Question 1

In the aftermath of a recession,consumers may become ________.

Accepted Answer

A)   more price-sensitive
B)   less value-conscious
C)   more interested in prestige pricing
D)   less interested in price cutting
E)   more loyal to prestigious productsF) A) and D)
G) None of the above

Question 2

A company that wants to emphasize its product's allure would most likely position its product on ________.

Accepted Answer

A)   high prices
B)   nonprice qualities
C)   low prices
D)   value prices
E)   target costingF) B) and C)
G) C) and D)

Question 3

AirAsia,Carrefour,and Dell,work to become the "low-cost producers" in their industries.They make use of _________________.

Accepted Answer

A)   value-based pricing
B)   going-rate pricing
C)   cost-based pricing
D)   good value pricing
E)   A and CF) D) and E)
G) A) and C)

Question 4

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)   socialismF) C) and E)
G) B) and E)

Question 5

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 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 an accounting period.
D)   It is a technique marketers use to examine the relationship between supply and demand.
E)   It is calculated using variable costs, the unit price, and fixed costs.F) B) and E)
G) A) and B) E

Question 6

Who typically sets prices in small companies? In large companies?

Accepted Answer

Top management sets prices in ...

Question 7

To offer everyday low prices,a company must first have __________________.

Accepted Answer

A)   low rental
B)   bulk pricing
C)   variable pricing
D)   everyday low costs
E)   break-even pricingF) A) and D)
G) B) and C) B

Question 8

Value-based pricing uses the company's perception of value.

Accepted Answer

A) True 
 B)False

Question 9

Performance Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________.

Accepted Answer

A)   value-based pricing
B)   going-rate pricing
C)   cost-plus pricing
D)   low-price image
E)   target profit pricingF) A) and B)
G) A) and C)

Question 10

Value-based pricing is being used when costs vary directly with the level of product.

Accepted Answer

A) True 
 B)False

Question 11

In _____________,sellers try to develop differentiated offers for different customer segments and,in addition to price,freely use branding,advertising,and personal selling to set their offers apart.

Accepted Answer

A)   pure competition
B)   pure monopoly
C)   monopolistic competition
D)   oligopolistic competition
E)   None of the above.F) None of the above
G) B) and D)

Question 12

Which of the following is a customer-oriented approach to pricing?

Accepted Answer

A)   Customer value-based pricing
B)   Sealed-bid pricing
C)   Break-even pricing
D)   Target profit pricing
E)   C and DF) B) and D)
G) D) and E)

Question 13

When Honda set out to design the Fit,it began with a $13,950 starting price point and an operating efficiency of 15 kilometers per liter as its goals.It then designed a stylish,peppy little car with costs that allowed it to give target customers those values.The unorthodox order of this marketing mix decision is an example of ________.

Accepted Answer

A)   competition-based pricing
B)   cost-plus pricing
C)   target costing
D)   value-based pricing
E)   penetration pricingF) A) and B)
G) A) and C)

Question 14

________ uses buyers' perceptions of what a product is worth,not the seller's cost,as the key to pricing.

Accepted Answer

A)   Customer value-based pricing
B)   Cost-based pricing
C)   Variable cost
D)   Price elasticity
E)   Product imageF) A) and B)
G) A) and C)

Question 15

If demand falls by 1 percent when price is increased by 2 percent,then ________.

Accepted Answer

A)   elasticity is -1/2
B)   demand is inelastic
C)   demand is elastic
D)   buyers are not price sensitive
E)   A and BF) A) and B)
G) None of the above

Question 16

With target costing,marketers will first ________ and then ________.

Accepted Answer

A)   build the marketing mix; identify the target market
B)   identify the marketing mix; determine product cost
C)   design the product; determine its cost
D)   use skimming pricing; penetrating pricing
E)   determine a selling price; target costs to ensure that the price is metF) All of the above
G) A) and D)

Question 17

As a manufacturer increases price,the ________ drops.

