1.
Price is the only element in the marketing mix that produces ________.

a. stability b. revenue c. fixed costs
d.
variable costs
e.
expenses

Grade:
0

User Responses:
a.stability

Feedback:

2.
Consumer perceptions of the product's value set the ________ for prices.

a. variable cost
b.
floor
c.
demand curve
d.
image
e.
ceiling

Grade:
0

User Responses:
d.image

Feedback:

3.
Product costs set a(n) ________ to a product's price.

a. experience curve
b.
demand curve
c.
break-even cost
d.
floor
e.
ceiling

Grade:
0

User Responses:
c.break-even cost

Feedback:

4.
Which of the following is a customer-oriented approach to pricing?

a. break-even pricing
b.
cost-based pricing
c.
sealed-bid pricing
d.
value-based pricing
e.
target profit pricing

Grade:
0

User Responses:
c.sealed-bid pricing

Feedback:

5.
________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.

a.
Variable cost
b.
Product image
c.
Value-based pricing
d.
Price elasticity
e.
Value-added pricing

Grade:
0

User Responses:
e.Value-added pricing

Feedback:

6.
If a seller charges ________ than the buyer's perceived value, the company's sales will ________.

a. more; increase
b.
more; suffer
c.
less; suffer
d.
more; benefit
e.
less; increase revenue

Grade:
0

User Responses:
c.less; suffer

Feedback:

7.
Some companies have adopted a ________ strategy, offering just the right combination of quality and good service at a fair price.

a. low-price image
b.
cost-plus pricing
c.
value-added pricing
d.
value-based pricing
e.
good-value pricing

Grade:
0

User Responses:
c.value-added pricing

Feedback:

8.
Walmart is famous for using what important type of value pricing?

a. penetration pricing
b.
competition-based pricing
c.
break-even pricing
d.
cost-plus pricing
e.
everyday low pricing

Grade:
0

User Responses:
d.cost-plus pricing

Feedback:

9.
________ involves charging a constant, everyday low price with few or no temporary price discounts.

a.
Cost-plus pricing
b.
Penetration pricing
c.
High-low pricing
d.
EDLP
e.
Target pricing

Grade:
0

User Responses:
e.Target pricing

Feedback:

10.
________ involves attaching features and services to differentiate a company's offers and to support charging higher prices.

a.
Pricing-down
b.
Target pricing
c.
Break-even pricing
d.
Value-added pricing
e.
Cost-plus pricing

Grade:
0

User Responses:
b.Target pricing

Feedback:

11.
________ is a company's power to escape price competition and to justify higher prices and margins.

a.
Unit cost
b.
Target cost
c.
Fixed cost
d.
Pricing power
e.
Variable cost

Grade:
0

User Responses:
e.Variable cost

Feedback:

12.
To maintain and increase a company's ________, a firm must retain or build the value of its marketing offer..

a. pricing power
b.
variable cost
c.
image
d.
target cost
e.
fixed cost

Grade:
0

User Responses:
b.variable cost

Feedback:

13.
When there is price competition, many companies adopt ________ rather than cutting prices to match competitors.

a. fixed costs
b.
value-added strategies
c.
price elasticity
d.
image pricing
e.
pricing power

Grade:
0

User Responses:
e.pricing power

Feedback:

14.
Ryanair offers free flights to a quarter of its customers and rock-bottom prices to many of its other customers. Ryanair then charges for all extra services, such as baggage handling and in-flight refreshments. Which of the following best describes Ryanair's pricing method?

a. low-cost pricing
b.
value-added pricing
c.
image pricing
d.
high-low pricing
e.
cost-plus pricing

Grade:
0

User Responses:
e.cost-plus pricing

Feedback:

15.
________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks.

a.
Variable
b.
Skimming
c.
Fixed cost
d.