Question 1

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 2

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 D)
F) A) and C)

Question 3

The product life cycle consists of ________ stages.

Accepted Answer

A)   3
B)   4
C)   5
D)   6E) A) and B)
F) A) and C)

Question 4

During the ________ stage of the product life cycle sales reach a peak, profits are declining, and the number of competitors starts to decrease.

Accepted Answer

A)   growth
B)   maturity
C)   saturation
D)   declineE) All of the above
F) B) and C)

Question 5

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 nameE) A) and B)
F) A) and D)

Question 6

Currently, which of the following products would most likely be considered in the growth stage of the product life cycle?

Accepted Answer

A)   DVD players
B)   Welch's grape jelly
C)   VR games
D)   Camel cigarettesE) A) and D)
F) B) and D)

Question 7

Price, store surroundings, service, and brand name are all elements that consumers evaluate in a total product offer.

Accepted Answer

A) True 
 B)False

Question 8

Brand managers have direct responsibility for all the elements of the marketing mix for a particular brand or product line.

Accepted Answer

A) True 
 B)False

Question 9

A knockoff brand is a brand name that has lost its exclusive legal protection.

Accepted Answer

A) True 
 B)False

Question 10

Sometimes a firm will lower prices below their costs in order to build a customer base.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is considered a stage of the new-product development process?

Accepted Answer

A)   automation
B)   media screening
C)   commercialization
D)   selective perceptionE) B) and C)
F) A) and B)

Question 12

Suitorium is a men's clothing store in a large suburban shopping mall. The managers of the store know that their customers usually comparison shop, looking carefully at quality and price before deciding to buy. With this information, Suitorium carries quality clothing, offers competitive pricing, and friendly, helpful service. The target customers apparently view men's suits as a

Accepted Answer

A)   specialty good.
B)   convenience good.
C)   shopping good.
D)   unsought good.E) C) and D)
F) A) and B)

Question 13

As more sales move to online retailers, it is likely that firms will adopt a high-low pricing strategy.

Accepted Answer

A) True 
 B)False

Question 14

Products that carry the name of a distributor or a retailer instead of the manufacturer's name are called

Accepted Answer

A)   dealer (private)  brands.
B)   knockoff brands.
C)   generic brands.
D)   equity brands.E) None of the above
F) A) and D)

Question 15

One of the reasons why companies create the position of brand manager is to

Accepted Answer

A)   have greater control over new-product development and promotion.
B)   cut expenses associated with the marketing of products.
C)   limit the amount of market research expenses products require.
D)   identify and prosecute firms that violate trademark protection.E) A) and B)
F) None of the above

Question 16

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

Accepted Answer

A) True 
 B)False

Question 17

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 18

The degree to which customers are satisfied and are committed to future purchases of a desired brand is called

Accepted Answer

A)   brand awareness.
B)   brand relations.
C)   brand loyalty.
D)   brand intensity.E) A) and C)
F) A) and B)

Question 19

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

Question 20

The stages of the product life cycle are

Accepted Answer

A)   production, inventory, exchange, usage, and disposal.
B)   conception, testing, production, commercialization, and obsolescence.
C)   introduction, growth, maturity, and decline.
D)   opportunity recognition, concept testing, production, market acceptance, brand insistence, and obsolescence.E) A) and B)
F) A) and C)

Exam 14: Developing and Pricing Goods and Services

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

Correct Answer
verified

Sometimes a firm will lower prices below their costs in order to build a customer base.

Correct Answer
verified

The degree to which customers are satisfied and are committed to future purchases of a desired brand is called

Correct Answer
verified

Which of the following is considered a stage of the new-product development process?

Correct Answer
verified

Products that carry the name of a distributor or a retailer instead of the manufacturer's name are called

Correct Answer
verified

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

Correct Answer
verified

Currently, which of the following products would most likely be considered in the growth stage of the product life cycle?

Correct Answer
verified

In marketing today, packaging carries the added responsibility of:

Correct Answer
verified

During the ________ stage of the product life cycle sales reach a peak, profits are declining, and the number of competitors starts to decrease.

Correct Answer
verified

The product life cycle consists of ________ stages.

Correct Answer
verified

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

Correct Answer
verified

Brand managers have direct responsibility for all the elements of the marketing mix for a particular brand or product line.

Correct Answer
verified

One of the reasons why companies create the position of brand manager is to

Correct Answer
verified

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

Correct Answer
verified

The stages of the product life cycle are

Correct Answer
verified

A knockoff brand is a brand name that has lost its exclusive legal protection.

Correct Answer
verified

As more sales move to online retailers, it is likely that firms will adopt a high-low pricing strategy.

Correct Answer
verified

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

Price, store surroundings, service, and brand name are all elements that consumers evaluate in a total product offer.

Correct Answer
verified

Exam 14: Developing and Pricing Goods and Services

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

Correct AnswerverifiedShow Answer

Sometimes a firm will lower prices below their costs in order to build a customer base.

Correct AnswerverifiedShow Answer

The degree to which customers are satisfied and are committed to future purchases of a desired brand is called

Correct AnswerverifiedShow Answer

Which of the following is considered a stage of the new-product development process?

Correct AnswerverifiedShow Answer

Products that carry the name of a distributor or a retailer instead of the manufacturer's name are called

Correct AnswerverifiedShow Answer

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

Correct AnswerverifiedShow Answer

Currently, which of the following products would most likely be considered in the growth stage of the product life cycle?

Correct AnswerverifiedShow Answer

In marketing today, packaging carries the added responsibility of:

Correct AnswerverifiedShow Answer

During the ________ stage of the product life cycle sales reach a peak, profits are declining, and the number of competitors starts to decrease.

Correct AnswerverifiedShow Answer

The product life cycle consists of ________ stages.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Brand managers have direct responsibility for all the elements of the marketing mix for a particular brand or product line.

Correct AnswerverifiedShow Answer

One of the reasons why companies create the position of brand manager is to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The stages of the product life cycle are

Correct AnswerverifiedShow Answer

A knockoff brand is a brand name that has lost its exclusive legal protection.

Correct AnswerverifiedShow Answer

As more sales move to online retailers, it is likely that firms will adopt a high-low pricing strategy.

Correct AnswerverifiedShow Answer

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

Price, store surroundings, service, and brand name are all elements that consumers evaluate in a total product offer.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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