Developing and Pricing Products
True or False

1 .       A feature is a tangible quality that a company builds into a product, while a benefit is an intangible quality that is a part of a product. 

 
 


2 .       Dishwashers and televisions would typically be classified as shopping goods. 

 
 


3 .       Many companies devote considerable resources to new product development because of high mortality rates and the importance of speed to market. 

 
 


4 .       The product life cycle begins when an idea for a new product is generated. 

 
 


5 .       In Germany, a McDonald's meal includes beer. This is an example of the global marketing strategy of product extension. 

 
 


6 .       Brand equity refers to the degree of buyer's awareness of and loyalty to a brand and its resultant market share. 

 
 


7 .       Craftsman tools and Kenmore appliances are examples of private brands. 

 
 


8 .       Because of differences in culture, it may not be possible to sell a product in the same way from one country to the next. 

 
 


9 .       Companies always set prices to maximize profits. 

 
 


10 .       Markup is the amount deducted from the price of a product to cover fixed costs. 

 
 


11 .       The Key Largo Flower Shop offers floral arrangements for $35, $45, and $65. This is an example of price lining. 

 
 


12 .       Products are typically sold in foreign markets at prices very similar to the price in domestic markets. 

 
 






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