Exam 10: Pricing Strategies: Understanding and Capturing Customer Value

Average unit cost increases with accumulated production experience.

If demand changes greatly with price,we say the demand is inelastic.

The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.In normal cases,the higher the price,the lower the demand.

Which of the following is true about the demand curve?

The simplest pricing method is .

In the aftermath of the Great Recession,consumers have become .

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

Under ,the market consists of many buyers and sellers trading in a uniform commodity such as wheat,copper,or financial securities.

As a manufacturer decreases price,volume increases.

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

Which of the following is an external factor that affects pricing decisions?

Demand and consumer value perceptions set the floor for prices.

The LRAC is most closely related to which of the following?

With ,price is set to match consumers' perceptions of product value.

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

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

Consumers usually perceive higher- priced products as .

is an important element in the marketing mix.It is the only element that does not represent costs.

Marketers may learn a few simple rules that apply equally to all price- demand relationships.

Product costs set a(n)to a product's price.