Chapter 10

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

__________ is based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk

Cost-based pricing

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

Which term refers to the drop in the average per-unit product cost that comes with accumulated production experience?

Experience curve

__________ are costs that do not vary with production or sales level.

Fixed costs

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

Total costs

What is the first step in value-based pricing?

Assessing customer needs and value perceptions

__________ is the fourth step in cost-based pricing.

Convincing buyers of a product's value

Which of the following statements does not apply to the description of​ prices?

In recent decades price factors have gained increasing importance.

Which term refers to pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met?

Target costing

__________ reverses the usual process of first designing a new​ product, determining its​ cost, and then​ asking, "Can we sell it for​ that?"

Target costing

__________ is attaching specific features and services to differentiate a company's offers

Value-added pricing

Under​ __________, the market consists of many buyers and sellers trading in a uniform commodity.

pure competition

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

second

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

third

What are variable costs?

Costs that vary directly with the level of production

__________ uses​ buyers' perceptions of value as the key to pricing.

Customer value dash -based pricing

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

Customer value-based pricing

What is good-value pricing?

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

__________ 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

Which of the following statements does NOT describe​ price?

Price is the only element in the marketing mix that represents costs.

What is the second step in value-based pricing?

Setting a target price to match customer perceived value

What does the experience curve illustrate?

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

What is cost-plus pricing?

adding a standard markup to the cost of the product

The addition of a standard markup to the cost of the product is known as __________.

cost-plus pricing

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

designing a good product

The fourth step in value-based pricing is __________.

designing products to deliver the desired value at the target price

What is the second step in cost-based pricing?

determining product costs

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

The goal of the​ competition-based pricing is​ __________.

not to match or beat​ competitors' price

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

The __________ step in value-based pricing is determining the costs that can be incurred.

third