Question 1

Value-based pricing is the reverse of cost-based pricing.

Accepted Answer

A) True 
 B)False

Question 2

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?

Accepted Answer

A) segmented pricing 
B) psychological pricing 
C) referent pricing 
D) promotional pricing 
E) dynamic pricing 
A) segmented pricing 
B) psychological pricing 
C) referent pricing 
D) promotional pricing 
E) dynamic pricing

Question 3

A company should set prices that will allow ________ to receive a fair profit.

Accepted Answer

A) resellers 
B) producers 
C) consumers 
D) the elderly 
E) competitors 
A) resellers 
B) producers 
C) consumers 
D) the elderly 
E) competitors

Question 4

The relationship between the price charged and the resulting demand level can be shown as the ________.

Accepted Answer

A) demand curve 
B) variable cost 
C) target cost 
D) breakeven chart 
E) experience curve 
A) demand curve 
B) variable cost 
C) target cost 
D) breakeven chart 
E) experience curve

Question 5

________ power refers to a company's ability or power to escape price competition and to justify higher prices and margins.

Accepted Answer

The answer of ________ power refers to a company's ability...

Question 6

Which of the following is NOT an example of value-based pricing?

Accepted Answer

A) a less expensive version of an established brand 
B) re-design of existing brand to offer increased quality at a fair price 
C) lesser value offered at rock-bottom prices 
D) everyday low prices 
E) setting prices based on production costs plus a fair margin 
A) a less expensive version of an established brand 
B) re-design of existing brand to offer increased quality at a fair price 
C) lesser value offered at rock-bottom prices 
D) everyday low prices 
E) setting prices based on production costs plus a fair margin

Question 7

Which of the following is NOT a reason for a company to initiate a price cut?

Accepted Answer

A) to boost sales 
B) to obtain prestige 
C) to dominate the market 
D) to relieve excess capacity 
E) to influence falling demand 
A) to boost sales 
B) to obtain prestige 
C) to dominate the market 
D) to relieve excess capacity 
E) to influence falling demand

Question 8

Fixed costs ________ as the number of units produced increases.

Accepted Answer

A) decrease 
B) increase 
C) divide in half 
D) remain the same 
E) increase at a diminishing rate 
A) decrease 
B) increase 
C) divide in half 
D) remain the same 
E) increase at a diminishing rate

Question 9

Environmental elements that affect pricing decisions are categorised as external factors.

Accepted Answer

A) True 
 B)False

Question 10

Price ________ indicates how responsive demand will be to a change in price.

Accepted Answer

The answer of Price ________ indicates how responsive demand will...

Question 11

The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.In normal cases,the higher the price,the higher the demand.

Accepted Answer

A) True 
 B)False

Question 12

Of the following,a company would be LEAST likely to set prices low to ________.

Accepted Answer

A) prevent competition from entering the market 
B) stabilise the market 
C) create excitement for a product 
D) prepare for an easy exit from a market 
E) match a competitor 
A) prevent competition from entering the market 
B) stabilise the market 
C) create excitement for a product 
D) prepare for an easy exit from a market 
E) match a competitor

Question 13

Godfreys will give customers $100 for a used vacuum cleaner,regardless of condition,when they purchase a new vacuum or sewing machine.This essentially reduces the price by $100.What is this type of discount called?

Accepted Answer

A) functional discount 
B) captive-product discount 
C) seasonal discount 
D) trade-in allowance 
E) by-product allowance 
A) functional discount 
B) captive-product discount 
C) seasonal discount 
D) trade-in allowance 
E) by-product allowance

Question 14

Cost-based pricing relies on consumer perception of value to drive pricing.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

The answer of Under ________ competition,the market consists of a...

Question 16

When consumers cannot judge the quality of a product because they lack information or skill,they are likely to perceive a higher-priced product as having higher quality.

Accepted Answer

A) True 
 B)False

Question 17

________ describes how responsive demand will be to a change in price.

Accepted Answer

A) Price elasticity 
B) Breakeven pricing 
C) The breakeven chart 
D) Target costing 
E) Supply 
A) Price elasticity 
B) Breakeven pricing 
C) The breakeven chart 
D) Target costing 
E) Supply

Question 18

When using product bundle pricing,sellers combine several of their products and offer the bundle at an increased price for increased profit.

