TRUE/FALSE

FALSE

When the important value driver for a purchase decision are economical rather than monetary, it is best to avoid incorporating quantified value estimates into market communication.

FALSE

The level of involvement tends to increase when the purchase is cheaper.

FALSE

The price metric should be based on the quality of a product or service provided to avoid the supplier offering different pricing to the same buyer segment.

FALSE

The extent of price segmentation is not limited by the ability of the seller to manage the complexity of managing across multiple segments.

FALSE

Penetration strategy should be employed if the new product is perceived as risky.

FALSE

The feasible price floor for a product that is positively differentiated is its variable cost.

FALSE

When the benefits are mostly psychological, value communication needs to be a central part of the message in order to educate the customer on the actual value delivered.

FALSE

Skimming strategy should be employed if the prices are low enough to serve as an incentive to buy for customers.

FALSE

Price levels should not be set based on the marketing objectives of the firm and should be based on the product’s economic value.

FALSE

The aim is not to convince the target audience members that a product or service meets their needs and offer superior value compared to competitors.

FALSE

We choose the competitor's prices as our price floor for a product that is positively differentiated to place our customers in an untenable position in which its products creates negative economic benefit for its customers.

TRUE

To help persuade potential leads into becoming customers, businesses create value propositions through advertisements and marketing plans.

TRUE

It is important to focus the message on high-value benefits that the customer might not have been thinking about when considering the differentiating features of the product in a psychological decision.

TRUE

The feasible price ceiling for a positively differentiated product is defined by the product's value proposition.

TRUE

Skimming strategy should be employed if there is a presence of protection against competitive products.

TRUE

For a product that is negatively differentiated, the price ceiling should be the economic value of the product but is also below the next best competing alternative.

TRUE

The goal of a price structure is to capture more revenue from sales where value or cost to serve is higher, while accepting lower revenue to earn additional profits from incremental volume.

TRUE

The goal of the price  setting process to ensure profit maximization by capturing the appropriate amount of differential value in each segment.

TRUE

A marketer must determine how most profitably to capture a share of that value in both volume and margin.

TRUE

This cost to deliver a service is significant if it exceed the cost of measurement, monitoring, and charging for differences in its usage.

TRUE

The price floor for a negatively differentiated product should be the product's variable cost.

TRUE

Penetration Strategy should be employed when market conditions favor a pioneer advantage.