Exam 10: Price: What Is the Value Proposition Worth

The method of setting prices in which marketers total all the costs for the product and then add an amount to arrive at the selling price is called ________.

If a product has a close substitute, its demand will likely be ________.

________ are the per-unit costs of production that will fluctuate depending on how many units or individual products a firm produces.

How is the price elasticity of demand calculated?

By using ________, a company deliberately sets a low price with the intention of driving its competition out of business.

Which of the following is a set price or price range in consumers' minds that they refer to in evaluating a product's price?

To encourage customers to buy the $799 dining room suite, the furniture store set a much cheaper and shoddily made set next to the more expensive furniture, thereby using the contrast effect.

In a market with ________, there are many sellers, each offering a slightly different product. Firms can differentiate products and focus on nonprice competition.

A list price is also referred to as a ________.

The value of something we give up in order to obtain something else is referred to as a(n) ________.

Price segmentation is the practice of charging different prices to different market segments for the same product.

Companies bringing out a new product can choose between three broad strategies: a skimming price, penetration pricing, and trial pricing. Distinguish among the three.

________ is the assignment of value, or the amount a consumer must give to receive a product.

What are the advantages of digital currencies such as Bitcoin?

Surge pricing occurs when a company raises the price of its product when demand for the product goes up and lowers the price of its product when demand goes down.

Which of the following is true about the demand curve?

In which type of pricing is the selling price based on an estimate of volume or quantity a firm can sell in different markets at different prices?

Which of the following is a reason that a marketer would choose a penetration pricing strategy?

In some states, unfair trade practices acts are designed to ________.

A retailer that uses the list price for products but runs frequent promotions that heavily discount some products is using which type of pricing strategy?