Intro-Into-Business: Ch. 14

Match the total product offering dimension with the type listed: 1. Tangible 2. Intangible A. The product and the package B. Product image and company reputation

1 = A 2 = B

Match the pricing method to the strategy below: 1. Demand-based (target costing) 2. Cost-based 3. Competition-based A. Costs of production plus a margin of profit to determine price B. Set the price at, above, or below the competition C. Estimate the price people will pay and design a product that will satisfy customers and meet profit margins

1 = C 2 = A 3 = B

List the stages of the product life cycle from beginning to end with the earliest stage first. 1. Maturity 2. Growth 3. Decline 4. Introduction

4. Introduction 2. Growth 1. Maturity 3. Decline

Select the firms that distribute products nationally which are also known as manufacturers' brands. A. Dell B. Sony C. Xerox D. Wegman's

A. Dell B. Sony C. Xerox

Which of the following are industrial goods? A. Drill press B. Computer servers C. Cosmetics D. Insurance policies for long term care

A. Drill press B. Computer servers

Companies usually offer a product line instead of just one product to: A. appeal to similar consumer markets B. tailor their offerings more closely to consumer wants C. meet the competition D. reduce their marketing costs

A. appeal to similar consumer markets B. tailor their offerings more closely to consumer wants C. meet the competition

A low initial entry price, often lower than the eventual market price, to attract many customers and discourage competition, is a strategy called: A. penetration B. skimming C. everyday low pricing (EDLP) D. high-low pricing

A. penetration

Products that do not carry the manufacturer's name, but carry the distributor or retailer name are called: A. private-label brands B. dealer brands C. manufacturer's brands D. generic brands

A. private-label brands B. dealer brands

____________ products to new markets is an ongoing process for marketers wishing to compete successfully.

Adapting

McDonald's now sells premium coffee to compete with which company? A. Panera B. Starbucks C. Krispy Kreme D. Subway

B. Starbucks

When a brand is linked to other favorable images this is known as: A. brand awareness B. brand association C. brand equity D. brand perception

B. brand association

When the consumer will not accept a substitute for a particular product, the consumer has developed: A. brand awareness B. brand insistence C. brand preference D. brand equity

B. brand insistence

The point where revenues from sales equal all costs is called the: A. variable costs B. break-even point C. target costing D. price point

B. break-even point

Marketers must continually adapt products to new ___________. A. employees' needs B. competition C. markets D. advertisements

B. competition C. markets

The theoretical model of sales and profits for a product class over time is the: A. sales projection B. product life cycle C. adoption curve D. profit projecting

B. product life cycle

Designing a product so that it satisfies customers and meets the profit margins desired by firms is called: A. break-even analysis B. target costing C. competition-based pricing D. cost-based pricing

B. target costing

Recognizing what stage of its life cycle a product is in has a direct impact on marketers' decisions about: A. product testing B. the marketing mix C. cost estimates D. screening

B. the marketing mix

Illegal copies of national brand-name goods are called: A. private B. dealer C. knock offs D. generics

C. knock offs

It is unusual for a company to sell: A. a product mix B. more than one product C. one product D. a product line

C. one product

What is the name of the pricing strategy that sets the price at, above, or below the price of competitors based on what they are doing?

Competition-based

Choose the term that is defined as a set of processes for creating, communicating, and delivering value to customers, according to the American Marketing Association. A. Advertising B. Distribution C. Pricing D. Marketing

D. Marketing

Perceived value of a product is calculated by consumers through careful consideration of: A. their own personal budget B. which company came up with the idea first C. the product price alone D. benefits and services associated with product

D. benefits and services associated with product

Consumers calculate the value of a product by: A. considering all of the costs B. considering all of the benefits C. adding only the shipping costs to online purchases D. considering whether all of the benefits exceed all of the costs

D. considering whether all of the benefits exceed all of the costs

___________ ___________ is the strategy by which one or more dominant firms set the pricing practices that all competitors in an industry follow.

Price leadership

___________ pricing makes a product appear less expensive than it really is.

Psychological

T/F: Price and cost are not always related.

True

Companies, especially those marketing food, must _________ to local tastes.

adapt

What must marketers do if they listen to customers and recognize the changes in markets?

adapt

Brand ___________ is how quickly or easily a given brand name comes to mind when a product category is mentioned.

awareness

The value of the brand name and associated symbols is referred to as _____________ ____________.

brand equity

Demand-based pricing is based on what customers are willing to pay for a product due to its perceived value, not the ___________ of producing it.

costs

Handing off various parts of a firm's innovation process sometimes to companies in other countries is called _____________ product development.

distributed

Total __________ ___________ are all the expenses that remain the same no matter how many products are made or sold.

fixed costs

A ___________ good is a non-branded product that usually sells at a sizable discount compared to other brands.

generic

Sellers fear that their brand will become a ____________ name, which is the name for a whole product category.

generic

High-low pricing requires a firm to set prices that are ___________ than everyday low price stores and then have special sales that set prices that are ___________ than competitors.

higher, lower

Heavy machinery, new buildings, and computers, all used in the production of other goods, are examples of ____________ goods.

industrial

When a consumer insists on one specific brand, making the product a specialty good, it is known as brand _____________.

insistence

Penetration strategy is the practice of pricing a product ___________ to attract ___________ customers and discourage competition.

lower, more

Brand ____________ is the degree to which consumers are satisfied, like the brand, and are committed to further purchases.

loyalty

In order to capture a large share of the market quickly, firms use a low price ____________ strategy

penetration

Due to competition and demand in the marketplace, __________ and __________ are not always related.

price, cost

The ___________ __________ __________ is an illustrating of the theoretical movement in sales and profits for a product class over time.

product life cycle

Companies rarely sell one product, but offer a ____________ ___________.

product line

The combination of product lines offered by a manufacturer is called the ___________ ___________.

product mix

When there is low competition, firms can use a ____________ ___________ strategy to recover research and development costs and make as much profit as possible.

skimming price

Knowing what ___________ of the product life cycle a product is in helps marketers make intelligent and efficient marketing decisions.

stage

Considering an iPod's look and feel, its features as well as Apple's reputation demonstrate a consumer evaluating the ______________ _____________ offer.

total product

Everything that consumers evaluate when deciding whether to buy something is referred to as the ___________ ___________ __________.

total product offer

When levels of production change so do __________ costs.

variable