Ch 10 questions

7. Which of the following statements is true regarding costs?

i. Average cost tends to decrease with accumulated production experience.

9. Which of the following is a cost-based pricing approach?

i. Break-even pricing

8. __________ uses buyers' perceptions of value as the key to pricing.

i. Customer value-based pricing

3. Which of the following statements about price is correct?

i. Customers have put increasing pricing pressures on many companies.

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

i. If demand is elastic, sellers will consider lowering their price.

4. Which of the following statements does not apply to the description of prices?

i. In recent decades price factors have gained increasing importance.

2. The amount of money charged for a product or service is its ______.

i. Price

1. Which of the following statements does NOT describe price?

i. Price is the only element in the marketing mix that represents costs.

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

i. Target costing

11. Which of the following statements is correct regarding different types of markets?

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

10. 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?

i. Value-added pricing

6. The goal of the competition-based pricing is __________.

i. not to match or beat competitors' price

13. Internal factors that affect pricing include ________.

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

5. In a broad sense, price is __________.

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

15. Beyond the market and the economy, what other factors in its external environment must a company consider when setting prices?

Resellers, the government, and social concerns