MKGT quiz 9.1

Value-based pricing will always be more profitable than cost-based pricing.

True

Small changes in price do not have a very large impact on bottom line profits.

False

What is the first step in strategic pricing?

Knowing how your industry behaves

_______ is not about what we put into our product, it's what our customers get out of it.

Value

The "value created" of a product or service is determined from the perspective of the:

customer

What is price skimming?

setting a high price for a new product to skim maximum revenues

What is flat-rate pricing?

single rate per time period

Which of these does not happen in a "smart industry"?

companies fight with price only

Which of the following describes peak load or congestion pricing?

variable rate depending on time of day or week

What is dynamic pricing?

variable rate for each customer

What is the definition of Price?

what is exchanged for the product, service, or idea

What is the key difference between cost-based pricing and value-based pricing?

where you start the process