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Exam 14: Developing and Pricing Goods and Services

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Question 131

True/False

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A knockoff brand is a brand name that has lost its exclusive legal protection.

A) True
B) False

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verified

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Question 132

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A pricing strategy that uses bundling groups two or more related products together.

A) True
B) False

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Question 133

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At the break-even point:

Location is very important in the marketing of ________ because consumers desire to purchase these goods with a minimum of shopping effort.

The stages of the product life cycle are:

Sales of cell phones in the United States are still increasing,but the rate of growth has slowed.Sales are expected to peak somewhat soon in the U.S.Based on this information,cellular phones are in what stage of the product life cycle in the U.S?

The legal protection offered to an established brand name prevents that name from being used as a generic name for a product.

From a strategic marketing viewpoint,a total product offer includes all of the tangible attributes of a good or service,and excludes any intangible attributes.

The __________ on packages were intended to improve inventory control for businesses.

Price leadership is a demand based pricing strategy.

Ultimately,the price of a good is determined by the interaction of supply and demand in the marketplace.

Low prices can often help retailers create an attractive total product offer.

A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as:

One reason many large consumer-product companies make use of __________ is to have greater control over new-product development and product promotion.

_________ uses price points to establish prices that help create the impression that the product is less expensive than it is.

Consumer perceptions of product quality are affected by promotions and packaging,but not by the price of the product.

Mini-Case Gourmet Pets is an innovative competitor in the billion-dollar pet food industry.In fact,two of its products,Kitty Sirloin and McDog T-bone,each claim over a 30% share in their market segments.The company has done detailed research and discovered that,for a growing number of pet owners,the family pet serves as a "baby substitute." These owners tend to pamper their pets,and are very discriminating in what they purchase.With this in mind,the company has put a great deal of effort into developing a new dog food: Prime Cuts.The new product is packaged in a resealable,microwaveable container and can be purchased in a variety of flavors (including Western BBQ,Teriyaki,Australian Outback,and Hickory Smoked. ) Gourmet Pets promotes the product as far superior to "average" dog foods,even though the quality of meat and nutrient content of the food is virtually identical to many other brands.The company faces no competition in this market segment so it plans to charge a high price for the product. -Prime Cuts was the brainchild of Karen Terrier who guided all the marketing efforts of the product.She selected each element of the marketing mix such as the package,brand name,pricing,promotion,and placement decisions.Karen obviously serves in the job of:

Grandpa's Burger Haven sells a medium soda for $1.50,a "Single Meat" burger for $1.99,and onion rings for $1.83.However if you buy the "Single Meat Meal" the price is $5.00.Grandpa's is practicing price bundling with the "Single Meat Meal."

Most consumers view specialty goods as having a variety of acceptable substitutes.

Psychological pricing utilizes high prices to create the image of a high quality product.