Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

A long-run pricing objective of almost all firms is to optimize profit.

Accepted Answer

A) True 
 B)False

Question 3

The image created by advertising is part of the total product offer of a product.

Accepted Answer

A) True 
 B)False

Question 4

Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy:

Accepted Answer

A)   penetration
B)   bundling
C)   skimming
D)   cost-basedE) A) and B)
F) All of the above

Question 5

Industrial goods and services are used to produce other products.

Accepted Answer

A) True 
 B)False

Question 6

Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message has been identified.

Accepted Answer

A) True 
 B)False

Question 7

The _________ pricing strategy maintains low prices and avoids the use of special sales.

Accepted Answer

A)   everyday low pricing (EDLP) 
B)   cost-based
C)   target-based
D)   skimmingE) A) and B)
F) A) and C)

Question 8

Miller Light Beer, Maxwell House Coffee, Jell-O brand gelatin, Kraft mayonnaise, and Marlboro Cigarettes, were all at one time products of the Philip Morris Company. These products represented a part of the product line Philip Morris offered.

Accepted Answer

A) True 
 B)False

Question 9

__________ goods appeal to consumers who are willing to make an extra shopping effort to acquire them.

Accepted Answer

A)   Specialty
B)   Shopping
C)   Convenience
D)   ConsumerE) C) and D)
F) A) and B)

Question 10

Beth works for Champion Industries overseeing the marketing mix for the firm's line of calculators. Beth serves as a brand manager for Champion Industries.

Accepted Answer

A) True 
 B)False

Question 11

A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as:

Accepted Answer

A)   market fixing.
B)   price penetration.
C)   price leadership.
D)   primary pricing.E) All of the above
F) A) and D)

Question 12

Which of the following is consistent with the introduction stage of the product life cycle?

Accepted Answer

A)   decreasing sales volume
B)   large number of competitors
C)   low profit levels or a potential loss
D)   minimum use of advertisingE) A) and D)
F) C) and D)

Question 13

Some goods can be classified as either consumer goods or as industrial goods.

Accepted Answer

A) True 
 B)False

Question 14

Fast-food organizations must constantly monitor all sources of information for new-product ideas.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a benefit of a brand name for a seller?

Accepted Answer

A)   quality assurance
B)   reduction in search time
C)   increased repeat purchases
D)   additional prestigeE) B) and C)
F) A) and C)

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

Accepted Answer

A) True 
 B)False

Question 18

Firms should listen to their suppliers for new-product ideas.

Accepted Answer

A) True 
 B)False

Question 19

The benefits provided by a brand name for a buyer include reduced search time, prestige, and quality assurance.

Accepted Answer

A) True 
 B)False

Question 20

Phar-out 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) All of the above
F) C) and D)

Exam 14: Developing and Pricing Goods and Services

Firms should listen to their suppliers for new-product ideas.

Correct AnswerverifiedShow Answer

Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message has been identified.

Correct AnswerverifiedShow Answer

The image created by advertising is part of the total product offer of a product.

Correct AnswerverifiedShow Answer

Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy:

Correct AnswerverifiedShow Answer

Industrial goods and services are used to produce other products.

Correct AnswerverifiedShow Answer

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

Correct AnswerverifiedShow Answer

Which of the following is a benefit of a brand name for a seller?

Correct AnswerverifiedShow Answer

A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as:

Correct AnswerverifiedShow Answer

Some goods can be classified as either consumer goods or as industrial goods.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Phar-out 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

Fast-food organizations must constantly monitor all sources of information for new-product ideas.

Correct AnswerverifiedShow Answer

__________ goods appeal to consumers who are willing to make an extra shopping effort to acquire them.

Correct AnswerverifiedShow Answer

Miller Light Beer, Maxwell House Coffee, Jell-O brand gelatin, Kraft mayonnaise, and Marlboro Cigarettes, were all at one time products of the Philip Morris Company. These products represented a part of the product line Philip Morris offered.

Correct AnswerverifiedShow Answer

The _________ pricing strategy maintains low prices and avoids the use of special sales.

Correct AnswerverifiedShow Answer

A long-run pricing objective of almost all firms is to optimize profit.

Correct AnswerverifiedShow Answer

Which of the following is consistent with the introduction stage of the product life cycle?

Correct AnswerverifiedShow Answer

The benefits provided by a brand name for a buyer include reduced search time, prestige, and quality assurance.

Correct AnswerverifiedShow Answer

Beth works for Champion Industries overseeing the marketing mix for the firm's line of calculators. Beth serves as a brand manager for Champion Industries.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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