Marketing Pearson Q ch 10

(B) Price is the only element in the marketing mix that represents costs
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.
(A) In recent decades price factors have gained increasing importance
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.
(D) price
The amount of money charged for a product or service is its​ ______.
A.
cost
B.
revenue
C.
profit
D.
price
E.
breakeven point
(C) produces revenue
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
(A) Customers have put increasing pricing pressures on many companies
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.
(B) the sum of all the values that customers give up to gain the benefits of having or using a product or service
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
(A) Customer value-based pricing
_________ 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
(A) not to match or beat​ competitors’ price
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
(D) Assess customer needs and value perceptions
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.
(E) ​Break-even pricing
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
(E) Average cost tends to decrease with accumulated production experience
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.
(B) Value-added pricing
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
(B) Target costing
__________ 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
(B) pure competition
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
(C) Under oligopolistic​ competition, each seller is alert and responsive to​ competitors’ pricing strategies and marketing moves
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.
(A) If demand is​ elastic, sellers will consider lowering their price
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.
(A) the​ company’s overall marketing​ strategy, objectives, and marketing mix
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
(E) ​Resellers, the​ government, and social concerns
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