Marketing Pearson Q ch 10 – Flashcards
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Which of the following statements does NOT describe price? A. Price remains one of the most important elements that determine a firm's market share and profitability. B. Price is the only element in the marketing mix that represents costs. C. Price is one of the most flexible marketing mix elements. D. Price is the sum of all the values that customers give up to gain the benefits of having or using a product or service. E. Prices can be changed quickly.
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(B) Price is the only element in the marketing mix that represents costs
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Which of the following statements does not apply to the description of prices? A. In recent decades price factors have gained increasing importance. B. Historically, price has been the major factor affecting buyer choice. C. Price is the amount of money charged for a product or a service. D. Price remains one of the most important elements that determine a firm's market share. E. Pricing is the number-one problem facing many marketing executives.
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(A) In recent decades price factors have gained increasing importance
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The amount of money charged for a product or service is its ______. A. cost B. revenue C. profit D. price E. breakeven point
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(D) price
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Price is the only part of the marketing mix that __________. A. is defined by the consumer B. incurs costs C. produces revenue D. attracts buyers E. does not play a role in creating customer value
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(C) produces revenue
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Which of the following statements about price is correct? A. Customers have put increasing pricing pressures on many companies. B. Marketers do not a have lot of flexibility in setting and changing price. C. Price is not an important competitive asset. D. Prices have no impact on a firm's bottom line. E. Pricing is not a problem for marketing executives.
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(A) Customers have put increasing pricing pressures on many companies
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In a broad sense, price is __________. A. the amount of money charged for a product B. the sum of all the values that customers give up to gain the benefits of having or using a product or service C. used in the marketing mix but not as a key strategic tool in creating and capturing customer value D. not critical in determining a company's success E. something that marketers always increase rather than cut
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(B) the sum of all the values that customers give up to gain the benefits of having or using a product or service
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_________ uses buyers' perceptions of value as the key to pricing. A. Customer value-based pricing B. Good-value pricing C. Cost-based pricing D. High-low pricing E. Value-added pricing
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(A) Customer value-based pricing
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The goal of the competition-based pricing is __________. A. not to match or beat competitors' price B. to match competitors' prices C. to increase customers' price perceptions D. to increase value and lower prices to beat competition E. to beat competitors' prices
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(A) not to match or beat competitors' price
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What is the first step in a value-based pricing strategy? A. Design a good product. B. Set the target price to match customer perceived value. C. Convince buyers that the product's value at a given price justifies the purchase. D. Assess customer needs and value perceptions. E. Determine product costs.
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(D) Assess customer needs and value perceptions
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Which of the following is a cost-based pricing approach? A. Competition-based pricing B. High-low pricing C. EDLP pricing D. Value added pricing E. Break-even pricing
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(E) Break-even pricing
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Which of the following statements is true regarding costs? A. Variable costs vary directly with the level of sales. B. Experience curve pricing is a low-risk strategy. C. Totals costs are the sum of long run average costs and short run average costs. D. Costs do not vary with different levels of production. E. Average cost tends to decrease with accumulated production experience.
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(E) Average cost tends to decrease with accumulated production experience
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New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound and super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing? A. EDLP pricing B. Value-added pricing C. Breakeven pricing D. Cost-plus pricing E. High-low pricing
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(B) Value-added pricing
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__________ reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?" A. Cost-based pricing B. Target costing C. Value-added pricing D. Good-value pricing E. Customer valuedash-based pricing
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(B) Target costing
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Under __________, the market consists of many buyers and sellers trading in a uniform commodity. A. a pure monopoly B. pure competition C. monopolistic competition D. target competition E. oligopolistic competition
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(B) pure competition
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Which of the following statements is correct regarding different types of markets? A. In a pure monopoly, the market consists of many buyers and sellers trading over a range of prices. B. Under pure competition, sellers spend considerable time on marketing strategy and pricing decisions. C. Under oligopolistic competition, each seller is alert and responsive to competitors' pricing strategies and marketing moves. D. Under monopolistic competition, the market is dominated by one seller. E. Under oligopolistic competition, the market consists of many buyers and sellers trading in a uniform commodity and sellers do not spend much time on marketing strategy.
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(C) Under oligopolistic competition, each seller is alert and responsive to competitors' pricing strategies and marketing moves
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Which of the following is true regarding the price-demand relationship? A. If demand is elastic, sellers will consider lowering their price. B. A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged. C. Demand and price are directly relatedlong dash—the higher the price, the greater the demand. D. Price elasticity measures how responsive price will be to a change in demand. E. If demand is inelastic, a small change in price will result in a large change in demand.
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(A) If demand is elastic, sellers will consider lowering their price
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Internal factors that affect pricing include ________. A. the company's overall marketing strategy, objectives, and marketing mix B. The company's overall marketing strategy, the nature of the market, and demand C. The nature of the market, demand, and the economy D. the company's overall marketing strategy, objectives, and demand E. The company's overall marketing strategy, objectives, and the nature of the market
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(A) the company's overall marketing strategy, objectives, and marketing mix
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Beyond the market and the economy, what other factors in its external environment must a company consider when setting prices? A. The company's overall marketing strategy and marketing mix B. Who within the organization should set prices and whether or not to have a pricing department C. The company's overall marketing strategy and selecting target markets D. Setting prices to attract new customers and setting prices to prevent competitors from entering the market E. Resellers, the government, and social concerns
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(E) Resellers, the government, and social concerns