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1、Chapter 10 Pricing Products: Understanding and Capturing Customer Value1) Which of the following is an external factor that affects pricing decisions?A) the salaries of production managementB) competitionC) the salaries of finance managementD) funds expensed to clean production equipmentE) A, B, and
2、 CAnswer: BDiff: 1Page Ref: 299Skill: ConceptObjective: 10-42) Price setting is usually determined by _ in large companies.A) top managementB) divisional managersC) product line managersD) pricing departmentsE) both B and CAnswer: EDiff: 2Page Ref: 300Skill: ConceptObjective: 10-43) In industrial ma
3、rkets, _ typically has the final say in setting the pricing objectives and policies of a company.A) the sales managerB) top managementC) the production managerD) the finance managerE) the pricing departmentAnswer: BDiff: 2Page Ref: 300Skill: ConceptObjective: 10-44) Consumer perceptions of the produ
4、cts value set the _ for prices.A) demand curveB) floorC) ceilingD) variable costE) imageAnswer: CDiff: 2Page Ref: 291Skill: ConceptObjective: 10-25) Product costs set a(n) _ to a products price.A) demand curveB) floorC) ceilingD) break-even costE) experience curveAnswer: BDiff: 2Page Ref: 291Skill:
5、ConceptObjective: 10-26) Which of the following is a customer-oriented approach to pricing?A) value-based pricingB) sealed-bid pricingC) break-even pricingD) target profit pricingE) C and DAnswer: ADiff: 2Page Ref: 291Skill: ConceptObjective: 10-27) The relationship between the price charged and the
6、 resulting demand level can be shown as the _.A) demand curveB) variable costC) target costD) break-even pricingE) experience curveAnswer: ADiff: 1Page Ref: 303Skill: ConceptObjective: 10-48) In _, price is considered along with the other marketing mix variables before the marketing program is set.A
7、) value-based pricingB) cost-based pricingC) variable costsD) price elasticityE) building the marketing mixAnswer: ADiff: 2Page Ref: 291Skill: ConceptObjective: 10-29) Value-based pricing is the reverse process of _.A) variable cost pricingB) cost-plus pricingC) cost-based pricingD) good-value prici
8、ngE) value-added pricingAnswer: CDiff: 2Page Ref: 291Skill: ConceptObjective: 10-210) Consumers usually perceive higher-priced products as _.A) out of reach for most peopleB) having high qualityC) having high profit marginsD) having cost-based pricesE) being in the introductory stage of the product
9、life cycleAnswer: BDiff: 3Page Ref: 303Skill: ConceptObjective: 10-411) Fixed costs _ as the number of units produced increases.A) decreaseB) increaseC) divide in halfD) remain the sameE) increase at a diminishing rateAnswer: DDiff: 2Page Ref: 295Skill: ConceptObjective: 10-312) Costs that do not va
10、ry with production or sales level are referred to as _.A) fixed costsB) variable costsC) target costsD) total costsE) unit costsAnswer: ADiff: 1Page Ref: 295Skill: ConceptObjective: 10-313) Under _, the market consists of many buyers and sellers who trade over a range of prices rather than a single
11、market price.A) pure competitionB) monopolistic competitionC) oligopolistic competitionD) pure monopolyE) socialismAnswer: BDiff: 2Page Ref: 302Skill: ConceptObjective: 10-414) Under _, the market consists of a few sellers who are highly sensitive to each others pricing and marketing strategies.A) p
12、ure competitionB) monopolistic competitionC) oligopolistic competitionD) pure monopolyE) capitalismAnswer: CDiff: 2Page Ref: 302Skill: ConceptObjective: 10-415) _ are the sum of the _ and _ for any given level of production.A) Fixed costs; variable; total costsB) Fixed costs; total; variable costsC)
13、 Variable costs; fixed; total costsD) Total costs; fixed; variable costsE) Break-even costs; fixed; total costsAnswer: DDiff: 2Page Ref: 296Skill: ConceptObjective: 10-316) Which of the following statements about break-even analysis is true?A) It is used to determine how much production experience a
14、 company must have to achieve desired efficiencies.B) It is a technique used to calculate fixed costs.C) It determines the amount of retained earnings a company will have during an accounting period.D) It is a technique marketers use to examine the relationship between supply and demand.E) It is cal
15、culated using variable costs, the unit price, and fixed costs.Answer: EDiff: 3Page Ref: 298Skill: ConceptObjective: 10-317) When companies set prices, the government and social concerns are two _ affecting pricing decisions.A) external factorsB) internal factorsC) economic conditionsD) demand curves
16、E) temporary influencesAnswer: ADiff: 1Page Ref: 305Skill: ConceptObjective: 10-418) Amos Zook, an Amish farmer, sells organically grown produce. Often he will trade some of his produce for dairy products produced by other Amish farmers. The sum of the values that others exchange is called a _.A) pr
17、iceB) cost-plus priceC) dynamic priceD) common value priceE) penetration priceAnswer: ADiff: 1Page Ref: 290AACSB: Reflective ThinkingSkill: ApplicationObjective: 10-119) Trader Joes offers an assortment of exclusive gourmet products at impossibly low prices. These prices are not limited-time offers
18、or special discounts. Instead, they reflect Trader Joes _ strategy.A) everyday low pricingB) cost-plus pricingC) dynamic pricingD) value-based pricingE) cost-based pricingAnswer: ADiff: 2Page Ref: 293AACSB: Reflective ThinkingSkill: ApplicationObjective: 10-220) A manufacturer is trying to determine
