Question 1

Price elasticity depends upon the magnitude and direction of the contemplated price change.

Accepted Answer

A) True 
 B)False

Question 2

The key to perceived-value pricing is to ________.

Accepted Answer

A)  reengineer the company's operations 
B)  deliver more unique value than competitors 
C)  adopt subtle marketing tactics compared to competitors 
D)  deliver more value but at a lower cost 
E)  invest heavily in advertising in order to convey superior value 
A)  reengineer the company's operations 
B)  deliver more unique value than competitors 
C)  adopt subtle marketing tactics compared to competitors 
D)  deliver more value but at a lower cost 
E)  invest heavily in advertising in order to convey superior value

Question 3

A quantity discount is a price reduction given to those who pay their bills promptly.

Accepted Answer

A) True 
 B)False

Question 4

Madame Tussaud's wax museum is a popular tourist attraction in London.The museum charges higher entry rates for tourists compared to locals.This form of price discrimination is known as ________.

Accepted Answer

A)  customer-segment pricing 
B)  image pricing 
C)  location pricing 
D)  special customer pricing 
E)  special event pricing 
A)  customer-segment pricing 
B)  image pricing 
C)  location pricing 
D)  special customer pricing 
E)  special event pricing

Question 5

What are the different forms of countertrade?

Accepted Answer

Countertrade can take the following form

Question 6

A firm is said to be following a market-skimming pricing strategy,if it introduces a product into the market at a high price and slowly drops the price over time.

Accepted Answer

A) True 
 B)False

Question 7

Companies that aim to ________ strive to be affordable luxuries.

Accepted Answer

A)  survive in the market 
B)  partially recover their costs 
C)  maximize their market share 
D)  pursue value pricing 
E)  be product-quality leaders 
A)  survive in the market 
B)  partially recover their costs 
C)  maximize their market share 
D)  pursue value pricing 
E)  be product-quality leaders

Question 8

The decline in the average cost of production with accumulated production experience is called the ________.

Accepted Answer

A)  demand curve 
B)  supply chain 
C)  learning curve 
D)  value chain 
E)  indifference curve 
A)  demand curve 
B)  supply chain 
C)  learning curve 
D)  value chain 
E)  indifference curve

Question 9

In ________,the firm bases its price largely on competitor's prices.

Accepted Answer

A)  going-rate pricing 
B)  auction-type pricing 
C)  markup pricing 
D)  target-return pricing 
E)  perceived-value pricing 
A)  going-rate pricing 
B)  auction-type pricing 
C)  markup pricing 
D)  target-return pricing 
E)  perceived-value pricing

Question 10

Every day low pricing is most suitable if ________.

Accepted Answer

A)  consumers are willing to perform activities such as clip coupons to avail of discounts 
B)  consumers tend to associate price with quality 
C)  customers are insensitive to changes in price 
D)  the cost of conducting frequent sales and promotions is high 
E)  consumers have sufficient time to find the best prices 
A)  consumers are willing to perform activities such as clip coupons to avail of discounts 
B)  consumers tend to associate price with quality 
C)  customers are insensitive to changes in price 
D)  the cost of conducting frequent sales and promotions is high 
E)  consumers have sufficient time to find the best prices

Question 11

Experience-curve pricing ________.

Accepted Answer

A)  assumes competitors are weak followers 
B)  allows products to project a high quality image 
C)  is applicable only to manufacturing costs 
D)  focuses on reducing fixed costs 
E)  is generally risk-free 
A)  assumes competitors are weak followers 
B)  allows products to project a high quality image 
C)  is applicable only to manufacturing costs 
D)  focuses on reducing fixed costs 
E)  is generally risk-free

Question 12

Costs that differ directly with the level of production are known as ________.

Accepted Answer

A)  fixed costs 
B)  overhead costs 
C)  opportunity costs 
D)  target costs 
E)  variable costs 
A)  fixed costs 
B)  overhead costs 
C)  opportunity costs 
D)  target costs 
E)  variable costs

Question 13

Starbucks,Aveda,and BMW have been able to position themselves within their categories by combining quality,luxury,and premium prices with an intensely loyal customer base.These companies are employing a ________ strategy.

Accepted Answer

A)  market-skimming 
B)  market-penetration 
C)  survival 
D)  market share maximization 
E)  product-quality leadership 
A)  market-skimming 
B)  market-penetration 
C)  survival 
D)  market share maximization 
E)  product-quality leadership

Question 14

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic,they are said to be following ________.

Accepted Answer

A)  value pricing 
B)  loss-leader pricing 
C)  special event pricing 
D)  high-low pricing 
E)  everyday low pricing 
A)  value pricing 
B)  loss-leader pricing 
C)  special event pricing 
D)  high-low pricing 
E)  everyday low pricing

Question 15

Market skimming pricing makes sense under all the following conditions,EXCEPT ________.

