kotlerchapter10.docx

1、kotlerchapter10Chapter 10 Pricing Products: Understanding and Capturing Customer Value1) _ is the amount of money charged for a product or service.A) Experience curveB) Demand curveC) PriceD) WageE) SalaryAnswer: C2) Price is the only element in the marketing mix that produces _.A) revenueB) variabl

2、e costsC) expensesD) outfixed costsE) stabilityAnswer: A3) _ is an important element in the marketing mix. It is the only element that does not represent costs.A) Current profit maximizationB) Market share leadershipC) PriceD) Product quality leadershipE) The target marketAnswer: C4) Consumer percep

3、tions of the products value set the _ for prices.A) demand curveB) floorC) ceilingD) variable costE) imageAnswer: C5) Product costs set a(n) _ to a products price.A) demand curveB) floorC) ceilingD) break-even costE) experience curveAnswer: B6) Which of the following is a customer-oriented approach

4、to pricing?A) value-based pricingB) sealed-bid pricingC) break-even pricingD) target profit pricingE) C and DAnswer: A7) _ uses buyers perceptions of what a product is worth, not the sellers cost, as the key to pricing.A) Value-based pricingB) Value-added pricingC) Variable costD) Price elasticityE)

5、 Product imageAnswer: A8) In _, price is considered along with the other marketing mix variables before the marketing program is set.A) value-based pricingB) cost-based pricingC) variable costsD) price elasticityE) building the marketing mixAnswer: A9) Value-based pricing is the reverse process of _

6、.A) variable cost pricingB) cost-plus pricingC) cost-based pricingD) good-value pricingE) value-added pricingAnswer: C10) With _, price is set to match consumers perceptions of product value.A) variable cost pricingB) cost-plus pricingC) cost-based pricingD) value-based pricingE) every day low prici

7、ngAnswer: D11) Measuring _ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer.A) price elasticityB) the demand curveC) perceived valueD) break-even pricingE) quantity suppliedAnswer: C12) Underpriced products sell very well, but they pr

8、oduce less revenue than they would have if price were raised to the _ level.A) perceivedB) value-basedC) variableD) demand curveE) price-floorAnswer: A13) If a seller charges _ than the buyers perceived value, the companys sales will _.A) more; benefitB) more; sufferC) less; increaseD) less; sufferE

9、) none of the aboveAnswer: B14) Some companies have adopted a _ strategy, offering just the right combination of quality and good service at a fair price.A) value-based pricingB) good-value pricingC) cost-plus pricingD) low-price imageE) none of the aboveAnswer: B15) Wal-Mart is famous for using wha

10、t important type of value pricing?A) competition-based pricingB) everyday low pricingC) cost-plus pricingD) break-even pricingE) penetration pricingAnswer: B16) _ involves charging a constant, everyday low price with few or no temporary price discounts.A) High-low pricingB) Target pricingC) Cost-plu

11、s pricingD) EDLPE) Penetration pricingAnswer: D17) _ involves attaching features and services to differentiate a companys offers and to support charging higher prices.A) Break-even pricingB) Target pricingC) Value-added pricingD) Cost-plus pricingE) Pricing-downAnswer: C18) _ is a companys power to

12、escape price competition and to justify higher prices and margins.A) Variable costB) Pricing powerC) Target costD) Fixed costE) Unit costAnswer: B19) To maintain and increase a companys _, a firm must retain or build the value of its marketing offer.A) variable costB) pricing powerC) target costD) f

13、ixed costE) imageAnswer: B20) When there is price competition, many companies adopt _ rather than cutting prices to match competitors.A) pricing powerB) value-added strategiesC) fixed costsD) price elasticityE) image pricingAnswer: B21) Ryanair offers free flights to a quarter of its customers and r

14、ock-bottom prices to many of its other customers. Ryanair then charges for all extra services, such as baggage handling and in-flight refreshments. Which of the following best describes Ryanairs pricing method?A) value-added pricingB) low-cost pricingC) cost-plus pricingD) high-low pricing E) image

15、pricingAnswer: B22) _ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the companys efforts and risks.A) Value-basedB) Fixed costC) Cost-basedD) VariableE) SkimmingAnswer: C23) Fixed costs _ as the number of units

