Question 1

As a manufacturer increases price,the drops.

Accepted Answer

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

Question 2

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

Accepted Answer

A) decreased consumer price sensitivity 
B) a more direct relationship between supply and demand 
C) increased consumer price sensitivity 
D) decreased brand loyalty 
E) a less direct relationship between supply and demand 
A) decreased consumer price sensitivity 
B) a more direct relationship between supply and demand 
C) increased consumer price sensitivity 
D) decreased brand loyalty 
E) a less direct relationship between supply and demand

Question 3

A company that wants to emphasize the premium quality of its product and enhance the product's allure would be most likely to position its product on _ .

Accepted Answer

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

Question 4

In Vin del Mar,Chile,there are a dozen stores specializing in selling the same quality of seafood products on one street.An individual store dare not charge more than the going price without the risk of losing business to the other stores that are selling the fish at a common price.This is an example of what type of market?

Accepted Answer

A) oligopolistic competition 
B) socialist 
C) pure competition 
D) pure monopoly 
E) monopolistic competition 
A) oligopolistic competition 
B) socialist 
C) pure competition 
D) pure monopoly 
E) monopolistic competition

Question 5

Rent,electricity,and executive salaries are examples of _ .

Accepted Answer

A) fixed costs 
B) marketing costs 
C) variable costs 
D) accumulated costs 
E) total costs 
A) fixed costs 
B) marketing costs 
C) variable costs 
D) accumulated costs 
E) total costs

Question 6

If Alden raises the price on the handheld mixer by 2 percent and quantity demanded falls by 10 percent,what is the price elasticity of demand?

Accepted Answer

A) - 12 
B) 5 
C) 12 
D) - 8 
E) - 5 
A) - 12 
B) 5 
C) 12 
D) - 8 
E) - 5

Question 7

What must a company using value- based pricing find out about its customers?

Accepted Answer

The company must determine the

Question 8

A marketer's fixed costs are $400,000,the variable cost is $16,and the company expects the product to sell for $24.What is the company's break- even point in units?

Accepted Answer

The break-

Question 9

The experience curve reveals that .

Accepted Answer

A) repetition in production enhances efficiency 
B) repetition in production lowers costs 
C) the average cost drops with accumulated production experience 
D) A,B,and C 
E) none of the above 
A) repetition in production enhances efficiency 
B) repetition in production lowers costs 
C) the average cost drops with accumulated production experience 
D) A,B,and C 
E) none of the above

Question 10

If Canon Camera Company follows a high- price,high- margin strategy,what will competitors such as Nikon,Minolta,and Pentax most likely do?

Accepted Answer

A) They will want to compete against Canon. 
B) They will bundle their products. 
C) They will advertise less. 
D) They will go out of business. 
E) none of the above 
A) They will want to compete against Canon. 
B) They will bundle their products. 
C) They will advertise less. 
D) They will go out of business. 
E) none of the above

Question 11

Measuring can be difficult.A company might conduct surveys or experiments to test this in the different products it offers.

Accepted Answer

A) price elasticity 
B) quantity supplied 
C) the demand curve 
D) perceived value 
E) break- even pricing 
A) price elasticity 
B) quantity supplied 
C) the demand curve 
D) perceived value 
E) break- even pricing

Question 12

Identify and describe the internal factors affecting a firm's pricing decisions.

Accepted Answer

The pricing strategy is largely determin

Question 13

Explain the strategy of good- value pricing.

Accepted Answer

With good- value pricing,a mar

Question 14

Consumers who have less time and patience for watching for supermarket specials and clipping coupons would most likely prefer .

Accepted Answer

A) EDLP 
B) variable pricing 
C) value- added pricing 
D) break- even pricing 
E) high- low pricing 
A) EDLP 
B) variable pricing 
C) value- added pricing 
D) break- even pricing 
E) high- low pricing

Question 15

Which of the following is a reason why markup pricing is NOT practical?

Accepted Answer

A) By tying the price to cost,sellers simplify pricing. 
B) When all firms in the industry use this pricing method,prices tend to be similar. 
C) This method ignores demand. 
D) Sellers earn a fair return on their investment. 
E) With a standard markup,consumers know when they are being overcharged. 
A) By tying the price to cost,sellers simplify pricing. 
B) When all firms in the industry use this pricing method,prices tend to be similar. 
C) This method ignores demand. 
D) Sellers earn a fair return on their investment. 
E) With a standard markup,consumers know when they are being overcharged.

