Question 1

Distinguish between value-based pricing and cost-based pricing.

Accepted Answer

Customer value-based pricing uses buyers

Question 2

Which of the following is an internal factor that affects pricing decisions in a company?

Accepted Answer

A)  the nature of the market 
B)  the degree of inflation in the economy 
C)  the overall marketing strategy of the company 
D)  the forces of demand and supply in the market 
E)  consumers' perception of value 
A)  the nature of the market 
B)  the degree of inflation in the economy 
C)  the overall marketing strategy of the company 
D)  the forces of demand and supply in the market 
E)  consumers' perception of value

Question 3

Price setting is usually determined by ________ in large companies.

Accepted Answer

A)  the top managers 
B)  the external stakeholders 
C)  product managers 
D)  non-executive employees 
E)  the sales department 
A)  the top managers 
B)  the external stakeholders 
C)  product managers 
D)  non-executive employees 
E)  the sales department

Question 4

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price.

Accepted Answer

A)  Markup 
B)  Good-value 
C)  Cost-plus 
D)  Target profit 
E)  Break-even 
A)  Markup 
B)  Good-value 
C)  Cost-plus 
D)  Target profit 
E)  Break-even

Question 5

Why is markup pricing most likely popular?

Accepted Answer

A)  Sellers are more certain about demand than about costs. 
B)  Markup pricing tends to maximize market competition. 
C)  Markup pricing affords buyers greater bargaining power. 
D)  Sellers do not need to make frequent adjustments as demand changes. 
E)  Markup pricing is designed to set prices to break even on the costs of making and marketing a product. 
A)  Sellers are more certain about demand than about costs. 
B)  Markup pricing tends to maximize market competition. 
C)  Markup pricing affords buyers greater bargaining power. 
D)  Sellers do not need to make frequent adjustments as demand changes. 
E)  Markup pricing is designed to set prices to break even on the costs of making and marketing a product.

Question 6

Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume?

Accepted Answer

A)  25,000 
B)  55,000 
C)  100,000 
D)  115,000 
E)  125,000 
A)  25,000 
B)  55,000 
C)  100,000 
D)  115,000 
E)  125,000

Question 7

Markup pricing is used when a firm tries to determine the price at which it will break even or make the target return it is seeking.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true about the demand curve?

Accepted Answer

A)  A demand curve indicates the drop in the average per-unit production cost that comes with accumulated production experience. 
B)  A demand curve indicates the cost per unit of output in the long run. 
C)  A demand curve indicates the cost per unit of output in the short run. 
D)  In a monopoly, the demand curve does not indicate the total market demand resulting from different prices. 
E)  A demand curve shows the number of units the market will buy in a given time period at different prices that might be charged 
A)  A demand curve indicates the drop in the average per-unit production cost that comes with accumulated production experience. 
B)  A demand curve indicates the cost per unit of output in the long run. 
C)  A demand curve indicates the cost per unit of output in the short run. 
D)  In a monopoly, the demand curve does not indicate the total market demand resulting from different prices. 
E)  A demand curve shows the number of units the market will buy in a given time period at different prices that might be charged

Question 9

RedFin, a company marketing deep-sea diving equipment, charges very high prices for its products. Despite the availability of many low-priced products in the market, customers seem to prefer RedFin, which has earned a reputation for selling high-quality products. This exemplifies ________.

Accepted Answer

A)  a pure monopoly 
B)  an oligopoly 
C)  a nonprice position 
D)  break-even pricing 
E)  target costing 
A)  a pure monopoly 
B)  an oligopoly 
C)  a nonprice position 
D)  break-even pricing 
E)  target costing

Distinguish between value-based pricing and cost-based pricing.

Which of the following is an internal factor that affects pricing decisions in a company?

Price setting is usually determined by ________ in large companies.

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price.

Why is markup pricing most likely popular?

Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume?

Markup pricing is used when a firm tries to determine the price at which it will break even or make the target return it is seeking.

Which of the following is true about the demand curve?

RedFin, a company marketing deep-sea diving equipment, charges very high prices for its products. Despite the availability of many low-priced products in the market, customers seem to prefer RedFin, which has earned a reputation for selling high-quality products. This exemplifies ________.

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

Distinguish between value-based pricing and cost-based pricing.

Which of the following is an internal factor that affects pricing decisions in a company?

Price setting is usually determined by ________ in large companies.

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price.

Why is markup pricing most likely popular?

Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume?

Markup pricing is used when a firm tries to determine the price at which it will break even or make the target return it is seeking.

Which of the following is true about the demand curve?

RedFin, a company marketing deep-sea diving equipment, charges very high prices for its products. Despite the availability of many low-priced products in the market, customers seem to prefer RedFin, which has earned a reputation for selling high-quality products. This exemplifies ________.

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