Question 1

Define total costs.

Accepted Answer

Total costs are the

Question 2

Price setting is usually determined by ________ in large companies.

Accepted Answer

A)  top managers 
B)  external stakeholders 
C)  product managers 
D)  non-executive employees 
E)  the sales department 
A)  top managers 
B)  external stakeholders 
C)  product managers 
D)  non-executive employees 
E)  the sales department

Question 3

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)  the dominant firm model 
A)  pure competition 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  a pure monopoly 
E)  the dominant firm model

Question 4

In the aftermath of the Great Recession of 2008 to 2009, consumers ________.

Accepted Answer

A)  have become more value conscious 
B)  have become less value conscious 
C)  exhibit great interest in prestige pricing 
D)  show no interest in price cutting 
E)  rarely endorse value-for-money deals 
A)  have become more value conscious 
B)  have become less value conscious 
C)  exhibit great interest in prestige pricing 
D)  show no interest in price cutting 
E)  rarely endorse value-for-money deals

Question 5

Overhead costs are costs that do not vary with production or sales level.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements about break-even analysis is true?

Accepted Answer

A)  It is used to determine how much production experience a company must have in order to achieve desired efficiencies. 
B)  It is a technique used to calculate fixed costs. 
C)  It determines the amount of retained earnings a company will have during a given accounting period. 
D)  It is a technique marketers use to determine the relationship between supply and demand. 
E)  It is calculated by using variable costs, the unit price, and fixed costs. 
A)  It is used to determine how much production experience a company must have in order to achieve desired efficiencies. 
B)  It is a technique used to calculate fixed costs. 
C)  It determines the amount of retained earnings a company will have during a given accounting period. 
D)  It is a technique marketers use to determine the relationship between supply and demand. 
E)  It is calculated by using variable costs, the unit price, and fixed costs.

Question 7

A restaurant wants to use value-based pricing. It knows the costs of the ingredients in the food. It must also factor in ________ in determining customer satisfaction and value.

Accepted Answer

A)  wages of employees 
B)  costs of utilities of the restaurant 
C)  atmosphere and décor of the restaurant 
D)  travel distance for customers 
E)  percentage of bar patrons versus dining patrons 
A)  wages of employees 
B)  costs of utilities of the restaurant 
C)  atmosphere and décor of the restaurant 
D)  travel distance for customers 
E)  percentage of bar patrons versus dining patrons

Question 8

Price setting is usually determined by ________ in small companies.

Accepted Answer

A)  the top managers 
B)  the marketing department 
C)  the sales department 
D)  divisional managers 
E)  product managers 
A)  the top managers 
B)  the marketing department 
C)  the sales department 
D)  divisional managers 
E)  product managers

Question 9

As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________.

Accepted Answer

A)  increase in the diseconomies of scale 
B)  accumulated production experience 
C)  decrease in the economies of scale 
D)  increase in derived demand 
E)  increase in primary demand 
A)  increase in the diseconomies of scale 
B)  accumulated production experience 
C)  decrease in the economies of scale 
D)  increase in derived demand 
E)  increase in primary demand

Question 10

________ pricing uses buyers' perceptions of value as the key to pricing.

Accepted Answer

A)  Customer value-based 
B)  Cost-based 
C)  Time-based 
D)  Markup 
E)  Target return 
A)  Customer value-based 
B)  Cost-based 
C)  Time-based 
D)  Markup 
E)  Target return

Question 11

A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even?

Accepted Answer

A)  $10 
B)  $12 
C)  $14 
D)  $16 
E)  $20 
A)  $10 
B)  $12 
C)  $14 
D)  $16 
E)  $20

Question 12

Companies can legitimately charge a higher price if ________.

Accepted Answer

A)  consumers perceive that the company's product offers greater value 
B)  the demand for products manufactured by a firm is highly elastic 
C)  the cost of advertising is minimal 
D)  derived demand remains constant 
E)  consumers de-emphasize quality 
A)  consumers perceive that the company's product offers greater value 
B)  the demand for products manufactured by a firm is highly elastic 
C)  the cost of advertising is minimal 
D)  derived demand remains constant 
E)  consumers de-emphasize quality

Question 13

Briefly describe the process of value-based pricing.

Accepted Answer

The company first assesses customer need

Question 14

When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT ________.