19、 its break-even volume. With fixed costs of $100,000, a variable cost of $10, and expected sales of 50,000 units, what should the manufacturers unit cost be to break even?A) $10B) $12C) $16D) $20E) none of the aboveAnswer: BDiff: 3Page Ref: 298AACSB: Analytic SkillsSkill: ApplicationObjective: 10-32
20、1) As a manufacturer decreases price, _ volume increases.A) targetB) break-evenC) cost-plus pricingD) total costE) salesAnswer: BDiff: 3Page Ref: 299AACSB: Analytic SkillsSkill: ApplicationObjective: 10-322) P&G surveyed the market and identified an unserved segment of electric toothbrush market. Us
21、ing these results, they created Spinbrush. The unorthodox order of this marketing mix decision is an example of _.A) competition-based pricingB) cost-plus pricingC) target costingD) value-based pricingE) penetration pricingAnswer: CDiff: 2Page Ref: 300AACSB: Reflective ThinkingSkill: ApplicationObje
22、ctive: 10-423) PoolPak produces climate-control systems for large swimming pools. The companys customers are more concerned about service support for maintaining a system than its initial price. PoolPak may use this knowledge to become more competitive through _.A) target costingB) value pricingC) c
23、ost-plus pricingD) a nonprice positionE) skimming pricingAnswer: DDiff: 2Page Ref: 300AACSB: Reflective ThinkingSkill: ApplicationObjective: 10-324) By pledging to be a leader in providing clean, renewable energy sources and developing products and services that help consumers protect the environmen
24、t, Green Mountain Power competes successfully against cheaper brands that focus on more price-sensitive consumers.Green Mountain Power has the firm belief that even kilowatt-hours can be _.A) cost-plus pricedB) a demand curveC) differentiatedD) value-based pricedE) none of the aboveAnswer: CDiff: 3P
25、age Ref: 300AACSB: Analytic SkillsSkill: ApplicationObjective: 10-425) In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of seafood products on one street. An individual store dare not charge more than the going price without the risk of losing business to the
26、other stores that are selling the fish at a common price. This is an example of what type of market?A) pure competitionB) monopolistic competitionC) oligopolistic competitionD) pure monopolyE) socialistAnswer: ADiff: 2Page Ref: 302AACSB: Reflective ThinkingSkill: ApplicationObjective: 10-426) Ascot
27、Tires has decided to decrease its prices. The company can expect that _ for their product will increase.A) cost-plus pricingB) value-based pricingC) demandD) the experience curveE) competitionAnswer: CDiff: 1Page Ref: 303AACSB: Reflective ThinkingSkill: ApplicationObjective: 10-427) If Canon Camera
28、Company follows a high-price, high-margin strategy, what will competitors such as Nikon, Minolta, and Pentax most likely do?A) They will go out of business.B) They will want to compete against Canon.C) They will advertise less.D) They will bundle their products.E) none of the aboveAnswer: BDiff: 2Pa
29、ge Ref: 304AACSB: Analytic SkillsSkill: ApplicationObjective: 10-428) If Canon Camera Company follows a low-price, low-margin strategy for a product, what will competitors most likely do?A) They will not be able to compete or may leave the market.B) They will want to compete against Canon.C) They wi
30、ll advertise less.D) They will advertise more.E) none of the aboveAnswer: ADiff: 3Page Ref: 304AACSB: Analytic SkillsSkill: ApplicationObjective: 10-429) When faced with price competition cutting prices is often not the best answer.Answer: TRUEDiff: 2Page Ref: 293AACSB: Analytic SkillsSkill: Applica
31、tionObjective: 10-130) Consumers will base their judgments of a products value on the prices that competitors charge for similar products.Answer: TRUEDiff: 2Page Ref: 304Skill: ConceptObjective: 10-431) Value-based pricing uses the companys perception of value.Answer: FALSEDiff: 2Page Ref: 291Skill:
32、 ConceptObjective: 10-232) Value-based pricing is the reverse of cost-based pricing.Answer: TRUEDiff: 2Page Ref: 291Skill: ConceptObjective: 10-233) Using value-based pricing, a marketer would not design a product and marketing program before setting the price.Answer: TRUEDiff: 3Page Ref: 291AACSB:
33、Analytic SkillsSkill: ApplicationObjective: 10-234) EDLP is very similar to high-low pricing.Answer: TRUEDiff: 2Page Ref: 293Skill: ConceptObjective: 10-235) Overhead cost is another term for fixed cost.Answer: TRUEDiff: 1Page Ref: 295Skill: ConceptObjective: 10-336) The demand curve shows the numbe
34、r of units the market will buy in a given time period at different prices that might be charged. In normal cases, the higher the price, the lower the demand.Answer: TRUEDiff: 1Page Ref: 303Skill: ConceptObjective: 10-437) If demand changes greatly with price, we say the demand is inelastic.Answer: F
35、ALSEDiff: 2Page Ref: 304Skill: ConceptObjective: 10-438) The more elastic the demand, the more it pays for the seller to raise the price.Answer: FALSEDiff: 2Page Ref: 304AACSB: Analytic SkillsSkill: ApplicationObjective: 10-439) A break-even chart shows the total cost and total revenue expected at v
36、arious sales volume levels.Answer: TRUEDiff: 2Page Ref: 298Skill: ConceptObjective: 10-340) Marketers may learn a few simple rules that apply equally to all price-demand relationships.Answer: FALSEDiff: 2Page Ref: 303AACSB: Analytic SkillsSkill: ApplicationObjective: 10-4398Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall