Question 1

Rent,electricity and executive salaries are examples of ________ costs.

Accepted Answer

A) fixed 
B) variable 
C) total 
D) accumulated 
E) marketing 
A) fixed 
B) variable 
C) total 
D) accumulated 
E) marketing

Question 2

Demand and consumer value perceptions set the floor for prices.

Accepted Answer

A) True 
 B)False

Question 3

When a gift card shop offers a price reduction to customers who buy Christmas cards in the week after Christmas,it is giving a(n)________ discount.

Accepted Answer

A) functional 
B) time-based 
C) annual 
D) deep 
E) allowance 
A) functional 
B) time-based 
C) annual 
D) deep 
E) allowance

Question 4

The internet offers ________,where the price can easily be adjusted to meet changes in demand.

Accepted Answer

A) captive pricing 
B) dynamic pricing 
C) basing-point pricing 
D) price bundling 
E) cost-plus pricing 
A) captive pricing 
B) dynamic pricing 
C) basing-point pricing 
D) price bundling 
E) cost-plus pricing

Question 5

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Accepted Answer

A) price skimming 
B) trial pricing 
C) value pricing 
D) market-penetration pricing 
E) prestige pricing 
A) price skimming 
B) trial pricing 
C) value pricing 
D) market-penetration pricing 
E) prestige pricing

Question 6

Market-________ pricing involves setting a low price for a new product in order to attract a large number of buyers.

Accepted Answer

The answer of Market-________ pricing involves setting a low price...

Question 7

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________.

Accepted Answer

A) market-level pricing 
B) market-competitive pricing 
C) market-skimming pricing 
D) market-price lining 
E) market-price filling 
A) market-level pricing 
B) market-competitive pricing 
C) market-skimming pricing 
D) market-price lining 
E) market-price filling

Question 8

Australian companies are generally free to charge whatever prices they wish.

Accepted Answer

A) True 
 B)False

Question 9

Price escalation in international markets is most likely to result from the higher costs of selling in another country and differences in market conditions or ________.

Accepted Answer

A) cultural preferences 
B) selling strategies 
C) regional tastes 
D) customer perceptions 
E) language barriers 
A) cultural preferences 
B) selling strategies 
C) regional tastes 
D) customer perceptions 
E) language barriers

Question 10

General Motors prices its automobiles to achieve a 15 to 20 per cent profit on its investment.This approach is called ________.

Accepted Answer

A) value-based pricing 
B) going-rate pricing 
C) cost-plus pricing 
D) low-price image 
E) target return pricing 
A) value-based pricing 
B) going-rate pricing 
C) cost-plus pricing 
D) low-price image 
E) target return pricing

Question 11

Breakeven pricing,or a variation called ________,is when the firm tries to determine the price at which it will break even or make the profit it is seeking.

Accepted Answer

A) competition-based pricing 
B) target return pricing 
C) fixed cost 
D) value-based pricing 
E) customer-based pricing 
A) competition-based pricing 
B) target return pricing 
C) fixed cost 
D) value-based pricing 
E) customer-based pricing

Question 12

Consumers use price less to judge the quality of a product when they ________.

Accepted Answer

A) lack information 
B) lack skills to use the product 
C) have experience with the product 
D) are shopping for a specialty item 
E) cannot physically examine the product 
A) lack information 
B) lack skills to use the product 
C) have experience with the product 
D) are shopping for a specialty item 
E) cannot physically examine the product

Question 13

________ pricing is a price-adjustment strategy in which the company sets different prices for different customers,product forms,places or times.

Accepted Answer

The answer of ________ pricing is a price-adjustment strategy in...

Question 14

The practice of a manufacturer requiring a dealer to charge a set retail price for its product,also known as retail price maintenance,is illegal.

Accepted Answer

A) True 
 B)False

Question 15

If demand changes greatly with a small change in product price,the demand is inelastic.

Accepted Answer

A) True 
 B)False

Question 16

With an understanding of price elasticity,sellers should know that the less elastic the demand for their product is,the more advantageous it is for them to ________.

Accepted Answer

A) drop the price 
B) raise the price 
C) leave the price where it is 
D) discontinue the item 
E) bundle the product with another product 
A) drop the price 
B) raise the price 
C) leave the price where it is 
D) discontinue the item 
E) bundle the product with another product

Question 17

Which of the following is an external factor that affects pricing decisions?

