Thursday 5 April 2018

________ is the amount of money charged for a product or service.

1) ________ is the amount of money charged for a product or service.
A) Value
B) A demand
C) Price
D) A wage
E) Salary
Answer:  C
Diff: 1        Page Ref: 290
Skill:  Concept
Objective:  10-1

2) Price is the only element in the marketing mix that produces ________.
A) revenue
B) variable costs
C) expenses
D) outfixed costs
E) stability
Answer:  A
Diff: 2        Page Ref: 290
Skill:  Concept
Objective:  10-1

3) ________ is an important element in the marketing mix. It is the only element that does not represent costs.
A) Profit maximization
B) Market share leadership
C) Price
D) Product quality leadership
E) The target market
Answer:  C
Diff: 2        Page Ref: 290
Skill:  Concept
Objective:  10-1



4) Consumer perceptions of the product's value set the ________ for prices.
A) demand curve
B) floor
C) ceiling
D) variable cost
E) image
Answer:  C
Diff: 2        Page Ref: 291
Skill:  Concept
Objective:  10-2
5) Product costs set a(n) ________ to a product's price.
A) demand curve
B) floor
C) ceiling
D) break-even cost
E) experience curve
Answer:  B
Diff: 2        Page Ref: 291
Skill:  Concept
Objective:  10-2

6) Which of the following is a customer-oriented approach to pricing?
A) customer value-based pricing
B) sealed-bid pricing
C) break-even pricing
D) target profit pricing
E) C and D
Answer:  A
Diff: 2        Page Ref: 291
Skill:  Concept
Objective:  10-2

7) ________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.
A) Customer value-based pricing
B) Cost-based pricing
C) Variable cost
D) Price elasticity
E) Product image
Answer:  A
Diff: 1        Page Ref: 291
Skill:  Concept
Objective:  10-2



8) In ________, price is considered along with the other marketing mix variables before the marketing program is set.
A) value-based pricing
B) cost-based pricing
C) variable costs
D) price elasticity
E) markup pricing
Answer:  A
Diff: 2        Page Ref: 291
Skill:  Concept
Objective:  10-2
9) Value-based pricing is the reverse process of ________.
A) variable cost pricing
B) cost-plus pricing
C) cost-based pricing
D) good-value pricing
E) value-added pricing
Answer:  C
Diff: 2        Page Ref: 291
Skill:  Concept
Objective:  10-2

10) With ________, price is set to match consumers' perceptions of product value.
A) variable cost pricing
B) cost-plus pricing
C) cost-based pricing
D) value-based pricing
E) everyday low pricing
Answer:  D
Diff: 2        Page Ref: 291
Skill:  Concept
Objective:  10-2

11) Measuring ________ can be difficult. A company might conduct surveys or experiments to test this in the different products it offers.
A) price elasticity
B) the demand curve
C) perceived value
D) break-even pricing
E) quantity supplied
Answer:  C
Diff: 3        Page Ref: 292
Skill:  Concept
Objective:  10-2



12) Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the ________ level.
A) perceived
B) elastic
C) variable
D) demand curve
E) price-floor
Answer:  A
Diff: 2        Page Ref: 292
Skill:  Concept
Objective:  10-2
13) If a seller charges ________ than the buyer's perceived value, the company's sales will ________.
A) more; benefit
B) more; suffer
C) less; increase
D) less; suffer
E) none of the above
Answer:  B
Diff: 2        Page Ref: 292
Skill:  Concept
Objective:  10-2

14) Some companies have adopted a(n) ________ strategy, offering just the right combination of quality and good service at a fair price.
A) value-based pricing
B) good-value pricing
C) cost-plus pricing
D) low-price image
E) elastic-pricing
Answer:  B
Diff: 1        Page Ref: 293
Skill:  Concept
Objective:  10-2

15) When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are using ________.
A) break-even pricing
B) target profit pricing
C) good-value pricing
D) cost-plus pricing
E) bundling
Answer:  C
Diff: 2        Page Ref: 292
Skill:  Concept

Objective:  10-2

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