16、produced increases. A) decreaseB) increaseC) divide in halfD) remain the sameE) increase at a diminishing rateAnswer: D24) Costs that do not vary with production or sales level are referred to as _. A) fixed costsB) variable costsC) target costsD) total costsE) unit costsAnswer: A25) Rent, electrici

17、ty and executive salaries are examples of _.A) fixed costsB) variable costsC) accumulated costsD) total costsE) marketing costsAnswer: A26) Costs that vary directly with the level of production are referred to as _. A) fixed costsB) variable costsC) target costsD) total costsE) unit costsAnswer: B27

18、) _ are the sum of the _ and _ for any given level of production.A) Fixed costs; variable; total costsB) Fixed costs; total; variable costsC) Variable costs; fixed; total costsD) Total costs; fixed; variable costsE) Break-even costs; fixed; total costsAnswer: D28) SRAC is the acronym for which conce

19、pt related to costs at different levels of production?A) strategic reasoning and costsB) short-run accounting costsC) short-run average cost D) strategic rights and companyE) strategic revenues and costsAnswer: C29) As production workers become better organized and more familiar with equipment, the

20、average cost per unit decreases. This is called the _.A) demand curveB) experience curveC) short-run average cost curveD) long-run average cost curveE) marginal utilityAnswer: B30) With a higher volume of product, most companies can expect to _.A) gain economies of scaleB) become less efficientC) se

21、e average costs increaseD) have a straight, horizontal learning curveE) find competitors using the experience curve strategicallyAnswer: A31) The experience curve reveals that _.A) repetition in production lowers costsB) repetition in production enhances efficiencyC) the average cost drops with accu

22、mulated production experienceD) A, B, and CE) none of the aboveAnswer: D32) When a downward-sloping experience curve exists, a company should usually _ the selling price of that product in order to bring in higher revenues.A) increaseB) greatly increaseC) decreaseD) not alterE) none of the aboveAnsw

23、er: C33) Which of the following is a risk a company takes when building a strategy around the experience curve?A) Competitors will likely not be able to meet the companys price cuts.B) Existing technologies are likely to become more expensive as the company expands.C) The method does not take compet

24、itors prices into account.D) The method may cause consumers to become frustrated with changing prices.E) Aggressive pricing may give the product a cheap image, causing customers to lose interest.Answer: E34) A company building its pricing strategy around the experience curve would be likely to _.A)

25、price its products lowB) price its products highC) engage in break-even pricingD) all of the aboveE) none of the aboveAnswer: A35) The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that adds a standard mark-up to the cost of the p

26、roduct. This approach to pricing is called _.A) value-based pricingB) fixed cost pricingC) cost-plus pricingD) variable pricingE) skimming pricingAnswer: C36) Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This is known as _.A) variable costsB)

27、cost-plus pricingC) value-based pricingD) break-even priceE) penetration pricingAnswer: B37) The simplest pricing method is _.A) value-based pricingB) going-rate and sealed-bid pricingC) cost-plus pricingD) break-even analysisE) target profit pricingAnswer: C38) Which of the following is a reason wh

28、y markup pricing is NOT practical?A) Sellers earn a fair return on their investment.B) By tying the price to cost, sellers simplify pricing.C) When all firms in the industry use this pricing method, prices tend to be similar.D) This method ignores demand.E) With a standard markup, consumers know whe

29、n they are being overcharged.Answer: D39) One reason _ remains popular is that sellers are more certain about costs than about demand.A) markup pricingB) variable pricingC) inelasticity pricingD) elasticity pricingE) penetration pricingAnswer: A40) Price competition is minimized when all firms in an

30、 industry use which pricing method?A) variable pricingB) markup pricingC) elasticity pricingD) value-added pricingE) value-based pricingAnswer: B41) Many people feel that _ pricing is fairer to both buyers and sellers. Sellers earn a fair return on their investment but do not take advantage of buyers when buyers demand becomes great.A) variableB) markupC) elasticityD) inelasticityE) penetrationAnswer: B42) Which of the following is a cost-bas