Question 1

With ________ pricing, price is set to match consumers' perceptions of product value.
variable cost
cost-plus
cost-based
value-based
everyday low

Accepted Answer

value-based

Question 2

In ________, price is considered along with the other marketing mix variables before the marketing program is set.
target return pricing
value-based pricing
variable costs
price elasticity
cost-based pricing

Accepted Answer

value-based pricing

Question 3

Rent, electricity, and executive salaries are examples of ________ costs.
fixed
variable
total
accumulated
marketing

Accepted Answer

fixed

Question 4

The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that adds a standard mark-up to the cost of the product.This approach to pricing is called ________ pricing.
value-based
fixed cost
cost-plus
variable
skimming

Accepted Answer

The answer of The company designs what it considers to...

Question 5

Product costs set a(n) ________ to a product's price.
demand curve
experience curve
floor
ceiling
break-even cost

Accepted Answer

The answer of Product costs set a(n) ________ to a...

Question 6

________ are the sum of the ________ and ________ for any given level of production.
Fixed costs; variable; total costs
Fixed costs; total; variable costs
Variable costs; fixed; total costs
Total costs; fixed; variable costs
Break-even costs; fixed; total costs

Accepted Answer

The answer of ________ are the sum of the ________...

Question 7

________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.
Customer value-based pricing
Target return pricing
Variable costs
Price elasticity
Product image

Accepted Answer

The answer of ________ uses buyers' perceptions of what a...

Question 8

Measuring ________ can be difficult.A company might conduct surveys or experiments to test this in the different products they offer.
target returns
fixed costs
perceived value
break-even pricing
variable costs

Accepted Answer

The answer of Measuring ________ can be difficult.A company might...

Question 9

Costs that do not vary with production or sales level are referred to as ________ costs.
fixed
variable
target
total
unit

Accepted Answer

The answer of Costs that do not vary with production...

Question 10

When there is price competition, many companies adopt ________ rather than cutting prices to match competitors.
pricing power
value-added pricing strategies
fixed costs
price elasticity
image pricing

Accepted Answer

The answer of When there is price competition, many companies...

Question 11

Price is the only element in the marketing mix that produces ________.
revenue
variable costs
expenses
fixed costs
stability

Accepted Answer

The answer of Price is the only element in the...

Question 12

________ is the amount of money charged for a product or service.
Experience curve
Demand curve
Price
Wage
Salary

Accepted Answer

The answer of ________ is the amount of money charged...

Question 13

Value-based pricing is the reverse process of ________ pricing.
variable cost
cost-plus
cost-based
good-value
value-added

Accepted Answer

The answer of Value-based pricing is the reverse process of...

Question 14

Consumer perceptions of the product's value set the ________ for prices.
demand curve
floor
ceiling
variable cost
image

Accepted Answer

The answer of Consumer perceptions of the product's value set...

Question 15

Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the ________ level.
perceived value
value-based
variable
demand curve
price-floor

Accepted Answer

The answer of Underpriced products sell very well, but they...

Question 16

________ involves charging a constant low price with few or no temporary price discounts.
High-low pricing
Target return pricing
Cost-plus pricing
Everyday low pricing (EDLP)
Penetration pricing

Accepted Answer

The answer of ________ involves charging a constant low price...

Question 17

The simplest pricing method is ________.
value-based pricing
going-rate and sealed-bid pricing
cost-plus pricing
break-even analysis
target return pricing

Accepted Answer

The answer of The simplest pricing method is ________.
value-based pricing
going-rate...

Question 18

Fixed costs ________ as the number of units produced increases.
decrease
increase
divide in half
remain the same
increase at a diminishing rate

Accepted Answer

The answer of Fixed costs ________ as the number of...

Question 19

Costs that vary directly with the level of production are referred to as ________ costs.
fixed
variable
target
total
unit

Accepted Answer

The answer of Costs that vary directly with the level...

Question 20

________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks.
Value-based
Fixed cost
Cost-based
Variable
Skimming

Accepted Answer

The answer of ________ pricing involves setting prices based on...

Quiz 10: Pricing: Understanding and Capturing Customer Value

With ________ pricing, price is set to match consumers' perceptions of product value. variable cost cost-plus cost-based value-based everyday low

In ________, price is considered along with the other marketing mix variables before the marketing program is set. target return pricing value-based pricing variable costs price elasticity cost-based pricing

Rent, electricity, and executive salaries are examples of ________ costs. fixed variable total accumulated marketing

The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that adds a standard mark-up to the cost of the product.This approach to pricing is called ________ pricing. value-based fixed cost cost-plus variable skimming

Product costs set a(n) ________ to a product's price. demand curve experience curve floor ceiling break-even cost

are the sum of the and for any given level of production. Fixed costs; variable; total costs Fixed costs; total; variable costs Variable costs; fixed; total costs Total costs; fixed; variable costs Break-even costs; fixed; total costs

________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing. Customer value-based pricing Target return pricing Variable costs Price elasticity Product image

Measuring ________ can be difficult.A company might conduct surveys or experiments to test this in the different products they offer. target returns fixed costs perceived value break-even pricing variable costs

Costs that do not vary with production or sales level are referred to as ________ costs. fixed variable target total unit

When there is price competition, many companies adopt ________ rather than cutting prices to match competitors. pricing power value-added pricing strategies fixed costs price elasticity image pricing

Price is the only element in the marketing mix that produces ________. revenue variable costs expenses fixed costs stability

________ is the amount of money charged for a product or service. Experience curve Demand curve Price Wage Salary

Value-based pricing is the reverse process of ________ pricing. variable cost cost-plus cost-based good-value value-added

Consumer perceptions of the product's value set the ________ for prices. demand curve floor ceiling variable cost image

Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the ________ level. perceived value value-based variable demand curve price-floor

________ involves charging a constant low price with few or no temporary price discounts. High-low pricing Target return pricing Cost-plus pricing Everyday low pricing (EDLP) Penetration pricing

The simplest pricing method is ________. value-based pricing going-rate and sealed-bid pricing cost-plus pricing break-even analysis target return pricing

Fixed costs ________ as the number of units produced increases. decrease increase divide in half remain the same increase at a diminishing rate

Costs that vary directly with the level of production are referred to as ________ costs. fixed variable target total unit

________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks. Value-based Fixed cost Cost-based Variable Skimming