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Exam 14: Developing and Pricing Goods and Services

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Question 71

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As firms develop their marketing mix,it is important to remember that:

A) prices must be linked directly to the cost of production.
B) instincts and past history are the best guides in determining price.
C) regardless of the strategy used,prices ultimately reflect the forces of supply and demand.
D) firms are often restricted in creating pricing strategies by relevant government rules and guidelines.

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

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Question 72

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What is a brand? What is a brand name? What is meant by brand equity?

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A brand is a name,symbol,or design or co...

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Question 73

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Nailerman's Hardware is a large chain of hardware stores that sells a line of tools under the Nailerman brand even though they were actually produced by another firm.Since the products are actually produced by another firm,using the Nailerman brand is an example of a knockoff brand.

McDonald's prides itself on offering precisely the same menu around the world so that customers know exactly what to expect when they eat at a McDonald's.

Which of the following is the best example of a product line?

A bank's product line may include safety deposit boxes,car loans,and traveler's checks.

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

The key to demand-oriented pricing is the recognition that not all producers face the same costs of production.

Department stores often use _________ pricing in which they have regular prices which are relatively high,but offer special sales where prices are set lower than competitors.

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

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

More than any other component of a total product offer,technology has reduced the importance of packaging.

Soprano Manufacturing acquired several pieces of expensive heavy machinery it intends to use in its operations.As an industrial good,this heavy machinery represents:

A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

The company currently markets McDog T-bone,Lapdog Lunchtreats,Rover's Potroast,and Puppy Porterhouse in the dog food market.Prime Cuts will be an addition to the company's ___________ in the dog food market.

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

Successful firms coordinate pricing objective strategies with decisions regarding product design,packaging,branding,distribution,and promotion.

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Derek's company was bidding on the construction of a new penguin display at a world-famous zoo.When putting together his bid,Derek began by determining what the zoo would be willing to pay for the structure,and then subtracting a reasonable profit for the company.The result would be the cost of production.For example: If price to zoo = $6 million,and company profit margin = $2 million,the cost to produce cannot exceed $4 million.[$6 million - $2 million = $4 million.] The demand-based pricing strategy in this example is called ___________.

A skimming pricing strategy: