BUSML 3250 Chapter 10
Which of the following statements is true regarding costs?
Average cost tends to decrease with accumulated production experience.
Which of the following correctly identifies the three major pricing strategies used by marketers?
Customer value-based pricing, cost-based pricing, and competition-based pricing
Which of the following statements about price is correct?
Customers have put increasing pricing pressures on many companies.
Which of the following statements regarding customer value-based pricing is correct?
In using this strategy, companies often find it hard to measure the value customers attach to their product.
Which type of market consists of many buyers and sellers trading over a range of prices rather than a single market price?
Monpolistic competition
Which factor sets the floor on setting a product's price?
Product costs
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?
Value-added pricing
Two external factors which must be considered in pricing decisions are __________.
demand and the nature of the market
The strategy of __________ means that the firm attempts to offer the right combination of quality and good service at a fair price.
good-value pricing
Internal factors that affect pricing include __________.
the company's overall marketing strategy, objectives, and marketing mix