Accepted Answer

A)   target
B)   break-even volume
C)   cost-plus pricing
D)   total cost
E)   profit marginF) A) and B)
G) A) and E)

Question 18

How important is price among the elements of the marketing mix?

Accepted Answer

In recent decades,non-price fa...

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A)   the salaries of production management
B)   demand
C)   the salaries of finance management
D)   funds expensed to clean production equipment
E)   A, B, and CF) A) and E)
G) None of the above B

Exam 10: Pricing Products: Understanding and Capturing Customer Value

In the aftermath of a recession,consumers may become ________.

Correct Answer
verified

A company that wants to emphasize its product's allure would most likely position its product on ________.

Correct Answer
verified

AirAsia,Carrefour,and Dell,work to become the "low-cost producers" in their industries.They make use of _________________.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
E

Who typically sets prices in small companies? In large companies?

Correct Answer
verified
Top management sets prices in ...
View Answer

To offer everyday low prices,a company must first have __________________.

Correct Answer
verified
B

Value-based pricing uses the company's perception of value.

Correct Answer
verified

Performance Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________.

Correct Answer
verified

Value-based pricing is being used when costs vary directly with the level of product.

Correct Answer
verified

In _____________,sellers try to develop differentiated offers for different customer segments and,in addition to price,freely use branding,advertising,and personal selling to set their offers apart.

Correct Answer
verified

Which of the following is a customer-oriented approach to pricing?

Correct Answer
verified

Correct Answer
verified

________ uses buyers' perceptions of what a product is worth,not the seller's cost,as the key to pricing.

Correct Answer
verified

If demand falls by 1 percent when price is increased by 2 percent,then ________.

Correct Answer
verified

With target costing,marketers will first and then .

Correct Answer
verified

As a manufacturer increases price,the ________ drops.

Correct Answer
verified

How important is price among the elements of the marketing mix?

Correct Answer
verified
In recent decades,non-price fa...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified
B

Exam 10: Pricing Products: Understanding and Capturing Customer Value

In the aftermath of a recession,consumers may become ________.

Correct AnswerverifiedShow Answer

A company that wants to emphasize its product's allure would most likely position its product on ________.

Correct AnswerverifiedShow Answer

AirAsia,Carrefour,and Dell,work to become the "low-cost producers" in their industries.They make use of _________________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedE

Who typically sets prices in small companies? In large companies?

Correct AnswerverifiedTop management sets prices in ...View AnswerShow Answer

To offer everyday low prices,a company must first have __________________.

Correct AnswerverifiedB

Value-based pricing uses the company's perception of value.

Correct AnswerverifiedShow Answer

Performance Motors prices its automobiles to achieve a 15 to 20 percent profit on its investment.This approach is called ________.

Correct AnswerverifiedShow Answer

Value-based pricing is being used when costs vary directly with the level of product.

Correct AnswerverifiedShow Answer

In _____________,sellers try to develop differentiated offers for different customer segments and,in addition to price,freely use branding,advertising,and personal selling to set their offers apart.

Correct AnswerverifiedShow Answer

Which of the following is a customer-oriented approach to pricing?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

________ uses buyers' perceptions of what a product is worth,not the seller's cost,as the key to pricing.

Correct AnswerverifiedShow Answer

If demand falls by 1 percent when price is increased by 2 percent,then ________.

Correct AnswerverifiedShow Answer

With target costing,marketers will first ________ and then ________.

Correct AnswerverifiedShow Answer

As a manufacturer increases price,the ________ drops.

Correct AnswerverifiedShow Answer

How important is price among the elements of the marketing mix?

Correct AnswerverifiedIn recent decades,non-price fa...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

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E

Correct Answer
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Top management sets prices in ...
View Answer

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B

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With target costing,marketers will first and then .

Correct Answer
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In recent decades,non-price fa...
View Answer

Correct Answer
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Correct Answer
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B