Question 1

To offer everyday low prices,a company must first have __________________.

Accepted Answer

A)  low rental 
B)  bulk pricing 
C)  variable pricing 
D)  everyday low costs 
E)  break-even pricing 
A)  low rental 
B)  bulk pricing 
C)  variable pricing 
D)  everyday low costs 
E)  break-even pricing B

Question 2

Which of the following is an external factor that affects pricing decisions?

Accepted Answer

A)  the salaries of production management 
B)  demand 
C)  the salaries of finance management 
D)  funds expensed to clean production equipment 
E)  A, B, and C 
A)  the salaries of production management 
B)  demand 
C)  the salaries of finance management 
D)  funds expensed to clean production equipment 
E)  A, B, and C B

Question 3

Which of the following statements about break-even analysis is true?

Accepted Answer

A)  It is used to determine how much production experience a company must have to achieve desired efficiencies. 
B)  It is a technique used to calculate fixed costs. 
C)  It determines the amount of retained earnings a company will have during an accounting period. 
D)  It is a technique marketers use to examine the relationship between supply and demand. 
E)  It is calculated using variable costs, the unit price, and fixed costs. 
A)  It is used to determine how much production experience a company must have to achieve desired efficiencies. 
B)  It is a technique used to calculate fixed costs. 
C)  It determines the amount of retained earnings a company will have during an accounting period. 
D)  It is a technique marketers use to examine the relationship between supply and demand. 
E)  It is calculated using variable costs, the unit price, and fixed costs. E

Question 4

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

Question 5

In the aftermath of a recession,consumers may become ________.

Accepted Answer

A)  more price-sensitive 
B)  less value-conscious 
C)  more interested in prestige pricing 
D)  less interested in price cutting 
E)  more loyal to prestigious products 
A)  more price-sensitive 
B)  less value-conscious 
C)  more interested in prestige pricing 
D)  less interested in price cutting 
E)  more loyal to prestigious products

Question 6

Who typically sets prices in small companies? In large companies?

Accepted Answer

Top management sets prices in

Question 7

Value-based pricing uses the company's perception of value.

Accepted Answer

A) True 
 B)False

Question 8

Performance Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________.

Accepted Answer

A)  value-based pricing 
B)  going-rate pricing 
C)  cost-plus pricing 
D)  low-price image 
E)  target profit pricing 
A)  value-based pricing 
B)  going-rate pricing 
C)  cost-plus pricing 
D)  low-price image 
E)  target profit pricing

Question 9

In _____________,sellers try to develop differentiated offers for different customer segments and,in addition to price,freely use branding,advertising,and personal selling to set their offers apart.

Accepted Answer

A)  pure competition 
B)  pure monopoly 
C)  monopolistic competition 
D)  oligopolistic competition 
E)  None of the above. 
A)  pure competition 
B)  pure monopoly 
C)  monopolistic competition 
D)  oligopolistic competition 
E)  None of the above.

Question 10

How important is price among the elements of the marketing mix?

Accepted Answer

In recent decades,non-price fa

Question 11

As a manufacturer increases price,the ________ drops.

Accepted Answer

A)  target 
B)  break-even volume 
C)  cost-plus pricing 
D)  total cost 
E)  profit margin 
A)  target 
B)  break-even volume 
C)  cost-plus pricing 
D)  total cost 
E)  profit margin

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

When Honda set out to design the Fit,it began with a $13,950 starting price point and an operating efficiency of 15 kilometers per liter as its goals.It then designed a stylish,peppy little car with costs that allowed it to give target customers those values.The unorthodox order of this marketing mix decision is an example of ________.

Accepted Answer

A)  competition-based pricing 
B)  cost-plus pricing 
C)  target costing 
D)  value-based pricing 
E)  penetration pricing 
A)  competition-based pricing 
B)  cost-plus pricing 
C)  target costing 
D)  value-based pricing 
E)  penetration pricing

Question 14

A company that wants to emphasize its product's allure would most likely position its product on ________.

Accepted Answer

A)  high prices 
B)  nonprice qualities 
C)  low prices 
D)  value prices 
E)  target costing 
A)  high prices 
B)  nonprice qualities 
C)  low prices 
D)  value prices 
E)  target costing

Question 15

________ uses buyers' perceptions of what a product is worth,not the seller's cost,as the key to pricing.

Accepted Answer

A)  Customer value-based pricing 
B)  Cost-based pricing 
C)  Variable cost 
D)  Price elasticity 
E)  Product image 
A)  Customer value-based pricing 
B)  Cost-based pricing 
C)  Variable cost 
D)  Price elasticity 
E)  Product image

Question 16

Which of the following is a customer-oriented approach to pricing?

