Question 1

Which of the following statements is true?

Accepted Answer

A) The more value that a product gives compared to the competition, the price should be the same as competitors' prices 
B) The less value that a product gives compared to the competition, the higher the price that can be charged 
C) The more value that a product gives compared to the competition, the lower the price that can be charged 
D) The more value that a product gives compared to the competition, the higher the price that can be charged 
A) The more value that a product gives compared to the competition, the price should be the same as competitors' prices 
B) The less value that a product gives compared to the competition, the higher the price that can be charged 
C) The more value that a product gives compared to the competition, the lower the price that can be charged 
D) The more value that a product gives compared to the competition, the higher the price that can be charged D

Question 2

Which of the following is not used as a useful technique for uncovering customers' value perceptions?

Accepted Answer

A) Trade-off analysis 
B) Break even analysis 
C) Economic value to the customer analysis 
D) Experimentation 
A) Trade-off analysis 
B) Break even analysis 
C) Economic value to the customer analysis 
D) Experimentation B

Question 3

In order to secure distribution channels when a product is being launched, organizations must ensure that retailers obtain which of the following?

Accepted Answer

A) Reduced costs 
B) Good value to the customer 
C) Good margins 
D) Reduced variable costs 
A) Reduced costs 
B) Good value to the customer 
C) Good margins 
D) Reduced variable costs C

Question 4

Many organizational purchases are motivated by economic value considerations since reducing costs and increasing revenue are prime objectives of many companies.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a problem associated with cost-based pricing?

Accepted Answer

A) Time consuming & difficult to calculate fixed and variable costs 
B) Focuses on external issues rather than those internal 
C) May be hard to allocate costs in multi-product firms 
D) All of the above 
A) Time consuming & difficult to calculate fixed and variable costs 
B) Focuses on external issues rather than those internal 
C) May be hard to allocate costs in multi-product firms 
D) All of the above

Question 6

When estimating a competitor's reaction to a price change which of the following should be assessed?

Accepted Answer

A) Their strategic objectives 
B) Their past history 
C) Their self interest 
D) All of the above should be considered 
A) Their strategic objectives 
B) Their past history 
C) Their self interest 
D) All of the above should be considered

Question 7

Pricing strategies which have a strong internal orientation are usually which of the following?

Accepted Answer

A) Market based 
B) Competitor based 
C) Cost based 
D) Customer based 
A) Market based 
B) Competitor based 
C) Cost based 
D) Customer based

Question 8

Cost-based pricing gives an indication of which of the following?

Accepted Answer

A) The maximum price that can be extracted from customers 
B) The minimum price that needs to be charged to break even 
C) The costs involved in the production 
D) The costs involved in the production, marketing and distribution of a product 
A) The maximum price that can be extracted from customers 
B) The minimum price that needs to be charged to break even 
C) The costs involved in the production 
D) The costs involved in the production, marketing and distribution of a product

Question 9

Companies may decide to raise prices when embarking on a harvest objective.

Accepted Answer

A) True 
 B)False

Question 10

Marketing-orientated companies need to take account of where the price of a new product fits into its existing _______ line.

Accepted Answer

A) brand 
B) product 
C) company 
D) competitive 
A) brand 
B) product 
C) company 
D) competitive

Question 11

The "hold objective" relates to which of the following strategic objectives?

Accepted Answer

A) Holding prices 
B) Holding sales 
C) Holding profits 
D) Holding costs 
A) Holding prices 
B) Holding sales 
C) Holding profits 
D) Holding costs

Question 12

A penetration pricing strategy is likely where a company_______.

Accepted Answer

A) seeks to dominate the market 
B) seeks to create a barrier to entry for competitors 
C) seeks to dominate the market and to create a barrier to entry for competitors 
D) none of the above 
A) seeks to dominate the market 
B) seeks to create a barrier to entry for competitors 
C) seeks to dominate the market and to create a barrier to entry for competitors 
D) none of the above

Question 13

A high price with low levels of promotional expenditure is an example of which of the following?

Accepted Answer

A) Rapid penetration strategy 
B) Slow skimming strategy 
C) Rapid skimming strategy 
D) Slow penetration strategy 
A) Rapid penetration strategy 
B) Slow skimming strategy 
C) Rapid skimming strategy 
D) Slow penetration strategy

Question 14

Organizations can use a combination of cost management, _______ management and dynamic pricing in order to generate high profitability levels, when price is a core value proposition.

Accepted Answer

A) sales 
B) employee 
C) value 
D) yield 
A) sales 
B) employee 
C) value 
D) yield

Question 15

Trade-off analysis measures which of the following?

Accepted Answer

A) The trade-off between competitors' brands, so that price leaders can be established and monitored 
B) The trade-off between price and other product features so that their effects on product preference can be established 
C) The trade-off between brands in similar product categories, so that price differentials can be assessed 
D) The trade-offs the customers undertake every time that they consider during the consumer decision process 
A) The trade-off between competitors' brands, so that price leaders can be established and monitored 
B) The trade-off between price and other product features so that their effects on product preference can be established 
C) The trade-off between brands in similar product categories, so that price differentials can be assessed 
D) The trade-offs the customers undertake every time that they consider during the consumer decision process

Question 16

A combination of high price and high promotion expenditure is called which of the following?

Accepted Answer

A) Rapid penetration strategy 
B) Slow skimming strategy 
C) Rapid skimming strategy 
D) Slow penetration strategy 
A) Rapid penetration strategy 
B) Slow skimming strategy 
C) Rapid skimming strategy 
D) Slow penetration strategy

Question 17

Which of the following is the core difficulty for companies involved in "competitive bidding"?

