Marketing Chapter 9 DSM

__________ is setting a low price for a new product in order to attract a large number of buyers and a large market share. a) market-penetration pricing b) product line pricing c) market-skimming pricing d) captive-product pricing

a) market-penetration pricing

__________ is setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console. a) product line pricing b) market-penetration pricing c) captive-product pricing d) market-skimming pricing

c) captive-product pricing

__________ is/are the sum of the fixed and variable costs for any given level of production. a) fixed costs b) target costing c) variable costs d) total costs

d) total costs

__________ is the third step in value-based pricing. a) Determining costs that can be incurred b) Designing products to deliver the desired value at a target price c) Assessing the customer needs and value perceptions d) Setting a target price to match the customer's perceived value

a) Determining costs that can be incurred

__________ is/are costs that do not vary with production or sales level. a) fixed costs b) target costing c) total costs d) variable costs

a) fixed costs

__________ is setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales. a) market-skimming pricing b) captive-product pricing c) product line pricing d) market-penetration pricing

a) market-skimming pricing

With ________, the price is used to say something about the product. a) psychological pricing b) segmented pricing c) promotional pricing d) dynamic pricing

a) psychological pricing

__________ is/are costs that vary directly with the level of production. a) variable costs b) total costs c) target costing d) fixed costs

a) variable costs

__________ shows the number of units the market will buy in a given time period, at different prices that might be changed. a) target costing b) a demand curve c) price elasticity d) total cost

b) a demand curve

__________ is the second step in value-based pricing. a) Determining costs that can be incurred b) Designing products to deliver desired value c) Setting a target price to match the customer's perceived value d) Assessing the customer needs and value perceptions

c) setting a target price to match the customer's perceived value

__________ is attaching features and services to differentiate a company's offers and charging higher prices. a) price b) value-added pricing c) cost-based pricing d) customer value-based pricing

b) value-added pricing

__________ is a measure of the sensitivity of demand to changes in price. a) demand curve b) target costing c) price elasticity d) total costs

c) price elasticity

__________ is the fourth step in value-based pricing. a) Determining costs that can be incurred b) Designing products to deliver the desired value at a target price c) Setting a target price to match a customer's perceived value d) Assessing the customer needs and value perceptions

b) Designing products to deliver the desired value at a target 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. a) value-added pricing b) good-value pricing c) price d) customer value-based pricing

c) price

__________ is setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices. a) market-penetration pricing b) market-skimming pricing c) product lone pricing d) captive-product pricing

c) product line pricing

__________ is/are pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met. a) variable costs b) fixed costs c) target costing d) total costs

c) target costing

__________ is based on a buyer's perceptions of value rather than on the seller's cost. a) value-added pricing b) good-value pricing c) price d) customer value-based pricing

d) customer value-based pricing

__________ is the first step in cost-based pricing. a) determining product costs b) convincing buyers of a product's value c) setting the price based on cost d) designing a good product

d) designing a good product

__________ is offering just the right combination of quality and good service at a fair price. a) customer value-based pricing b) value-added pricing c) price d) good-value pricing

d) good-value pricing