Question 1

Price discrimination is legal if ________.

Accepted Answer

A) a manufacturer and reseller have agreed upon a specified retail price for a product 
B) a manufacturer maintains the same price to meet different conditions in different world markets 
C) a seller can prove its costs per unit are different when selling to different retailers 
D) a seller advertises prices that are not actually available to consumers 
E) a seller has not communicated with competitors before announcing prices 
A) a manufacturer and reseller have agreed upon a specified retail price for a product 
B) a manufacturer maintains the same price to meet different conditions in different world markets 
C) a seller can prove its costs per unit are different when selling to different retailers 
D) a seller advertises prices that are not actually available to consumers 
E) a seller has not communicated with competitors before announcing prices

Question 2

Used too frequently,promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers.

Accepted Answer

A) True 
 B)False

Question 3

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

Question 4

The simplest pricing method is break-even pricing,which involves adding a standard markup to the cost of the product.

Accepted Answer

A) True 
 B)False

Question 5

Trade or functional discounts are offered by manufacturers to which of the following?

Accepted Answer

A) channel members who perform tasks that the manufacturer would otherwise have to perform 
B) consumers who earn a price reduction for buying in bulk 
C) intermediaries such as financing institutions as a cost of doing business with them 
D) manufacturers that agree to exclusive distribution contracts 
E) the government market and other organizations that require bid proposals 
A) channel members who perform tasks that the manufacturer would otherwise have to perform 
B) consumers who earn a price reduction for buying in bulk 
C) intermediaries such as financing institutions as a cost of doing business with them 
D) manufacturers that agree to exclusive distribution contracts 
E) the government market and other organizations that require bid proposals

Question 6

Explain the factors involved in setting international pricing.

Accepted Answer

Companies that market their products int

Question 7

Explain competition-based pricing.

Accepted Answer

Competition-based pricing involves setti

Question 8

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

Accepted Answer

A) demand curve 
B) experience curve 
C) floor 
D) ceiling 
E) break-even cost 
A) demand curve 
B) experience curve 
C) floor 
D) ceiling 
E) break-even cost

Question 9

The Internet offers ________,where the price can easily be adjusted to meet changes in demand.

Accepted Answer

A) captive pricing 
B) dynamic pricing 
C) basing-point pricing 
D) price bundling 
E) cost-plus pricing 
A) captive pricing 
B) dynamic pricing 
C) basing-point pricing 
D) price bundling 
E) cost-plus pricing

Question 10

General Motors,in order to achieve a 15 to 20 percent profit on its investment,prices its automobiles accordingly.This approach is called ________.

Accepted Answer

A) value-based pricing 
B) value-added pricing 
C) cost-plus pricing 
D) low-price image 
E) target return pricing 
A) value-based pricing 
B) value-added pricing 
C) cost-plus pricing 
D) low-price image 
E) target return pricing

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) demand curve 
B) supply curve 
C) cost curve 
D) break-even chart 
E) inflation rate 
A) demand curve 
B) supply curve 
C) cost curve 
D) break-even chart 
E) inflation rate

Question 13

When World Movers,a house mover,sells boxes and pads that must be used in moving a household's furniture,the company is practicing by-product pricing.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

EDLP is a type of high-low pricing.

Accepted Answer

A) True 
 B)False

Question 16

Identify and explain at least two situations in which price cuts or price increases might be necessary.

Accepted Answer

Several situations may lead a firm to co

Question 17

What are the different types of a company's costs? Explain with examples.

Accepted Answer

A company's costs take two forms:fixed a

Question 18

Companies pricing nonobligatory or accessory products along with a main product are engaged in ________ pricing.

Accepted Answer

A) product bundle 
B) optional product 
C) market-penetration 
D) by-product 
E) skimming 
A) product bundle 
B) optional product 
C) market-penetration 
D) by-product 
E) skimming

Question 19

With target costing,marketers will first ________ and then ________.

Accepted Answer

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

Question 20

Which of the following is a reason for a company to raise its prices?

Accepted Answer

A) to address the issue of overdemand for a product 
B) to win a larger share of the market 
C) to use excess capacity 
D) to boost sales volume 
E) to balance out decreasing costs 
A) to address the issue of overdemand for a product 
B) to win a larger share of the market 
C) to use excess capacity 
D) to boost sales volume 
E) to balance out decreasing costs

Price discrimination is legal if ________.

Used too frequently,promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers.

________ 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.

The simplest pricing method is break-even pricing,which involves adding a standard markup to the cost of the product.

Trade or functional discounts are offered by manufacturers to which of the following?

Explain the factors involved in setting international pricing.

Explain competition-based pricing.

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

The Internet offers ________,where the price can easily be adjusted to meet changes in demand.

General Motors,in order to achieve a 15 to 20 percent profit on its investment,prices its automobiles accordingly.This approach is called ________.

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

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

When World Movers,a house mover,sells boxes and pads that must be used in moving a household's furniture,the company is practicing by-product pricing.

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

EDLP is a type of high-low pricing.

Identify and explain at least two situations in which price cuts or price increases might be necessary.

What are the different types of a company's costs? Explain with examples.

Companies pricing nonobligatory or accessory products along with a main product are engaged in ________ pricing.

With target costing,marketers will first and then .

Which of the following is a reason for a company to raise its prices?

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

Understanding Consumer and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Product,Services,and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Marketing Channels Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 9: Pricing: Understanding and Capturing Customer Value

Price discrimination is legal if ________.

Used too frequently,promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers.

________ 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.

The simplest pricing method is break-even pricing,which involves adding a standard markup to the cost of the product.

Trade or functional discounts are offered by manufacturers to which of the following?

Explain the factors involved in setting international pricing.

Explain competition-based pricing.

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

The Internet offers ________,where the price can easily be adjusted to meet changes in demand.

General Motors,in order to achieve a 15 to 20 percent profit on its investment,prices its automobiles accordingly.This approach is called ________.

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

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

When World Movers,a house mover,sells boxes and pads that must be used in moving a household's furniture,the company is practicing by-product pricing.

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

EDLP is a type of high-low pricing.

Identify and explain at least two situations in which price cuts or price increases might be necessary.

What are the different types of a company's costs? Explain with examples.

Companies pricing nonobligatory or accessory products along with a main product are engaged in ________ pricing.

With target costing,marketers will first ________ and then ________.

Which of the following is a reason for a company to raise its prices?

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

Understanding Consumer and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Product,Services,and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Marketing Channels Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value

Personal Selling and Sales Promotion

Direct and Online Marketing: Building Direct Customer Relationships

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

With target costing,marketers will first and then .