Question 1

Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.

Accepted Answer

A)  pure competition 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  a pure monopoly 
E)  pure monopsony 
A)  pure competition 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  a pure monopoly 
E)  pure monopsony

Question 2

Everyday low pricing is a cost-based pricing strategy.

Accepted Answer

A) True 
 B)False

Question 3

Market skimming makes sense when a product's quality and image support its higher price, and enough buyers want the product at that price.

Accepted Answer

A) True 
 B)False

Question 4

What is the difference between price-fixing and predatory pricing? How do governments discourage firms from engaging in such practices?

Accepted Answer

Federal legislation on price-fixing stat

Question 5

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would most likely trigger a price increase?

Accepted Answer

A)  cost inflation 
B)  reduced demand 
C)  cheaper alternatives 
D)  reduced expenses 
E)  overproduction 
A)  cost inflation 
B)  reduced demand 
C)  cheaper alternatives 
D)  reduced expenses 
E)  overproduction

Question 7

Explain product line pricing. Provide an example.

Accepted Answer

In product line pricing, management must

Question 8

Pricing a product based on consumers' reference prices is referred to as ________ pricing.

Accepted Answer

A)  geographical 
B)  psychological 
C)  allowance 
D)  by-product 
E)  captive-product 
A)  geographical 
B)  psychological 
C)  allowance 
D)  by-product 
E)  captive-product

Question 9

Pricing strategies usually remain the same as a product passes through its life cycle.

Accepted Answer

A) True 
 B)False

Question 10

________ is the only element in the marketing mix that produces revenue.

Accepted Answer

A)  Price 
B)  Place 
C)  Promotion 
D)  Product 
E)  Profit 
A)  Price 
B)  Place 
C)  Promotion 
D)  Product 
E)  Profit

Question 11

Which of the following sets the upper limit for a product's pricing?

Accepted Answer

A)  profits 
B)  product costs 
C)  consumer perceptions of value 
D)  elements of the product mix 
E)  competition 
A)  profits 
B)  product costs 
C)  consumer perceptions of value 
D)  elements of the product mix 
E)  competition

Question 12

There is no true substitute for coffee. If the price goes from $8 to $12 for a package of k-cups due to a coffee bean shortage, demand will remain relatively unchanged. This is an example of demand elasticity.

Accepted Answer

A) True 
 B)False

Question 13

What is segmented pricing? Briefly describe the different types of segmented pricing.

Accepted Answer

In segmented pricing, the company sells

Question 14

________ is the sum of all the values that customers give up to gain the benefits of having or using a product or service.

Accepted Answer

A)  Payroll 
B)  Profit 
C)  Price 
D)  Cost 
E)  Salary 
A)  Payroll 
B)  Profit 
C)  Price 
D)  Cost 
E)  Salary

Question 15

Which group is most likely offered functional discounts by manufacturers?

Accepted Answer

A)  trade-channel members that perform sales tasks 
B)  consumers who buy products in large quantities 
C)  buyers who pay their bills before the due date 
D)  buyers who purchase merchandise out of season 
E)  retailers that participate in advertising programs 
A)  trade-channel members that perform sales tasks 
B)  consumers who buy products in large quantities 
C)  buyers who pay their bills before the due date 
D)  buyers who purchase merchandise out of season 
E)  retailers that participate in advertising programs

Question 16

Consumers rely less on price to judge the quality of a product when they ________.

Accepted Answer

A)  lack information about the product 
B)  are unable to research the product 
C)  have prior experience with the product 
D)  are unable to judge the quality of the product 
E)  rely on cues from sellers to differentiate a high or low price 
A)  lack information about the product 
B)  are unable to research the product 
C)  have prior experience with the product 
D)  are unable to judge the quality of the product 
E)  rely on cues from sellers to differentiate a high or low price

Question 17

Explain how companies that market their products internationally decide what prices to charge in different countries.

Accepted Answer

Companies that market their products int

Question 18

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product?

