Into to Business Chapter 14 – Flashcards
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Which of the following products would most likely be classified as a specialty good or service?
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a limited-edition print signed by the artist
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Once a good or service nears the end of its product life cycle, the firm recognizes that:
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it can return to an earlier stage through creative marketing
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A street vendor selling Rolex watches at ridiculously low prices approached Ted. Ted, however, was suspicious that the watches were illegal ________ brands.
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knockoff
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Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors?
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penetration strategy
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_________ is an important part of the total product offer for a product.
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Packaging
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As firms develop their marketing mix, it is important to remember that:
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regardless of the strategy used, prices ultimately reflect the forces of supply and demand.
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From the buyer's perspective, which of the following is a benefit of a product with a well known brand name?
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quality assurance
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Firms utilize ________ when they attempt to add value to their product by offering service after the sale, product demonstrations, or interactive customer Web sites.
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nonprice competition
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__________ presents an idea for a new product to potential customers to test their reactions.
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Concept testing
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Soprano Manufacturing acquired several pieces of expensive heavy machinery it intends to use in its operations. As an industrial good, this heavy machinery represents:
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an installation.
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The number of units of a product that must be sold for total revenue to equal total costs is called the:
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break-even point.
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The Coca Cola Company produces Diet Coke, Diet Coke with Splenda, and Coke Zero along with a number of other flavors. These products are part of Coke's:
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product line.
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Which of the following is consistent with the introduction stage of the product life cycle?
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low profit levels or a potential loss
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The formula for break-even analysis includes which of the following components?
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variable cost per unit of output
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According to the product life cycle model, sales are expected to peak in the _________ stage.
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maturity
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Products that are used in the production of other goods and services are called ________ goods.
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industrial
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As a product progresses through each stage of the product life cycle, successful marketers recognize that each stage requires:
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a different marketing strategy
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One of the reasons marketers emphasize non-price differences in their competitive strategies is because:
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relatively similar products can be enhanced
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Which of the following statements regarding convenience goods and services is accurate?
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Brand awareness and image are important in marketing these products.
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A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.
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price leadership
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Many supermarkets carry plain packages that only identify the name of the product that is inside. For example, a label may read simply "peaches" or "green beans." These goods represent:
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generic goods
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When people consider purchasing a good, they:
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may evaluate and compare a variety of factors.
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The evaluation of packaging as a marketing function indicates that:
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packaging carries more of the promotional burden of the product.
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One of the reasons why companies create the position of brand manager is to:
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have greater control over new-product development and promotion.
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Which of the following products would normally be classified as a shopping good or service?
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laptop computers
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Green Giant Green Beans, Chevy Corvette, Coca Cola, Dole Pineapple, and Peter Pan Peanut Butter are all examples of:
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manufacturers' brands
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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.
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high-low
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__________ is the process used to determine the profitability of a product at various levels of sales.
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Break-even analysis
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Location is very important in the marketing of ________ because consumers desire to purchase these goods with a minimum of shopping effort.
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convenience goods
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The strategy of charging prices based on consumer demand rather than cost or a predetermined profit margin represents:
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demand-oriented pricing
