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