Question 1

When using product bundle pricing,sellers combine several of their products and offer the bundle at an increased price for increased profit.

Accepted Answer

A) True 
 B)False

Question 2

Fixed costs ________ as the number of units produced increases.

Accepted Answer

A) decrease 
B) increase 
C) divide in half 
D) remain the same 
E) increase at a diminishing rate 
A) decrease 
B) increase 
C) divide in half 
D) remain the same 
E) increase at a diminishing rate

Question 3

________ costs are the sum of the fixed and variable costs for any given level of production.

Accepted Answer

A) Target 
B) Skimming 
C) Value-based 
D) Total 
E) Break-even 
A) Target 
B) Skimming 
C) Value-based 
D) Total 
E) Break-even

Question 4

With product bundle pricing,sellers can combine several products and offer the bundle ________.

Accepted Answer

A) as a working unit 
B) at a reduced price 
C) as a complete self-service package 
D) as a reward to loyal customers 
E) as segmented pricing 
A) as a working unit 
B) at a reduced price 
C) as a complete self-service package 
D) as a reward to loyal customers 
E) as segmented pricing

Question 5

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

Accepted Answer

A) High-low pricing 
B) Target return pricing 
C) Cost-plus pricing 
D) Everyday low pricing 
E) Penetration pricing 
A) High-low pricing 
B) Target return pricing 
C) Cost-plus pricing 
D) Everyday low pricing 
E) Penetration pricing

Question 6

When setting prices,the company must consider its external environment.Describe four aspects of the external environment and how they affect businesses.

Accepted Answer

Economic conditions affect both the cost

Question 7

Consumers usually perceive higher-priced products as ________.

Accepted Answer

A) not within reach of most people 
B) having higher quality 
C) having high profit margins 
D) popular brands 
E) being in the introductory stage of the product life cycle 
A) not within reach of most people 
B) having higher quality 
C) having high profit margins 
D) popular brands 
E) being in the introductory stage of the product life cycle

Question 8

What is customer value-based pricing? Describe the two types of value-based pricing.

Accepted Answer

Customer value-based pricing uses buyers

Question 9

Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games.This is an example of ________.

Accepted Answer

A) good-value pricing 
B) add-on pricing 
C) product-support pricing 
D) value-added pricing 
E) cost-based pricing 
A) good-value pricing 
B) add-on pricing 
C) product-support pricing 
D) value-added pricing 
E) cost-based pricing

Question 10

Explain segmented pricing and its different forms.

Accepted Answer

In segmented pricing,the company sells a

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

Federal legislation on price-fixing states that sellers must set prices after talking to customers and competitors.

Accepted Answer

A) True 
 B)False

Question 13

Hotline Long Distance Service uses captive product pricing for its phone call charges.Because this is a service,the price is broken into a fixed rate plus a ________.

Accepted Answer

A) fixed rate usage 
B) variable usage rate 
C) standard usage rate 
D) market usage rate 
E) fixed fee 
A) fixed rate usage 
B) variable usage rate 
C) standard usage rate 
D) market usage rate 
E) fixed fee

Question 14

Describe what a demand curve is and explain how it helps businesses.

Accepted Answer

The demand curve estimates consumer dema

Question 15

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

Accepted Answer

A) inelastic 
B) variable 
C) elastic 
D) value-based 
E) fixed 
A) inelastic 
B) variable 
C) elastic 
D) value-based 
E) fixed

Question 16

The company designs what it considers to be a good product,totals the expenses of making the product,and sets a price that adds a standard markup to the cost of the product.This approach to pricing is called ________ pricing.

Accepted Answer

A) value-based 
B) fixed cost 
C) cost-plus 
D) cost-based 
E) skimming 
A) value-based 
B) fixed cost 
C) cost-plus 
D) cost-based 
E) skimming

Question 17

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

Accepted Answer

A) pure competition 
B) monopolistic competition 
C) oligopolistic competition 
D) a pure monopoly 
E) pure monopsony 
A) pure competition 
B) monopolistic competition 
C) oligopolistic competition 
D) a pure monopoly 
E) pure monopsony

Question 18

Under which type of geographic pricing strategy does each customer pay the same price for the product from the factory to its destination?

Accepted Answer

A) basing-point pricing 
B) freight-absorption pricing 
C) FOB-origin pricing 
D) dynamic pricing 
E) uniform-delivered pricing 
A) basing-point pricing 
B) freight-absorption pricing 
C) FOB-origin pricing 
D) dynamic pricing 
E) uniform-delivered pricing

Question 19

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?

Accepted Answer

A) segmented pricing 
B) psychological pricing 
C) reference pricing 
D) promotional pricing 
E) dynamic pricing 
A) segmented pricing 
B) psychological pricing 
C) reference pricing 
D) promotional pricing 
E) dynamic pricing

Question 20

Consumer perceptions of the product's value set the ________ for prices.

Accepted Answer

A) demand curve 
B) floor 
C) ceiling 
D) variable cost 
E) image 
A) demand curve 
B) floor 
C) ceiling 
D) variable cost 
E) image

When using product bundle pricing,sellers combine several of their products and offer the bundle at an increased price for increased profit.

Fixed costs ________ as the number of units produced increases.

________ costs are the sum of the fixed and variable costs for any given level of production.

With product bundle pricing,sellers can combine several products and offer the bundle ________.

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

When setting prices,the company must consider its external environment.Describe four aspects of the external environment and how they affect businesses.

Consumers usually perceive higher-priced products as ________.

What is customer value-based pricing? Describe the two types of value-based pricing.

Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games.This is an example of ________.

Explain segmented pricing and its different forms.

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

Federal legislation on price-fixing states that sellers must set prices after talking to customers and competitors.

Hotline Long Distance Service uses captive product pricing for its phone call charges.Because this is a service,the price is broken into a fixed rate plus a ________.

Describe what a demand curve is and explain how it helps businesses.

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

The company designs what it considers to be a good product,totals the expenses of making the product,and sets a price that adds a standard markup to the cost of the product.This approach to pricing is called ________ pricing.

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

Under which type of geographic pricing strategy does each customer pay the same price for the product from the factory to its destination?

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?

Consumer perceptions of the product's value set the ________ for 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

When using product bundle pricing,sellers combine several of their products and offer the bundle at an increased price for increased profit.

Fixed costs ________ as the number of units produced increases.

________ costs are the sum of the fixed and variable costs for any given level of production.

With product bundle pricing,sellers can combine several products and offer the bundle ________.

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

When setting prices,the company must consider its external environment.Describe four aspects of the external environment and how they affect businesses.

Consumers usually perceive higher-priced products as ________.

What is customer value-based pricing? Describe the two types of value-based pricing.

Xbox 360 decides to add a free subscription to XBOX magazine with every game bought in an effort to differentiate its offering from PS3 games.This is an example of ________.

Explain segmented pricing and its different forms.

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

Federal legislation on price-fixing states that sellers must set prices after talking to customers and competitors.

Hotline Long Distance Service uses captive product pricing for its phone call charges.Because this is a service,the price is broken into a fixed rate plus a ________.

Describe what a demand curve is and explain how it helps businesses.

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

The company designs what it considers to be a good product,totals the expenses of making the product,and sets a price that adds a standard markup to the cost of the product.This approach to pricing is called ________ pricing.

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

Under which type of geographic pricing strategy does each customer pay the same price for the product from the factory to its destination?

What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?

Consumer perceptions of the product's value set the ________ for 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