Accepted Answer

A)  probable demand 
B)  likely profits 
C)  competitors' pricing 
D)  estimated break-even volumes 
E)  different prices 
A)  probable demand 
B)  likely profits 
C)  competitors' pricing 
D)  estimated break-even volumes 
E)  different prices

Question 15

What are the different internal factors that affect a firm's pricing decisions?

Accepted Answer

Beyond customer value perceptions, costs

Question 16

A downward-sloping experience curve is indicative of ________.

Accepted Answer

A)  the negative customer perception about a company's products 
B)  the falling demand for a company's products 
C)  the falling unit production cost of a company 
D)  the low quality of a company's products 
E)  slow and inadequate organizational learning 
A)  the negative customer perception about a company's products 
B)  the falling demand for a company's products 
C)  the falling unit production cost of a company 
D)  the low quality of a company's products 
E)  slow and inadequate organizational learning

Question 17

Fixed costs ________.

Accepted Answer

A)  are costs that do not vary with production or sales level 
B)  vary directly with the level of production 
C)  decrease with accumulated production experience 
D)  are the sum of the overhead and variable costs for any given level of production 
E)  represent the annual costs of inputs incurred by a company 
A)  are costs that do not vary with production or sales level 
B)  vary directly with the level of production 
C)  decrease with accumulated production experience 
D)  are the sum of the overhead and variable costs for any given level of production 
E)  represent the annual costs of inputs incurred by a company

Question 18

Compare and contrast pure competition and oligopolistic competition.

Accepted Answer

Under pure competition, the market consi

Question 19

In which situation is the market dominated by one seller?

Accepted Answer

A)  pure monopoly 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  pure competition 
E)  free market 
A)  pure monopoly 
B)  monopolistic competition 
C)  oligopolistic competition 
D)  pure competition 
E)  free market

Question 20

What sets the ceiling for product prices?

Accepted Answer

A)  product manufacturing costs 
B)  sellers' perceptions of the product's value 
C)  customer perceptions of the product's value 
D)  variable costs 
E)  break-even volume 
A)  product manufacturing costs 
B)  sellers' perceptions of the product's value 
C)  customer perceptions of the product's value 
D)  variable costs 
E)  break-even volume

Define total costs.

Price setting is usually determined by ________ in large companies.

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

In the aftermath of the Great Recession of 2008 to 2009, consumers ________.

Overhead costs are costs that do not vary with production or sales level.

Which of the following statements about break-even analysis is true?

A restaurant wants to use value-based pricing. It knows the costs of the ingredients in the food. It must also factor in ________ in determining customer satisfaction and value.

Price setting is usually determined by ________ in small companies.

As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________.

________ pricing uses buyers' perceptions of value as the key to pricing.

A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even?

Companies can legitimately charge a higher price if ________.

Briefly describe the process of value-based pricing.

When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT ________.

What are the different internal factors that affect a firm's pricing decisions?

A downward-sloping experience curve is indicative of ________.

Fixed costs ________.

Compare and contrast pure competition and oligopolistic competition.

In which situation is the market dominated by one seller?

What sets the ceiling for product prices?

Marketing: Creating Customer Value and Engagement

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

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 10: Pricing: Understanding and Capturing Customer Value

Define total costs.

Price setting is usually determined by ________ in large companies.

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

In the aftermath of the Great Recession of 2008 to 2009, consumers ________.

Overhead costs are costs that do not vary with production or sales level.

Which of the following statements about break-even analysis is true?

A restaurant wants to use value-based pricing. It knows the costs of the ingredients in the food. It must also factor in ________ in determining customer satisfaction and value.

Price setting is usually determined by ________ in small companies.

As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________.

________ pricing uses buyers' perceptions of value as the key to pricing.

A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even?

Companies can legitimately charge a higher price if ________.

Briefly describe the process of value-based pricing.

When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT ________.

What are the different internal factors that affect a firm's pricing decisions?

A downward-sloping experience curve is indicative of ________.

Fixed costs ________.

Compare and contrast pure competition and oligopolistic competition.

In which situation is the market dominated by one seller?

What sets the ceiling for product prices?

Marketing: Creating Customer Value and Engagement

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

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Developing New Products and Managing the Product Life Cycle

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters