Question 1

Which of the following types of price determination methods uses the price of producing and marketing the product as the basis for determining price?

Accepted Answer

A)  Cost-oriented 
B)  Supply-oriented 
C)  Competition-oriented 
D)  Demand-oriented 
A)  Cost-oriented 
B)  Supply-oriented 
C)  Competition-oriented 
D)  Demand-oriented A

Question 2

Which of the following is true of high-passive strategy pricing?

Accepted Answer

A)  It is used when competition for the market target is very high. 
B)  It emphasizes nonprice competitive factors. 
C)  It is primarily used by discount retailers. 
D)  It is used by producers whose brands are not familiar to the market. 
A)  It is used when competition for the market target is very high. 
B)  It emphasizes nonprice competitive factors. 
C)  It is primarily used by discount retailers. 
D)  It is used by producers whose brands are not familiar to the market. B

Question 3

When two or more competitors collude to explicitly or implicitly set prices,this practice is referred to as _____.

Accepted Answer

A)  horizontal price fixing 
B)  price discrimination 
C)  deceptive pricing 
D)  predatory pricing 
A)  horizontal price fixing 
B)  price discrimination 
C)  deceptive pricing 
D)  predatory pricing A

Question 4

Which of the following is the first step in cost analysis for pricing decisions?

Accepted Answer

A)  Estimating how cost varies with the volume of sales 
B)  Analyzing the cost competitive advantage of the product 
C)  Determining the components of the cost of the product 
D)  Estimating how much control management has over costs 
A)  Estimating how cost varies with the volume of sales 
B)  Analyzing the cost competitive advantage of the product 
C)  Determining the components of the cost of the product 
D)  Estimating how much control management has over costs

Question 5

_____ indicates whether costs and prices for various products decline by a given amount each time the number of units produced doubles.

Accepted Answer

A)  Economic value modeling 
B)  Activity-based costing 
C)  Customer value mapping 
D)  Learning-curve analysis 
A)  Economic value modeling 
B)  Activity-based costing 
C)  Customer value mapping 
D)  Learning-curve analysis

Question 6

_____ is the practice of charging different prices to different buyers for goods of similar grade and quality.

Accepted Answer

A)  Price fixing 
B)  Price discrimination 
C)  Deceptive pricing 
D)  Predatory pricing 
A)  Price fixing 
B)  Price discrimination 
C)  Deceptive pricing 
D)  Predatory pricing

Question 7

A low-active pricing strategy:

Accepted Answer

A)  emphasizes nonprice competitive factors. 
B)  is mainly used to gain margins in small market targets. 
C)  is most effective for discount retailers. 
D)  is an attractive strategy when competition for market target is high. 
A)  emphasizes nonprice competitive factors. 
B)  is mainly used to gain margins in small market targets. 
C)  is most effective for discount retailers. 
D)  is an attractive strategy when competition for market target is high.

Question 8

Which of the following types of pricing is considered a cost-oriented approach of pricing?

Accepted Answer

A)  Break-even pricing 
B)  Reverse auction pricing 
C)  Demand-oriented pricing 
D)  Internet auction pricing 
A)  Break-even pricing 
B)  Reverse auction pricing 
C)  Demand-oriented pricing 
D)  Internet auction pricing

Question 9

The second step in selecting a pricing strategy is analyzing the pricing situation.

Accepted Answer

A) True 
 B)False

Question 10

Reverse auction pricing involves sellers bidding for organizational buyers' purchases.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is the final step in selecting a pricing strategy?

Accepted Answer

A)  Setting pricing objectives 
B)  Determining specific prices and policies 
C)  Selecting pricing strategy 
D)  Analyzing the pricing situation 
A)  Setting pricing objectives 
B)  Determining specific prices and policies 
C)  Selecting pricing strategy 
D)  Analyzing the pricing situation

Question 12

_____ pricing methods consider estimated market response to alternative prices.

Accepted Answer

A)  Cost-oriented 
B)  Supply-oriented 
C)  Competition-oriented 
D)  Demand-oriented 
A)  Cost-oriented 
B)  Supply-oriented 
C)  Competition-oriented 
D)  Demand-oriented

Question 13

Value using _____ consists of the financial savings and gains provided to customers due to purchase of the firm's brand instead of competitors' brands.

Accepted Answer

A)  customer value mapping 
B)  economic value modeling 
C)  user lifetime value 
D)  customer value proposition 
A)  customer value mapping 
B)  economic value modeling 
C)  user lifetime value 
D)  customer value proposition

Question 14

Price cuts in economic downturns are primarily aimed at:

Accepted Answer

A)  increasing short-term profits. 
B)  defending a firm's position vigorously. 
C)  compensating for low quality products. 
D)  capturing market share. 
A)  increasing short-term profits. 
B)  defending a firm's position vigorously. 
C)  compensating for low quality products. 
D)  capturing market share.

Question 15

The core issue in pricing is finding out what value requirements (benefits-costs) the buyer places on the product or brand.

