Question 1

Amos Zook,an Amish farmer,sells organically grown produce.Often he will trade some of his produce for dairy products produced by other Amish farmers.The sum of the values exchanged for the produce is the _ .

Accepted Answer

A) price 
B) cost- plus price 
C) penetration price 
D) common value price 
E) dynamic price

Question 2

The learning curve is also referred to as the .

Accepted Answer

A) demand curve 
B) experience curve 
C) price elasticity curve 
D) LRAC 
E) break- even curve

Question 3

Explain the strategy of high- low pricing.

Accepted Answer

The answer of Explain the strategy of high- low pricing....

Question 4

In industrial markets,typically has the final say in setting the pricing objectives and policies of a company.

Accepted Answer

A) the finance manager 
B) the sales staff 
C) the production manager 
D) top management 
E) the sales manager

Question 5

Prices have a direct impact on a company's bottom line.

Accepted Answer

A) True 
 B)False

Question 6

SRAC is the acronym for which concept related to costs at different levels of production?

Accepted Answer

A) short- run average cost 
B) strategic reasoning and costs 
C) strategic revenues and costs 
D) strategic rights and company 
E) short- run accounting costs

Question 7

When faced with price competition,cutting prices is often not the best answer.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a cost- based approach to pricing?

Accepted Answer

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

Question 9

The long- run average cost curve (LRAC)helps the producer understand which of the following?

Accepted Answer

A) how to price under conditions of inelastic demand 
B) how large a business should be in order to be most efficient 
C) how to deal with competitors' prices 
D) how to deal with external factors 
E) how to price under conditions of elastic demand

Question 10

By pledging to be a leader in providing clean,renewable energy sources and developing products and services that help consumers protect the environment,Green Mountain Power competes successfully against "cheaper" brands that focus on more price- sensitive consumers.Green Mountain Power has the firm belief that even kilowatt- hours can be .

Accepted Answer

A) differentiated 
B) value- based priced 
C) represented by a demand curve 
D) cost- plus priced 
E) none of the above

Question 11

Using value- based pricing,a marketer would not design a product and marketing program before setting the price.

Accepted Answer

A) True 
 B)False

Question 12

A company faces fixed costs of $100,000 and variable costs of $8.00/unit.It plans to directly sell its product to the market for $12.00.How many units must it produce and sell to break even?

Accepted Answer

A) 50,000 
B) 20,000 
C) 40,000 
D) 25,000 
E) not enough information to calculate

Question 13

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

Accepted Answer

A) A demand 
B) Value 
C) Price 
D) Salary 
E) A wage

Question 14

Some companies have adopted a(n)strategy,offering just the right combination of quality and good service at a fair price.

Accepted Answer

A) cost- plus pricing 
B) low- price image 
C) good- value pricing 
D) value- based pricing 
E) elastic- pricing

Question 15

Overhead cost is another term for fixed cost.

Accepted Answer

A) True 
 B)False

Question 16

Under ,the market consists of one seller.

Accepted Answer

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

Question 17

are the sum of the _ and for any given level of production.

Accepted Answer

A) Variable costs;fixed;total costs 
B) Fixed costs;variable;total costs 
C) Break- even costs;fixed;total costs 
D) Total costs;fixed;variable costs 
E) Fixed costs;total;variable costs

Question 18

The less the demand,the it benefits the seller to raise the price.

Accepted Answer

A) elastic;less 
B) concentrated;more 
C) focused;more 
D) elastic;more 
E) constant;more

Question 19

Target return pricing is used when a firm tries to determine the price at which it will break even or make the profit it is seeking.

Accepted Answer

A) True 
 B)False

Question 20

Price setting is usually determined by in small companies.

Accepted Answer

A) marketing departments 
B) top management 
C) cross- functional teams 
D) sales departments 
E) divisional managers

Exam 10: Pricing Strategies: Understanding and Capturing Customer Value

Amos Zook,an Amish farmer,sells organically grown produce.Often he will trade some of his produce for dairy products produced by other Amish farmers.The sum of the values exchanged for the produce is the _ .

The learning curve is also referred to as the .

Explain the strategy of high- low pricing.

In industrial markets,typically has the final say in setting the pricing objectives and policies of a company.

Prices have a direct impact on a company's bottom line.

SRAC is the acronym for which concept related to costs at different levels of production?

When faced with price competition,cutting prices is often not the best answer.

Which of the following is a cost- based approach to pricing?

The long- run average cost curve (LRAC) helps the producer understand which of the following?

Using value- based pricing,a marketer would not design a product and marketing program before setting the price.

A company faces fixed costs of $100,000 and variable costs of $8.00/unit.It plans to directly sell its product to the market for $12.00.How many units must it produce and sell to break even?

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

Some companies have adopted a(n) strategy,offering just the right combination of quality and good service at a fair price.

Overhead cost is another term for fixed cost.

Under ,the market consists of one seller.

are the sum of the _ and for any given level of production.

The less the demand,the it benefits the seller to raise the price.

Target return pricing is used when a firm tries to determine the price at which it will break even or make the profit it is seeking.

Price setting is usually determined by in small companies.