Chapter 10 Warm up
Even as frugal consumer spending habits linger in the wake of the recession, some movie theater chains are adding amenities, such as upgraded leather seating and seat-side service, and charging more for tickets rather than cutting services to maintain a lower admission price. This example illustrates the concept of ________ pricing strategy. A. value-added B. good value C. competitor-based D. markup E. cost-plus
A
________ is typically considered the most flexible of the marketing mix elements. A. Price B. Product C. Positioning D. Place E. Promotion
A
For companies such as Walmart or Southwest Airlines, which have worked hard to position themselves as the low-cost producers in their industries, it makes great sense to set prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for the company's effort and risk. This approach is known as ________ pricing strategy. A. value-added B. cost-based C. variable cost D. cost-plus E. competitor-based
B
The ________ shows the number of units the market will buy in a given time period at different prices that might be charged. A. target costing B. demand curve C. equilibrium D. market price E. supply curve
B
________ is the only element in the marketing mix that produces revenue. A. Product B. Place C. Positioning D. Price E. Promotion
D
The term ________ refers to how responsive demand will be to a change in price. A. target costing B. demand-based pricing C. value-based pricing D. demand curve E. price elasticity
E