Question 16

Trader Joe's offers an assortment of exclusive gourmet products at impossibly low prices.These prices are not limited- time offers or special discounts.Instead,they reflect Trader Joe's strategy.

Accepted Answer

A) dynamic pricing 
B) cost- plus pricing 
C) everyday low pricing 
D) cost- based pricing 
E) value- based pricing 
A) dynamic pricing 
B) cost- plus pricing 
C) everyday low pricing 
D) cost- based pricing 
E) value- based pricing

Question 17

Value- based pricing is the reverse process of .

Accepted Answer

A) variable cost pricing 
B) good- value pricing 
C) cost- based pricing 
D) value- added pricing 
E) cost- plus pricing 
A) variable cost pricing 
B) good- value pricing 
C) cost- based pricing 
D) value- added pricing 
E) cost- plus pricing

Question 18

Value- based pricing is the reverse of cost- based pricing.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) value- added pricing 
B) skimming pricing 
C) EDLP 
D) EFGF 
E) fixed prices 
A) value- added pricing 
B) skimming pricing 
C) EDLP 
D) EFGF 
E) fixed prices

Question 20

Buyers are less price sensitive in all of the following situations EXCEPT _ .

Accepted Answer

A) when the product is exclusive 
B) when the total expenditure for a product is high relative to their income 
C) when the product they are buying is unique 
D) when the product they are buying is high in quality 
E) when substitute products are hard to find 
A) when the product is exclusive 
B) when the total expenditure for a product is high relative to their income 
C) when the product they are buying is unique 
D) when the product they are buying is high in quality 
E) when substitute products are hard to find

As a manufacturer increases price,the drops.

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

A company that wants to emphasize the premium quality of its product and enhance the product's allure would be most likely to position its product on _ .

Rent,electricity,and executive salaries are examples of _ .

If Alden raises the price on the handheld mixer by 2 percent and quantity demanded falls by 10 percent,what is the price elasticity of demand?

What must a company using value- based pricing find out about its customers?

A marketer's fixed costs are $400,000,the variable cost is $16,and the company expects the product to sell for $24.What is the company's break- even point in units?

The experience curve reveals that .

If Canon Camera Company follows a high- price,high- margin strategy,what will competitors such as Nikon,Minolta,and Pentax most likely do?

Measuring can be difficult.A company might conduct surveys or experiments to test this in the different products it offers.

Identify and describe the internal factors affecting a firm's pricing decisions.

Explain the strategy of good- value pricing.

Consumers who have less time and patience for watching for supermarket specials and clipping coupons would most likely prefer .

Which of the following is a reason why markup pricing is NOT practical?

Trader Joe's offers an assortment of exclusive gourmet products at impossibly low prices.These prices are not limited- time offers or special discounts.Instead,they reflect Trader Joe's strategy.

Value- based pricing is the reverse process of .

Value- based pricing is the reverse of cost- based pricing.

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

Buyers are less price sensitive in all of the following situations EXCEPT _ .

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

As a manufacturer increases price,the drops.

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

A company that wants to emphasize the premium quality of its product and enhance the product's allure would be most likely to position its product on _ .

Rent,electricity,and executive salaries are examples of _ .

If Alden raises the price on the handheld mixer by 2 percent and quantity demanded falls by 10 percent,what is the price elasticity of demand?

What must a company using value- based pricing find out about its customers?

A marketer's fixed costs are $400,000,the variable cost is $16,and the company expects the product to sell for $24.What is the company's break- even point in units?

The experience curve reveals that .

If Canon Camera Company follows a high- price,high- margin strategy,what will competitors such as Nikon,Minolta,and Pentax most likely do?

Measuring can be difficult.A company might conduct surveys or experiments to test this in the different products it offers.

Identify and describe the internal factors affecting a firm's pricing decisions.

Explain the strategy of good- value pricing.

Consumers who have less time and patience for watching for supermarket specials and clipping coupons would most likely prefer .

Which of the following is a reason why markup pricing is NOT practical?

Trader Joe's offers an assortment of exclusive gourmet products at impossibly low prices.These prices are not limited- time offers or special discounts.Instead,they reflect Trader Joe's strategy.

Value- based pricing is the reverse process of .

Value- based pricing is the reverse of cost- based pricing.

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

Buyers are less price sensitive in all of the following situations EXCEPT _ .

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