Accepted Answer

A) Leads to price inflation 
B) May have to guess where their competitors' prices are set 
C) Competitors may price fix, setting up a cartel to control prices 
D) All of the above 
A) Leads to price inflation 
B) May have to guess where their competitors' prices are set 
C) Competitors may price fix, setting up a cartel to control prices 
D) All of the above

Question 18

One common ethical pricing issue is price _______, which involved companies colluding with each other to ensure that everyone charges the same or similar prices.

Accepted Answer

A) forcing 
B) fixing 
C) skimming 
D) penetration 
A) forcing 
B) fixing 
C) skimming 
D) penetration

Question 19

Where products destined for an international market are re-imported back into the home market and sold through unauthorized channels at levels lower than the company wishes to charge, this is known as _______.

Accepted Answer

A) stock purging 
B) parallel importing 
C) product dumping 
D) price discrimination 
A) stock purging 
B) parallel importing 
C) product dumping 
D) price discrimination

Question 20

Going rate pricing is which of the following?

Accepted Answer

A) An approach to pricing which takes a range of marketing factors into account when setting prices 
B) Pricing at the rate generally applicable in the market, focusing on competitors offerings rather than on company costs 
C) Pricing strategy that follows the market leaders set price, rather than focus on customer value or costs 
D) An approach to pricing which takes costs, competitors prices and what consumers perceive as true value 
A) An approach to pricing which takes a range of marketing factors into account when setting prices 
B) Pricing at the rate generally applicable in the market, focusing on competitors offerings rather than on company costs 
C) Pricing strategy that follows the market leaders set price, rather than focus on customer value or costs 
D) An approach to pricing which takes costs, competitors prices and what consumers perceive as true value

Which of the following statements is true?

Which of the following is not used as a useful technique for uncovering customers' value perceptions?

In order to secure distribution channels when a product is being launched, organizations must ensure that retailers obtain which of the following?

Many organizational purchases are motivated by economic value considerations since reducing costs and increasing revenue are prime objectives of many companies.

Which of the following is a problem associated with cost-based pricing?

When estimating a competitor's reaction to a price change which of the following should be assessed?

Pricing strategies which have a strong internal orientation are usually which of the following?

Cost-based pricing gives an indication of which of the following?

Companies may decide to raise prices when embarking on a harvest objective.

Marketing-orientated companies need to take account of where the price of a new product fits into its existing _______ line.

The "hold objective" relates to which of the following strategic objectives?

A penetration pricing strategy is likely where a company_______.

A high price with low levels of promotional expenditure is an example of which of the following?

Organizations can use a combination of cost management, _______ management and dynamic pricing in order to generate high profitability levels, when price is a core value proposition.

Trade-off analysis measures which of the following?

A combination of high price and high promotion expenditure is called which of the following?

Which of the following is the core difficulty for companies involved in "competitive bidding"?

One common ethical pricing issue is price _______, which involved companies colluding with each other to ensure that everyone charges the same or similar prices.

Where products destined for an international market are re-imported back into the home market and sold through unauthorized channels at levels lower than the company wishes to charge, this is known as _______.

Going rate pricing is which of the following?

The Nature of Marketing

The Global Marketing Environment

Understanding Customer Behaviour

Marketing Research and Customer Insights

Market Segmentation, Targeting and Positioning

Value Through Products and Brands

Value Through Services, Relationships and Experiences

Distribution: Delivering Customer Value

Integrated Marketing Communications 1: Mass Communications Techniques

Integrated Marketing Communications 2: Direct Communications Techniques

Digital Marketing

Filters

Exam 8: Value Through Pricing

Which of the following statements is true?

Which of the following is not used as a useful technique for uncovering customers' value perceptions?

In order to secure distribution channels when a product is being launched, organizations must ensure that retailers obtain which of the following?

Many organizational purchases are motivated by economic value considerations since reducing costs and increasing revenue are prime objectives of many companies.

Which of the following is a problem associated with cost-based pricing?

When estimating a competitor's reaction to a price change which of the following should be assessed?

Pricing strategies which have a strong internal orientation are usually which of the following?

Cost-based pricing gives an indication of which of the following?

Companies may decide to raise prices when embarking on a harvest objective.

Marketing-orientated companies need to take account of where the price of a new product fits into its existing _______ line.

The "hold objective" relates to which of the following strategic objectives?

A penetration pricing strategy is likely where a company_______.

A high price with low levels of promotional expenditure is an example of which of the following?

Organizations can use a combination of cost management, _______ management and dynamic pricing in order to generate high profitability levels, when price is a core value proposition.

Trade-off analysis measures which of the following?

A combination of high price and high promotion expenditure is called which of the following?

Which of the following is the core difficulty for companies involved in "competitive bidding"?

One common ethical pricing issue is price _______, which involved companies colluding with each other to ensure that everyone charges the same or similar prices.

Where products destined for an international market are re-imported back into the home market and sold through unauthorized channels at levels lower than the company wishes to charge, this is known as _______.

Going rate pricing is which of the following?

The Nature of Marketing

The Global Marketing Environment

Understanding Customer Behaviour

Marketing Research and Customer Insights

Market Segmentation, Targeting and Positioning

Value Through Products and Brands

Value Through Services, Relationships and Experiences

Distribution: Delivering Customer Value

Integrated Marketing Communications 1: Mass Communications Techniques

Integrated Marketing Communications 2: Direct Communications Techniques

Digital Marketing

Filters