Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

PoolPak produces climate- control systems for large swimming pools.The company's customers are more concerned about service support for maintaining a system than its initial price.PoolPak may use this knowledge to become more competitive through .

Accepted Answer

A) target costing 
B) a nonprice position 
C) cost- plus pricing 
D) value pricing 
E) skimming pricing 
A) target costing 
B) a nonprice position 
C) cost- plus pricing 
D) value pricing 
E) skimming pricing

Question 3

Costs that vary directly with the level of production are referred to as .

Accepted Answer

A) unit costs 
B) target costs 
C) fixed costs 
D) total costs 
E) variable costs 
A) unit costs 
B) target costs 
C) fixed costs 
D) total costs 
E) variable costs

Question 4

Markup pricing is popular because prices tend to be similar and price competition is thus minimized.

Accepted Answer

A) True 
 B)False

Question 5

Compare oligopolistic competition with a pure monopoly.

Accepted Answer

Under oligopolistic competition,the mark

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Firms are less affected by competitors' pricing strategies under than under .

Accepted Answer

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

Question 8

that influence pricing decisions include the nature of the market and other environmental factors.

Accepted Answer

A) Value factors 
B) External factors 
C) Internal factors 
D) Domestic factors 
E) Target factors 
A) Value factors 
B) External factors 
C) Internal factors 
D) Domestic factors 
E) Target factors

Question 9

Describe what a demand curve is and explain how it helps businesses.

Accepted Answer

It estimates consumer demand at differen

Question 10

Price setting is usually determined by _ in large companies.

Accepted Answer

A) top management 
B) divisional managers 
C) product line managers 
D) pricing departments 
E) both B and C 
A) top management 
B) divisional managers 
C) product line managers 
D) pricing departments 
E) both B and C

Question 11

If demand changes greatly with a small change in price,we say the demand is .

Accepted Answer

A) value- based 
B) fixed 
C) elastic 
D) inelastic 
E) variable 
A) value- based 
B) fixed 
C) elastic 
D) inelastic 
E) variable

Question 12

Price competition is minimized when all firms in an industry use which pricing method?

Accepted Answer

A) value- added pricing 
B) variable pricing 
C) elasticity pricing 
D) markup pricing 
E) value- based pricing 
A) value- added pricing 
B) variable pricing 
C) elasticity pricing 
D) markup pricing 
E) value- based pricing

Question 13

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

Accepted Answer

A) break- even pricing 
B) target profit pricing 
C) customer value- based pricing 
D) sealed- bid pricing 
E) C and D 
A) break- even pricing 
B) target profit pricing 
C) customer value- based pricing 
D) sealed- bid pricing 
E) C and D

Question 14

Walmart is famous for using what important type of value pricing?

Accepted Answer

A) competition- based pricing 
B) everyday low pricing 
C) cost- plus pricing 
D) penetration pricing 
E) break- even pricing 
A) competition- based pricing 
B) everyday low pricing 
C) cost- plus pricing 
D) penetration pricing 
E) break- even pricing

Question 15

Many people feel that pricing is fairer to both buyers and sellers.Sellers earn a fair return on their investment but do not take advantage of buyers when buyers' demand becomes great.

Accepted Answer

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

Question 16

Explain the concept of a price ceiling.

Accepted Answer

A price ceiling is t

Question 17

When companies set prices,the government and social concerns are two affecting pricing decisions.

Accepted Answer

A) internal factors 
B) demand curves 
C) temporary influences 
D) external factors 
E) economic conditions 
A) internal factors 
B) demand curves 
C) temporary influences 
D) external factors 
E) economic conditions

Question 18

Underpriced products sell very well,but they produce less revenue than they would have if price were raised to the level.

Accepted Answer

A) variable 
B) perceived 
C) elastic 
D) price- floor 
E) demand curve 
A) variable 
B) perceived 
C) elastic 
D) price- floor 
E) demand curve

Question 19

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

Accepted Answer

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

Question 20

Why is price considered to be one of the most flexible elements of the marketing mix?

Accepted Answer

Price can

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

PoolPak produces climate- control systems for large swimming pools.The company's customers are more concerned about service support for maintaining a system than its initial price.PoolPak may use this knowledge to become more competitive through .

Costs that vary directly with the level of production are referred to as .

Markup pricing is popular because prices tend to be similar and price competition is thus minimized.

Compare oligopolistic competition with a pure monopoly.

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

Firms are less affected by competitors' pricing strategies under than under .

that influence pricing decisions include the nature of the market and other environmental factors.

Describe what a demand curve is and explain how it helps businesses.

Price setting is usually determined by _ in large companies.

If demand changes greatly with a small change in price,we say the demand is .

Price competition is minimized when all firms in an industry use which pricing method?

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

Walmart is famous for using what important type of value pricing?

Many people feel that pricing is fairer to both buyers and sellers.Sellers earn a fair return on their investment but do not take advantage of buyers when buyers' demand becomes great.

Explain the concept of a price ceiling.

When companies set prices,the government and social concerns are two affecting pricing decisions.

Underpriced products sell very well,but they produce less revenue than they would have if price were raised to the level.

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

Why is price considered to be one of the most flexible elements of the marketing mix?

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

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

Developing New Products and Managing the Product Life Cycle

Additional Pricing Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

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 Strategies: Understanding and Capturing Customer Value

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

PoolPak produces climate- control systems for large swimming pools.The company's customers are more concerned about service support for maintaining a system than its initial price.PoolPak may use this knowledge to become more competitive through .

Costs that vary directly with the level of production are referred to as .

Markup pricing is popular because prices tend to be similar and price competition is thus minimized.

Compare oligopolistic competition with a pure monopoly.

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

Firms are less affected by competitors' pricing strategies under than under .

that influence pricing decisions include the nature of the market and other environmental factors.

Describe what a demand curve is and explain how it helps businesses.

Price setting is usually determined by _ in large companies.

If demand changes greatly with a small change in price,we say the demand is .

Price competition is minimized when all firms in an industry use which pricing method?

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

Walmart is famous for using what important type of value pricing?

Many people feel that pricing is fairer to both buyers and sellers.Sellers earn a fair return on their investment but do not take advantage of buyers when buyers' demand becomes great.

Explain the concept of a price ceiling.

When companies set prices,the government and social concerns are two affecting pricing decisions.

Underpriced products sell very well,but they produce less revenue than they would have if price were raised to the level.

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

Why is price considered to be one of the most flexible elements of the marketing mix?

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

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

Developing New Products and Managing the Product Life Cycle

Additional Pricing Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

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