Chapter 14 McGraw Hill

If fixed costs are $100,000, variable cost per unit is $40, and the selling price is $60, how many units must be sold for the firm to break even?

5,000

Many packages have labels that help stores control inventory and give the retailer information about the product's price, size, color, and other attributes. These are

UPCs.

ABC Electronics introduced the first large flat screen TV. Shoppers were amazed by the sharp, colorful images, and consumers flocked to the stores to purchase one. ABC priced the product high while there were few competitors in order to recover research and development costs and maximize profits. This strategy is called

a skimming price strategy.

A large orange juice manufacturer wants to increase its profit margin without raising the price of a bottle of juice. The bottle is currently 64 oz. A new 52 oz. bottle is developed and appears very similar to the old packaging. What pricing objective is sought?

achieving a target return on investment or profit.

The value of the brand name and its associated symbols is referred to as

brand equity.

World Around Tea & Coffee Company changed its glass bottles to streamlined, thermos-like, unbreakable sports bottles that fit nicely on bicycles and in car holders. A packaging innovation such as this could actually be perceived by the buyer as a

change in the product.

The importance of the product life cycle is that

different stages in the product life cycle call for different marketing strategies.

Most new-product ideas come from

employees

Kleenex is working to make sure that when people refer to tissue, they don't use the name Kleenex to refer to just any brand of tissue. Kleenex is afraid that their brand name will become a

generic name.

LG and other makers of smart television sets have made the prices of these products more competitive, have increased the number and kinds of stores in which they are available, have offered a variety of choices, and have advertised extensively. These products appear to be in the __________ stage of the product life cycle.

growth

At which stage of the product life cycle do you differentiate your product so that it will appeal to additional market segments?

maturity

Toyota is a well-known manufacturer of cars, trucks, and SUVs. Toyota dealers also provide service and financing to their customers. These products and services are part of Toyota's product

mix

Upscale retailers, such as Nordstrom, feature customer service as their significant point of difference and use that difference to compete with less expensive stores. This is known as __________ competition.

nonprice

The only place a shopper can purchase an item with a Kirkland Signature label is at a Costco store. This is an example of a(n) __________ brand.

private-label or dealer brand

Ed started Watseka Winery on his North Carolina farm when he switched from growing tobacco to growing grapes. After going through the various steps in the new-product development process, Ed and his fledgling company finally entered the commercialization stage of the new product development process. Ed knew that to succeed in selling the wine, the company would have to

promote the product to distributors and retailers to get wide distribution.

Chloe needs a new vacuum cleaner, so she's looking online to compare value, quality, price, and style from a variety of sellers. These types of products purchased after comparison shopping are known as __________ goods and services.

shopping

Buffy was shopping at her local home improvement store for a new kitchen faucet. She was attracted to a brushed stainless steel model with a long arc and a swivel spout. These are __________ features of the faucet.

tangible

When a company considers how to price a new product, it determines what price it thinks its customers will pay, and then identifies what profit the company needs. From there the company determines the features it can offer on this product. This method of determining price is known as

target costing.

Julius is considering buying new bedroom furniture. Naturally, he compares several types of beds, dressers, and bedside tables, but he also is evaluating each product's reputation, warranty, his own experience with the brand, and of course, the price. All of the components that Julius is evaluating make up

the total product offer.

Products that the consumer purchases like insurance, burial services, or emergency car-towing are known as __________ goods and services because they are not products that consumers regularly evaluate and consider purchasing.

unsought