Marketing management Chapter 10

The amount of money charged for a product is its​ __________.

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Part 1

A.

price

B.

profit

C.

cost

D.

breakeven point

E.

revenue

A. Price

In a broad​ sense, price is​ __________.

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Part 1

A.

used in the marketing mix but not as a key strategic tool in creating and capturing customer value

B.

the sum of all the values that customers give up to gain the benefits of having or using a product or service

C.

not critical in determining a​ company's success

D.

the amount of money charged for a product

E.

something that marketers always increase rather than cut

B.

the sum of all the values that customers give up to gain the benefits of having or using a product or service

Which of the following statements about price is​ correct?

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Part 1

A.

Pricing is not a problem for marketing executives.

B.

Price is not an important competitive asset.

C.

Marketers do not a have lot of flexibility in setting and changing price.

D.

Prices have no impact on a​ firm's bottom line.

E.

Customers have put increased pricing pressure on many companies.

E.

Customers have put increased pricing pressure on many companies.

Sale​ days, early-bird​ savings, and bonus earnings for store​ credit-card holders are promotions employed in which type of pricing​ strategy?

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Part 1

A.

​Good-value pricing

B.

Everyday low pricing

C.

​Cost-based pricing

D.

​Value-added pricing

E.

​High-low pricing

E.

​High-low pricing

A variation of​ break-even pricing is​ _________, which uses the concept of a​ break-even chart that shows the total cost and total revenue expected at different sales volume levels.

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Part 1

A.

​value-added pricing

B.

target return pricing

C.

​high-low pricing

D.

everyday low pricing​ (EDLP)

E.

​competition-based pricing

B.

target return 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, super-wide​ screens, and other amenities for which they charge a higher price. This is an example of which type of​ pricing?

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Part 1

A.

​Value-added pricing

B.

​Cost-plus pricing

C.

EDLP

D.

​High-low pricing

E.

​Break-even pricing

A.

​Value-added pricing

Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is​ Sadie's using?

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Part 1

A.

​High-low pricing

B.

​Value-added pricing

C.

​Cost-based pricing

D.

​Good-value pricing

E.

​Break-even pricing

D.

​Good-value pricing

Which of the following reverses the usual process of first designing a new​ product, determining its​ cost, and then​ asking, "Can we sell it for​ that?"

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Part 1

A.

Target costing

B.

​Value-added pricing

C.

​Cost-plus pricing

D.

Target return pricing

E.

EDLP

A.

Target costing

Which is an external factor affecting​ pricing?

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Part 1

A.

Organizational considerations

B.

The nature of the market

C.

The​ company's objectives

D.

The​ company's overall marketing strategy

E.

The​ company's marketing mix

B.

The nature of the market

________ is a measure of the sensitivity of demand to changes in price.

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Part 1

A.

Discount

B.

Price inelasticity

C.

Price elasticity

D.

A demand curve

E.

Variable cost

C.

Price elasticity

If the company has selected its target market and positioning​ carefully, then its marketing mix​ strategy, including​ price, will be fairly straightforward. Of the​ following, which is NOT one of the common pricing​ objectives?

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Part 1

A.

Supporting resellers and gaining their support

B.

Avoiding government intervention

C.

Grabbing international market share

D.

Customer retention and building profitable customer relationships

E.

Preventing competition

C.

Grabbing international market share