Question 1

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 2

Psychological pricing utilizes high prices to create the image of a high-quality product.

Accepted Answer

A) True 
 B)False

Question 3

According to the product life cycle model, sales are expected to peak in the ________ stage.

Accepted Answer

A)   introduction
B)   maturity
C)   growth
D)   commercializationE) A) and B)
F) A) and C)

Question 4

NoSneeze markets a group of similar products for people suffering from the common cold. The products differ mainly in the strength of the dosage and in whether they also contain additional medications to help the consumer sleep while sick. Sarah, a marketing manager at NoSneeze, is responsible for marketing the company's products and is involved in major decisions concerning the development of new products that will be included in this product line. Sarah serves as a

Accepted Answer

A)   brand manager.
B)   market mix specialist.
C)   target market manager.
D)   product line specialist.E) A) and B)
F) All of the above

Question 5

Green Giant Green Beans, Chevrolet Corvette, Coca-Cola, Dole Pineapple, and Peter Pan Peanut Butter are all examples of

Accepted Answer

A)   private brands.
B)   wholesaler brands.
C)   manufacturers' brands.
D)   registered generic brands.E) A) and D)
F) C) and D)

Question 6

Target costing is a cost-based pricing strategy.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The Coca-Cola Company produces Diet Coke, Diet Coke with Splenda, and Coke Zero along with a number of other flavors. These products are part of Coca-Cola's

Accepted Answer

A)   product line.
B)   product mix.
C)   product position.
D)   product collection.E) A) and D)
F) C) and D)

Question 9

Attracting attention, describing contents, explaining benefits, and identifying the uses of a product are all functions of

Accepted Answer

A)   target marketing.
B)   UPCs.
C)   packaging.
D)   market segmentation.E) B) and C)
F) A) and B)

Question 10

Ultimately, the price of a good is determined by the interaction of supply and demand in the marketplace.

Accepted Answer

A) True 
 B)False

Question 11

Although their names are similar, brand loyalty and brand equity are unrelated.

Accepted Answer

A) True 
 B)False

Question 12

According to the product life cycle model, profits tend to

Accepted Answer

A)   remain relatively constant until the decline stage, when they begin to drop.
B)   reach a peak near the end of the maturity stage.
C)   rise rapidly during the market preference stage.
D)   peak before sales reach their highest level.E) A) and B)
F) A) and C)

Question 13

Convenience goods are products that the consumer wants to purchase frequently and with minimal effort.

Accepted Answer

A) True 
 B)False

Question 14

When a brand becomes commonplace and identified with a category of goods rather than the unique product of a specific manufacturer, the brand may become a

Accepted Answer

A)   generic name.
B)   trademark.
C)   universal product code.
D)   product liability issue.E) B) and C)
F) A) and D)

Question 15

The legal protection offered to an established brand name prevents that name from being used as a generic name for a product.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements regarding convenience goods and services is accurate?

Accepted Answer

A)   Shoppers will exert lots of effort to obtain the product.
B)   Consumers purchase the product on an infrequent basis.
C)   Consumers buy only after carefully comparing quality and value.
D)   Brand awareness and image are important in marketing these products.E) A) and B)
F) A) and C)

Question 17

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

Accepted Answer

A)   a tablet
B)   newspapers
C)   fur coats
D)   chewing gumE) A) and D)
F) B) and C)

Question 18

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and discouraging competitors?

Accepted Answer

A)   penetration strategy
B)   odd-even pricing strategy
C)   skimming strategy
D)   price lining strategyE) B) and D)
F) All of the above

Question 19

A shopping good for one consumer could be a specialty good for another consumer.

Accepted Answer

A) True 
 B)False

Question 20

The strategy of first determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production is called

Accepted Answer

A)   cost-based pricing.
B)   target costing.
C)   penetration pricing.
D)   skimming pricing.E) All of the above
F) B) and D)

Exam 14: Developing and Pricing Goods and Services

Convenience goods are products that the consumer wants to purchase frequently and with minimal effort.

Correct Answer
verified

Although their names are similar, brand loyalty and brand equity are unrelated.

Correct Answer
verified

Attracting attention, describing contents, explaining benefits, and identifying the uses of a product are all functions of

Correct Answer
verified

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and discouraging competitors?

Correct Answer
verified

Correct Answer
verified

Which of the following statements regarding convenience goods and services is accurate?

Correct Answer
verified

A shopping good for one consumer could be a specialty good for another consumer.

Correct Answer
verified

According to the product life cycle model, sales are expected to peak in the ________ stage.

Correct Answer
verified

Ultimately, the price of a good is determined by the interaction of supply and demand in the marketplace.

Correct Answer
verified

The Coca-Cola Company produces Diet Coke, Diet Coke with Splenda, and Coke Zero along with a number of other flavors. These products are part of Coca-Cola's

Correct Answer
verified

The legal protection offered to an established brand name prevents that name from being used as a generic name for a product.

Correct Answer
verified

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

Correct Answer
verified

When a brand becomes commonplace and identified with a category of goods rather than the unique product of a specific manufacturer, the brand may become a

Correct Answer
verified

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 Answer
verified

Psychological pricing utilizes high prices to create the image of a high-quality product.

Correct Answer
verified

According to the product life cycle model, profits tend to

Correct Answer
verified

The strategy of first determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production is called

Correct Answer
verified

Green Giant Green Beans, Chevrolet Corvette, Coca-Cola, Dole Pineapple, and Peter Pan Peanut Butter are all examples of

Correct Answer
verified

Target costing is a cost-based pricing strategy.

Correct Answer
verified

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

Correct Answer
verified

Exam 14: Developing and Pricing Goods and Services

Convenience goods are products that the consumer wants to purchase frequently and with minimal effort.

Correct AnswerverifiedShow Answer

Although their names are similar, brand loyalty and brand equity are unrelated.

Correct AnswerverifiedShow Answer

Attracting attention, describing contents, explaining benefits, and identifying the uses of a product are all functions of

Correct AnswerverifiedShow Answer

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and discouraging competitors?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements regarding convenience goods and services is accurate?

Correct AnswerverifiedShow Answer

A shopping good for one consumer could be a specialty good for another consumer.

Correct AnswerverifiedShow Answer

According to the product life cycle model, sales are expected to peak in the ________ stage.

Correct AnswerverifiedShow Answer

Ultimately, the price of a good is determined by the interaction of supply and demand in the marketplace.

Correct AnswerverifiedShow Answer

The Coca-Cola Company produces Diet Coke, Diet Coke with Splenda, and Coke Zero along with a number of other flavors. These products are part of Coca-Cola's

Correct AnswerverifiedShow Answer

The legal protection offered to an established brand name prevents that name from being used as a generic name for a product.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a brand becomes commonplace and identified with a category of goods rather than the unique product of a specific manufacturer, the brand may become a

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

Psychological pricing utilizes high prices to create the image of a high-quality product.

Correct AnswerverifiedShow Answer

According to the product life cycle model, profits tend to

Correct AnswerverifiedShow Answer

The strategy of first determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production is called

Correct AnswerverifiedShow Answer

Green Giant Green Beans, Chevrolet Corvette, Coca-Cola, Dole Pineapple, and Peter Pan Peanut Butter are all examples of

Correct AnswerverifiedShow Answer

Target costing is a cost-based pricing strategy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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