Question 1

All of the following conditions support marketing skimming pricing EXCEPT which one?

Accepted Answer

A) Product quality and image must support the higher prices. 
B) Production costs cannot be so high that they cancel the advantage of charging more. 
C) Competitors should not be able to enter the market easily and undercut high prices. 
D) Production and distribution costs should decrease with any increase in sales volume. 
E) Buyers must be willing and able to pay higher prices. 
A) Product quality and image must support the higher prices. 
B) Production costs cannot be so high that they cancel the advantage of charging more. 
C) Competitors should not be able to enter the market easily and undercut high prices. 
D) Production and distribution costs should decrease with any increase in sales volume. 
E) Buyers must be willing and able to pay higher prices.

Question 2

When using price steps,the seller must establish perceived ________ that support(s)the price differences among the products in the line.

Accepted Answer

A) non-price competition 
B) value differences 
C) quantity levels 
D) images 
E) strategies 
A) non-price competition 
B) value differences 
C) quantity levels 
D) images 
E) strategies

Question 3

Australian companies are generally free to charge whatever prices they wish.

Accepted Answer

A) True 
 B)False

Question 4

Under ________,the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Accepted Answer

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

Question 5

It is important to remember that '________ value' is not the same as '________ price'.

Accepted Answer

The answer of It is important to remember that '________...

Question 6

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 7

Costs that do not vary with production or sales level are referred to as ________ costs.

Accepted Answer

A) fixed 
B) variable 
C) target 
D) total 
E) unit 
A) fixed 
B) variable 
C) target 
D) total 
E) unit

Question 8

Measuring ________ can be difficult.A company might conduct surveys or experiments to test this in the different products they offer.

Accepted Answer

A) target returns 
B) fixed costs 
C) perceived value 
D) breakeven pricing 
E) variable costs 
A) target returns 
B) fixed costs 
C) perceived value 
D) breakeven pricing 
E) variable costs

Question 9

Swatch surveyed the market and identified an unserved segment of watch buyers.Using these results,they created a watch at a price consumers were willing to pay.The unorthodox order of this marketing mix decision is an example of ________.

Accepted Answer

A) competition-based pricing 
B) cost-plus pricing 
C) target costing 
D) value-based pricing 
E) penetration pricing 
A) competition-based pricing 
B) cost-plus pricing 
C) target costing 
D) value-based pricing 
E) penetration pricing

Question 10

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

Accepted Answer

A) revenue 
B) variable costs 
C) expenses 
D) fixed costs 
E) stability 
A) revenue 
B) variable costs 
C) expenses 
D) fixed costs 
E) stability

Question 11

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) anti-trust agreements 
A) pure competition 
B) monopolistic competition 
C) oligopolistic competition 
D) a pure monopoly 
E) anti-trust agreements

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product.

Accepted Answer

A) low;low mark-ups 
B) high;low mark-ups 
C) low;high mark-ups 
D) high;high mark-ups 
E) moderately;moderate mark-ups 
A) low;low mark-ups 
B) high;low mark-ups 
C) low;high mark-ups 
D) high;high mark-ups 
E) moderately;moderate mark-ups

Question 14

The Sydney Opera House charges different prices for seats in different areas of the concert hall,even though the costs of supplying these seats are the same.What is this form of pricing called?

Accepted Answer

A) location-based pricing 
B) price skimming 
C) functional pricing 
D) customer-segment pricing 
E) dynamic pricing 
A) location-based pricing 
B) price skimming 
C) functional pricing 
D) customer-segment pricing 
E) dynamic pricing

Question 15

When Circuit Town Electronics sets its televisions at three price levels of $699,$899 and $1099,it is using ________.

Accepted Answer

A) product line pricing 
B) market-skimming pricing 
C) market-penetration pricing 
D) breakeven pricing 
E) target return pricing 
A) product line pricing 
B) market-skimming pricing 
C) market-penetration pricing 
D) breakeven pricing 
E) target return pricing

Question 16

A breakeven chart shows the total cost and total revenue expected at various sales volume levels.

Accepted Answer

A) True 
 B)False

Question 17

The hardware retailer,Bunnings,is positioned as a low-cost retailer.It regularly advertises that it 'won't be beaten on price' and gives customers the undertaking that 'if you happen to find a cheaper price on a stocked item we'll beat it by 10%'.This is an example of which type of pricing?

Accepted Answer

A) penetration pricing 
B) predatory pricing 
C) signpost pricing 
D) loss leadering 
E) price matching guarantees 
A) penetration pricing 
B) predatory pricing 
C) signpost pricing 
D) loss leadering 
E) price matching guarantees

Question 18

The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.In normal cases,the higher the price,the higher the demand.

Accepted Answer

A) True 
 B)False

Question 19

Following a recent rise in energy costs,a home-owner has decided to invest in a solar energy system but has no real idea of costs.Nevertheless,based on what she has read and heard about solar panels,the home-owner decides that she is prepared to pay between $3000 and $4000 for a 1.5 Kw inverter.This price range represents the home-owner's reference prices.

