Chapter 14 – Developing and Pricing Goods and Services
214. Which of the following statements regarding convenience goods and services is
accurate?
A. Shoppers will exert lots of effort to obtain the product.
B. Consumers purchase the product on an infrequent basis.
C. Consumers buy only after carefully comparing quality and value.
D. Brand awareness and image are important in marketing these products.
Feedback: Convenience goods and services are products that consumers desire to purchase
frequently and with a minimum of effort. Brand awareness and image are also important.
215. Which of the following products would be considered an unsought good or service by
a typical college student?
A. college textbook
B. pizza
C. car towing
D. Internet service provider
Feedback: An unsought good or service is an item that consumers are unaware of, haven’t
necessarily thought of buying, or find that they need to solve an unexpected problem. College
students (and most other people) don’t recognize a need for car towing until their car breaks
down or they have a wreck.
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222. June lives in the southern part of Alabama where winters are normally fairly mild.
Last January, during an unusually cold spell, the water pipes in her house froze and burst.
She had to look in the Yellow Pages to find a plumber who was able to come out and
repair the pipes the same day. Prior to the frozen pipes, the plumber’s services represented
a(n):
A. unsought service.
B. industrial service.
C. specialty service.
D. convenience service.
Feedback: Unsought goods and services are items that consumers are unaware of, haven’t
necessarily thought of buying, or find that they need to solve an unexpected problem.
223. Soprano Manufacturing acquired several pieces of expensive heavy machinery it
intends to use in its operations. As an industrial good, this heavy machinery represents:
A. an installation.
B. accessory equipment.
C. an intermediate good.
D. a shopping good.
Feedback: Installations are major capital equipment such as factories and heavy machinery.
224.
Chapter 14 – Developing and Pricing Goods and Services
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_________ is an important part of the total product offer for a product.
A. Consumer income
B. Management style
C. Employee personality
D. Packaging
225. Today, packaging is:
A. the least important component of the marketing mix.
B. assuming an increasingly important role in the promotion of products.
C. exclusively intended to protect the product from damage.
D. the most expensive component of the production process.
226. In marketing today, packaging carries the added responsibility of:
A. promotion and sales.
B. minimizing product liability.
C. gaining access to international markets.
D. keeping product costs down.
227.
Chapter 14 – Developing and Pricing Goods and Services
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The __________ on packages were intended to improve inventory control for businesses.
A. stars and stripes
B. Universal Product Codes
C. lightweight adhesives
D. Unit Standard Inventory bars
228. The trend away from personal salespeople to self-service in many retail outlets has
caused firms to:
A. reduce their advertising promotional budgets.
B. rely more on personal sales efforts.
C. place a greater promotional importance on packaging.
D. decrease expenditures on interactive Web pages.
Feedback: Many products that were once sold by salespeople are now being sold in self-
service outlets. This has added to the promotional burden carried by packaging.
229.
Chapter 14 – Developing and Pricing Goods and Services
Attracting attention, describing contents, explaining benefits and identifying the uses of a
product are all functions of:
A. target marketing.
B. Universal Product Codes.
C. packaging.
D. market segmentation.
Feedback: Packaging does much more than simply protect goods during shipping, handling
and storage. In fact the role of packaging in promotion has been growing in recent years.
Packaging helps attract the buyer’s attention, describe the contents, explain benefits, provide
information about warranties and give some indication of price, value, and uses for the
product.
230. Textbook publishers use a packaging strategy known as ______________. Often
times the publisher will combine highly complementary products such as a new textbook
and access code for online software that students can use to test themselves on new
concepts and principles.
A. proformatting
B. bartering
C. bundling
D. trademarketing
Feedback: Bundling is a packaging strategy whereby producers will combine products and
services, for a single price.
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231. Comet Computer Company is creating a new splash with psychedelic laptop cover
designs scheduled for release next year. The computers do not reveal any other feature
differences from what Comet currently offers. This effort is an example of using
__________________ to differentiate a product as new.
A. packaging
B. incremental coloring
C. incremental channeling
D. brand extension
Feedback: Packaging provides many functions. New packaging can change the product in
the mind of consumers. It can be perceived as “new.”
232. The evaluation of packaging as a marketing function indicates that:
A. the package is less important as the Internet provides consumers with easily obtained
information.
B. packaging carries more of the promotional burden of the product.
C. consumers are influenced less by packaging.
D. the primary purpose of packaging is to limit the product liability of businesses.
Feedback: Packaging has always been an important aspect of a product’s total product offer,
but today it is carrying more of the promotional burden.
233.
Chapter 14 – Developing and Pricing Goods and Services
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Which of the following statements about packaging is the most accurate?
A. Changes in packaging can improve the product itself and open up large new markets.
B. Packaging is the least critical element of a firm’s promotional strategy.
C. Technology has had a very limited role in improving packaging.
D. Packaging has avoided federal regulations.
Feedback: The text cites several examples illustrating how a change in packaging has made a
product much more useful and appealing. These changes have been so important that they
sometimes open up large new markets for the products.
234. Which of the following statements is the most accurate assessment of the role
packaging plays in product offerings?
A. The importance of packaging has diminished as the use of the Internet has grown.
B. While packaging plays an important role in marketing goods, it is not relevant to the
marketing of services.
C. Effective packaging eliminates the potential of product liability suits.
D. The importance of packaging is greater now than ever.
Feedback: Packaging is taking on increasing responsibilities in promoting products. One of
the major reasons for its increased role is that many products that were once sold by
salespeople are now sold in self-service outlets. Thus, the package becomes the main way to
attract the buyer’s attention and provide information about the product.
235.
Chapter 14 – Developing and Pricing Goods and Services
A __________ is a name, symbol, or design (or combination of these) that identifies the
goods or services of one seller or group of sellers and distinguishes them from those of
competitors.
236. A brand that has been given exclusive legal protection, such as the McDonald’s golden
arches is a:
A. private brand.
B. promotional mark.
C. dealer brand.
D. trademark.
237. From the buyer’s perspective, which of the following is a benefit of a product with a
well known brand name?
A. quality assurance
B. helps in promotional efforts
C. adds to repeat purchases
D. differentiates products so that prices can be set higher
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253. The Pillsbury Doughboy is an example of a:
A. patent.
B. trademark.
C. private brand.
D. generic label.
Feedback: A trademark is a brand that has been given exclusive legal protection for both the
brand name and the pictorial design.
254. A street vendor selling Rolex watches at ridiculously low prices approached Ted. Ted,
however, was suspicious that the watches were illegal ________ brands.
A. knockoff
B. private
C. generic
D. look alike
Feedback: Knockoff brands are illegal copies of national brand name goods such as Polo
shirts or Rolex watches.
255.
Chapter 14 – Developing and Pricing Goods and Services
Sears sells batteries under its own Diehard brand name even though another company
actually produces these batteries. This is an example of a:
A. knockoff brand.
B. generic brand.
C. dealer (private) brand.
D. brand association.
Feedback: Dealer (private) brands are products that do not carry the manufacturer’s name, but
rather carry the name of a distributor such as Sears.
256. 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:
A. private labels.
B. manufacturers’ brands.
C. generic goods.
D. universal code branding.
Feedback: Generic goods are nonbranded products that usually sell at a sizable discount from
national brands, have very basic packaging, and are backed with little or no advertising.