Accepted Answer

A)  The product's quality supports its high price. 
B)  Alternative products can enter the market easily. 
C)  The market for the product is highly price sensitive. 
D)  Prices increase incrementally as sales volume increases. 
E)  Production costs rise with an increase in marketing efforts. 
A)  The product's quality supports its high price. 
B)  Alternative products can enter the market easily. 
C)  The market for the product is highly price sensitive. 
D)  Prices increase incrementally as sales volume increases. 
E)  Production costs rise with an increase in marketing efforts.

Question 19

Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ________ costs because the total changes based on the number of units produced.

Accepted Answer

A)  fixed 
B)  variable 
C)  target 
D)  capital 
E)  payroll 
A)  fixed 
B)  variable 
C)  target 
D)  capital 
E)  payroll

Question 20

________ costs refer to the sum of the fixed and variable costs for any given level of production.

Accepted Answer

A)  Target 
B)  Marginal 
C)  Value-based 
D)  Total 
E)  Break-even 
A)  Target 
B)  Marginal 
C)  Value-based 
D)  Total 
E)  Break-even

Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.

Everyday low pricing is a cost-based pricing strategy.

Market skimming makes sense when a product's quality and image support its higher price, and enough buyers want the product at that price.

What is the difference between price-fixing and predatory pricing? How do governments discourage firms from engaging in such practices?

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Which of the following would most likely trigger a price increase?

Explain product line pricing. Provide an example.

Pricing a product based on consumers' reference prices is referred to as ________ pricing.

Pricing strategies usually remain the same as a product passes through its life cycle.

________ is the only element in the marketing mix that produces revenue.

Which of the following sets the upper limit for a product's pricing?

There is no true substitute for coffee. If the price goes from $8 to $12 for a package of k-cups due to a coffee bean shortage, demand will remain relatively unchanged. This is an example of demand elasticity.

What is segmented pricing? Briefly describe the different types of segmented pricing.

________ is the sum of all the values that customers give up to gain the benefits of having or using a product or service.

Which group is most likely offered functional discounts by manufacturers?

Consumers rely less on price to judge the quality of a product when they ________.

Explain how companies that market their products internationally decide what prices to charge in different countries.

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product?

Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ________ costs because the total changes based on the number of units produced.

________ costs refer to the sum of the fixed and variable costs for any given level of production.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

New Product Development and Product Life-Cycle Strategies

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

The Global Marketplace

Social Responsibility and Ethics

Filters

Exam 9: Pricing: Understanding and Capturing Customer Value

Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.

Everyday low pricing is a cost-based pricing strategy.

Market skimming makes sense when a product's quality and image support its higher price, and enough buyers want the product at that price.

What is the difference between price-fixing and predatory pricing? How do governments discourage firms from engaging in such practices?

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Which of the following would most likely trigger a price increase?

Explain product line pricing. Provide an example.

Pricing a product based on consumers' reference prices is referred to as ________ pricing.

Pricing strategies usually remain the same as a product passes through its life cycle.

________ is the only element in the marketing mix that produces revenue.

Which of the following sets the upper limit for a product's pricing?

There is no true substitute for coffee. If the price goes from $8 to $12 for a package of k-cups due to a coffee bean shortage, demand will remain relatively unchanged. This is an example of demand elasticity.

What is segmented pricing? Briefly describe the different types of segmented pricing.

________ is the sum of all the values that customers give up to gain the benefits of having or using a product or service.

Which group is most likely offered functional discounts by manufacturers?

Consumers rely less on price to judge the quality of a product when they ________.

Explain how companies that market their products internationally decide what prices to charge in different countries.

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product?

Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs. Although these costs tend to be the same for each unit produced, they are called ________ costs because the total changes based on the number of units produced.

________ costs refer to the sum of the fixed and variable costs for any given level of production.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Understanding Consumer and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

New Product Development and Product Life-Cycle Strategies

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

The Global Marketplace

Social Responsibility and Ethics

Filters