Accepted Answer

A)  if a sufficient number of buyers have a high current demand 
B)  if the unit costs of producing a small volume are high enough to cancel the advantage of charging what the traffic will bear 
C)  if the high initial price does not attract more competitors to the market 
D)  if consumers are likely to delay buying the product until its price drops 
E)  if the high price communicates the image of a superior product 
A)  if a sufficient number of buyers have a high current demand 
B)  if the unit costs of producing a small volume are high enough to cancel the advantage of charging what the traffic will bear 
C)  if the high initial price does not attract more competitors to the market 
D)  if consumers are likely to delay buying the product until its price drops 
E)  if the high price communicates the image of a superior product

Question 16

________ is the cost per unit at that level of production.

Accepted Answer

A)  Target cost 
B)  Average cost 
C)  Marginal cost 
D)  Opportunity cost 
E)  Fixed cost 
A)  Target cost 
B)  Average cost 
C)  Marginal cost 
D)  Opportunity cost 
E)  Fixed cost

Question 17

When hotels drop their rates on the weekends,then this form of price discrimination is known as ________.

Accepted Answer

A)  channel pricing 
B)  image pricing 
C)  product-form pricing 
D)  time pricing 
E)  location pricing 
A)  channel pricing 
B)  image pricing 
C)  product-form pricing 
D)  time pricing 
E)  location pricing

Question 18

Deducting the desired profit margin from the price at which a product will sell,given its appeal and competitors' prices,is known as ________.

Accepted Answer

A)  overhead costing 
B)  target costing 
C)  activity based costing 
D)  benefit analysis 
E)  estimate costing 
A)  overhead costing 
B)  target costing 
C)  activity based costing 
D)  benefit analysis 
E)  estimate costing

Question 19

________ consist of the sum of the fixed and variable costs for any given level of production.

Accepted Answer

A)  Total costs 
B)  Average costs 
C)  Opportunity costs 
D)  Learning costs 
E)  Target costs 
A)  Total costs 
B)  Average costs 
C)  Opportunity costs 
D)  Learning costs 
E)  Target costs

Question 20

When firms charge different prices to different customer groups for the same product or service,it is a case of second-degree price discrimination.

Accepted Answer

A) True 
 B)False

Price elasticity depends upon the magnitude and direction of the contemplated price change.

The key to perceived-value pricing is to ________.

A quantity discount is a price reduction given to those who pay their bills promptly.

Madame Tussaud's wax museum is a popular tourist attraction in London.The museum charges higher entry rates for tourists compared to locals.This form of price discrimination is known as ________.

What are the different forms of countertrade?

A firm is said to be following a market-skimming pricing strategy,if it introduces a product into the market at a high price and slowly drops the price over time.

Companies that aim to ________ strive to be affordable luxuries.

The decline in the average cost of production with accumulated production experience is called the ________.

In ________,the firm bases its price largely on competitor's prices.

Every day low pricing is most suitable if ________.

Experience-curve pricing ________.

Costs that differ directly with the level of production are known as ________.

Starbucks,Aveda,and BMW have been able to position themselves within their categories by combining quality,luxury,and premium prices with an intensely loyal customer base.These companies are employing a ________ strategy.

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic,they are said to be following ________.

Market skimming pricing makes sense under all the following conditions,EXCEPT ________.

________ is the cost per unit at that level of production.

When hotels drop their rates on the weekends,then this form of price discrimination is known as ________.

Deducting the desired profit margin from the price at which a product will sell,given its appeal and competitors' prices,is known as ________.

________ consist of the sum of the fixed and variable costs for any given level of production.

When firms charge different prices to different customer groups for the same product or service,it is a case of second-degree price discrimination.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Creating Long-term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning and Competing Effectively

Setting Product Strategy

Designing and Managing Services

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Managing Marketing in the Global Economy

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Exam 12: Developing Pricing Strategies and Programs

Price elasticity depends upon the magnitude and direction of the contemplated price change.

The key to perceived-value pricing is to ________.

A quantity discount is a price reduction given to those who pay their bills promptly.

Madame Tussaud's wax museum is a popular tourist attraction in London.The museum charges higher entry rates for tourists compared to locals.This form of price discrimination is known as ________.

What are the different forms of countertrade?

A firm is said to be following a market-skimming pricing strategy,if it introduces a product into the market at a high price and slowly drops the price over time.

Companies that aim to ________ strive to be affordable luxuries.

The decline in the average cost of production with accumulated production experience is called the ________.

In ________,the firm bases its price largely on competitor's prices.

Every day low pricing is most suitable if ________.

Experience-curve pricing ________.

Costs that differ directly with the level of production are known as ________.

Starbucks,Aveda,and BMW have been able to position themselves within their categories by combining quality,luxury,and premium prices with an intensely loyal customer base.These companies are employing a ________ strategy.

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic,they are said to be following ________.

Market skimming pricing makes sense under all the following conditions,EXCEPT ________.

________ is the cost per unit at that level of production.

When hotels drop their rates on the weekends,then this form of price discrimination is known as ________.

Deducting the desired profit margin from the price at which a product will sell,given its appeal and competitors' prices,is known as ________.

________ consist of the sum of the fixed and variable costs for any given level of production.

When firms charge different prices to different customer groups for the same product or service,it is a case of second-degree price discrimination.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Creating Long-term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning and Competing Effectively

Setting Product Strategy

Designing and Managing Services

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Managing Marketing in the Global Economy

Filters