Question 1

Which is the only element in the marketing mix that produces revenue and can be changed quickly?

Accepted Answer

Price

Answer

Place

Answer

Product

Answer

Promotion

Question 2

Is Product Costs one of the major considerations in setting price?

Accepted Answer

true

Answer

false

Question 3

Value-based pricing uses sellers' perceptions of value as the key to pricing.

Accepted Answer

false

Answer

true

Question 4

Which of the following is a condition for Market Skimming to be feasible?

Accepted Answer

Cost of producing a smaller volume cannot be so high that they cancel the advantage of charging more

Answer

Production and distribution costs must fall as sales volume increases

Answer

The company must maintain its low-price position

Answer

Do not have to make frequent adjustments when demand changes as prices are tied to cost

Question 5

Which of the following is a definition for market penetration pricing?

Accepted Answer

Companies setting a low initial price in order to penetrate the market quickly and deeply so as to attract a large number of buyers quickly and win a large market share

Answer

Product driven rather than customer driven

Answer

Sum of the values that consumers exchanged in return for having or using the product or service

Answer

Companies setting a high price for a new product to "skim" revenues layer by layer from the market

Question 6

What does price refer to?

Accepted Answer

The amount of money charged for a product or service

Answer

The Fixed Cost (FC) and Variable Cost (VC)

Answer

Sum of the values that suppliers exchanged in return for having or using the product or service

Answer

Having the least effect on whether the marketing strategy is successful

Question 7

Customer perceptions of product's value sets the floor for prices

Accepted Answer

false

Answer

true

Question 8

Break even volume refers to the number of units/tickets that a company needs to sell to break even

Accepted Answer

true

Answer

false

Question 9

Why is it popular to use cost-plus pricing?

Accepted Answer

Prices tend to be similar and price competition is minimized

Answer

Have to make frequent adjustments when demand changes as prices are tied to cost

Answer

Harder to ascertain costs rather than demand

Answer

Sellers earn a fair return on their investment and take advantage of buyers when buyer's demand increases

Question 10

What is the correct order for cost-based pricing?

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