Question 1

When companies set prices, the government and social concerns are two ________ affecting pricing decisions.
external factors
internal factors
economic conditions
demand curves
temporary influences

Accepted Answer

The answer of When companies set prices, the government and...

Question 2

________ that influence pricing decisions include the nature of the market and demand.
Internal factors
Elasticity factors
External factors
Target factors
Domestic factors

Accepted Answer

The answer of ________ that influence pricing decisions include the...

Question 3

Price setting is usually determined by ________ in small companies.
top management
marketing departments
sales departments
divisional managers
cross-functional teams

Accepted Answer

The answer of Price setting is usually determined by ________...

Question 4

Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the profit it is seeking.
competition-based pricing
target return pricing
fixed cost
value-based pricing
customer-based pricing

Accepted Answer

The answer of Break-even pricing, or a variation called ________,...

Question 5

Which of the following is a cost-based approach to pricing?
value-based pricing
going-rate pricing
break-even pricing
good-value pricing
A and C

Accepted Answer

The answer of Which of the following is a cost-based...

Question 6

Which of the following statements about a break-even chart is true?
It is used to determine how the customer-perceived value changes with value-added pricing.
It is a tool used to calculate fixed costs.
It shows the level of earnings a company has during an accounting period.
It is a tool marketers use to examine the relationship between supply and demand.
It uses variable costs, the unit price, and fixed costs.

Accepted Answer

The answer of Which of the following statements about a...

Question 7

Of the following, which is a poor reason for a company to set prices low?
to prevent competition from entering the market
to stabilize the market
to create excitement for a product
to prepare for an easy exit from a market
to match a competitor

Accepted Answer

The answer of Of the following, which is a poor...

Question 8

If demand hardly changes with a small change in price, we say the demand is ________.
variable
inelastic
value-based
at break-even pricing
market penetrating

Accepted Answer

The answer of If demand hardly changes with a small...

Question 9

Which of the following is an external factor that affects pricing decisions?
the salaries of production management
competition
the salaries of finance management
overall pricing objectives
the company's overall marketing strategy

Accepted Answer

The answer of Which of the following is an external...

Question 10

With target costing, marketers will first ________ and then ________.
build the marketing mix; identify the target market
identify the target market; build the marketing mix
design the product; determine its cost
use skimming pricing; use penetrating pricing
determine a selling price; target costs to ensure that the price is met

Accepted Answer

The answer of With target costing, marketers will first ________...

Question 11

The relationship between the price charged and the resulting demand level can be shown as the ________.
demand curve
variable cost
target cost
break-even chart
experience curve

Accepted Answer

The answer of The relationship between the price charged and...

Question 12

Which of the following presents the strongest reason that markup pricing is generally illogical?
Sellers earn a fair return on their investment.
By tying the price to cost, sellers simplify pricing.
When all firms in the industry use this pricing method, prices tend to be similar.
This method ignores demand.
With a standard markup, consumers know when they are being overcharged.

Accepted Answer

The answer of Which of the following presents the strongest...

Question 13

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.
pure competition
monopolistic competition
oligopolistic competition
a pure monopoly
socialism

Accepted Answer

The answer of Under ________, the market consists of many...

Question 14

Under ________, the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities.
pure competition
monopolistic competition
oligopolistic competition
a pure monopoly
anti-trust agreements

Accepted Answer

The answer of Under ________, the market consists of many...

Question 15

Price setting is usually determined by ________ in large companies.
top management
divisional managers
product-line managers
purchasing departments
both B and C

Accepted Answer

The answer of Price setting is usually determined by ________...

Question 16

If demand changes greatly with a small change in price, we say the demand is ________.
inelastic
variable
elastic
value-based
fixed

Accepted Answer

The answer of If demand changes greatly with a small...

Question 17

Under ________, the market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies.
pure competition
monopolistic competition
oligopolistic competition
a pure monopoly
capitalism

Accepted Answer

The answer of Under ________, the market consists of a...

Question 18

Each of the following economic factors can have a strong impact on a firm's pricing strategy except ________.
an economic boom
the reseller's reaction to price changes
an economic recession
inflation
interest rates

Accepted Answer

The answer of Each of the following economic factors can...

Question 19

A company should set prices that will allow ________ to receive a fair profit.
resellers
producers
consumers
the elderly
competitors

Accepted Answer

The answer of A company should set prices that will...

Question 20

________ describes how responsive demand will be to a change in price.
Price elasticity
Break-even pricing
The break-even chart
Target costing
Supply

Accepted Answer

The answer of ________ describes how responsive demand will be...

Quiz 10: Pricing: Understanding and Capturing Customer Value

When companies set prices, the government and social concerns are two ________ affecting pricing decisions. external factors internal factors economic conditions demand curves temporary influences

________ that influence pricing decisions include the nature of the market and demand. Internal factors Elasticity factors External factors Target factors Domestic factors

Price setting is usually determined by ________ in small companies. top management marketing departments sales departments divisional managers cross-functional teams

Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the profit it is seeking. competition-based pricing target return pricing fixed cost value-based pricing customer-based pricing

Which of the following is a cost-based approach to pricing? value-based pricing going-rate pricing break-even pricing good-value pricing A and C

Of the following, which is a poor reason for a company to set prices low? to prevent competition from entering the market to stabilize the market to create excitement for a product to prepare for an easy exit from a market to match a competitor

If demand hardly changes with a small change in price, we say the demand is ________. variable inelastic value-based at break-even pricing market penetrating

Which of the following is an external factor that affects pricing decisions? the salaries of production management competition the salaries of finance management overall pricing objectives the company's overall marketing strategy

The relationship between the price charged and the resulting demand level can be shown as the ________. demand curve variable cost target cost break-even chart experience curve

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. pure competition monopolistic competition oligopolistic competition a pure monopoly socialism

Under ________, the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities. pure competition monopolistic competition oligopolistic competition a pure monopoly anti-trust agreements

Price setting is usually determined by ________ in large companies. top management divisional managers product-line managers purchasing departments both B and C

If demand changes greatly with a small change in price, we say the demand is ________. inelastic variable elastic value-based fixed

Under ________, the market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies. pure competition monopolistic competition oligopolistic competition a pure monopoly capitalism

Each of the following economic factors can have a strong impact on a firm's pricing strategy except ________. an economic boom the reseller's reaction to price changes an economic recession inflation interest rates

A company should set prices that will allow ________ to receive a fair profit. resellers producers consumers the elderly competitors

________ describes how responsive demand will be to a change in price. Price elasticity Break-even pricing The break-even chart Target costing Supply