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Exam 14: Developing and Pricing Goods and Services

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Question 171

Multiple Choice

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Kimberly, a brand manager, has proposed an aggressive advertising campaign that exaggerates the benefits of her company's newest product. While she is convinced that this strategy will encourage consumers to try the product, her assistant strongly opposes the idea. Which of the following presents the best explanation for the assistant's opposition to Kimberly's proposal?

A) If a firm produces a quality product, the best advertising is word-of-mouth to generate excitement for a new product.
B) The best way to promote new consumer products is with personal selling.
C) Exaggerating the benefits of a product may backfire and injure the product's potential for success.
D) Effective advertising for new consumer products should be subtle and low key. Ellen's proposal is more appropriate for the B2B market.

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

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Question 172

Multiple Choice

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

A) a peak in the sales curve
B) high profit levels
C) a stable number of competitors
D) declining profits

E) All of the above
F) None of the above

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Question 173

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A trademark is a brand that has been given exclusive legal protection for both the brand name and the pictorial design.

Chevrolet is an example of a generic name in the automobile market.

Artisan breads, bagels, sandwiches, soups, and pastries are products that would be included in the product mix of a cafe.

The ________ on packages were intended to improve inventory control for businesses.

The break-even point is that level of sales where total revenues equals total costs.

The Pillsbury Doughboy is an example of a

The stages of the product life cycle are

In evaluating colleges, students and parents are likely to judge a school

Packaging is an important part of the total product offer.

Gabriella strongly prefers a specific brand of gourmet coffee. Since there is only one store in her area that sells her brand, she makes an extra effort to purchase this item. Gabriella's purchasing behavior indicates for her this product is a specialty good.

Kayla wants to know how many units she must sell to cover all of her costs. She indicates to you that her selling price is $25 per unit, her fixed costs are $7,000, and the variable costs per unit are $15. What is her break-even point?

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

The characteristics of specialty goods restrict their effective sale online.

Land Movers Equipment Company sells used heavy construction equipment such as bulldozers and cranes. Land Movers products represent examples of an accessory equipment industrial good.

Donavan spent the day talking with a packaging company in Guam, a lighting specialist in Japan, a touchpad expert in the U.S., a prototype design firm in Malaysia, as well as a shipping firm in China. Each of these firms provided expertise in the development of his company's latest product, a back-lighted eReader. The strategy that Donavan's firm used to develop its latest product is

Sherrie's Snacks has found that an effective technique to generate ideas for new consumer products is to carefully listen to employees and suppliers.

When consumers calculate the value of a product, they

Endorsements by sports or movie celebrities can help create a favorable brand association.