Ch 10 Marketing

Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. These prices are neither limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivants. This reflects Bon Vivants_____ pricing strategy. A. Everyday low B. Markup C. Penetration D. Break-even E. Cost-Based

A. Everyday low

a decision to position the product on high-performance quality will mean that the_____ a. Seller must charge a higher price to cover higher-cost B. Seller must charge a lower price to attract more customers C. Producer must step down production D. Marketer must boost derived demand in the market E. Break-even volume will be fairly low

A. Seller must charge a higher price to cover higher costs

Companies can legitimately charge a higher price if ________. A. consumers perceive that the company's product offers greater value B. The demand for products manufactured by a firm is highly elastic C. The cost of advertising is minimal D. Derived demand remains constant E. Consumers De-emphasize quality

A. consumers perceive that the company's product offers greater value

as production moves up, the average cost per unit decreases because____ A. Variable costs decreased B. Of increasing diseconomies of scale C. Fixed costs are spread over more units D. Overhead costs decrease E. Revenue increases

C. Fixed costs are spread over more units

_____ refers to the amount of money charged for a product or service A. Value B. Cost C. Price D. Wage E. Salary

C. Price

Which of the following is an internal factor that affects pricing decisions in a company? A. The nature of the market B. The degree of inflation in the economy C. The overall marketing strategy of the company D. The forces of demand and supply in the market E. Consumer's perception of value

C. The overall marketing strategy of the company

Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10% markup on its sales. Samsung's market price is_____ A. $275 B. $280 C. $295 D. $300 E. $335

D. $300

what is usually the first step in cost-based pricing? A. Testing the product concept with potential customers B. Determining the marketing in mix strategy C. Setting a price that covers Cost Plus a Target profit D. Designing a good product E. Adding up the cost of making the product

D. Designing a good product

when companies set prices the government and social concerns are____ factors affecting pricing decisions A. external B. internal C. Economic D. Cultural E. Organizational

a. External

Under____ the market consists of many buyers and sellers trading in a uniform commodity A. Pure competition B. Monopolistic competition C. Oligopolistic competition D. A pure Monopoly E. The dominant firm model

a. Pure competition