FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 14: Developing and Pricing Goods and Services

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

True/False

Review LaterAdd Note

Review Later

Concept testing involves taking a product idea to consumers to test their reactions.

A) True
B) False

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Restaurants, like other businesses, often find that the best way to succeed in the market is to

A) listen to customers and adapt products to their needs.
B) create a product for which they could charge an exceptionally high price.
C) create a winning combination of advertising and personal selling for all of the stores in the chain.
D) open more stores in a single year than other food-service operators.

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

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

The purpose of ________ is to create real or perceived product differences.

Newport Industries is one of the first producers of a unique consumer product. The company has chosen a low-price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Newport's approach to pricing is a classic example of the skimming strategy.

Most manufacturers hope that their brand names will become a generic name.

According to the Making Ethical Decisions box, there is more and more confusion growing around what makes a product "natural." What is the Food and Drug Administration (FDA) considering doing to alleviate the confusion?

A skimming price strategy involves a low pricing policy intended to attract price-sensitive customers from competitors.

Shopping goods and services are purchased only after consumers compare value, quality, style, and price of competing goods and services.

A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

Cheryl is considering adding a rack of greeting cards to her product offerings at The Bitty Bookstore. Her fixed costs associated with adding the greeting cards would be $400. Variable costs per card are $1 each. The greeting cards will sell for $3 each. Helen's break-even point would occur at ________ cards sold.

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

The concepts of product lines and product mixes apply to marketers of both products and services.

Small firms often rely on nonprice competition when competing against larger firms.

________ is an important part of the total product offer for a product.

Consumer goods and services are generally classified into four specific categories. What are the four categories, and how do they differ? Illustrate by giving examples of products that are often included in each category.

At the break-even point

Discuss the role of packaging in a firm's total product offer.

According to the product life cycle model, profits tend to

As consumers evaluate a product, price plays a small role.

________ consist of major capital equipment such as new factories and heavy machinery.