Accepted Answer

A) True 
 B)False

Question 20

The most important pieces of legislation affecting pricing is the ________,which prohibits price fixing,resale price maintenance and particular forms of price discrimination,as well as predatory pricing by monopolistically positioned competitors and deceptive pricing.

Accepted Answer

A) Trade Practices Act 
B) AANA Code of Ethics 
C) The Manufacturer's Pricing Covenant 
D) Competition and Consumer Act 
E) None of the above. 
A) Trade Practices Act 
B) AANA Code of Ethics 
C) The Manufacturer's Pricing Covenant 
D) Competition and Consumer Act 
E) None of the above.

All of the following conditions support marketing skimming pricing EXCEPT which one?

When using price steps,the seller must establish perceived ________ that support(s)the price differences among the products in the line.

Australian companies are generally free to charge whatever prices they wish.

Under ________,the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

It is important to remember that ' value' is not the same as ' price'.

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

Costs that do not vary with production or sales level are referred to as ________ costs.

Measuring ________ can be difficult.A company might conduct surveys or experiments to test this in the different products they offer.

Swatch surveyed the market and identified an unserved segment of watch buyers.Using these results,they created a watch at a price consumers were willing to pay.The unorthodox order of this marketing mix decision is an example of ________.

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

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

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

It is most typical for producers who use captive-product pricing to set the price of the main product and set on the supplies necessary to use the product.

The Sydney Opera House charges different prices for seats in different areas of the concert hall,even though the costs of supplying these seats are the same.What is this form of pricing called?

When Circuit Town Electronics sets its televisions at three price levels of $699,$899 and $1099,it is using ________.

A breakeven chart shows the total cost and total revenue expected at various sales volume levels.

The hardware retailer,Bunnings,is positioned as a low-cost retailer.It regularly advertises that it 'won't be beaten on price' and gives customers the undertaking that 'if you happen to find a cheaper price on a stocked item we'll beat it by 10%'.This is an example of which type of pricing?

The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.In normal cases,the higher the price,the higher the demand.

The most important pieces of legislation affecting pricing is the ________,which prohibits price fixing,resale price maintenance and particular forms of price discrimination,as well as predatory pricing by monopolistically positioned competitors and deceptive pricing.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Engagement, value and Relationships

The Marketplace and Customers: Analysing the Environment

Marketing Analytics: Gaining Customer Insights

Buyer Behaviour: Understanding Consumer and Business Buyers

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, services and Brands: Offering Customer Value

New Products: Developing and Managing Innovation

Placement: Customer Value Fulfilment

Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion: Creating Value in Relationships

Direct and Digital Marketing: Interactivity and Fulfilment

Sustainable Marketing: Social Responsibility, ethics and Legal Compliance

Filters

Exam 9: Pricing: Capturing Customer Value

All of the following conditions support marketing skimming pricing EXCEPT which one?

When using price steps,the seller must establish perceived ________ that support(s)the price differences among the products in the line.

Australian companies are generally free to charge whatever prices they wish.

Under ________,the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

It is important to remember that '________ value' is not the same as '________ price'.

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

Costs that do not vary with production or sales level are referred to as ________ costs.

Measuring ________ can be difficult.A company might conduct surveys or experiments to test this in the different products they offer.

Swatch surveyed the market and identified an unserved segment of watch buyers.Using these results,they created a watch at a price consumers were willing to pay.The unorthodox order of this marketing mix decision is an example of ________.

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

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

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

It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product.

The Sydney Opera House charges different prices for seats in different areas of the concert hall,even though the costs of supplying these seats are the same.What is this form of pricing called?

When Circuit Town Electronics sets its televisions at three price levels of $699,$899 and $1099,it is using ________.

A breakeven chart shows the total cost and total revenue expected at various sales volume levels.

The hardware retailer,Bunnings,is positioned as a low-cost retailer.It regularly advertises that it 'won't be beaten on price' and gives customers the undertaking that 'if you happen to find a cheaper price on a stocked item we'll beat it by 10%'.This is an example of which type of pricing?

The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.In normal cases,the higher the price,the higher the demand.

The most important pieces of legislation affecting pricing is the ________,which prohibits price fixing,resale price maintenance and particular forms of price discrimination,as well as predatory pricing by monopolistically positioned competitors and deceptive pricing.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Engagement, value and Relationships

The Marketplace and Customers: Analysing the Environment

Marketing Analytics: Gaining Customer Insights

Buyer Behaviour: Understanding Consumer and Business Buyers

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, services and Brands: Offering Customer Value

New Products: Developing and Managing Innovation

Placement: Customer Value Fulfilment

Communicating Customer Value: Advertising and Public Relations

Personal Selling and Sales Promotion: Creating Value in Relationships

Direct and Digital Marketing: Interactivity and Fulfilment

Sustainable Marketing: Social Responsibility, ethics and Legal Compliance

Filters

It is important to remember that ' value' is not the same as ' price'.

It is most typical for producers who use captive-product pricing to set the price of the main product and set on the supplies necessary to use the product.