Intro to Business Chapter 14
a brand
A name, symbol, or design (or combination of these) that a customer easily recognizes when seen on a product or in promotional materials is called
bundle pricing
A pizza parlor chooses to offer a large two-topping pizza, a 2-liter bottle of soda, and six cookies for a special value price. This strategy is known as
describes the contents of the package.
Bob is carefully looking at boxes of cereal, trying to find out which cereal has the highest fiber content. After a few moments, he finds the information on the box. This is an example of how packaging
oversee a brand and build brand awareness.
Brand managers have direct responsibility for one brand or product line. One of the reasons why companies create the position of brand manager is to
Changing the packaging can make a product more attractive to the consumer.
By changing the appearance of a product, one can change the way it's viewed and evaluated by the consumer. Which of the following statements is the most accurate?
shopping
Companies such as Abercrombie, Aeropostale, Best Buy and Gap know that their customers look carefully at quality and price and compare the products from different stores before making a purchase decision. The products in these stores are most likely categorized as ________goods.
can be based on price, quality, or both
Companies use product differentiation to set themselves apart from the competition. Successful product differentiation
a Snickers candy bar
In the maturity stage, competitors compete on price and product features. They also attempt to differentiate their product to satisfy different segments of the market. An example of a product in the maturity stage is
insufficient competition but strong differentiation.
Leading causes of new product failure include all of the following EXCEPT
product screening
Mathew is a brand manager for a large chocolate producer. Every six months, Mathew and a team of colleagues review the new product proposals that come from employees and managers and choose two that the company will pursue. This activity is part of
making goods more difficult to display, transport, and sell.
Monique has always paid attention to all aspects of the products she purchases and has noticed how packages have become more useful to both retailers and customers. She realizes that packaging has a multitude of roles EXCEPT
to explain product benefits.
Packaging plays an important role in what a consumer decides to purchase. One function of packaging is
concept testing
Presenting a new product to a smaller segment of targeted consumers to gauge their reactions is called
estimate the profitability of new product ideas.
Product analysis aims to
generic goods
Products that have very basic packaging with no brand name, are backed with little or no advertising, and typically have prices much lower than branded products are
industrial
Raw materials and equipment used in the production of other goods and services are called ______ goods.
product mix
The combination of product lines offered by a manufacturer is called the
product life cycle
The theoretical model that describes the sales and profit performance of a product class over time is called the
everyday low pricing (EDLP)
Walmart is one of the most well-known examples of retailers who never have weekly, monthly, or seasonal sales. However, its prices are recognized to be among the lowest compared to other retailers. The pricing strategy that Walmart practices is called
price leadership
When an airline sets the price of its flights and all competitors sharing the same route price their flights to match, this is an example of
awareness
When someone says "potato chips," do you think of Lay's, Ruffles or Pringles? How quickly or easily a brand name comes to mind when a product category is mentioned is called brand
car-towing services
Which of the following products would be considered an unsought good or service?
Plug-in electric vehicles
Which of the following products would most likely be in the introduction stage of the product life cycle?
Convenience
_______ goods are usually located close to the checkout counter because consumers will put forth a minimum level of effort to obtain them.
Coca-Cola produces Coca-Cola, Diet Coke, Sprite and Fanta
A product line is a group of products that are physically similar or are intended for a similar market. Which of the following is the best example of a product line?
product lines
A product mix is the combination of ___________ offered by a manufacturer.
prototype development
After screening the best ideas for new products, D'Andre prepares a clear product description and builds a product model. He is involved in
maturity
During the ______ stage the marketing effort is redirected towards differentiating the product from those of competitors.
the rent for the building
Eduardo is an accountant and monitors and tracks income and expenses for one of his restaurant clients. The variable costs that he takes into consideration when calculating how many meals must be served to break even include all of the following EXCEPT
total product offer
Everything that consumers evaluate when deciding whether to buy a good or service is called the
bundling
If you buy Microsoft Office Home and Student 2010, you will receive Word, Excel, PowerPoint and OneNote for about $120. Purchased separately, these programs would cost much more. This is an example of
creating awareness for consumers
In the introduction stage of the product life cycle, promotion efforts focus on
product mix
Johnson & Johnson manufactures products in the skin and hair care, oral health care, and baby care lines. These products are part of Johnson & Johnson's
association
Linking a brand to other favorable images, such as a celebrity, is one way of creating brand equity. For example, the link between GEICO and its cute gecko or between Hanes and Michael Jordan is called brand
build traffic
Many gas stations with convenience stores sell gas at, or close to, cost. In these organizations, profit comes from the convenience store's products and gas is priced to