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Chapter 14

Chapter 14. Developing and Pricing Products and Services CPS questions. 1. Which of the following is the combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service?. Total product offer Product mix Product differentiation

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Chapter 14

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  1. Chapter 14 Developing and Pricing Products and Services CPS questions

  2. 1. Which of the following is the combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service? • Total product offer • Product mix • Product differentiation • Product package

  3. 2. Spit’n’Spin Wheels sells high quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of Spit’n’Spin’s • total product offer. • product line. • competitive environment. • marginal utility package.

  4. 3. When evaluating colleges, students and parents are likely to judge a school based on which of the following? • Strictly on the basis of major curriculums offered • Based on the tuition • By the collection of benefits offered by the school • On the anticipated rate of return on their tuition investment

  5. 4. In the marketing of which of the following, location is very important because consumers desire to purchase these goods with a minimum of shopping effort? • Unsought goods • Shopping goods • Specialty goods • Convenience goods

  6. 5. ______would normally be classified as a shopping good or service. • Laptop computers • Newspapers • Fur coats • Chewing gum

  7. 6. Today, packaging is: • the least important component of the marketing mix. • assuming an increasingly important role in the promotion of products. • exclusively intended to protect the product from damage. • the most expensive component of the production process.

  8. 7. The most accurate statement about packaging is: • Changes in packaging can improve the product itself and open up large new markets • Packaging is the least critical element of a firm's promotional strategy • Technology has not changed the role of packaging • Packaging has avoided federal regulations

  9. 8. ________ is a benefit of a brand name for a seller. • Quality assurance • Reduction in search time • Increased repeat purchases • Additional prestige

  10. 9. What are Green Giant Green Beans, Chevy Corvette, Coca Cola, Dole Pineapple, and Peter Pan Peanut Butter all examples of? • Private brands • Wholesaler brands • Manufacturers' brands • Registered generic brands

  11. 10. Which of the following presents an idea for a new product to potential customers to test their reactions? • Idea generation • Concept testing • Screening • Prototype development

  12. 11.________ is a relevant criterion for the product screening process. • Sales forecasts for the product • Production capacity of competitors • Profit potential • The stage of the product life cycle

  13. 12. Bobby works as a manager at Sensuous Silks. The innovative staff at the company is regularly encouraged to suggest ideas for new products. Since Bobby works in product screening, he: • gives the final approval for the commercialization of new products. • reduces the number of new products being worked on at any one time. • market tests the product ideas that originate with the staff. • develops the concept testing to establish the personnel required for each new project.

  14. 13. Successful marketers recognize that through each stage of the product life cycle, each stage requires which of the following? • A different marketing strategy • A consistent application of fundamental marketing practices • An increase in the amount spent on advertising • More emphasis on personal selling

  15. 14. _________ is the stage of the product life cycle characterized by rapidly rising sales, very high profit levels, and a growing number of competitors. • Growth • Maturity • Saturation • Decline

  16. 15. Sales of cellular phones are still increasing, but the rate of growth has slowed. Sales are expected to peak later this year. Based on this information, cellular phones are in the ________ stage of the product life cycle. • introduction • growth • maturity • decline

  17. 16. Which of the following best describes pricing? • It is one of the 4 Ps of the marketing mix. • It is considered to be a part of promotion. • It is normally a government regulated variable. • It is totally based on the cost of products.

  18. 17. __________ is the strategy of first determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production. • Cost-based pricing • Target costing • Penetration pricing • Skimming pricing

  19. 18. Firms utilize which of the following when they attempt to add value to their product by offering service after the sale, product demonstrations, or interactive customer Web sites? • Nonprice competition • Relationship branding • Niche marketing • Break-even segmentation

  20. 19. The most accurate statement about nonprice competition is: • While still important, nonprice competition is becoming less critical as a result of the Internet • Marketers often rely on nonprice differences in their competitive strategy to enhance a relatively homogeneous product • Nonprice competition is much more important to large firms than it is to small firms • As microeconomic theory suggests, firms have found that nonprice competition plays a secondary role that supplements the more important competition based on price

  21. 20. Operating in the southwestern states, Coolman Airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast. Which of the following is the best strategy to avoid severe price competition? • Provide frequent travelers the added value of special fringe benefits. • Cut costs and services in order to maintain its profit margin. • Reduce flights and layoff employees. • Determine the breakeven price and charge slightly more than that.

  22. Answer: A LG: 1 Page: 378 • Answer: A LG: 1 Page: 378 • Answer: C LG: 1 Page: 378 • Answer: D LG: 2 Page: 380 • Answer: A LG: 2 Page: 381 • Answer: B LG: 3 Page: 384 • Answer: A LG: 3 Page: 384 • Answer: C LG: 4 Page: 385 • Answer: C LG: 4 Page: 385 • Answer: B LG: 5 Page: 389 • Answer: C LG: 5 Page: 388 • Answer: B LG: 5 Page: 388 • Answer: A LG: 6 Page: 390 • Answer: A LG: 6 Page: 391; figure 14.6 • Answer: C LG: 6 Page: 390; figure 14.4 • Answer: A LG: 7 Page: 392 • Answer: B LG: 7 Page: 393 • Answer: A LG: 8 Page: 395 • Answer: B LG: 8 Page: 395 • Answer: A LG: 8 Page: 395

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