completed in a shorter amount of time than other goods.

Correct AnswerverifiedShow Answer

During the ________ stage of the product life cycle sales reach a peak,profits are declining,and the number of competitors starts to decrease.

Correct AnswerverifiedShow Answer

The four-stage theoretical model that describes the evolution of a product from birth to death is referred to as the:

Correct AnswerverifiedShow Answer

The use of price discounts and coupons may erode the commitment of consumers to brand names.

Correct AnswerverifiedShow Answer

Stella strongly prefers a specific brand of gourmet coffee.Because there is only one store in her area that sells this brand,she makes an extra effort to purchase this item.Stella's purchasing behavior indicates for her this product is a specialty good.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Demand-based pricing is another name for cost-based pricing.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

As firms develop their marketing mix,it is important to remember that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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