Exam 10: Pricing Products: Understanding and Capturing Customer Value

Jimmy's Hardware,an independent local retailer,is losing business to Wal-mart.This is most likely because he cannot match Wal-mart's pricing strategy of ________.

Which of the following involves setting prices based on competitors' strategies,costs,prices,and market offerings?

When there is price competition,many companies adopt ________ rather than cutting prices to match competitors.

Using value-based pricing,a marketer would not design a product and marketing program before setting the price.

In order to form a consistent and effective integrated marketing program,price decisions should be coordinated with each of the following EXCEPT ________.

A company faces fixed costs of $100,000 and variable costs of $8.00/unit.It plans to directly sell its product to the market for $12.00.How many units must it produce and sell to break even?

Fixed costs ________ as the number of units produced increases.

With a higher volume of product,most companies can expect to ________.

Dips in the economy and the instant price comparisons made possible by the Internet have both contributed to ________.

Price is the only element in the marketing mix that produces ________.

Which of the following is true about the demand curve?

Monopolies charge the full price because they do not fear attracting competition or regulation.

________ involves charging a constant,everyday low price with few or no temporary price discounts.

If Canon Camera Company follows a low-price,low-margin strategy for a product,what will competitors most likely do?

An upward-sloping experience curve is beneficial for a company.

Which of the following is a risk a company takes when building a strategy around the experience curve?

A break-even chart shows the total cost and total revenue expected at various sales volume levels.

Discuss the importance of consumer perceptions of value and costs to setting prices.

The long-run average cost curve (LRAC)helps the producer understand which of the following?

The company must consider the impact its prices will have on resellers.Identify three ways the company can help resellers.