Accepted Answer

A) the salaries of production management 
B) competition 
C) the salaries of finance management 
D) overall pricing objectives 
E) the company's overall marketing strategy 
A) the salaries of production management 
B) competition 
C) the salaries of finance management 
D) overall pricing objectives 
E) the company's overall marketing strategy

Question 18

Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing.

Accepted Answer

A) product bundle 
B) optional-product 
C) captive-product 
D) by-product 
E) skimming 
A) product bundle 
B) optional-product 
C) captive-product 
D) by-product 
E) skimming

Question 19

Market-________ pricing involves setting a high price for a new product in order to create fewer but more profitable sales.

Accepted Answer

The answer of Market-________ pricing involves setting a high price...

Question 20

A company considering a price change should be concerned about consumers' reactions but not competitors' reactions.

Accepted Answer

A) True 
 B)False

Rent,electricity and executive salaries are examples of ________ costs.

Demand and consumer value perceptions set the floor for prices.

When a gift card shop offers a price reduction to customers who buy Christmas cards in the week after Christmas,it is giving a(n)________ discount.

The internet offers ________,where the price can easily be adjusted to meet changes in demand.

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Market-________ pricing involves setting a low price for a new product in order to attract a large number of buyers.

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________.

Australian companies are generally free to charge whatever prices they wish.

Price escalation in international markets is most likely to result from the higher costs of selling in another country and differences in market conditions or ________.

General Motors prices its automobiles to achieve a 15 to 20 per cent profit on its investment.This approach is called ________.

Breakeven pricing,or a variation called ________,is when the firm tries to determine the price at which it will break even or make the profit it is seeking.

Consumers use price less to judge the quality of a product when they ________.

________ pricing is a price-adjustment strategy in which the company sets different prices for different customers,product forms,places or times.

The practice of a manufacturer requiring a dealer to charge a set retail price for its product,also known as retail price maintenance,is illegal.

If demand changes greatly with a small change in product price,the demand is inelastic.

With an understanding of price elasticity,sellers should know that the less elastic the demand for their product is,the more advantageous it is for them to ________.

Which of the following is an external factor that affects pricing decisions?

Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing.

Market-________ pricing involves setting a high price for a new product in order to create fewer but more profitable sales.

A company considering a price change should be concerned about consumers' reactions but not competitors' reactions.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analysing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behaviour

Business Markets and Business Buyer Behaviour

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services and Brands: Building Customer Value

Pricing Strategies: Understanding and Capturing Customer Value

Additional Pricing Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Filters

Exam 9: Developing New Products and Managing the Product

Rent,electricity and executive salaries are examples of ________ costs.

Demand and consumer value perceptions set the floor for prices.

When a gift card shop offers a price reduction to customers who buy Christmas cards in the week after Christmas,it is giving a(n)________ discount.

The internet offers ________,where the price can easily be adjusted to meet changes in demand.

A firm is using ________ when it charges a high,premium price for a new product with the intention of reducing the price in the future.

Market-________ pricing involves setting a low price for a new product in order to attract a large number of buyers.

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________.

Australian companies are generally free to charge whatever prices they wish.

Price escalation in international markets is most likely to result from the higher costs of selling in another country and differences in market conditions or ________.

General Motors prices its automobiles to achieve a 15 to 20 per cent profit on its investment.This approach is called ________.

Breakeven pricing,or a variation called ________,is when the firm tries to determine the price at which it will break even or make the profit it is seeking.

Consumers use price less to judge the quality of a product when they ________.

________ pricing is a price-adjustment strategy in which the company sets different prices for different customers,product forms,places or times.

The practice of a manufacturer requiring a dealer to charge a set retail price for its product,also known as retail price maintenance,is illegal.

If demand changes greatly with a small change in product price,the demand is inelastic.

With an understanding of price elasticity,sellers should know that the less elastic the demand for their product is,the more advantageous it is for them to ________.

Which of the following is an external factor that affects pricing decisions?

Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing.

Market-________ pricing involves setting a high price for a new product in order to create fewer but more profitable sales.

A company considering a price change should be concerned about consumers' reactions but not competitors' reactions.

Marketing: Creating and Capturing Customer Value

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analysing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Consumer Buyer Behaviour

Business Markets and Business Buyer Behaviour

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services and Brands: Building Customer Value

Pricing Strategies: Understanding and Capturing Customer Value

Additional Pricing Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Communicating Customer Value: Integrated Marketing Communications Strategy

Filters