Question 1

________ involves attaching features and services to differentiate a company's offers and to support charging higher prices.

Accepted Answer

A)  Break-even pricing 
B)  Target pricing 
C)  Value-added pricing 
D)  Cost-plus pricing 
E)  Pricing-down 
A)  Break-even pricing 
B)  Target pricing 
C)  Value-added pricing 
D)  Cost-plus pricing 
E)  Pricing-down

Question 2

If Canon Camera Company follows a low-price,low-margin strategy,it may attract competition from Nikon,Minolta,and Pentax.

Accepted Answer

A) True 
 B)False

Question 3

The simplest pricing method is cost-plus pricing,which involves adding a standard markup to the cost of the product.

Accepted Answer

A) True 
 B)False

Question 4

What costs make up a product's total cost?

Accepted Answer

Fixed costs and vari

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The break-even volume is the point at which ________.

Accepted Answer

A)  the total revenue and total costs lines intersect 
B)  demand equals supply 
C)  the production of one more unit will not increase profit 
D)  the company can pay all of its long-term debt 
E)  a firm's profit goal is reached 
A)  the total revenue and total costs lines intersect 
B)  demand equals supply 
C)  the production of one more unit will not increase profit 
D)  the company can pay all of its long-term debt 
E)  a firm's profit goal is reached

Question 7

Overhead cost is another term for fixed cost.

Accepted Answer

A) True 
 B)False

Question 8

When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices,they are using ________.

Accepted Answer

A)  break-even pricing 
B)  target profit pricing 
C)  good-value pricing 
D)  cost-plus pricing 
E)  bundling 
A)  break-even pricing 
B)  target profit pricing 
C)  good-value pricing 
D)  cost-plus pricing 
E)  bundling

Question 9

As a manufacturer decreases price,________ volume increases.

Accepted Answer

A)  target 
B)  break-even 
C)  cost-plus pricing 
D)  total cost 
E)  sales 
A)  target 
B)  break-even 
C)  cost-plus pricing 
D)  total cost 
E)  sales

Question 10

Break-even pricing,or a variation called ________,is when the firm tries to determine the price at which it will break even or make the profit it is seeking.

Accepted Answer

A)  competition-based pricing 
B)  target profit pricing 
C)  fixed cost pricing 
D)  value-based pricing 
E)  customer-based pricing 
A)  competition-based pricing 
B)  target profit pricing 
C)  fixed cost pricing 
D)  value-based pricing 
E)  customer-based pricing

Question 11

EDLP is very similar to high-low pricing.

Accepted Answer

A) True 
 B)False

Question 12

In a pure monopoly,the market consists of one seller.

Accepted Answer

A) True 
 B)False

Question 13

When faced with price competition,cutting prices is often not the best answer.

Accepted Answer

A) True 
 B)False

Question 14

Product costs set a floor to the price; consumer perceptions of the product's value set the ceiling.

Accepted Answer

A) True 
 B)False

Question 15

What does price elasticity reveal about a product?

Accepted Answer

Price elasticity is a measure of the sen

Question 16

________ are the sum of the ________ and ________ for any given level of production.

Accepted Answer

A)  Fixed costs; variable; total costs 
B)  Fixed costs; total; variable costs 
C)  Variable costs; fixed; total costs 
D)  Total costs; fixed; variable costs 
E)  Break-even costs; fixed; total costs 
A)  Fixed costs; variable; total costs 
B)  Fixed costs; total; variable costs 
C)  Variable costs; fixed; total costs 
D)  Total costs; fixed; variable costs 
E)  Break-even costs; fixed; total costs

Question 17

What do we know about a product when we understand its price elasticity?

Accepted Answer

Price elasticity is a measure of the sen

Question 18

Compare oligopolistic competition with a pure monopoly.

Accepted Answer

Under oligopolistic competition,the mark

Question 19

AirAsia offers flights at rock-bottom prices to many of its customers.It then charges for all extra services,such as baggage handling and in-flight refreshments.Which of the following best describes AirAsia's pricing method?

Accepted Answer

A)  value-added pricing 
B)  good-value pricing 
C)  cost-plus pricing 
D)  high-low pricing 
E)  image pricing 
A)  value-added pricing 
B)  good-value pricing 
C)  cost-plus pricing 
D)  high-low pricing 
E)  image pricing

Question 20

One reason ________ remains popular is that sellers are more certain about costs than about demand.

Accepted Answer

A)  markup pricing 
B)  skimming pricing 
C)  inelasticity pricing 
D)  elasticity pricing 
E)  penetration pricing 
A)  markup pricing 
B)  skimming pricing 
C)  inelasticity pricing 
D)  elasticity pricing 
E)  penetration pricing

________ involves attaching features and services to differentiate a company's offers and to support charging higher prices.

If Canon Camera Company follows a low-price,low-margin strategy,it may attract competition from Nikon,Minolta,and Pentax.

The simplest pricing method is cost-plus pricing,which involves adding a standard markup to the cost of the product.

What costs make up a product's total cost?

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

The break-even volume is the point at which ________.

Overhead cost is another term for fixed cost.

When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices,they are using ________.

As a manufacturer decreases price,________ volume increases.

Break-even pricing,or a variation called ________,is when the firm tries to determine the price at which it will break even or make the profit it is seeking.

EDLP is very similar to high-low pricing.

In a pure monopoly,the market consists of one seller.

When faced with price competition,cutting prices is often not the best answer.

Product costs set a floor to the price; consumer perceptions of the product's value set the ceiling.

What does price elasticity reveal about a product?

are the sum of the and for any given level of production.

What do we know about a product when we understand its price elasticity?

Compare oligopolistic competition with a pure monopoly.

AirAsia offers flights at rock-bottom prices to many of its customers.It then charges for all extra services,such as baggage handling and in-flight refreshments.Which of the following best describes AirAsia's pricing method?

One reason ________ remains popular is that sellers are more certain about costs than about demand.

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

________ involves attaching features and services to differentiate a company's offers and to support charging higher prices.

If Canon Camera Company follows a low-price,low-margin strategy,it may attract competition from Nikon,Minolta,and Pentax.

The simplest pricing method is cost-plus pricing,which involves adding a standard markup to the cost of the product.

What costs make up a product's total cost?

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

The break-even volume is the point at which ________.

Overhead cost is another term for fixed cost.

When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices,they are using ________.

As a manufacturer decreases price,________ volume increases.

Break-even pricing,or a variation called ________,is when the firm tries to determine the price at which it will break even or make the profit it is seeking.

EDLP is very similar to high-low pricing.

In a pure monopoly,the market consists of one seller.

When faced with price competition,cutting prices is often not the best answer.

Product costs set a floor to the price; consumer perceptions of the product's value set the ceiling.

What does price elasticity reveal about a product?

________ are the sum of the ________ and ________ for any given level of production.

What do we know about a product when we understand its price elasticity?

Compare oligopolistic competition with a pure monopoly.

AirAsia offers flights at rock-bottom prices to many of its customers.It then charges for all extra services,such as baggage handling and in-flight refreshments.Which of the following best describes AirAsia's pricing method?

One reason ________ remains popular is that sellers are more certain about costs than about demand.

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

are the sum of the and for any given level of production.