Question 1

Who typically sets prices in large and small companies?

Accepted Answer

In small companies, prices are often set by top management rather than by the marketing or sales departments. In large companies, pricing is typically handled by divisional or product managers.

Question 2

Product costs set the ceiling for prices.

Accepted Answer

A) True 
 B)False  False

Question 3

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

Accepted Answer

A)  external 
B)  internal 
C)  economic 
D)  cultural 
E)  organizational 
A)  external 
B)  internal 
C)  economic 
D)  cultural 
E)  organizational A

Question 4

The learning curve is representative of the ________.

Accepted Answer

A)  per unit cost of output in the long run 
B)  drop in the average per-unit production cost that comes with accumulated production experience 
C)  number of units the market will buy in a given time period, at different prices that might be charged 
D)  total market demand resulting from different prices 
E)  per unit cost of output in the short run 
A)  per unit cost of output in the long run 
B)  drop in the average per-unit production cost that comes with accumulated production experience 
C)  number of units the market will buy in a given time period, at different prices that might be charged 
D)  total market demand resulting from different prices 
E)  per unit cost of output in the short run

Question 5

What is usually the first step in cost-based pricing?

Accepted Answer

A)  testing the product concept with potential customers 
B)  determining the marketing mix strategy 
C)  setting a price that covers costs plus a target profit 
D)  designing a good product 
E)  adding up the costs of making the product 
A)  testing the product concept with potential customers 
B)  determining the marketing mix strategy 
C)  setting a price that covers costs plus a target profit 
D)  designing a good product 
E)  adding up the costs of making the product

Question 6

Which of the following is a cost-based approach to pricing?

Accepted Answer

A)  value-based pricing 
B)  high-low pricing 
C)  target return pricing 
D)  good value pricing 
E)  EDLP 
A)  value-based pricing 
B)  high-low pricing 
C)  target return pricing 
D)  good value pricing 
E)  EDLP

Question 7

What is competition-based pricing?

Accepted Answer

Competition-based pricing refe

Question 8

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

Accepted Answer

A)  the company's overall marketing strategy 
B)  the nature of the market 
C)  the organizational objectives of the company 
D)  elements of the company's marketing mix 
E)  the annual advertising budget of rival firms 
A)  the company's overall marketing strategy 
B)  the nature of the market 
C)  the organizational objectives of the company 
D)  elements of the company's marketing mix 
E)  the annual advertising budget of rival firms

Question 9

Distinguish between value-based pricing and cost-based pricing.

Accepted Answer

Customer value-based pricing uses buyers

Question 10

Which of the following is true of a pure competitive market?

Accepted Answer

A)  A single seller has a major effect on the current and future market price. 
B)  Companies spend significantly on marketing research and product development. 
C)  The advertising budget of companies is usually huge. 
D)  Sellers try to develop differentiated offers for different customer segments. 
E)  Sellers spend little time on marketing strategy. 
A)  A single seller has a major effect on the current and future market price. 
B)  Companies spend significantly on marketing research and product development. 
C)  The advertising budget of companies is usually huge. 
D)  Sellers try to develop differentiated offers for different customer segments. 
E)  Sellers spend little time on marketing strategy.

Question 11

________ pricing uses buyers' perceptions of value as the key to pricing.

Accepted Answer

A)  Customer value-based 
B)  Cost-based 
C)  Time-based 
D)  Markup 
E)  Target return 
A)  Customer value-based 
B)  Cost-based 
C)  Time-based 
D)  Markup 
E)  Target return

Question 12

Internal factors affecting pricing include the company's overall marketing strategy, objectives, and marketing mix.

Accepted Answer

A) True 
 B)False

Question 13

A marketer's fixed costs are $400,000. The variable cost is $16 per unit, and the price of the product is $24 per unit. If the company wants to make a profit, how many units must it sell and at what price?

Accepted Answer

If the company wants

Question 14

What is high-low pricing?

