Question 1

Which of the following is a cost-based approach to pricing?

Accepted Answer

A)  value-based pricing 
B)  high-low pricing 
C)  target return pricing 
D)  good value pricing 
E)  EDLP 
A)  value-based pricing 
B)  high-low pricing 
C)  target return pricing 
D)  good value pricing 
E)  EDLP

Question 2

In a pure monopoly, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Accepted Answer

A) True 
 B)False

Question 3

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Accepted Answer

A)  pure competition 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  a pure monopoly 
E)  the dominant firm model 
A)  pure competition 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  a pure monopoly 
E)  the dominant firm model

Question 4

________ refers to the amount of money charged for a product or service.

Accepted Answer

A)  Value 
B)  Cost 
C)  Price 
D)  Wage 
E)  Salary 
A)  Value 
B)  Cost 
C)  Price 
D)  Wage 
E)  Salary

Question 5

In 2011, the fixed costs of a company were $500,000, and its variable costs equalled $150,000. In 2010, the company made an annual profit of $200,000. It has been predicted that, despite a steady growth, the company's variable costs will likely equal $300,000 by 2013. The total costs of the company in 2011 were ________.

Accepted Answer

A)  $350,000 
B)  $450,000 
C)  $650,000 
D)  $800,000 
E)  $950,000 
A)  $350,000 
B)  $450,000 
C)  $650,000 
D)  $800,000 
E)  $950,000

Question 6

Explain the significance of a downward-sloping experience curve.

Accepted Answer

If a downward-sloping experience curve e

Question 7

Who typically sets prices in large and small companies?

Accepted Answer

In small companies, prices are

Question 8

The simplest pricing method is ________ pricing.

Accepted Answer

A)  value-based 
B)  fixed cost 
C)  cost-plus 
D)  target return 
E)  competition-based 
A)  value-based 
B)  fixed cost 
C)  cost-plus 
D)  target return 
E)  competition-based

Question 9

Target return pricing uses the concept of a(n) ________, which shows the total cost and total revenue expected at different sales volume levels.

Accepted Answer

A)  BCG matrix 
B)  break-even chart 
C)  SWOT analysis 
D)  demand curve 
E)  experience curve 
A)  BCG matrix 
B)  break-even chart 
C)  SWOT analysis 
D)  demand curve 
E)  experience curve

Question 10

A marketer's fixed costs are $400,000, the variable cost is $16 per unit, and the price of the product is $24 per unit. What is the company's break-even point in dollar sales?

Accepted Answer

The break-even point

Question 11

Markup pricing is popular because when all firms in the industry use this pricing method, prices tend to be similar, so price competition is minimized.

Accepted Answer

A) True 
 B)False

Question 12

Cost-based pricing involves setting prices based on consumer perception of value.

Accepted Answer

A) True 
 B)False

Question 13

Price setting is usually determined by ________ in small companies.

Accepted Answer

A)  the top managers 
B)  the marketing department 
C)  the sales department 
D)  divisional managers 
E)  product managers 
A)  the top managers 
B)  the marketing department 
C)  the sales department 
D)  divisional managers 
E)  product managers

Question 14

What sets the ceiling for product prices?

Accepted Answer

A)  product manufacturing costs 
B)  sellers' perceptions of the product's value 
C)  customer perceptions of the product's value 
D)  variable costs 
E)  break-even volume 
A)  product manufacturing costs 
B)  sellers' perceptions of the product's value 
C)  customer perceptions of the product's value 
D)  variable costs 
E)  break-even volume

Question 15

What is a pure monopoly?

Accepted Answer

In a pure monopoly, the market is domina

Question 16

As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________.

Accepted Answer

A)  increase in the diseconomies of scale 
B)  accumulated production experience 
C)  decrease in the economies of scale 
D)  increase in derived demand 
E)  increase in primary demand 
A)  increase in the diseconomies of scale 
B)  accumulated production experience 
C)  decrease in the economies of scale 
D)  increase in derived demand 
E)  increase in primary demand

Question 17

Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________.

Accepted Answer

A)  $275 
B)  $280 
C)  $295 
D)  $300 
E)  $335 
A)  $275 
B)  $280 
C)  $295 
D)  $300 
E)  $335

Question 18

A downward-sloping experience curve is indicative of ________.

Accepted Answer

A)  the negative customer perception about a company's products 
B)  the falling demand for a company's products 
C)  the falling unit production cost of a company 
D)  the low quality of a company's products 
E)  slow and inadequate organizational learning 
A)  the negative customer perception about a company's products 
B)  the falling demand for a company's products 
C)  the falling unit production cost of a company 
D)  the low quality of a company's products 
E)  slow and inadequate organizational learning

Question 19

Average cost tends to increase with accumulated production experience.

Accepted Answer

A) True 
 B)False

Question 20

A break-even chart shows the total cost and total revenue expected at various sales volume levels.

Accepted Answer

A) True 
 B)False

Which of the following is a cost-based approach to pricing?

In a pure monopoly, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

________ refers to the amount of money charged for a product or service.

Explain the significance of a downward-sloping experience curve.

Who typically sets prices in large and small companies?

The simplest pricing method is ________ pricing.

Target return pricing uses the concept of a(n) ________, which shows the total cost and total revenue expected at different sales volume levels.

A marketer's fixed costs are $400,000, the variable cost is $16 per unit, and the price of the product is $24 per unit. What is the company's break-even point in dollar sales?

Markup pricing is popular because when all firms in the industry use this pricing method, prices tend to be similar, so price competition is minimized.

Cost-based pricing involves setting prices based on consumer perception of value.

Price setting is usually determined by ________ in small companies.

What sets the ceiling for product prices?

What is a pure monopoly?

As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________.

Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________.

A downward-sloping experience curve is indicative of ________.

Average cost tends to increase with accumulated production experience.

A break-even chart shows the total cost and total revenue expected at various sales volume levels.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behavior

Business Markets 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

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 10: Pricing: Understanding and Capturing Customer Value

Which of the following is a cost-based approach to pricing?

In a pure monopoly, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

________ refers to the amount of money charged for a product or service.

Explain the significance of a downward-sloping experience curve.

Who typically sets prices in large and small companies?

The simplest pricing method is ________ pricing.

Target return pricing uses the concept of a(n) ________, which shows the total cost and total revenue expected at different sales volume levels.

A marketer's fixed costs are $400,000, the variable cost is $16 per unit, and the price of the product is $24 per unit. What is the company's break-even point in dollar sales?

Markup pricing is popular because when all firms in the industry use this pricing method, prices tend to be similar, so price competition is minimized.

Cost-based pricing involves setting prices based on consumer perception of value.

Price setting is usually determined by ________ in small companies.

What sets the ceiling for product prices?

What is a pure monopoly?

As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________.

Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________.

A downward-sloping experience curve is indicative of ________.

Average cost tends to increase with accumulated production experience.

A break-even chart shows the total cost and total revenue expected at various sales volume levels.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behavior

Business Markets 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

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters