Question 1

The trend away from personal salespeople to self-service in many retail outlets has caused firms to

Accepted Answer

A)   reduce their advertising promotional budgets.
B)   rely more on personal sales efforts.
C)   place a greater promotional importance on packaging.
D)   decrease expenditures on social media and websites.E) None of the above
F) All of the above

Question 2

Successful product differentiation

Accepted Answer

A)   of consumer goods is determined exclusively by price.
B)   can be based on either real or perceived differences in products.
C)   is prohibited if it restricts price competition and market access.
D)   is less important due to the growth of the Internet.E) A) and D)
F) B) and C)

Question 3

Firms utilizing an everyday low pricing (EDLP) strategy establish a policy of special sales on a regular basis.

Accepted Answer

A) True 
 B)False

Question 4

Consumer perceptions of product quality are affected by promotions and packaging, but not by the price of the product.

Accepted Answer

A) True 
 B)False

Question 5

Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package.

Accepted Answer

A) True 
 B)False

Question 6

The exclusive goal companies expect of packaging is to protect the product from damage in transit.

Accepted Answer

A) True 
 B)False

Question 7

A product line is a group of products that are physically similar or are intended for a similar market.

Accepted Answer

A) True 
 B)False

Question 8

The product analysis stage of the new-product development process considers the sales forecasts and cost estimates of a new-product idea.

Accepted Answer

A) True 
 B)False

Question 9

At the break-even point

Accepted Answer

A)   profits are maximized.
B)   variable costs are equal to total fixed costs.
C)   target profit is achieved.
D)   total revenue is equal to total cost.E) A) and D)
F) None of the above

Question 10

More than any other component of a total product offer, technology has reduced the importance of packaging.

Accepted Answer

A) True 
 B)False

Question 11

PharmaSave Pharmacy will advertise a price of an over-the-counter drug at or below their cost. The intended goal of this loss leader strategy is to

Accepted Answer

A)   achieve a target profit.
B)   reduce the break-even quantity.
C)   build traffic and increase the customer base.
D)   create an upscale image.E) None of the above
F) A) and C)

Question 12

While the packaging of services has not yet captured the attention of businesses, technological improvements will likely create new opportunities.

Accepted Answer

A) True 
 B)False

Question 13

When consumers reach the point of brand ________, the product becomes a specialty good.

Accepted Answer

A)   association
B)   desire
C)   awareness
D)   insistenceE) B) and C)
F) A) and C)

Question 14

The formula for break-even analysis includes which of the following components?

Accepted Answer

A)   depreciation
B)   forecasted sales
C)   forecasted cash requirements
D)   variable cost per unit of outputE) B) and C)
F) A) and D)

Question 15

________ is the stage of new-product development that involves promoting a product to distributors, and developing advertising and sales campaigns in order to generate and maintain consumer interest.

Accepted Answer

A)   Commercialization
B)   Brand identification
C)   Product differentiation
D)   MerchandisingE) A) and B)
F) B) and D)

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Which of the following strategies establishes a price based on the actions of rival firms?

Accepted Answer

A)   competition-based pricing
B)   cost-based pricing
C)   demand collection system
D)   bundlingE) A) and B)
F) None of the above

Question 18

Unsought goods and services are products consumers do not actively seek out for purchase on a regular basis.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following would a firm most likely use to differentiate its product?

Accepted Answer

A)   financial differences
B)   increased production
C)   elaborate packaging
D)   manual warehousingE) All of the above
F) A) and B)

Question 20

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

Accepted Answer

A) True 
 B)False

Exam 14: Developing and Pricing Goods and Services

Which of the following strategies establishes a price based on the actions of rival firms?

Correct AnswerverifiedShow Answer

While the packaging of services has not yet captured the attention of businesses, technological improvements will likely create new opportunities.

Correct AnswerverifiedShow Answer

At the break-even point

Correct AnswerverifiedShow Answer

Which of the following would a firm most likely use to differentiate its product?

Correct AnswerverifiedShow Answer

Consumer perceptions of product quality are affected by promotions and packaging, but not by the price of the product.

Correct AnswerverifiedShow Answer

A product line is a group of products that are physically similar or are intended for a similar market.

Correct AnswerverifiedShow Answer

The exclusive goal companies expect of packaging is to protect the product from damage in transit.

Correct AnswerverifiedShow Answer

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

Correct AnswerverifiedShow Answer

When consumers reach the point of brand ________, the product becomes a specialty good.

Correct AnswerverifiedShow Answer

Successful product differentiation

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Unsought goods and services are products consumers do not actively seek out for purchase on a regular basis.

Correct AnswerverifiedShow Answer

________ is the stage of new-product development that involves promoting a product to distributors, and developing advertising and sales campaigns in order to generate and maintain consumer interest.

Correct AnswerverifiedShow Answer

PharmaSave Pharmacy will advertise a price of an over-the-counter drug at or below their cost. The intended goal of this loss leader strategy is to

Correct AnswerverifiedShow Answer

The formula for break-even analysis includes which of the following components?

Correct AnswerverifiedShow Answer

More than any other component of a total product offer, technology has reduced the importance of packaging.

Correct AnswerverifiedShow Answer

Firms utilizing an everyday low pricing (EDLP) strategy establish a policy of special sales on a regular basis.

Correct AnswerverifiedShow Answer

Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package.

Correct AnswerverifiedShow Answer

The product analysis stage of the new-product development process considers the sales forecasts and cost estimates of a new-product idea.

Correct AnswerverifiedShow Answer

The trend away from personal salespeople to self-service in many retail outlets has caused firms to

Correct AnswerverifiedShow Answer

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