Accepted Answer

A)  Customer value-based pricing 
B)  Sealed-bid pricing 
C)  Break-even pricing 
D)  Target profit pricing 
E)  C and D 
A)  Customer value-based pricing 
B)  Sealed-bid pricing 
C)  Break-even pricing 
D)  Target profit pricing 
E)  C and D

Question 17

AirAsia,Carrefour,and Dell,work to become the "low-cost producers" in their industries.They make use of _________________.

Accepted Answer

A)  value-based pricing 
B)  going-rate pricing 
C)  cost-based pricing 
D)  good value pricing 
E)  A and C 
A)  value-based pricing 
B)  going-rate pricing 
C)  cost-based pricing 
D)  good value pricing 
E)  A and C

Question 18

If demand falls by 1 percent when price is increased by 2 percent,then ________.

Accepted Answer

A)  elasticity is -1/2 
B)  demand is inelastic 
C)  demand is elastic 
D)  buyers are not price sensitive 
E)  A and B 
A)  elasticity is -1/2 
B)  demand is inelastic 
C)  demand is elastic 
D)  buyers are not price sensitive 
E)  A and B

Question 19

With target costing,marketers will first ________ and then ________.

Accepted Answer

A)  build the marketing mix; identify the target market 
B)  identify the marketing mix; determine product cost 
C)  design the product; determine its cost 
D)  use skimming pricing; penetrating pricing 
E)  determine a selling price; target costs to ensure that the price is met 
A)  build the marketing mix; identify the target market 
B)  identify the marketing mix; determine product cost 
C)  design the product; determine its cost 
D)  use skimming pricing; penetrating pricing 
E)  determine a selling price; target costs to ensure that the price is met

Question 20

Value-based pricing is being used when costs vary directly with the level of product.

Accepted Answer

A) True 
 B)False

To offer everyday low prices,a company must first have __________________.

Which of the following is an external factor that affects pricing decisions?

Which of the following statements about break-even analysis is true?

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

In the aftermath of a recession,consumers may become ________.

Who typically sets prices in small companies? In large companies?

Value-based pricing uses the company's perception of value.

Performance Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________.

In _____________,sellers try to develop differentiated offers for different customer segments and,in addition to price,freely use branding,advertising,and personal selling to set their offers apart.

How important is price among the elements of the marketing mix?

As a manufacturer increases price,the ________ drops.

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

A company that wants to emphasize its product's allure would most likely position its product on ________.

________ uses buyers' perceptions of what a product is worth,not the seller's cost,as the key to pricing.

Which of the following is a customer-oriented approach to pricing?

AirAsia,Carrefour,and Dell,work to become the "low-cost producers" in their industries.They make use of _________________.

If demand falls by 1 percent when price is increased by 2 percent,then ________.

With target costing,marketers will first and then .

Value-based pricing is being used when costs vary directly with the level of product.

Marketing: Managing Profitable Customer Relationships

Company and Marketing Strategy: Partnering to Build

The Marketing Environment

Managing Marketing Information

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 Products: Pricing Strategies

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing

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 Products: Understanding and Capturing Customer Value

To offer everyday low prices,a company must first have __________________.

Which of the following is an external factor that affects pricing decisions?

Which of the following statements about break-even analysis is true?

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

In the aftermath of a recession,consumers may become ________.

Who typically sets prices in small companies? In large companies?

Value-based pricing uses the company's perception of value.

Performance Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________.

In _____________,sellers try to develop differentiated offers for different customer segments and,in addition to price,freely use branding,advertising,and personal selling to set their offers apart.

How important is price among the elements of the marketing mix?

As a manufacturer increases price,the ________ drops.

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

A company that wants to emphasize its product's allure would most likely position its product on ________.

________ uses buyers' perceptions of what a product is worth,not the seller's cost,as the key to pricing.

Which of the following is a customer-oriented approach to pricing?

AirAsia,Carrefour,and Dell,work to become the "low-cost producers" in their industries.They make use of _________________.

If demand falls by 1 percent when price is increased by 2 percent,then ________.

With target costing,marketers will first ________ and then ________.

Value-based pricing is being used when costs vary directly with the level of product.

Marketing: Managing Profitable Customer Relationships

Company and Marketing Strategy: Partnering to Build

The Marketing Environment

Managing Marketing Information

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 Products: Pricing Strategies

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing

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

With target costing,marketers will first and then .