Question 1

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

Accepted Answer

A) value-based pricing 
B) going-rate pricing 
C) breakeven pricing 
D) good-value pricing 
E) A and C 
A) value-based pricing 
B) going-rate pricing 
C) breakeven pricing 
D) good-value pricing 
E) A and C

Question 2

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

Accepted Answer

A) Market-skimming 
B) Market-penetration 
C) Below-market 
D) Value-based 
E) Leader 
A) Market-skimming 
B) Market-penetration 
C) Below-market 
D) Value-based 
E) Leader

Question 3

A company considering a price change should be concerned about consumers' reactions but not competitors' reactions.

Accepted Answer

A) True 
 B)False

Question 4

Under pure competition,the market consists of one or a few buyers and sellers.

Accepted Answer

A) True 
 B)False

Question 5

Many consumers perceive higher-priced products as ________.

Accepted Answer

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

Question 6

Demand and consumer value perceptions set the floor for prices.

Accepted Answer

A) True 
 B)False

Question 7

Godfreys will give customers $100 for a used vacuum cleaner,regardless of condition,when they purchase a new vacuum or sewing machine.This essentially reduces the price by $100.What is this type of discount called?

Accepted Answer

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

Question 8

Breakeven pricing,or a variation called ________,is when the firm tries to determine the price at which it will break even or make the profit it is seeking.

Accepted Answer

A) competition-based pricing 
B) target-return pricing 
C) fixed cost 
D) value-based pricing 
E) customer-based pricing 
A) competition-based pricing 
B) target-return pricing 
C) fixed cost 
D) value-based pricing 
E) customer-based pricing

Question 9

Which of the following is an external factor that affects pricing decisions?

Accepted Answer

A) the wages of production workers 
B) the economy 
C) the salaries of management 
D) profit objectives 
E) the company's marketing strategy 
A) the wages of production workers 
B) the economy 
C) the salaries of management 
D) profit objectives 
E) the company's marketing strategy

Question 10

In ________ pricing,the company first assesses customer needs and value perceptions.

Accepted Answer

The answer of In ________ pricing,the company first assesses customer...

Question 11

Compare cost-based pricing and value-based pricing.

Accepted Answer

Although costs are an important consider

Question 12

The relationship between the price charged and the resulting demand level can be shown as the ________.

Accepted Answer

A) demand curve 
B) variable cost 
C) target cost 
D) breakeven chart 
E) experience curve 
A) demand curve 
B) variable cost 
C) target cost 
D) breakeven chart 
E) experience curve

Question 13

In Lima,Peru,20 stores specialising in selling the same quality and brand of wheat products are located on one street.An individual seller cannot charge more than the going price without the risk of losing business to the other stores.This is an example of what type of market?

Accepted Answer

A) pure competition 
B) monopolistic competition 
C) oligopolistic competition 
D) pure monopoly 
E) socialist 
A) pure competition 
B) monopolistic competition 
C) oligopolistic competition 
D) pure monopoly 
E) socialist

Question 14

In retail settings,________ involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

Accepted Answer

A) high-low pricing 
B) target return pricing 
C) cost-plus pricing 
D) everyday low pricing (EDLP) 
E) penetration pricing 
A) high-low pricing 
B) target return pricing 
C) cost-plus pricing 
D) everyday low pricing (EDLP) 
E) penetration pricing

Question 15

A marketer's fixed costs are $400 000,the variable cost is $16,and the company expects the product to sell for $24.What is the breakeven volume in units?

Accepted Answer

To estimate the breakeven point,use the

Question 16

Deceptive pricing issues include scanner fraud and price confusion

Accepted Answer

A) True 
 B)False

Question 17

For consumers,the number '9' at the end of a price often signals a bargain

Accepted Answer

A) True 
B) False 
A) True 
B) False

Question 18

Which of the following is an external factor that affects pricing decisions?

Accepted Answer

A) the salaries of production management 
B) competition 
C) the salaries of finance management 
D) overall pricing objectives 
E) the company's overall marketing strategy 
A) the salaries of production management 
B) competition 
C) the salaries of finance management 
D) overall pricing objectives 
E) the company's overall marketing strategy

Question 19

________ is the amount of money charged for a product or service.

Accepted Answer

A) Experience curve 
B) Demand curve 
C) Price 
D) Wage 
E) Salary 
A) Experience curve 
B) Demand curve 
C) Price 
D) Wage 
E) Salary

Question 20

________ prices are the prices that a buyer carries in his or her mind and refers to when looking at a given product.

Accepted Answer

A) Psychological 
B) Reference 
C) Promotional 
D) Geographical 
E) Dynamic 
A) Psychological 
B) Reference 
C) Promotional 
D) Geographical 
E) Dynamic

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

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

A company considering a price change should be concerned about consumers' reactions but not competitors' reactions.

Under pure competition,the market consists of one or a few buyers and sellers.

Many consumers perceive higher-priced products as ________.

Demand and consumer value perceptions set the floor for prices.

Godfreys will give customers $100 for a used vacuum cleaner,regardless of condition,when they purchase a new vacuum or sewing machine.This essentially reduces the price by $100.What is this type of discount called?

Breakeven pricing,or a variation called ________,is when the firm tries to determine the price at which it will break even or make the profit it is seeking.

Which of the following is an external factor that affects pricing decisions?

In ________ pricing,the company first assesses customer needs and value perceptions.

Compare cost-based pricing and value-based pricing.

The relationship between the price charged and the resulting demand level can be shown as the ________.

In Lima,Peru,20 stores specialising in selling the same quality and brand of wheat products are located on one street.An individual seller cannot charge more than the going price without the risk of losing business to the other stores.This is an example of what type of market?

In retail settings,________ involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

A marketer's fixed costs are $400 000,the variable cost is $16,and the company expects the product to sell for $24.What is the breakeven volume in units?

Deceptive pricing issues include scanner fraud and price confusion

For consumers,the number '9' at the end of a price often signals a bargain

Which of the following is an external factor that affects pricing decisions?

________ is the amount of money charged for a product or service.

________ prices are the prices that a buyer carries in his or her mind and refers to when looking at a given product.

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

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Exam 9: Pricing: Capturing Customer Value

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

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

A company considering a price change should be concerned about consumers' reactions but not competitors' reactions.

Under pure competition,the market consists of one or a few buyers and sellers.

Many consumers perceive higher-priced products as ________.

Demand and consumer value perceptions set the floor for prices.

Godfreys will give customers $100 for a used vacuum cleaner,regardless of condition,when they purchase a new vacuum or sewing machine.This essentially reduces the price by $100.What is this type of discount called?

Breakeven pricing,or a variation called ________,is when the firm tries to determine the price at which it will break even or make the profit it is seeking.

Which of the following is an external factor that affects pricing decisions?

In ________ pricing,the company first assesses customer needs and value perceptions.

Compare cost-based pricing and value-based pricing.

The relationship between the price charged and the resulting demand level can be shown as the ________.

In Lima,Peru,20 stores specialising in selling the same quality and brand of wheat products are located on one street.An individual seller cannot charge more than the going price without the risk of losing business to the other stores.This is an example of what type of market?

In retail settings,________ involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

A marketer's fixed costs are $400 000,the variable cost is $16,and the company expects the product to sell for $24.What is the breakeven volume in units?

Deceptive pricing issues include scanner fraud and price confusion

For consumers,the number '9' at the end of a price often signals a bargain

Which of the following is an external factor that affects pricing decisions?

________ is the amount of money charged for a product or service.

________ prices are the prices that a buyer carries in his or her mind and refers to when looking at a given product.

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

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