Marketing Quiz Chapter 9

External factors when considering pricing include _____________ such as the economy, reseller needs, and government actions.

the nature of the market and demand and environmental factors

Price ceilings are set by customer perception. Which of the following sets the floor for the price that a company charges?

Costs

_______ of the product's value set the ceiling on pricing, while ________ set the floor.

Customer perceptions; costs

Which of the following is true regarding the price-demand relationship?

If demand is elastic, sellers will consider lowering their prices.

What is one of the most flexible market mix elements?

Price

What is the only element of the marketing mix that produces revenue?

Price

Unlike product features and channel commitments, what can be changed quickly?

Prices

Beyond the market economy, what other factors in its external environment must a company consider when setting prcies?

Resellers, the government, and social concerns

A variation of break-even pricing is _____________, which uses the concept of a break-even chart that shows the total cost and total revenue expected at different sales volume levels.

Target return pricing

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?

Value-added pricing

Value pricing begins with analyzing ______________.

consumer needs and value perceptions

In setting its overall pricing strategy, companies need to consider three factors:

customer perceived value, costs, and competitors' pricing strategies

Marketers use three major pricing strategies:

customer value-based pricing, cost-based pricing, and competition-based pricing

A company's pricing strategy is affected by internal factors such as ______________.

overall marketing strategy, objectives, marketing mix, and other organizational considerations

What is Apple pricing strategy?

premium pricing

What does customer value-based pricing do?

sets the price according to buyers perceptions

Which of the following reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"

target costing

What is price?

the amount of money charged for a product or service.

Other internal factors that influence pricing decisions include __________.

the company's marketing strategy, objectives, and marketing mix, as well as organizational considerations