Accepted Answer

A) True 
 B)False

Question 19

By definition,this type of pricing is used when a firm sells a product or service at two or more prices,even though the difference in price is not based on differences in cost.

Accepted Answer

A) segmented pricing 
B) variable pricing 
C) flexible pricing 
D) cost-plus pricing 
E) reference pricing 
A) segmented pricing 
B) variable pricing 
C) flexible pricing 
D) cost-plus pricing 
E) reference pricing

Question 20

Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games.This is an example of ________.

Accepted Answer

A) good-value pricing 
B) add-on pricing 
C) product-support pricing 
D) value-added pricing 
E) cost-based pricing 
A) good-value pricing 
B) add-on pricing 
C) product-support pricing 
D) value-added pricing 
E) cost-based pricing

Value-based pricing is the reverse of cost-based pricing.

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?

A company should set prices that will allow ________ to receive a fair profit.

The relationship between the price charged and the resulting demand level can be shown as the ________.

________ power refers to a company's ability or power to escape price competition and to justify higher prices and margins.

Which of the following is NOT an example of value-based pricing?

Which of the following is NOT a reason for a company to initiate a price cut?

Fixed costs ________ as the number of units produced increases.

Environmental elements that affect pricing decisions are categorised as external factors.

Price ________ indicates how responsive demand will be to a change in price.

The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.In normal cases,the higher the price,the higher the demand.

Of the following,a company would be LEAST likely to set prices low to ________.

Godfreys will give customers $100 for a used vacuum cleaner,regardless of condition,when they purchase a new vacuum or sewing machine.This essentially reduces the price by $100.What is this type of discount called?

Cost-based pricing relies on consumer perception of value to drive pricing.

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

When consumers cannot judge the quality of a product because they lack information or skill,they are likely to perceive a higher-priced product as having higher quality.

________ describes how responsive demand will be to a change in price.

When using product bundle pricing,sellers combine several of their products and offer the bundle at an increased price for increased profit.

By definition,this type of pricing is used when a firm sells a product or service at two or more prices,even though the difference in price is not based on differences in cost.

Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games.This is an example of ________.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analysing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behaviour

Business Markets and Business Buyer Behaviour

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services and Brands: Building Customer Value

Pricing Strategies: Understanding and Capturing Customer Value

Additional Pricing Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Filters

Exam 9: Developing New Products and Managing the Product

Value-based pricing is the reverse of cost-based pricing.

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?

A company should set prices that will allow ________ to receive a fair profit.

The relationship between the price charged and the resulting demand level can be shown as the ________.

________ power refers to a company's ability or power to escape price competition and to justify higher prices and margins.

Which of the following is NOT an example of value-based pricing?

Which of the following is NOT a reason for a company to initiate a price cut?

Fixed costs ________ as the number of units produced increases.

Environmental elements that affect pricing decisions are categorised as external factors.

Price ________ indicates how responsive demand will be to a change in price.

The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.In normal cases,the higher the price,the higher the demand.

Of the following,a company would be LEAST likely to set prices low to ________.

Godfreys will give customers $100 for a used vacuum cleaner,regardless of condition,when they purchase a new vacuum or sewing machine.This essentially reduces the price by $100.What is this type of discount called?

Cost-based pricing relies on consumer perception of value to drive pricing.

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

When consumers cannot judge the quality of a product because they lack information or skill,they are likely to perceive a higher-priced product as having higher quality.

________ describes how responsive demand will be to a change in price.

When using product bundle pricing,sellers combine several of their products and offer the bundle at an increased price for increased profit.

By definition,this type of pricing is used when a firm sells a product or service at two or more prices,even though the difference in price is not based on differences in cost.

Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games.This is an example of ________.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analysing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behaviour

Business Markets and Business Buyer Behaviour

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services and Brands: Building Customer Value

Pricing Strategies: Understanding and Capturing Customer Value

Additional Pricing Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Filters