Question 1

A company should set prices that will allow ________ to receive a fair profit.

Accepted Answer

A) resellers 
B) producers 
C) consumers 
D) the elderly 
E) competitors 
A) resellers 
B) producers 
C) consumers 
D) the elderly 
E) competitors

Question 2

Overhead cost is another term for variable cost.

Accepted Answer

A) True 
 B)False

Question 3

Some industries commonly use two-part pricing,where the price is broken down into a fixed fee and a fixed usage rate.

Accepted Answer

A) True 
 B)False

Question 4

EDLP is very similar to high-low pricing.

Accepted Answer

A) True 
 B)False

Question 5

The internet offers ________,where the price can easily be adjusted to meet changes in demand.

Accepted Answer

A) captive pricing 
B) dynamic pricing 
C) basing-point pricing 
D) price bundling 
E) cost-plus pricing 
A) captive pricing 
B) dynamic pricing 
C) basing-point pricing 
D) price bundling 
E) cost-plus pricing

Question 6

In two-part pricing,the price is broken down into a ________ fee plus a ________ ________ rate.

Accepted Answer

fixed,vari

Question 7

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Accepted Answer

A) price skimming 
B) trial pricing 
C) value pricing 
D) market-penetration pricing 
E) prestige pricing 
A) price skimming 
B) trial pricing 
C) value pricing 
D) market-penetration pricing 
E) prestige pricing

Question 8

The major price-adjustment strategies include discount and allowance pricing,segmented pricing,psychological pricing,promotional pricing,geographical pricing,dynamic pricing and international pricing.

Accepted Answer

A) True 
 B)False

Question 9

________ that influence pricing decisions include the nature of the market and demand.

Accepted Answer

A) Internal factors 
B) Elasticity factors 
C) External factors 
D) Target factors 
E) Domestic factors 
A) Internal factors 
B) Elasticity factors 
C) External factors 
D) Target factors 
E) Domestic factors

Question 10

Adding a standard mark-up to the cost of the product is known as cost-________ pricing.

Accepted Answer

The answer of Adding a standard mark-up to the cost...

Question 11

If demand changes greatly with a small change in price,we say the demand is ________.

Accepted Answer

A) inelastic 
B) variable 
C) elastic 
D) value-based 
E) fixed 
A) inelastic 
B) variable 
C) elastic 
D) value-based 
E) fixed

Question 12

The simplest pricing method is ________.

Accepted Answer

A) value-based pricing 
B) going-rate and sealed-bid pricing 
C) cost-plus pricing 
D) breakeven analysis 
E) target return pricing 
A) value-based pricing 
B) going-rate and sealed-bid pricing 
C) cost-plus pricing 
D) breakeven analysis 
E) target return pricing

Question 13

When consumers cannot judge the quality of a product because they lack information or skill,they are likely to perceive a higher-priced product as having higher quality.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

________ are prices that are adjusted continually to meet the characteristics and needs of the consumer.

Accepted Answer

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

Question 16

Product costs set a floor to a product's price;consumer perceptions of the product's value set the ceiling.

Accepted Answer

A) True 
 B)False

Question 17

Price discrimination is permitted under which of the following conditions?

Accepted Answer

A) when a manufacturer and reseller have agreed upon a specified retail price for a product 
B) when a manufacturer sells to retailers in different markets 
C) if a seller can prove its costs per unit are different when selling to different retailers 
D) if a seller advertises prices that are not actually available to consumers 
E) if a seller has not communicated with competitors before announcing prices 
A) when a manufacturer and reseller have agreed upon a specified retail price for a product 
B) when a manufacturer sells to retailers in different markets 
C) if a seller can prove its costs per unit are different when selling to different retailers 
D) if a seller advertises prices that are not actually available to consumers 
E) if a seller has not communicated with competitors before announcing prices

Question 18

Price is one of the most flexible marketing mix elements.

Accepted Answer

A) True 
 B)False

Question 19

The company designs what it considers to be a good product,totals the expenses of making the product and sets a price that adds a standard mark-up to the cost of the product.This approach to pricing is called ________ pricing.

Accepted Answer

A) value-based 
B) fixed cost 
C) cost-plus 
D) variable 
E) skimming 
A) value-based 
B) fixed cost 
C) cost-plus 
D) variable 
E) skimming

Question 20

If used too frequently or continuously,promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers.

Accepted Answer

A) True 
 B)False

A company should set prices that will allow ________ to receive a fair profit.

Overhead cost is another term for variable cost.

Some industries commonly use two-part pricing,where the price is broken down into a fixed fee and a fixed usage rate.

EDLP is very similar to high-low pricing.

The internet offers ________,where the price can easily be adjusted to meet changes in demand.

In two-part pricing,the price is broken down into a fee plus a rate.

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

The major price-adjustment strategies include discount and allowance pricing,segmented pricing,psychological pricing,promotional pricing,geographical pricing,dynamic pricing and international pricing.

________ that influence pricing decisions include the nature of the market and demand.

Adding a standard mark-up to the cost of the product is known as cost-________ pricing.

If demand changes greatly with a small change in price,we say the demand is ________.

The simplest pricing method is ________.

When consumers cannot judge the quality of a product because they lack information or skill,they are likely to perceive a higher-priced product as having higher quality.

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

________ are prices that are adjusted continually to meet the characteristics and needs of the consumer.

Product costs set a floor to a product's price;consumer perceptions of the product's value set the ceiling.

Price discrimination is permitted under which of the following conditions?

Price is one of the most flexible marketing mix elements.

The company designs what it considers to be a good product,totals the expenses of making the product and sets a price that adds a standard mark-up to the cost of the product.This approach to pricing is called ________ pricing.

If used too frequently or continuously,promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers.

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

A company should set prices that will allow ________ to receive a fair profit.

Overhead cost is another term for variable cost.

Some industries commonly use two-part pricing,where the price is broken down into a fixed fee and a fixed usage rate.

EDLP is very similar to high-low pricing.

The internet offers ________,where the price can easily be adjusted to meet changes in demand.

In two-part pricing,the price is broken down into a ________ fee plus a ________ ________ rate.

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

The major price-adjustment strategies include discount and allowance pricing,segmented pricing,psychological pricing,promotional pricing,geographical pricing,dynamic pricing and international pricing.

________ that influence pricing decisions include the nature of the market and demand.

Adding a standard mark-up to the cost of the product is known as cost-________ pricing.

If demand changes greatly with a small change in price,we say the demand is ________.

The simplest pricing method is ________.

When consumers cannot judge the quality of a product because they lack information or skill,they are likely to perceive a higher-priced product as having higher quality.

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

________ are prices that are adjusted continually to meet the characteristics and needs of the consumer.

Product costs set a floor to a product's price;consumer perceptions of the product's value set the ceiling.

Price discrimination is permitted under which of the following conditions?

Price is one of the most flexible marketing mix elements.

The company designs what it considers to be a good product,totals the expenses of making the product and sets a price that adds a standard mark-up to the cost of the product.This approach to pricing is called ________ pricing.

If used too frequently or continuously,promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers.

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

In two-part pricing,the price is broken down into a fee plus a rate.