Accepted Answer

A) True 
 B)False

Question 16

Both revenues and costs need to be taken into account in selecting pricing strategies.

Accepted Answer

A) True 
 B)False

Question 17

Give an account of predatory pricing.What are its ethical implications?

Accepted Answer

Predatory pricing is charging a very low

Question 18

The competitor is the frame of reference for demand-oriented pricing methods.

Accepted Answer

A) True 
 B)False

Question 19

When using markup pricing,which of the following formulas determines the selling price?

Accepted Answer

A)  Price = Average unit cost divided by Markup percentage 
B)  Price = Average unit cost divided by 1 minus Markup percentage 
C)  Price = Unit cost minus Markup price 
D)  Price = Total fixed costs divided by Unit price minus Unit variable cost 
A)  Price = Average unit cost divided by Markup percentage 
B)  Price = Average unit cost divided by 1 minus Markup percentage 
C)  Price = Unit cost minus Markup price 
D)  Price = Total fixed costs divided by Unit price minus Unit variable cost

Question 20

Customer value mapping estimates are based on the differentiated benefits that a customer receives from a product.

Accepted Answer

A) True 
 B)False

Which of the following types of price determination methods uses the price of producing and marketing the product as the basis for determining price?

Which of the following is true of high-passive strategy pricing?

When two or more competitors collude to explicitly or implicitly set prices,this practice is referred to as _____.

Which of the following is the first step in cost analysis for pricing decisions?

_____ indicates whether costs and prices for various products decline by a given amount each time the number of units produced doubles.

_____ is the practice of charging different prices to different buyers for goods of similar grade and quality.

A low-active pricing strategy:

Which of the following types of pricing is considered a cost-oriented approach of pricing?

The second step in selecting a pricing strategy is analyzing the pricing situation.

Reverse auction pricing involves sellers bidding for organizational buyers' purchases.

Which of the following is the final step in selecting a pricing strategy?

_____ pricing methods consider estimated market response to alternative prices.

Value using _____ consists of the financial savings and gains provided to customers due to purchase of the firm's brand instead of competitors' brands.

Price cuts in economic downturns are primarily aimed at:

The core issue in pricing is finding out what value requirements (benefits-costs) the buyer places on the product or brand.

Both revenues and costs need to be taken into account in selecting pricing strategies.

Give an account of predatory pricing.What are its ethical implications?

The competitor is the frame of reference for demand-oriented pricing methods.

When using markup pricing,which of the following formulas determines the selling price?

Customer value mapping estimates are based on the differentiated benefits that a customer receives from a product.

New Challenges for Market Driven Strategy

Markets and Competitive Space

Strategic Market Segmentation

Strategic Customer Management: Systems, ethics, and Social Responsibility

Capabilities for Learning About Customers and Markets

Market Targeting and Strategic Positioning

Strategic Relationships

Innovation and New Product Strategy

Strategic Brand Management

Value Chain Strategy

Promotion, advertising, and Sales Promotion Strategies

Sales, digital, and Direct Marketing Strategies

Designing Market-Driven Organizations

Strategic Marketing Implementation and Control

Filters

Exam 11: Pricing Strategy

Which of the following types of price determination methods uses the price of producing and marketing the product as the basis for determining price?

Which of the following is true of high-passive strategy pricing?

When two or more competitors collude to explicitly or implicitly set prices,this practice is referred to as _____.

Which of the following is the first step in cost analysis for pricing decisions?

_____ indicates whether costs and prices for various products decline by a given amount each time the number of units produced doubles.

_____ is the practice of charging different prices to different buyers for goods of similar grade and quality.

A low-active pricing strategy:

Which of the following types of pricing is considered a cost-oriented approach of pricing?

The second step in selecting a pricing strategy is analyzing the pricing situation.

Reverse auction pricing involves sellers bidding for organizational buyers' purchases.

Which of the following is the final step in selecting a pricing strategy?

_____ pricing methods consider estimated market response to alternative prices.

Value using _____ consists of the financial savings and gains provided to customers due to purchase of the firm's brand instead of competitors' brands.

Price cuts in economic downturns are primarily aimed at:

The core issue in pricing is finding out what value requirements (benefits-costs) the buyer places on the product or brand.

Both revenues and costs need to be taken into account in selecting pricing strategies.

Give an account of predatory pricing.What are its ethical implications?

The competitor is the frame of reference for demand-oriented pricing methods.

When using markup pricing,which of the following formulas determines the selling price?

Customer value mapping estimates are based on the differentiated benefits that a customer receives from a product.

New Challenges for Market Driven Strategy

Markets and Competitive Space

Strategic Market Segmentation

Strategic Customer Management: Systems, ethics, and Social Responsibility

Capabilities for Learning About Customers and Markets

Market Targeting and Strategic Positioning

Strategic Relationships

Innovation and New Product Strategy

Strategic Brand Management

Value Chain Strategy

Promotion, advertising, and Sales Promotion Strategies

Sales, digital, and Direct Marketing Strategies

Designing Market-Driven Organizations

Strategic Marketing Implementation and Control

Filters