Question 1

Compare and contrast pure competition and oligopolistic competition.

Accepted Answer

Under pure competition, the market consi

Question 2

________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

Accepted Answer

A)  High-low 
B)  Everyday low 
C)  Cost-plus 
D)  Break-even 
E)  Penetration 
A)  High-low 
B)  Everyday low 
C)  Cost-plus 
D)  Break-even 
E)  Penetration

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The experience curve reveals that ________.

Accepted Answer

A)  repetition in production has no visible impact on production costs 
B)  repetition in production enhances efficiency 
C)  the average cost of production remains the same with accumulated production experience 
D)  repetition in production adds to the costs and thereby increases the prices of outputs 
E)  the average cost of production increases with accumulated production experience 
A)  repetition in production has no visible impact on production costs 
B)  repetition in production enhances efficiency 
C)  the average cost of production remains the same with accumulated production experience 
D)  repetition in production adds to the costs and thereby increases the prices of outputs 
E)  the average cost of production increases with accumulated production experience

Question 5

If demand changes greatly with price, the demand is inelastic.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following processes does value-based pricing reverse?

Accepted Answer

A)  high-low pricing 
B)  everyday low pricing 
C)  cost-based pricing 
D)  good-value pricing 
E)  value-added pricing 
A)  high-low pricing 
B)  everyday low pricing 
C)  cost-based pricing 
D)  good-value pricing 
E)  value-added pricing

Question 7

Define total costs.

Accepted Answer

Total costs are the

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

Refer to the scenario below to answer the following question(s).
Alden Manufacturing produces small kitchen appliances-blenders, hand mixers, and electric skillets-under the brand name First Generation. Alden attempts to target newlyweds and first-time home buyers with this brand.
Considering that most young households have limited financial resources, Alden attempts to engage in target costing. "In doing this," says Milt Alden, the co-founder of Alden Electronics, "we have better control over keeping price right in line with customers."
Alden manufactures a three-speed blender, its top seller, along with a five-speed blender. The hand mixers are manufactured in two variants-a small handheld mixer with two rotating beaters and another that comes with an optional stand and an attached mixing bowl. Alden's temperature-controlled skillets are manufactured in a single style with three color options.
"Our product offerings are narrower," Milt Alden added, "but our line workers know each product like the back of their hands. This allows us to produce superior products while holding our prices low.
-Milt Alden says that his line workers "know each product like the back of their hands," and that this knowledge helps the company keep its prices low. This indicates that Alden Manufacturing most likely benefits from the ________.

Accepted Answer

A)  cost-plus pricing 
B)  value-added pricing 
C)  experience curve 
D)  inelastic demand in the market 
E)  derived demand in the market 
A)  cost-plus pricing 
B)  value-added pricing 
C)  experience curve 
D)  inelastic demand in the market 
E)  derived demand in the market

Question 10

Explain the concept of the price ceiling.

Accepted Answer

Price ceiling repres

Question 11

Average cost tends to increase with accumulated production experience.

Accepted Answer

A) True 
 B)False

Question 12

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. If the company wants to make a profit, how many units must it sell and at what price?

Accepted Answer

If the company wants

Question 13

Prices have a direct impact on a firm's bottom line.

Accepted Answer

A) True 
 B)False

Question 14

Effective ________ pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value.

Accepted Answer

A)  competition-oriented 
B)  cost-based 
C)  time-based 
D)  customer-oriented 
E)  marketer-oriented 
A)  competition-oriented 
B)  cost-based 
C)  time-based 
D)  customer-oriented 
E)  marketer-oriented

Question 15

Developing an effective integrated marketing mix program involves coordinating price decisions with product design, promotion, and ________ decisions.

Accepted Answer

A)  distribution 
B)  production 
C)  assembly 
D)  warranty 
E)  competition 
A)  distribution 
B)  production 
C)  assembly 
D)  warranty 
E)  competition

Question 16

If demand is elastic rather than inelastic, sellers will consider lowering their prices.

Accepted Answer

A) True 
 B)False

Question 17

Briefly describe how economic conditions impact a firm's pricing strategies.

Accepted Answer

Economic conditions can have a strong im

Question 18

Which of the following is true with regard to pure competition?

Accepted Answer

A)  Under pure competition, no single buyer or seller has much effect on the going market price. 
B)  In a purely competitive market, marketing research is of utmost importance. 
C)  In a purely competitive market, product development is the focus of most firms. 
D)  Under pure competition, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. 
E)  Under pure competition, the market consists of only a few large sellers. 
A)  Under pure competition, no single buyer or seller has much effect on the going market price. 
B)  In a purely competitive market, marketing research is of utmost importance. 
C)  In a purely competitive market, product development is the focus of most firms. 
D)  Under pure competition, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. 
E)  Under pure competition, the market consists of only a few large sellers.

Question 19

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 20

John assured his venture capitalists an earning of 25-percent return on equity when he began his IT startup. In order to achieve this result, he will most likely use which of the following pricing approaches?

Accepted Answer

A)  value-based pricing 
B)  markup pricing 
C)  EDLP 
D)  customer-based pricing 
E)  target return pricing 
A)  value-based pricing 
B)  markup pricing 
C)  EDLP 
D)  customer-based pricing 
E)  target return pricing

Compare and contrast pure competition and oligopolistic competition.

________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

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

The experience curve reveals that ________.

If demand changes greatly with price, the demand is inelastic.

Which of the following processes does value-based pricing reverse?

Define total costs.

Which of the following is true about the demand curve?

Explain the concept of the price ceiling.

Average cost tends to increase with accumulated production experience.

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. If the company wants to make a profit, how many units must it sell and at what price?

Prices have a direct impact on a firm's bottom line.

Effective ________ pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value.

Developing an effective integrated marketing mix program involves coordinating price decisions with product design, promotion, and ________ decisions.

If demand is elastic rather than inelastic, sellers will consider lowering their prices.

Briefly describe how economic conditions impact a firm's pricing strategies.

Which of the following is true with regard to pure competition?

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 ________.

John assured his venture capitalists an earning of 25-percent return on equity when he began his IT startup. In order to achieve this result, he will most likely use which of the following pricing approaches?

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

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 10: Pricing: Understanding and Capturing Customer Value

Compare and contrast pure competition and oligopolistic competition.

________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

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

The experience curve reveals that ________.

If demand changes greatly with price, the demand is inelastic.

Which of the following processes does value-based pricing reverse?

Define total costs.

Which of the following is true about the demand curve?

Explain the concept of the price ceiling.

Average cost tends to increase with accumulated production experience.

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. If the company wants to make a profit, how many units must it sell and at what price?

Prices have a direct impact on a firm's bottom line.

Effective ________ pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value.

Developing an effective integrated marketing mix program involves coordinating price decisions with product design, promotion, and ________ decisions.

If demand is elastic rather than inelastic, sellers will consider lowering their prices.

Briefly describe how economic conditions impact a firm's pricing strategies.

Which of the following is true with regard to pure competition?

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 ________.

John assured his venture capitalists an earning of 25-percent return on equity when he began his IT startup. In order to achieve this result, he will most likely use which of the following pricing approaches?

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

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters