BCOR 350 Ch. 9 and Ch. 10
third, 3rd
Setting the price based on cost is the __________ step in cost-based pricing.
thirds, 3rd
The __________ step in value-based pricing is determining the costs that can be incurred.
not to match or beat competitors' price
The goal of the competition-based pricing is __________.
crowdsourcing
Through ____ a company invites broad communities of people into the innovation process.
Setting a price and then setting costs that will ensure that the price is met
What is target costing?
Break-even pricing
Which of the following is a cost-based pricing approach?
a detailed version of the new product idea stated in meaningful consumer terms
A product concept is __________.
Resellers, the government, and social concerns
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?
based on a buyer's perceptions of value rather than on the seller's cost
Customer-value based pricing is __________.
Maturity
Diversifying the brand and models is a product strategy in which stage of the PLC?
The price is set by adding a standard mark-up to the cost of the product.
How is price determined using cost-plus pricing?
the systematic search for new product ideas
Idea generation is __________.
test marketing
If the product passes both the concept test and the product test, the next step is __________.
designing a good product
In cost-based pricing, __________ is the first step.
first, 1st
In cost-based pricing, designing a good product is the __________ step.
new product is first distributed and made available for purchase
In the introduction stage of the PLC, a __________.
product's sales growth slows or levels off
In the maturity stage of the PLC, a __________.
fourth, 4th
In value-based pricing, designing products to deliver the desired value at the target price is the __________ step.
second, 2nd
In value-based pricing, setting a target price to match customer perceived value is the __________ step.
Decline stage
In which PLC stage does a product's sales fade away?
Pure competition
In which type of market does no buyer or seller have much impact on setting the going market price?
the company's overall marketing strategy, objectives, and marketing mix
Internal factors that affect pricing include __________.
value-added pricing
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 __________.
acquiring or dropping products
Marketers should carefully consider public policy issues and regulations regarding all of the following except __________.
designing an initial marketing strategy for a new product based on the product concept
Marketing strategy development primarily involves __________.
the development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts
New product development refers to __________.
idea generation
New product development starts with __________.
introduction stage
Offering a basic product is a product strategy in the __________ of the PLC.
at the intersection of total revenue and total costs
On a break-even chart, the break-even volume is located __________.
varying worldwide market
One of the disadvantages of product and service standardization for international market is __________.
produces revenue
Price is the only part of the marketing mix that __________.
target costing
Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met is known as __________.
growth
Profits increase during the __________ stage of the product life cycle.
high-low pricing
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 __________.
a basic and distinctive mode of expression
Style is __________.
the stage of new product development in which the product and its proposed marketing are tested in realistic market settings
Test marketing is __________.
introduction stage
The __________ is the PLC stage in which a new product is first distributed and made available for purchase.
cost-plus pricing
The addition of a standard markup to the cost of the product is known as __________.
price
The amount of money charged for a product is its __________.
good-value pricing
The strategy of __________ means that the firm attempts to offer the right combination of quality and good service at a fair price.
demand and the nature of the market
Two external factors which must be considered in pricing decisions are __________.
pure competition
Under __________, the market consists of many buyers and sellers trading in a uniform commodity.
Costs that vary directly with the level of production
What are variable costs?
The drop in the average per-unit product cost that comes with accumulated production experience
What does the experience curve illustrate?
A product's sales start climbing quickly.
What happens during the growth stage of the PLC?
The introduction of a new product into the market
What is commercialization?
The process of testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
What is concept testing?
The process of filtering new product ideas to spot good ideas and drop poor ones as soon as possible
What is idea screening?
Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering
What is product development?
New product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness
What is team-based new product development?
Assessing customer needs and value perceptions
What is the first step in value-based pricing?
Assess customer needs and value perceptions.
What is the first thing marketers must do when using value-based pricing?
Commercialization
What is the name for the introduction of a new product into the market?
Determining product costs
What is the second step in cost-based pricing?
Based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk
What of the following describes cost-based pricing?
Customer's value perceptions
Which factor sets the ceiling on setting a product's price?
Product costs
Which factor sets the floor on setting a product's price?
customer value-based pricing, cost-based pricing, and competition-based pricing
Which of the following correctly identifies the three major pricing strategies used by marketers?
A currently accepted or popular mode of expression in a given field
Which of the following describes fashion?
Product concept
Which of the following is a detailed version of the new product idea stated in meaningful consumer terms?
Diversifying the brand and models
Which of the following is a product strategy in the maturity stage of the PLC?
Fad
Which of the following is a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity?
If demand is elastic, sellers will consider lowering their price.
Which of the following is true regarding the price-demand relationship?
demand curve
Which of the following shows the number of units the market will buy in a given time period, at different prices that might be changed?
Customers have put increasing pricing pressures on many companies.
Which of the following statements about price is correct?
Price is one of the most flexible marketing mix elements. Price remains one of the most important elements that determine a firm's market share and profitability. Prices can be changed quickly. Price is the sum of all the values that customers give up to gain the benefits of having or using a product or service.
Which of the following statements describe price?
Price is the only element in the marketing mix that represents costs.
Which of the following statements does NOT describe price?
In recent decades price factors have gained increasing importance.
Which of the following statements does not apply to the description of prices?
Under oligopolistic competition each seller is alert and responsive to competitors' pricing strategies and marketing moves.
Which of the following statements is correct regarding different types of markets?
Average cost tends to decrease with accumulated production experience.
Which of the following statements is true regarding costs?
In using this strategy, companies often find it hard to measure the value customers attach to their product.
Which of the following statements regarding customer value-based pricing is correct?
Fashion
Which term refers to a currently accepted or popular mode of expression in a given field?
Monopolistic competition
Which type of market consists of many buyers and sellers trading over a range of prices rather than a single market price?
A product's sales fade away
With regard to the PLC stages, which of the following describes the decline stage?
fixed costs
__________ are costs that do not vary with production or sales level.
total costs
__________ are the sum of the fixed and variable costs for any given level of production.
Value-added pricing
__________ is attaching specific features and services to differentiate a company's offers.
Cost-based pricing
__________ is based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk.
Customer-centered new product development
__________ is new product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.
Good-value pricing
__________ is offering just the right combination of quality and good service.
price
__________ is the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.
Convincing buyers of a product's value
__________ is the fourth step in cost-based pricing.
Test marketing
__________ is the stage of new product development in which the product and its proposed marketing are tested in realistic market settings.
Idea generation
__________ is the systematic search for new product ideas.
demand curve
A(n) __________ shows the number of units the market will buy in a given time period at different prices.
Value-added 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 and super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
Customer-centered new product
__________ development focuses on finding new ways to solve customer problems.
Product development
__________ is the first stage of the product life cycle.
Target costing
__________ reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
customer value based pricing
__________ uses buyers' perceptions of value as the key to pricing.
