question
Which of the following correctly identifies the three major pricing strategies used by marketers?
answer
Customer value-based pricing, cost-based pricing, and competition-based pricing
question
A(n) __________ shows the number of units the market will buy in a given time period at different prices.
answer
demand curve
question
How is price determined using cost-plus pricing?
answer
The price is set by adding a standard mark-up to the cost of the product.
question
Internal factors that affect pricing include __________.
answer
the company's overall marketing strategy, objectives, and marketing mix
question
Which of the following statements about price is correct?
answer
Customers have put increasing pricing pressures on many companies.
question
Retailers such as Macy's and JC Penney charge higher prices on an everyday basis, but run frequent promotions to lower prices temporarily on selected items. This is an example of __________.
answer
high-low pricing
question
Which of the following is true regarding the price-demand relationship?
answer
If demand is elastic, sellers will consider lowering their price.
question
Two external factors which must be considered in pricing decisions are __________.
answer
demand and the nature of the market
question
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound and super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
answer
Value-added pricing
question
Which of the following is a cost-based pricing approach?
answer
Break-even pricing
question
Which of the following statements is true regarding costs?
answer
Average cost tends to decrease with accumulated production experience.
question
The amount of money charged for a product is its __________.
answer
price
question
The strategy of __________ means that the firm attempts to offer the right combination of quality and good service at a fair price.
answer
good-value pricing
question
In which type of market does no buyer or seller have much impact on setting the going market price?
answer
Pure competition
question
Which of the following statements is correct regarding different types of markets?
answer
Under oligopolistic competition each seller is alert and responsive to competitors' pricing strategies and marketing moves.
question
Which type of market consists of many buyers and sellers trading over a range of prices rather than a single market price?
answer
Monopolistic competition
question
Which factor sets the ceiling on setting a product's price?
answer
Customer's value perceptions
question
Luxury automobile manufacturers typically add quality, services, and other features to differentiate their offers and thus support their higher price. This is an example of __________.
answer
value-added pricing
question
Which of the following statements regarding customer value-based pricing is correct?
answer
In using this strategy, companies often find it hard to measure the value customers attach to their product.
question
Price is the only part of the marketing mix that __________.
answer
produces revenue
question
What is the first thing marketers must do when using value-based pricing?
answer
Assess customer needs and value perceptions.
question
Beyond the nature of the market, demand, and the economy, what other factors in a firm's external environment must a company consider when setting prices?
answer
Resellers, the government, and social concerns
question
What is target costing?
answer
Setting a price and then setting costs that will ensure that the price is met
question
Which factor sets the floor on setting a product's price?
answer
Product costs
question
On a break-even chart, the break-even volume is located __________.
answer
at the intersection of total revenue and total costs
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