Question 1

When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT ________.

Accepted Answer

A)  probable demand 
B)  likely profits 
C)  competitors' pricing 
D)  estimated break-even volumes 
E)  different prices 
A)  probable demand 
B)  likely profits 
C)  competitors' pricing 
D)  estimated break-even volumes 
E)  different prices

Question 2

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

Accepted Answer

A)  the nature of the market 
B)  the degree of inflation in the economy 
C)  the overall marketing strategy of the company 
D)  the forces of demand and supply in the market 
E)  consumers' perception of value 
A)  the nature of the market 
B)  the degree of inflation in the economy 
C)  the overall marketing strategy of the company 
D)  the forces of demand and supply in the market 
E)  consumers' perception of value

Question 3

If demand hardly changes with a small change in price, the demand is ________.

Accepted Answer

A)  variable 
B)  inelastic 
C)  highly elastic 
D)  derived 
E)  negative 
A)  variable 
B)  inelastic 
C)  highly elastic 
D)  derived 
E)  negative

Question 4

The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of a(n) ________.

Accepted Answer

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

Question 5

Bruno Servers has decided to decrease its prices on its popular higher-range servers. The company can reasonably expect ________ to increase.

Accepted Answer

A)  fixed costs 
B)  variable costs 
C)  demand 
D)  additional value 
E)  overhead costs 
A)  fixed costs 
B)  variable costs 
C)  demand 
D)  additional value 
E)  overhead costs

Question 6

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing.

Accepted Answer

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

Question 7

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

Accepted Answer

A)  variable 
B)  inelastic 
C)  derived 
D)  elastic 
E)  negative 
A)  variable 
B)  inelastic 
C)  derived 
D)  elastic 
E)  negative

Question 8

If a company faces competition, its demand at different prices will depend on whether competitors' prices stay constant or change with the company's own prices.

Accepted Answer

A) True 
 B)False

Question 9

Companies that adopt value-added pricing ________.

Accepted Answer

A)  consider value-added features as a fitting substitute for aggressive cost cutting 
B)  set incredibly low prices to meet competition 
C)  attach value-added features and services to differentiate their offers and support their higher prices 
D)  overprice their products without any apparent justification 
E)  underprice their products and lower quality to boost demand in the short-run 
A)  consider value-added features as a fitting substitute for aggressive cost cutting 
B)  set incredibly low prices to meet competition 
C)  attach value-added features and services to differentiate their offers and support their higher prices 
D)  overprice their products without any apparent justification 
E)  underprice their products and lower quality to boost demand in the short-run

Question 10

In the aftermath of the Great Recession of 2008 to 2009, consumers ________.

Accepted Answer

A)  have become more value conscious 
B)  have become less value conscious 
C)  exhibit great interest in prestige pricing 
D)  show no interest in price cutting 
E)  rarely endorse value-for-money deals 
A)  have become more value conscious 
B)  have become less value conscious 
C)  exhibit great interest in prestige pricing 
D)  show no interest in price cutting 
E)  rarely endorse value-for-money deals

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

What is good-value pricing?

Accepted Answer

Good-value pricing refers to o

Question 13

What are the different internal factors that affect a firm's pricing decisions?

Accepted Answer

Beyond customer value perceptions, costs

Question 14

The break-even volume is the point at which ________.

Accepted Answer

A)  the total revenue and total cost curves intersect 
B)  demand equals supply 
C)  the production of one more unit will not lead to increase in demand 
D)  the company can pay off all its long-term debt 
E)  a firm exceeds the sales forecast 
A)  the total revenue and total cost curves intersect 
B)  demand equals supply 
C)  the production of one more unit will not lead to increase in demand 
D)  the company can pay off all its long-term debt 
E)  a firm exceeds the sales forecast

Question 15

Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing mix program.

Accepted Answer

A) True 
 B)False

Question 16

Department stores such as Kohl's and JCPenney's practice high-low pricing by ________.

Accepted Answer

A)  charging a constant, everyday low price 
B)  providing few or no temporary price discounts 
C)  increasing prices temporarily on select products 
D)  having frequent sale days for store credit-card holders 
E)  underpricing most consumer items 
A)  charging a constant, everyday low price 
B)  providing few or no temporary price discounts 
C)  increasing prices temporarily on select products 
D)  having frequent sale days for store credit-card holders 
E)  underpricing most consumer items

Question 17

"Beyond the market and the economy, the company must consider several other factors in its external environment when setting prices." Explain this statement.

Accepted Answer

Beyond the market and the economy, the c

Question 18

Which of the following processes does value-based pricing reverse?

Accepted Answer

A)  high-low pricing 
B)  everyday low pricing 
C)  cost-based pricing 
D)  good-value pricing 
E)  value-added pricing 
A)  high-low pricing 
B)  everyday low pricing 
C)  cost-based pricing 
D)  good-value pricing 
E)  value-added pricing

Question 19

________ is the only element in the marketing mix that produces revenue.

Accepted Answer

A)  Price 
B)  Product 
C)  Place 
D)  Fixed costs 
E)  Variable costs 
A)  Price 
B)  Product 
C)  Place 
D)  Fixed costs 
E)  Variable costs

Question 20

Cost-plus pricing ________.

Accepted Answer

A)  is a complex pricing method 
B)  involves pricing that accurately reflects production costs 
C)  involves adding a standard markup for profit 
D)  aims at breaking even on the costs of making and marketing a product 
E)  is a value-based pricing method 
A)  is a complex pricing method 
B)  involves pricing that accurately reflects production costs 
C)  involves adding a standard markup for profit 
D)  aims at breaking even on the costs of making and marketing a product 
E)  is a value-based pricing method

When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT ________.

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

If demand hardly changes with a small change in price, the demand is ________.

The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of a(n) ________.

Bruno Servers has decided to decrease its prices on its popular higher-range servers. The company can reasonably expect ________ to increase.

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing.

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

If a company faces competition, its demand at different prices will depend on whether competitors' prices stay constant or change with the company's own prices.

Companies that adopt value-added pricing ________.

In the aftermath of the Great Recession of 2008 to 2009, consumers ________.

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

What is good-value pricing?

What are the different internal factors that affect a firm's pricing decisions?

The break-even volume is the point at which ________.

Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing mix program.

Department stores such as Kohl's and JCPenney's practice high-low pricing by ________.

"Beyond the market and the economy, the company must consider several other factors in its external environment when setting prices." Explain this statement.

Which of the following processes does value-based pricing reverse?

________ is the only element in the marketing mix that produces revenue.

Cost-plus pricing ________.

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

When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT ________.

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

If demand hardly changes with a small change in price, the demand is ________.

The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of a(n) ________.

Bruno Servers has decided to decrease its prices on its popular higher-range servers. The company can reasonably expect ________ to increase.

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing.

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

If a company faces competition, its demand at different prices will depend on whether competitors' prices stay constant or change with the company's own prices.

Companies that adopt value-added pricing ________.

In the aftermath of the Great Recession of 2008 to 2009, consumers ________.

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

What is good-value pricing?

What are the different internal factors that affect a firm's pricing decisions?

The break-even volume is the point at which ________.

Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing mix program.

Department stores such as Kohl's and JCPenney's practice high-low pricing by ________.

"Beyond the market and the economy, the company must consider several other factors in its external environment when setting prices." Explain this statement.

Which of the following processes does value-based pricing reverse?

________ is the only element in the marketing mix that produces revenue.

Cost-plus pricing ________.

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