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25 Cards in this Set
- Front
- Back
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________ refers to the amount of money charged for a product or service.
A) Value B) Cost C) Price D) Salary |
C) Price
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________ is the only element in the marketing mix that produces revenue.
A) Price B) Product C) Place D) Fixed costs E) Variable costs |
A) Price
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What sets the ceiling for product prices?
A) product manufacturing costs B) sellers' perceptions of the product's value C) customer perceptions of the product's value D) variable costs |
C) customer perceptions of the product's value
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What sets the floor for product prices?
A) consumer perceptions of the product's value B) product costs C) competitors' strategies D) advertising budgets |
B) product costs
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Which of the following is an external factor that affects pricing decisions in a company?
A) the company's overall marketing strategy B) the nature of the market C) the organizational objectives of the company D) elements of the company's marketing mix |
B) the nature of the market
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Which of the following is an internal factor that affects pricing decisions in a company?
A) the nature of the market B) the degree of inflation in the economy C) the overall marketing strategy of the company D) the forces of demand and supply in the market E) consumers' perception of value |
C) the overall marketing strategy of the company
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Companies using target costing ________.
A) first design a new product and then determine its cost B) tailor their products to be in line with the marketing mix C) avoid determining an ideal selling price until analyzing test market results D) start with an ideal selling price and then target costs that will ensure that the price is met |
D) start with an ideal selling price and then target costs that will ensure that the price is met
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Under ________, the market consists of many buyers and sellers trading in a uniform commodity.
A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly |
A) pure competition
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Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.
A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly |
B) monopolistic competition
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The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of a(n) ________.
A) pure competition B) monopolistic competition C) oligopolistic competition D) pure monopoly |
C) oligopolistic competition
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In which situation is the market dominated by one seller?
A) pure monopoly B) monopolistic competition C) oligopolistic competition D) pure competition E) free market |
A) pure monopoly
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When companies set prices, the government and social concerns are ________ factors affecting pricing decisions.
A) external B) internal C) economic D) organizational |
A) external
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When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the________ pricing strategy.
A) market-skimming B) market-segmentation C) market-penetration D) competitive |
A) market-skimming
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Companies that set a low price for a new product in order to attract a large number of buyers and a large market shareare using the ________ strategy.
A) market-skimming pricing B) market-penetration pricing C) cost-plus pricing D) inclusive pricing |
B) market-penetration pricing
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Which of the following product mix pricing strategies involves setting prices across an entire product range based on cost differences between the products, customer evaluations of different features, and competitors' prices?
A) by-product pricing B) product bundle pricing C) optional product pricing D) captive product pricing E) product line pricing |
E) product line pricing
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Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the main product?
A) inclusive product pricing B) exclusive product pricing C) by-product pricing D) product bundle pricing E) optional-product pricing |
E) optional-product pricing
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Which of the following product mix pricing strategies involves pricing products that can only be used with the main product?
A) by-product pricing B) product bundle pricing C) captive product pricing D) product line pricing E) optional product pricing |
C) captive product pricing
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In the case of services, captive product pricing is called ________ pricing.
A) by-product B) optional product C) two-part D) bundle E) segmented |
C) two-part
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Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive.
A) product bundle B) optional product C) captive product D) by-product E) product line |
D) by-product
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Which of the following product mix pricing strategies involves pricing multiple products to be sold together?
A) product line pricing B) product bundle pricing C) optional product pricing D) by-product pricing E) captive product pricing |
B) product bundle pricing
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Which of the following is a price adjustment strategy?
A) product bundle pricing B) by-product pricing C) product line pricing D) optional product pricing E) discount and allowance pricing |
E) discount and allowance pricing
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Which of the following is a price adjustment strategy that considers how a customer's perception of a product is influenced by its price?
A) captive product pricing B) psychological pricing C) by-product pricing D) promotional pricing E) international pricing |
B) psychological pricing
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Hearth & Home, a store which sells household products, has announced a one-week sale on its new carpet line. This is an example of ________.
A) promotional pricing B) seasonal pricing C) by-product pricing D) product bundle pricing |
A) promotional pricing
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Which of the following involves adjusting prices to account for the physical location of customers?
A) geographical pricing B) domestic pricing C) interior pricing D) captive pricing |
A) geographical pricing
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The Internet offers ________, where the price can easily be adjusted to meet changes in demand.
A) captive pricingB) dynamic pricingC) basing-point pricingD) price bundling |
B) dynamic pricing
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