bmkt ch 10

Which of the following statements is true regarding costs? a. average cost tends to decrease with accumulated production experience b. costs don't vary with different levels of production c. experience curve pricing is a low-risk strategy d. total costs are the sum of LR average costs and SR average costs e. Variable costs vary directly with the level of sales

a. average cost tends to decrease with accumulated production experience

Which of the following statements about price is correct? a. customers have put increasing pricing pressures on many companies b. marketers don't have a lot of flexibility in setting and changing price c. prices have no impact on a firm's bottom line d. pricing is not a problem for marketing executives e. price isn't an important competitive asset

a. customers have put increasing pricing pressures on many companies

_____ reverses the usual process of first designing a new product, determining its cost, and then asking, "can we sell it for that?" a. cost-based pricing b. good-value pricing c. target costing d. value-added pricing e. customer value-based pricing

c. target costing

Which of the following is true regarding the price-demand relationship? a. price elasticity measures how responsive rice will be to a change in demand b. demand and price are directly related- the higher the price, the greater the demand c. a demand curve shows the number of units a company will produce in a given time period at different prices that might be charged d. if demand is elastic, sellers will consider lowering the price e. if demand is inelastic, a small change will result in a large change in demand

d. if demand is elastic, sellers will consider lowering the price

Which of the following statements does NOT describe price? a. price is the only element in the marketing mix that represents costs b. price remains one of the most important elements that determine a firm's market share and profitability c. price is one of the most flexible marketing mix elements d. price can be changed quickly e. price is the sum of all the values that customers give up t gain the benefits of having to using a product or service

a. price is the only element I the marketing mix that represents costs

Internal factors that affect pricing include _____ a. the company's overall marketing strategy, objectives, and marketing mix b. the nature of the market, demand, and the economy c. the company's overall marketing strategy, objectives, and demand d. the company's overall marketing strategy, objectives, and the nature of the market e. the company's overall marketing strategy, the nature of the market, and demand

a. the company's overall marketing strategy, objectives, and marketing mix

What is the first step in value-based pricing strategy? a. determine product costs b. assess customer needs and value perceptions c. convince buyers that the product's value at a given price justifies the purchase d. set the target price to match customer perceived value e. design a good product

b. assess customer needs and value perceptions

which of the following is a cost-based pricing approach? a. competition-based pricing b. break-even pricing c. high-low pricing d. EDLP pricing e. value added pricing

b. break-even pricing

The amount of money charged for a product or service is its _______ a. profit b. cost c. price d. breakeven point e. revenue

c. price

The goal of the competition-based pricing is _____________. a. to beat competitors' prices b. to match competitors' prices c. to increase customers' price perceptions d. not to match to beat competitors' prices e. to increase value and lower prices to beat competition

d. not to match to beat competitors' prices

In a broad sense, price is ________ a. the sum of all the values that customers give up to gain the benefits of having or using a product or service b. the amount of money charged for a product c. used in the marketing mix but not as a key strategic tool in creating and capturing customer value d. something that marketers always increase rather than cut e. not critica in determining a company's success

a. the sum of all the values that customers give up to gain the benefit of having or using a product or service

_______ uses buyers' perceptions of value as the key to pricing a. cost-based pricing b. customer value-based pricing c. high-low pricing d. god-value pricing e. value-added pricing

b. customer value-based pricing

Which of the following statements doesn't apply to the description of prices? a. historically, price has been the major factor affecting buyer choice b. in recent decades price factors have gained increasing importance c. price remains one of the most important elements that determine a firm's market share d. price is the amount of money charged for a product or a service e. pricing the number-one problem facing many marketing executives

b. in recent decades price factors have gained increasing importance

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, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing? a. cost-plus pricing b. value-added pricing c. high-low pricing d. breakeven pricing e. EDLP pricing

b. value-added pricing

Under _____, the market consists of many buyers and sellers trading in a uniform commodity a. oliopolistic competition b. a pure monopoly c. pure competition d. target competition e. monopolistic competitions

c. pure competition

Which of the following statements is correct regarding different types of markets? a. under pure competition, sellers spend considerable time on marketing strategy and pricing decisions b. under oligopolistic competition, the market consists of many buyers and sellers trading in uniform commodity and sellers don't spend much time on marketing strategy c. under oligopolistic competition, each seller is alert and responsive to competitors' pricing strategies and marketing moves d. In a pure monopoly, the market consists of many buyers and sellers trading over a range of prices e. under monopolistic competition, the market is dominated by one seller

c. under oligopolistic competition, each seller is alert and responsive to competitors' pricing strategies and marketing moves

Price is the only part of the marketing mix that _______ a. attracts buyers b.incurs costs c. doesn't play a role in creating customer value d. produces revenue e. is defined by the customer

d. produces revenue

Beyond the market and the economy, what other factors in its external environment must a company consider when setting prices? a. setting prices to attract new customers and setting prices to prevent competitors from entering the market b. the company's overall marketing strategy and selecting target markets c. the company's overall marketing strategy and marketing mix d. resellers, the government, and social concerns e. who within the organization should set prices and whether or not to have a pricing department

d. resellers, the gov, and social concerns