Accepted Answer

High-low pricing involves char

Question 15

Explain price elasticity. What determines the elasticity of demand?

Accepted Answer

Price elasticity refers to a measure of

Question 16

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)  BCG matrix 
B)  break-even chart 
C)  SWOT analysis 
D)  demand curve 
E)  experience curve 
A)  BCG matrix 
B)  break-even chart 
C)  SWOT analysis 
D)  demand curve 
E)  experience curve

Question 17

What sets the ceiling for product prices?

Accepted Answer

A)  product manufacturing costs 
B)  sellers' perceptions of the product's value 
C)  customer perceptions of the product's value 
D)  variable costs 
E)  break-even volume 
A)  product manufacturing costs 
B)  sellers' perceptions of the product's value 
C)  customer perceptions of the product's value 
D)  variable costs 
E)  break-even volume

Question 18

Which of the following is most likely a fixed cost?

Accepted Answer

A)  sales representative commissions 
B)  product distribution costs 
C)  manufacturing input costs 
D)  temporary worker salaries 
E)  facility rental payments 
A)  sales representative commissions 
B)  product distribution costs 
C)  manufacturing input costs 
D)  temporary worker salaries 
E)  facility rental payments

Question 19

Which of the following is true with regard to price?

Accepted Answer

A)  Historically, price has had the least perceptible impact on buyer choice. 
B)  Price is the least flexible element in the marketing mix. 
C)  Unlike product features and channel commitments, prices cannot be changed quickly. 
D)  Price is the sum of all the values that customers give up to gain the benefits of having a product. 
E)  Prices only have an indirect impact on a firm's bottom line. 
A)  Historically, price has had the least perceptible impact on buyer choice. 
B)  Price is the least flexible element in the marketing mix. 
C)  Unlike product features and channel commitments, prices cannot be changed quickly. 
D)  Price is the sum of all the values that customers give up to gain the benefits of having a product. 
E)  Prices only have an indirect impact on a firm's bottom line.

Question 20

Cost-based pricing is often product driven.

Accepted Answer

A) True 
 B)False

Who typically sets prices in large and small companies?

Product costs set the ceiling for prices.

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

The learning curve is representative of the ________.

What is usually the first step in cost-based pricing?

Which of the following is a cost-based approach to pricing?

What is competition-based pricing?

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

Distinguish between value-based pricing and cost-based pricing.

Which of the following is true of a pure competitive market?

________ pricing uses buyers' perceptions of value as the key to pricing.

Internal factors affecting pricing include the company's overall marketing strategy, objectives, and marketing mix.

A marketer's fixed costs are $400,000. The variable cost is $16 per unit, and the price of the product is $24 per unit. If the company wants to make a profit, how many units must it sell and at what price?

What is high-low pricing?

Explain price elasticity. What determines the elasticity of demand?

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

What sets the ceiling for product prices?

Which of the following is most likely a fixed cost?

Which of the following is true with regard to price?

Cost-based pricing is often product driven.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 10: Pricing: Understanding and Capturing Customer Value

Who typically sets prices in large and small companies?

Product costs set the ceiling for prices.

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

The learning curve is representative of the ________.

What is usually the first step in cost-based pricing?

Which of the following is a cost-based approach to pricing?

What is competition-based pricing?

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

Distinguish between value-based pricing and cost-based pricing.

Which of the following is true of a pure competitive market?

________ pricing uses buyers' perceptions of value as the key to pricing.

Internal factors affecting pricing include the company's overall marketing strategy, objectives, and marketing mix.

A marketer's fixed costs are $400,000. The variable cost is $16 per unit, and the price of the product is $24 per unit. If the company wants to make a profit, how many units must it sell and at what price?

What is high-low pricing?

Explain price elasticity. What determines the elasticity of demand?

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

What sets the ceiling for product prices?

Which of the following is most likely a fixed cost?

Which of the following is true with regard to price?

Cost-based pricing is often product driven.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters