Question 1

Whether a consumer thinks a product provides the best value depends upon:

Accepted Answer

A)   the actual product benefits.
B)   the consumer's perceptions.
C)   the global situation.
D)   the laws covering the product's manufacture.E) C) and D)
F) B) and D)

Question 2

Nonbranded products that sell below the price of national brands, have very basic packaging, and are backed with little or no advertising are called:

Accepted Answer

A)   universal goods.
B)   distributor brands.
C)   house brands.
D)   generic goods.E) A) and C)
F) A) and B)

Question 3

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Accepted Answer

A)   mixed costs.
B)   controllable costs.
C)   fixed costs.
D)   variable costs.E) A) and C)
F) All of the above

Question 4

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

Question 5

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.E) C) and D)
F) A) and D)

Question 6

According to the Adapting to Change box, a social media presence isn't needed for small businesses to connect with customers.

Accepted Answer

A) True 
 B)False

Question 7

_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.

Accepted Answer

A)   High-low pricing
B)   Everyday low pricing (EDLP) 
C)   Bundling
D)   Psychological pricingE) A) and C)
F) A) and B)

Question 8

When consumers calculate the value of a product, they:

Accepted Answer

A)   subtract the cost of production from the market price.
B)   eliminate all nontangible elements that might affect their perception of the product.
C)   look at the benefits the product provides then subtract the cost.
D)   identify the variable and the fixed components of the product's benefits.E) None of the above
F) C) and D)

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.E) C) and D)
F) All of the above

Question 10

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 11

Virtual Electronics is considering a strategy to charge a very high introductory price for their automobile video theater. After identifying that their rival firms did not carry this new product, they chose this pricing strategy to achieve maximum profits. Virtual Electronics has chosen a ________ strategy.

Accepted Answer

A)   high-low pricing
B)   penetration
C)   bundling
D)   skimmingE) A) and B)
F) All of the above

Question 12

The Spotlight on Small Business box showed us through the example of Randy Hetrick's TRX Suspension Trainer that in order to remain successful, sometimes expanding the product mix is essential.

Accepted Answer

A) True 
 B)False

Question 13

__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Accepted Answer

A)   Price discrimination
B)   Price leadership
C)   Target costing
D)   Cost-based pricingE) All of the above
F) C) and D)

Question 14

A __________ is a name, symbol, or design (or combination of these)  that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

Accepted Answer

A)   trademark
B)   brand
C)   logo
D)   copyrightE) B) and C)
F) A) and D)

Question 15

Brand names can significantly impact consumer perceptions of a product.

Accepted Answer

A) True 
 B)False

Question 16

A brand that has been given exclusive legal protection, such as the McDonald's golden arches, is a:

Accepted Answer

A)   private brand.
B)   promotional mark.
C)   dealer brand.
D)   trademark.E) A) and B)
F) B) and C)

Question 17

Target costing adds a profit margin to estimated cost of production to determine the optimal price.

Accepted Answer

A) True 
 B)False

Question 18

One way a small firm can succeed against larger competitors is to:

Accepted Answer

A)   determine their break-even point price.
B)   add value to their product offering.
C)   eliminate the fringe benefits offered to frequent customers.
D)   use break-even segmentation.E) A) and B)
F) None of the above

Question 19

Soprano Manufacturing acquired several pieces of expensive heavy machinery it intends to use in its operations. As an industrial good, this heavy machinery represents:

Accepted Answer

A)   an installation.
B)   accessory equipment.
C)   an intermediate good.
D)   a shopping good.E) None of the above
F) A) and B)

Question 20

Gill's Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin. Gill's strategy is known as target costing.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

Whether a consumer thinks a product provides the best value depends upon:

Correct Answer
verified

According to the Adapting to Change box, a social media presence isn't needed for small businesses to connect with customers.

Correct Answer
verified

Correct Answer
verified

Costs incurred regardless of the number of units of a product that are produced or sold are called:

Correct Answer
verified

In marketing today, packaging carries the added responsibility of:

Correct Answer
verified

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

Correct Answer
verified

__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Correct Answer
verified

A brand that has been given exclusive legal protection, such as the McDonald's golden arches, is a:

Correct Answer
verified

Nonbranded products that sell below the price of national brands, have very basic packaging, and are backed with little or no advertising are called:

Correct Answer
verified

The Spotlight on Small Business box showed us through the example of Randy Hetrick's TRX Suspension Trainer that in order to remain successful, sometimes expanding the product mix is essential.

Correct Answer
verified

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

Correct Answer
verified

Soprano Manufacturing acquired several pieces of expensive heavy machinery it intends to use in its operations. As an industrial good, this heavy machinery represents:

Correct Answer
verified

Gill's Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin. Gill's strategy is known as target costing.

Correct Answer
verified

When consumers calculate the value of a product, they:

Correct Answer
verified

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

Correct Answer
verified

Target costing adds a profit margin to estimated cost of production to determine the optimal price.

Correct Answer
verified

A __________ is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

Correct Answer
verified

_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.

Correct Answer
verified

Brand names can significantly impact consumer perceptions of a product.

Correct Answer
verified

One way a small firm can succeed against larger competitors is to:

Correct Answer
verified

Exam 14: Developing and Pricing Goods and Services

Whether a consumer thinks a product provides the best value depends upon:

Correct AnswerverifiedShow Answer

According to the Adapting to Change box, a social media presence isn't needed for small businesses to connect with customers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Costs incurred regardless of the number of units of a product that are produced or sold are called:

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

__________ involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

Correct AnswerverifiedShow Answer

A brand that has been given exclusive legal protection, such as the McDonald's golden arches, is a:

Correct AnswerverifiedShow Answer

Nonbranded products that sell below the price of national brands, have very basic packaging, and are backed with little or no advertising are called:

Correct AnswerverifiedShow Answer

The Spotlight on Small Business box showed us through the example of Randy Hetrick's TRX Suspension Trainer that in order to remain successful, sometimes expanding the product mix is essential.

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

Soprano Manufacturing acquired several pieces of expensive heavy machinery it intends to use in its operations. As an industrial good, this heavy machinery represents:

Correct AnswerverifiedShow Answer

Gill's Gadgets establishes the price it charges for its products by determining the cost of production and then adding on a desired profit margin. Gill's strategy is known as target costing.

Correct AnswerverifiedShow Answer

When consumers calculate the value of a product, they:

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

Target costing adds a profit margin to estimated cost of production to determine the optimal price.

Correct AnswerverifiedShow Answer

A __________ is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

Correct AnswerverifiedShow Answer

_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.

Correct AnswerverifiedShow Answer

Brand names can significantly impact consumer perceptions of a product.

Correct AnswerverifiedShow Answer

One way a small firm can succeed against larger competitors is to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified