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Exam 14: Developing and Pricing Goods and Services

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Question 131

True/False

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

A) True
B) False

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Question 132

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Unsought goods and services are purchased on impulse and provide no added value to consumers.

A) True
B) False

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Question 133

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Which of the following is a potential problem with a high-low pricing strategy?

Sales of generic products are decreasing because consumers prefer the higher quality of the nationally known brands.

The product analysis stage of the new-product development process considers the sales forecasts and cost estimates of a new-product idea.

Which of the following statements regarding convenience goods and services is accurate?

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.

When consumer loyalty reaches the point of brand insistence, the product becomes a specialty good.

A self-portrait of a celebrated photographer sold at a Christie's auction for about $4 million dollars. According to Christie's, this was the highest price ever received for a photograph in the history of the auction business. As a student of marketing, you would classify this photo and other rare items sold through Christie's as

Break-even analysis determines profitability of a firm at various levels of sales.

Marketers use pricing, advertising, and packaging to differentiate their products from competitors' products even when actual differences are quite small.

PharmaSave 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

Competition-based pricing is a strategy based on what all the other competitors are doing.

________ uses price points to establish prices that help create the impression that the product is less expensive than it is.

One way a small firm can succeed against larger competitors is to

Low prices can often help retailers create an attractive total product offer.

Louis expects to visit a variety of retailers and websites to compare features, quality, and prices of different speaker equipment brands. This behavior indicates that for Louis a speaker system is a shopping good.

Spokes 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 the ________ offered by Spokes.

Dealer (private) brands are products that do not carry the manufacturer's name, but rather carry the name of a distributor or retailer.

One function of effective packaging is to protect the goods inside during handling and storage, as well as deter product tampering and theft.