Marketing Chapter 9

__________ is the fourth step in cost-based pricing.

Convincing buyers of a product's value

Which of the following defines total cost?

The sum of the fixed and variable costs for any given level of production

What is the first step in value-based pricing?

Assessing customer needs and value perceptions

What is value-added pricing?

Attaching value-added features and services to differentiate a company's offers and support higher prices

What is the second step in cost-based pricing?

Determining product costs

What is good-value pricing?

Offering just the right combination of quality and good service at a fair pric

Which of the following best defines fixed costs?

Costs that do not vary with production or sales level

What are variable costs?

Costs that vary directly with the level of production

__________ is based on a buyer's perceptions of value rather than on the seller's cost.

Customer value-based pricing

__________ 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.

Price

What does the experience curve illustrate?

The drop in the average per-unit product cost that comes with accumulated production experience

The fourth step in value-based pricing is __________.

designing products to deliver the desired value at the target price

In value-based pricing, __________ is the third step.

determining the costs that can be incurred

In cost-based pricing, designing a good product is the __________ step.

first

In value-based pricing, designing products to deliver the desired value at the target price is the __________ step.

fourth

In cost-based pricing, determining product costs is the __________ step.

second

In value-based pricing, setting a target price to match customer perceived value is the __________ step.

second

In cost-based pricing, __________ is the third step.

setting the price based on cost

A demand curve is a curve that __________.

shows the number of units the market will buy in a given time period, at different prices that might be changed

Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met is known as __________.

target costing

Setting the price based on cost is the __________ step in cost-based pricing.

third

What of the following describes 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 is cost-plus pricing?

The addition of a standard markup to the cost of the product

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?

Demand curve