Question 1

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

Accepted Answer

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

Question 2

In ,price is considered along with the other marketing mix variables before the marketing program is set.

Accepted Answer

A) value- based pricing 
B) price elasticity 
C) cost- based pricing 
D) variable costs 
E) markup pricing 
A) value- based pricing 
B) price elasticity 
C) cost- based pricing 
D) variable costs 
E) markup pricing

Question 3

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

Question 4

Assume a manufacturer with fixed costs of $100,000,a variable cost of $10,and expected sales of 50,000 units wants to earn a 20 percent markup on sales.What is the manufacturer's markup price?

Accepted Answer

A) $14 
B) $18 
C) $15 
D) $18.50 
E) none of the above 
A) $14 
B) $18 
C) $15 
D) $18.50 
E) none of the above

Question 5

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

Question 6

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 7

With target costing,marketers will first and then _.

Accepted Answer

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

Question 8

Target return pricing uses the concept of a(n),which shows the total cost and total revenue expected at different sales volume levels.

Accepted Answer

A) experience curve 
B) competition- based chart 
C) value- based chart 
D) break- even chart 
E) demand curve 
A) experience curve 
B) competition- based chart 
C) value- based chart 
D) break- even chart 
E) demand curve

Question 9

Explain the significance of a downward- sloping experience curve.

Accepted Answer

Not only will the company's un

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) The demand curve 
B) Break- even pricing 
C) Target costing 
D) Price elasticity 
E) Supply 
A) The demand curve 
B) Break- even pricing 
C) Target costing 
D) Price elasticity 
E) Supply

Question 12

Costs that do not vary with production or sales level are referred to as .

Accepted Answer

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

Question 13

pricing involves setting prices based on the costs for producing,distributing,and selling the product plus a fair rate of return for the company's efforts and risks.

Accepted Answer

A) Fixed cost 
B) Cost- based 
C) Variable 
D) Skimming 
E) Value- based 
A) Fixed cost 
B) Cost- based 
C) Variable 
D) Skimming 
E) Value- based

Question 14

Consumer perceptions of the product's value set the for prices.

Accepted Answer

A) floor 
B) ceiling 
C) image 
D) demand curve 
E) variable cost 
A) floor 
B) ceiling 
C) image 
D) demand curve 
E) variable cost

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Refer to the scenario below to answer the following questions.
Alden Manufacturing produces small kitchen appliances-blenders,hand mixers,and electric skillets-under the brand name First Generation.Alden attempts to target newlyweds and first- time home buyers with this brand.
In considering that most young households have limited financial resources,Alden has attempted to engage in target costing."In doing this," Milt Alden stated,"we have better control over keeping price right in line with customers."
Alden manufactures a three- speed blender,its top seller,and a five- speed blender.The hand mixers are manufactured in two styles-a small handheld mixer with two rotating beaters and a similar style that comes with an optional stand and attached mixing bowl.Alden's temperature- controlled skillets are manufactured in one style with three color options.
"Our product offerings are narrower," Milt Alden added,"but our line workers know each product like the back of their hands.This allows us to produce superior products while holding our prices low."
-Milt Alden uses a target costing strategy.Which of the following is he most likely to do in executing this strategy?

Accepted Answer

A) start by determining the costs of a new product 
B) start with customer- value considerations 
C) base his price on competitors' prices 
D) use everyday low pricing 
E) use a break- even chart to determine pricing 
A) start by determining the costs of a new product 
B) start with customer- value considerations 
C) base his price on competitors' prices 
D) use everyday low pricing 
E) use a break- even chart to determine pricing

Question 18

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

Accepted Answer

First,the company should set p

Question 19

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

Accepted Answer

A) break- even pricing 
B) variable cost 
C) demand curve 
D) target cost 
E) experience curve 
A) break- even pricing 
B) variable cost 
C) demand curve 
D) target cost 
E) experience curve

Question 20

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

Accepted Answer

A) gain economies of scale 
B) find competitors using the experience curve strategically 
C) become less efficient 
D) see fixed costs increase 
E) have a straight,horizontal learning curve 
A) gain economies of scale 
B) find competitors using the experience curve strategically 
C) become less efficient 
D) see fixed costs increase 
E) have a straight,horizontal learning curve

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

In ,price is considered along with the other marketing mix variables before the marketing program is set.

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 .

Assume a manufacturer with fixed costs of $100,000,a variable cost of $10,and expected sales of 50,000 units wants to earn a 20 percent markup on sales.What is the manufacturer's markup price?

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

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

With target costing,marketers will first and then _.

Target return pricing uses the concept of a(n),which shows the total cost and total revenue expected at different sales volume levels.

Explain the significance of a downward- sloping experience curve.

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

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

Costs that do not vary with production or sales level are referred to as .

pricing involves setting prices based on the costs for producing,distributing,and selling the product plus a fair rate of return for the company's efforts and risks.

Consumer perceptions of the product's value set the for prices.

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

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

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

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

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

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

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

In ,price is considered along with the other marketing mix variables before the marketing program is set.

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 .

Assume a manufacturer with fixed costs of $100,000,a variable cost of $10,and expected sales of 50,000 units wants to earn a 20 percent markup on sales.What is the manufacturer's markup price?

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

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

With target costing,marketers will first and then _.

Target return pricing uses the concept of a(n),which shows the total cost and total revenue expected at different sales volume levels.

Explain the significance of a downward- sloping experience curve.

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

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

Costs that do not vary with production or sales level are referred to as .

pricing involves setting prices based on the costs for producing,distributing,and selling the product plus a fair rate of return for the company's efforts and risks.

Consumer perceptions of the product's value set the for prices.

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

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

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

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

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

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