Question 1

Which of the following statements about break-even analysis is most likely true?

Accepted Answer

A)  It fails to consider customer value and the relationship between price and demand. 
B)  It is used to determine the maximum price that can be set on a product. 
C)  It is a tool used to calculate fixed costs. 
D)  It determines how customer-perceived value changes with value-added pricing. 
E)  It is a tool marketers use to examine the relationship between supply and demand. 
A)  It fails to consider customer value and the relationship between price and demand. 
B)  It is used to determine the maximum price that can be set on a product. 
C)  It is a tool used to calculate fixed costs. 
D)  It determines how customer-perceived value changes with value-added pricing. 
E)  It is a tool marketers use to examine the relationship between supply and demand.

Question 2

costs refer to the sum of the fixed and variable costs for any given level of production.

Accepted Answer

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

Question 3

What are the two different types of costs a company incurs? Explain with examples.

Accepted Answer

A company's costs take two forms: fixed

Question 4

pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.

Accepted Answer

A)  Psychological 
B)  Deceptive 
C)  Cost-plus 
D)  Allowance 
E)  Predatory 
A)  Psychological 
B)  Deceptive 
C)  Cost-plus 
D)  Allowance 
E)  Predatory

Question 5

What is the difference between price-fixing and predatory pricing? How do governments discourage firms from engaging in such practices?

Accepted Answer

Federal legislation on price-fixing stat

Question 6

Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product?

Accepted Answer

A)  A low-price position of the product is maintained. 
B)  Low prices promote more market growth than high prices. 
C)  Lower-priced alternatives can enter the market easily. 
D)  The product's quality and image must support its high price. 
E)  The product's price matches its manufacturing costs. 
A)  A low-price position of the product is maintained. 
B)  Low prices promote more market growth than high prices. 
C)  Lower-priced alternatives can enter the market easily. 
D)  The product's quality and image must support its high price. 
E)  The product's price matches its manufacturing costs.

Question 7

Which of the following pricing strategies is the opposite of FOB-origin pricing?

Accepted Answer

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

Question 8

Identify a few situations in which price cuts or price increases might be necessary.

Accepted Answer

Several situations may lead a firm to co

Question 9

In monopolistic competition, the market is dominated by one seller.

Accepted Answer

A) True 
 B)False

Question 10

prices are carried in buyers' minds and used when looking at a given product.

Accepted Answer

A)  Geographical 
B)  Reference 
C)  Captive-product 
D)  Dynamic 
E)  Promotional 
A)  Geographical 
B)  Reference 
C)  Captive-product 
D)  Dynamic 
E)  Promotional

Question 11

Under , the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.

Accepted Answer

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

Question 12

When establishing prices, it's important for a manager to understand that "good value" is not the same as .

Accepted Answer

A)  "perceived value" 
B)  "high price" 
C)  "low price" 
D)  "everyday value" 
E)  "bargain basement" 
A)  "perceived value" 
B)  "high price" 
C)  "low price" 
D)  "everyday value" 
E)  "bargain basement"

Question 13

The relationship between the price charged for a product and the resulting demand level can be shown in a(n) .

Accepted Answer

A)  inelastic demand slope 
B)  elastic demand slope 
C)  demand curve 
D)  break-even chart 
E)  supply curve 
A)  inelastic demand slope 
B)  elastic demand slope 
C)  demand curve 
D)  break-even chart 
E)  supply curve

Question 14

With reference to pricing in different types of markets, compare oligopolistic competition with a pure monopoly.

Accepted Answer

Under oligopolistic competition, the mar

Question 15

Posh Collections introduced a new watch to appeal to upscale consumers. The company will most likely use a(n) _ strategy.

Accepted Answer

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

Question 16

What is segmented pricing? Briefly describe the different types of segmented pricing.

Accepted Answer

In segmented pricing, the company sells

Question 17

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Accepted Answer

A) True 
 B)False

Question 18

Freight-absorption pricing is used for market skimming and holding on to monopolistic markets.

Accepted Answer

A) True 
 B)False

Question 19

Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a .

Accepted Answer

A)  seasonal discount 
B)  cash discount 
C)  functional discount 
D)  by-product allowance 
E)  trade-in allowance 
A)  seasonal discount 
B)  cash discount 
C)  functional discount 
D)  by-product allowance 
E)  trade-in allowance

Question 20

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50. This is referred to as pricing.

Accepted Answer

A)  captive-product 
B)  product bundle 
C)  product line 
D)  by-product 
E)  optional-product 
A)  captive-product 
B)  product bundle 
C)  product line 
D)  by-product 
E)  optional-product

Which of the following statements about break-even analysis is most likely true?

costs refer to the sum of the fixed and variable costs for any given level of production.

What are the two different types of costs a company incurs? Explain with examples.

pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.

What is the difference between price-fixing and predatory pricing? How do governments discourage firms from engaging in such practices?

Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product?

Which of the following pricing strategies is the opposite of FOB-origin pricing?

Identify a few situations in which price cuts or price increases might be necessary.

In monopolistic competition, the market is dominated by one seller.

prices are carried in buyers' minds and used when looking at a given product.

Under , the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.

When establishing prices, it's important for a manager to understand that "good value" is not the same as .

The relationship between the price charged for a product and the resulting demand level can be shown in a(n) .

With reference to pricing in different types of markets, compare oligopolistic competition with a pure monopoly.

Posh Collections introduced a new watch to appeal to upscale consumers. The company will most likely use a(n) _ strategy.

What is segmented pricing? Briefly describe the different types of segmented pricing.

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Freight-absorption pricing is used for market skimming and holding on to monopolistic markets.

Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a .

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50. This is referred to as 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

Understanding Consumer and Business Buyer Behaviour

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

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 9: Pricing: Understanding and Capturing Customer Value

Which of the following statements about break-even analysis is most likely true?

costs refer to the sum of the fixed and variable costs for any given level of production.

What are the two different types of costs a company incurs? Explain with examples.

pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers.

What is the difference between price-fixing and predatory pricing? How do governments discourage firms from engaging in such practices?

Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product?

Which of the following pricing strategies is the opposite of FOB-origin pricing?

Identify a few situations in which price cuts or price increases might be necessary.

In monopolistic competition, the market is dominated by one seller.

prices are carried in buyers' minds and used when looking at a given product.

Under , the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.

When establishing prices, it's important for a manager to understand that "good value" is not the same as .

The relationship between the price charged for a product and the resulting demand level can be shown in a(n) .

With reference to pricing in different types of markets, compare oligopolistic competition with a pure monopoly.

Posh Collections introduced a new watch to appeal to upscale consumers. The company will most likely use a(n) _ strategy.

What is segmented pricing? Briefly describe the different types of segmented pricing.

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Freight-absorption pricing is used for market skimming and holding on to monopolistic markets.

Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a .

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50. This is referred to as 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

Understanding Consumer and Business Buyer Behaviour

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

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters