Question 1

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

Accepted Answer

A)   variable
B)   inelastic
C)   derived
D)   elastic
E)   negativeF) B) and D)
G) None of the above

Question 2

A break-even chart shows the total cost and total revenue expected at various sales volume levels.

Accepted Answer

A) True 
 B)False

Question 3

The break-even volume is the point at which ________.

Accepted Answer

A)   the total revenue and total cost curves intersect
B)   demand equals supply
C)   the production of one more unit will not lead to increase in demand
D)   the company can pay off all its long-term debt
E)   a firm exceeds the sales forecastF) A) and E)
G) None of the above

Question 4

If a company faces competition, its demand at different prices will depend on whether competitors' prices stay constant or change with the company's own prices.

Accepted Answer

A) True 
 B)False

Question 5

The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of a(n)  ________.

Accepted Answer

A)   pure competition
B)   monopolistic competition
C)   oligopolistic competition
D)   pure monopoly
E)   government monopolyF) A) and C)
G) C) and D)

Question 6

Which of the following processes does value-based pricing reverse?

Accepted Answer

A)   high-low pricing
B)   everyday low pricing
C)   cost-based pricing
D)   good-value pricing
E)   value-added pricingF) All of the above
G) C) and D)

Question 7

When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT ________.

Accepted Answer

A)   probable demand
B)   likely profits
C)   competitors' pricing
D)   estimated break-even volumes
E)   different pricesF) A) and B)
G) B) and D)

Question 8

Which of the following is an internal factor that affects pricing decisions in a company?

Accepted Answer

A)   the nature of the market
B)   the degree of inflation in the economy
C)   the overall marketing strategy of the company
D)   the forces of demand and supply in the market
E)   consumers' perception of valueF) A) and C)
G) A) and E)

Question 9

Bruno Servers has decided to decrease its prices on its popular higher-range servers. The company can reasonably expect ________ to increase.

Accepted Answer

A)   fixed costs
B)   variable costs
C)   demand
D)   additional value
E)   overhead costsF) B) and E)
G) A) and B)

Question 10

________ is the only element in the marketing mix that produces revenue.

Accepted Answer

A)   Price
B)   Product
C)   Place
D)   Fixed costs
E)   Variable costsF) A) and B)
G) B) and D)

Question 11

In the aftermath of the Great Recession of 2008 to 2009, consumers ________.

Accepted Answer

A)   have become more value conscious
B)   have become less value conscious
C)   exhibit great interest in prestige pricing
D)   show no interest in price cutting
E)   rarely endorse value-for-money dealsF) A) and C)
G) A) and E)

Question 12

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing.

Accepted Answer

A)   competition-based
B)   everyday low
C)   cost-plus
D)   break-even
E)   penetrationF) B) and D)
G) All of the above

Question 13

If demand hardly changes with a small change in price, the demand is ________.

Accepted Answer

A)   variable
B)   inelastic
C)   highly elastic
D)   derived
E)   negativeF) A) and E)
G) A) and D)

Question 14

What is good-value pricing?

Accepted Answer

Good-value pricing refers to o...

Question 15

Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing mix program.

Accepted Answer

A) True 
 B)False

Question 16

Department stores such as Kohl's and JCPenney's practice high-low pricing by ________.

Accepted Answer

A)   charging a constant, everyday low price
B)   providing few or no temporary price discounts
C)   increasing prices temporarily on select products
D)   having frequent sale days for store credit-card holders
E)   underpricing most consumer itemsF) A) and E)
G) None of the above

Question 17

Cost-plus pricing ________.

Accepted Answer

A)   is a complex pricing method
B)   involves pricing that accurately reflects production costs
C)   involves adding a standard markup for profit
D)   aims at breaking even on the costs of making and marketing a product
E)   is a value-based pricing methodF) A) and B)
G) A) and C)

Question 18

What are the different internal factors that affect a firm's pricing decisions?

Accepted Answer

Beyond customer value perceptions, costs...

Question 19

Companies that adopt value-added pricing ________.

Accepted Answer

A)   consider value-added features as a fitting substitute for aggressive cost cutting
B)   set incredibly low prices to meet competition
C)   attach value-added features and services to differentiate their offers and support their higher prices
D)   overprice their products without any apparent justification
E)   underprice their products and lower quality to boost demand in the short-runF) B) and C)
G) None of the above

Question 20

"Beyond the market and the economy, the company must consider several other factors in its external environment when setting prices." Explain this statement.

Accepted Answer

Beyond the market and the economy, the c...

Exam 10: Pricing: Understanding and Capturing Customer Value

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

Correct AnswerverifiedShow Answer

A break-even chart shows the total cost and total revenue expected at various sales volume levels.

Correct AnswerverifiedShow Answer

What is good-value pricing?

Correct AnswerverifiedGood-value pricing refers to o...View AnswerShow Answer

Which of the following is an internal factor that affects pricing decisions in a company?

Correct AnswerverifiedShow Answer

If a company faces competition, its demand at different prices will depend on whether competitors' prices stay constant or change with the company's own prices.

Correct AnswerverifiedShow Answer

________ is the only element in the marketing mix that produces revenue.

Correct AnswerverifiedShow Answer

What are the different internal factors that affect a firm's pricing decisions?

Correct AnswerverifiedBeyond customer value perceptions, costs...View AnswerShow Answer

When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT ________.

Correct AnswerverifiedShow Answer

Which of the following processes does value-based pricing reverse?

Correct AnswerverifiedShow Answer

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing.

Correct AnswerverifiedShow Answer

Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing mix program.

Correct AnswerverifiedShow Answer

Department stores such as Kohl's and JCPenney's practice high-low pricing by ________.

Correct AnswerverifiedShow Answer

If demand hardly changes with a small change in price, the demand is ________.

Correct AnswerverifiedShow Answer

"Beyond the market and the economy, the company must consider several other factors in its external environment when setting prices." Explain this statement.

Correct AnswerverifiedBeyond the market and the economy, the c...View AnswerShow Answer

The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of a(n) ________.

Correct AnswerverifiedShow Answer

Bruno Servers has decided to decrease its prices on its popular higher-range servers. The company can reasonably expect ________ to increase.

Correct AnswerverifiedShow Answer

In the aftermath of the Great Recession of 2008 to 2009, consumers ________.

Correct AnswerverifiedShow Answer

Cost-plus pricing ________.

Correct AnswerverifiedShow Answer

The break-even volume is the point at which ________.

Correct AnswerverifiedShow Answer

Companies that adopt value-added pricing ________.

Correct AnswerverifiedShow Answer

Correct Answer
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Good-value pricing refers to o...
View Answer

Correct Answer
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Correct Answer
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Beyond customer value perceptions, costs...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Beyond the market and the economy, the c...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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