Question 1

Winter Cool Mints is a new brand of breath fresheners. The company knows product location is very important since consumers desire to buy this type product with a minimum of effort. Winter Cool Mints represent a

Accepted Answer

A)   shopping good.
B)   specialty good.
C)   convenience good.
D)   industrial good.

Question 2

Computers, copiers, and fax machines used by businesses would be classified as

Accepted Answer

A)   installations.
B)   shopping goods.
C)   specialty goods.
D)   accessory equipment.

Question 3

Most consumers view specialty goods as having a variety of acceptable substitutes.

Accepted Answer

A) True 
 B)False

Question 4

The rent a firm pays each month for office space is an example of a(n)

Accepted Answer

A)   fixed cost.
B)   variable cost.
C)   mixed cost.
D)   uncontrollable cost.

Question 5

Brand names help sellers with new-product introductions and create an opportunity for higher prices.

Accepted Answer

A) True 
 B)False

Question 6

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.

Question 7

The best product development strategy for most firms is to

Accepted Answer

A)   develop a small number of products that achieve market success and stick with them, because constantly changing old products (or introducing new ones)  can confuse and frustrate customers.
B)   maintain one product line while adding regularly to that product line over time to sustain customer interest.
C)   constantly monitor consumer wants and needs and be willing to develop new products and adapt policies and services as those consumer needs begin to change.
D)   focus on the actual product or service and don't worry too much about factors such as image, price, and service.

Question 8

Jameson noticed that the vending machine soda bottles had changed shape. Upon further investigation, he saw that each bottle contained 2 ounces less than the previous bottles. But the price remained the same! The pricing objective of the beverage company is to

Accepted Answer

A)   increase profits by reducing the amount provided in each bottle.
B)   build traffic at the vending machines by changing the shape of the bottle.
C)   undercut the competition by changing the shape of the bottle.
D)   increase market share by reducing the amount provided in each bottle.

Question 9

In marketing today, packaging carries the added responsibility of:

Accepted Answer

A)   promotion and sales.
B)   minimizing product liability.
C)   gaining access to international markets.
D)   keeping product costs down.

Question 10

Some businesses use nostalgic ads to rekindle the memories and emotions of consumers to an earlier time and place. This technique of linking a brand name to a pleasant memory or favorable image is the goal of brand

Accepted Answer

A)   association.
B)   tie-ins.
C)   insistence.
D)   preference.

Question 11

Hammer's Hardware, a nationwide chain of hardware stores, sells a line of tools under the Hammer's brand even though they were actually produced by another firm. Since the products are actually produced by another firm, the Hammer's Hardware brand is an example of a knockoff brand.

Accepted Answer

A) True 
 B)False

Question 12

Total fixed costs are those costs that change when the volume of production changes.

Accepted Answer

A) True 
 B)False

Question 13

The Connecting Through Social Media box showed us that while watching the online gaming market, some previously popular games were faltering. This led programmers to

Accepted Answer

A)   focus all marketing efforts on social media.
B)   watch comments on social media that led to termination of the games that were no longer popular.
C)   partner with other companies with a large social following to co-market.
D)   turbocharge the games by inserting a celebrity with a massive social following.

Question 14

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?

Accepted Answer

A)   product matrix
B)   product line
C)   product mix
D)   total product offer

Question 15

Paper clips, stationery, and other office supplies used by businesses are types of industrial support goods.

Accepted Answer

A) True 
 B)False

Question 16

While service providers offer product lines, they are unable to offer product mixes.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is expected during the maturity stage of a product life cycle?

Accepted Answer

A)   a rapid increase in profits
B)   a rapid increase in the number of competitors
C)   peak sales
D)   reduced emphasis on promoting the product's brand name

Question 18

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 19

In order to achieve a social objective, firms use low prices to enable people with low incomes to buy their product.

Accepted Answer

A) True 
 B)False

Question 20

A high-low pricing strategy may condition consumers to avoid paying the regular prices by waiting for sale prices.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

Most consumers view specialty goods as having a variety of acceptable substitutes.

Correct AnswerverifiedShow Answer

Total fixed costs are those costs that change when the volume of production changes.

Correct AnswerverifiedShow Answer

A high-low pricing strategy may condition consumers to avoid paying the regular prices by waiting for sale prices.

Correct AnswerverifiedShow Answer

Which of the following is expected during the maturity stage of a product life cycle?

Correct AnswerverifiedShow Answer

Brand names help sellers with new-product introductions and create an opportunity for higher prices.

Correct AnswerverifiedShow Answer

While service providers offer product lines, they are unable to offer product mixes.

Correct AnswerverifiedShow Answer

Some businesses use nostalgic ads to rekindle the memories and emotions of consumers to an earlier time and place. This technique of linking a brand name to a pleasant memory or favorable image is the goal of brand

Correct AnswerverifiedShow Answer

The best product development strategy for most firms is to

Correct AnswerverifiedShow Answer

When consumers decide to purchase a particular product, they

Correct AnswerverifiedShow Answer

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?

Correct AnswerverifiedShow Answer

Paper clips, stationery, and other office supplies used by businesses are types of industrial support goods.

Correct AnswerverifiedShow Answer

Winter Cool Mints is a new brand of breath fresheners. The company knows product location is very important since consumers desire to buy this type product with a minimum of effort. Winter Cool Mints represent a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In order to achieve a social objective, firms use low prices to enable people with low incomes to buy their product.

Correct AnswerverifiedShow Answer

The rent a firm pays each month for office space is an example of a(n)

Correct AnswerverifiedShow Answer

In marketing today, packaging carries the added responsibility of:

Correct AnswerverifiedShow Answer

Computers, copiers, and fax machines used by businesses would be classified as

Correct AnswerverifiedShow Answer

Jameson noticed that the vending machine soda bottles had changed shape. Upon further investigation, he saw that each bottle contained 2 ounces less than the previous bottles. But the price remained the same! The pricing objective of the beverage company is to

Correct AnswerverifiedShow Answer

The Connecting Through Social Media box showed us that while watching the online gaming market, some previously popular games were faltering. This led programmers to

Correct AnswerverifiedShow Answer

Hammer's Hardware, a nationwide chain of hardware stores, sells a line of tools under the Hammer's brand even though they were actually produced by another firm. Since the products are actually produced by another firm, the Hammer's Hardware brand is an example of a knockoff brand.

Correct AnswerverifiedShow Answer

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