Question 1

Customer perceptions of the product's value set the floor for prices.

Accepted Answer

A) True 
 B)False

Question 2

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Accepted Answer

A)   pure competition
B)   monopolistic competition
C)   oligopolistic competition
D)   a pure monopoly
E)   the dominant firm model

Question 3

Markup pricing is used when a firm tries to determine the price at which it will break even or make the target return it is seeking.

Accepted Answer

A) True 
 B)False

Question 4

Internal factors affecting pricing include the company's overall marketing strategy, objectives, and marketing mix.

Accepted Answer

A) True 
 B)False

Question 5

Overhead costs ________ as the number of units produced increases.

Accepted Answer

A)   decrease
B)   increase steadily
C)   fluctuate
D)   remain the same
E)   increase rapidly

Question 6

Briefly describe the process of value-based pricing.

Accepted Answer

The company first assesses customer need...

Question 7

What sets the ceiling for product prices?

Accepted Answer

A)   product manufacturing costs
B)   sellers' perceptions of the product's value
C)   customer perceptions of the product's value
D)   variable costs
E)   break-even volume

Question 8

Under oligopolistic competition ________.

Accepted Answer

A)   the market consists of a single dominant seller
B)   the market consists of numerous small sellers
C)   the market consists of many buyers and sellers who trade over a range of prices rather than a single market price
D)   sellers are typically unresponsive to competitors' pricing strategies and marketing moves
E)   the market consists of only a few large sellers

Question 9

Briefly discuss monopolistic competition.

Accepted Answer

Under monopolistic competition, the mark...

Question 10

Which of the following is true of a pure competitive market?

Accepted Answer

A)   A single seller has a major effect on the current and future market price.
B)   Companies spend significantly on marketing research and product development.
C)   The advertising budget of companies is usually huge.
D)   Sellers try to develop differentiated offers for different customer segments.
E)   Sellers spend little time on marketing strategy.

Question 11

Price setting is usually determined by ________ in large companies.

Accepted Answer

A)   top managers
B)   external stakeholders
C)   product managers
D)   non-executive employees
E)   the sales department

Question 12

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 prices

Question 13

Costs that change with the level of production are referred to as ________.

Accepted Answer

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

Question 14

Which of the following is a cost-based approach to pricing?

Accepted Answer

A)   value-based pricing
B)   high-low pricing
C)   target return pricing
D)   good value pricing
E)   EDLP

Question 15

Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings?

Accepted Answer

A)   target return pricing
B)   good-value pricing
C)   competitor value-added pricing
D)   market-based pricing
E)   competition-based pricing

Question 16

Ways companies have avoided relying on price cuts in the new value-conscious era include all of the following EXCEPT ________.

Accepted Answer

A)   by adding more affordable product lines for the cost-conscious consumer
B)   by redefining the "value" in their value propositions
C)   by adding premium product lines for the higher end consumer
D)   by offering deep discounts
E)   by creating price tiers

Question 17

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

Accepted Answer

Beyond customer value perceptions, costs...

Question 18

A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How many units must it produce and sell to break even?

Accepted Answer

A)   20,000
B)   25,000
C)   30,000
D)   35,000
E)   40,000

Question 19

Cost-based pricing is often product driven.

Accepted Answer

A) True 
 B)False

Question 20

Elmo Inc., a global conglomerate, designed the ElBrush, an electric toothbrush. Sensing market demand for the electric toothbrush, Elmo started with an ideal selling price of $13 based on customer value considerations and then targeted costs to ensure that the price was met. This exemplifies ________.

Accepted Answer

A)   competition-based pricing
B)   cost-plus pricing
C)   target costing
D)   everyday low pricing
E)   high-low pricing

Exam 10: Pricing: Understanding and Capturing Customer Value

Which of the following is a cost-based approach to pricing?

Correct Answer
verified

Costs that change with the level of production are referred to as ________.

Correct Answer
verified

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

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

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Correct Answer
verified

Briefly discuss monopolistic competition.

Correct Answer
verified
Under monopolistic competition, the mark...
View Answer

Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings?

Correct Answer
verified

Cost-based pricing is often product driven.

Correct Answer
verified

Which of the following is true of a pure competitive market?

Correct Answer
verified

Correct Answer
verified

Under oligopolistic competition ________.

Correct Answer
verified

Briefly describe the process of value-based pricing.

Correct Answer
verified
The company first assesses customer need...
View Answer

Overhead costs ________ as the number of units produced increases.

Correct Answer
verified

Price setting is usually determined by ________ in large companies.

Correct Answer
verified

Customer perceptions of the product's value set the floor for prices.

Correct Answer
verified

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

Correct Answer
verified

Internal factors affecting pricing include the company's overall marketing strategy, objectives, and marketing mix.

Correct Answer
verified

A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How many units must it produce and sell to break even?

Correct Answer
verified

Ways companies have avoided relying on price cuts in the new value-conscious era include all of the following EXCEPT ________.

Correct Answer
verified

Markup pricing is used when a firm tries to determine the price at which it will break even or make the target return it is seeking.

Correct Answer
verified

What sets the ceiling for product prices?

Correct Answer
verified

Exam 10: Pricing: Understanding and Capturing Customer Value

Which of the following is a cost-based approach to pricing?

Correct AnswerverifiedShow Answer

Costs that change with the level of production are referred to as ________.

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

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

Correct AnswerverifiedShow Answer

Briefly discuss monopolistic competition.

Correct AnswerverifiedUnder monopolistic competition, the mark...View AnswerShow Answer

Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings?

Correct AnswerverifiedShow Answer

Cost-based pricing is often product driven.

Correct AnswerverifiedShow Answer

Which of the following is true of a pure competitive market?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Under oligopolistic competition ________.

Correct AnswerverifiedShow Answer

Briefly describe the process of value-based pricing.

Correct AnswerverifiedThe company first assesses customer need...View AnswerShow Answer

Overhead costs ________ as the number of units produced increases.

Correct AnswerverifiedShow Answer

Price setting is usually determined by ________ in large companies.

Correct AnswerverifiedShow Answer

Customer perceptions of the product's value set the floor for prices.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Internal factors affecting pricing include the company's overall marketing strategy, objectives, and marketing mix.

Correct AnswerverifiedShow Answer

A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How many units must it produce and sell to break even?

Correct AnswerverifiedShow Answer

Ways companies have avoided relying on price cuts in the new value-conscious era include all of the following EXCEPT ________.

Correct AnswerverifiedShow Answer

Markup pricing is used when a firm tries to determine the price at which it will break even or make the target return it is seeking.

Correct AnswerverifiedShow Answer

What sets the ceiling for product prices?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
Under monopolistic competition, the mark...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The company first assesses customer need...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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