Question 1

What is selling the rights to place a brand name on products such as t-shirts referred to as?

Accepted Answer

E)Marketers exploit brands for their public appeal.

Question 2

Noxzema,Prudential,and Minute Maid would be examples of which kind of brand name?

Accepted Answer

C)National brands are produced by, widely distributed by, and carry the name of the manufacturer.

Question 3

Which defining word or phrase below BEST captures the meaning of capital items?

Accepted Answer

D)Capital items are permanent goods or services; they have expected lives of more than a year and, typically, of several years.

Question 4

During the product life cycle,when do sales begin to climb and the product begin to show profit?

Accepted Answer

D)In the growth stage, sales start to climb rapidly if the new product attracts enough consumers. The product starts to show profit, and other firms move rapidly to introduce their own versions.

Question 5

Assuming a company has been gathering ideas for new products,what is the next step in the development process?

Accepted Answer

E)The sequential steps in the product development process are idea generation, screening, concept testing, business analysis, prototype development, product testing and test marketing, and commercialization.

Question 6

Which of the following is a convenience service?

Accepted Answer

C)An inexpensive haircut at Great Clips is consumed regularly, and the choice to purchase generally involves little input of time and effort. Choices A and B describe specialty services, purchased for important occasions, usually after a long and careful search. The hotel room would be a shopping service, and a daily newspaper is a convenience good, not a service.

Question 7

A firm makes bookcases,bicycles,soft drinks,armored cars,and novelty dishes.What do these items make up?

Accepted Answer

D)The group of products that a company makes available for sale, whether consumer, industrial, or both, is its product mix. A group of products that are closely related because they function in a similar manner is a product line.

Question 8

The Men's Store offers sweatshirts at three prices: $28,$42,and $60; this illustrates price lining.

Accepted Answer

Price lining includes offering all items in certain categories at a limited number of prices; these three price levels are referred to as price points.

Question 9

For a restaurant making pizzas,the cost of the cheese is a fixed cost.

Accepted Answer

Cheese, in this scenario, would be considered a variable cost; the cost of cheese will vary, depending on how many pizzas are made.

Question 10

What results when companies extend their horizons and identify opportunities outside existing product lines?

Accepted Answer

B)Many marketers extend their product lines to include multiple, or diversified, product lines. Starbucks, for example, has a line of home brewing equipment, a line of supermarket products, a line of music, etc.

Question 11

PepsiCo's juice product line includes Tropicana juice,Tropicana Twister juice drinks,and Trop50 reduced-calorie juices.Which of the following new products would also belong in this product line,if PepsiCo were to introduce it?

Accepted Answer

A)A product line includes a group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways. Only choice A is another juice product.

Question 12

The only goal of determining prices is to maximize profit for the firm.

Accepted Answer

Marketers price their products with various objectives in mind; for example, some marketers price their products in order to increase market share.

Question 13

Which of the following activities describes the development stage of commercialization?

Accepted Answer

D)Commercialization involves beginning full-scale production and marketing. This stage can be quite expensive, so it follows creation of a prototype, testing the product, and test marketing.

Question 14

What type of brands are Sears Craftsman tools and Kenmore appliances examples of?

Accepted Answer

C)When a wholesaler or retailer develops a brand name and has a manufacturer put it on a product, the resulting name is a private brand.

Question 15

Products priced above the market play on the common assumption that a higher price means higher quality.

Accepted Answer

Godiva chocolates and Patek Philippe watches are examples; prices are set high by promoting prestige and quality images.

Question 16

When a wholesaler or retailer develops a brand name and has the manufacturer place that name on the product,what is that product name called?

Accepted Answer

B)Examples of private brands include Craftsman tools and Canyon River Blues denim clothing.

Question 17

In which of the following ways is product development different for services than for physical goods?

Accepted Answer

C)The processes are basically the same for physical goods and services, except that the search for service ideas includes defining the service value package, and prototype development is replaced with a three-part service process design.

Question 18

Using the odd-even psychological pricing strategy,a restaurant would price an entree at $10.00 rather than $9.95.

Accepted Answer

Odd-even pricing posits that consumers prefer prices that are not stated in even dollar amounts, so the restaurant would price the entree at $9.95, not $10.00.

Question 19

During the product life cycle,when do sales begin to slow down while profit levels are high?

Accepted Answer

B)Sales start to slow in the maturity stage; although the product earns its highest profit level early in this stage, increased competition eventually forces price cutting and lower profits.

Question 20

Which of the following is a product benefit of a Southwest Airlines flight to Tucson,Arizona?

Accepted Answer

A)The pleasant experience delivered by the friendly crew members increases passengers' satisfaction with the flight. Choices B, C, and D are product features, not benefits. Features can, however, be a source of benefits. For example, the Web site delivers the benefit of convenience. Choice E, price, is a separate element of the marketing mix.

Quiz 12: Developing and Pricing Products