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1、Chapter 10Pricing Products: Understanding and Capturing Customer Value1) Which of the following is an external factor that affects pricing decisions? A) the salaries of production managementB) competitionC) the salaries of finance managementD) funds expensed to clean production equipment E) A, B, an
2、d CAnswer: BDiff: 1Page Ref: 299Skill: ConceptObjective: 10-42) Price setting is usually determined by _ in large companies. A) top managementB) divisional managersC) product line managersD) pricing departmentsE) both B and CAnswer: EDiff: 2Page Ref: 300Skill: ConceptObjective: 10-43) In industrial
3、markets, _ typically has the final say in setting the pricing objectives and policies of a company.A) the sales manager B) top managementC) the production manager D) the finance manager E) the pricing department Answer: BDiff: 2Page Ref: 300Skill: ConceptObjective: 10-44) Consumer perceptions of the
4、 products value set the _ for prices. A) demand curveB) floorC) ceilingD) variable costE) imageAnswer: CDiff: 2Page Ref: 291Skill: ConceptObjective: 10-25) Product costs set a(n) _ to a products price. A) demand curveB) floor C) ceilingD) break-even cost E) experience curve Answer: BDiff: 2Page Ref:
5、 291Skill: ConceptObjective: 10-26) Which of the following is a customer-oriented approach to pricing? A) value-based pricingB) sealed-bid pricing C) break-even pricing D) target profit pricingE) C and D Answer: ADiff: 2Page Ref: 291Skill: ConceptObjective: 10-27) The relationship between the price
6、charged and the resulting demand level can be shown as the _.A) demand curveB) variable costC) target costD) break-even pricingE) experience curveAnswer: ADiff: 1Page Ref: 303Skill: ConceptObjective: 10-48) In _, price is considered along with the other marketing mix variables before the marketing p
7、rogram is set.A) value-based pricingB) cost-based pricingC) variable costsD) price elasticityE) building the marketing mix Answer: ADiff: 2Page Ref: 291Skill: ConceptObjective: 10-29) Value-based pricing is the reverse process of _. A) variable cost pricingB) cost-plus pricingC) cost-based pricingD)
8、 good-value pricingE) value-added pricing Answer: CDiff: 2Page Ref: 291Skill: ConceptObjective: 10-210) Consumers usually perceive higher-priced products as _. A) out of reach for most peopleB) having high qualityC) having high profit margins D) having cost-based pricesE) being in the introductory s
9、tage of the product life cycle Answer: BDiff: 3Page Ref: 303Skill: ConceptObjective: 10-411) Fixed costs _ as the number of units produced increases. A) decreaseB) increaseC) divide in halfD) remain the sameE) increase at a diminishing rate Answer: DDiff: 2Page Ref: 295Skill: ConceptObjective: 10-31
10、2) Costs thatdo not vary withproductionor sales levelare referredto as _.A) fixed costsB) variable costsC) target costsD) total costsE) unit costs Answer: ADiff: 1Skill: ConceptObjective: 10-3Page Ref: 29513) Under _, the market consists of many buyers and sellers who trade a range of prices rather
11、than a single market price.overA) pure competitionB) monopolistic competitionC) oligopolistic competitionD) pure monopolyE) socialismAnswer: BDiff: 2Page Ref: 302Skill: ConceptObjective: 10-414) Under _, themarket consists ofto each others pricing and marketing strategies.A) pure competitionB) monop
12、olistic competitionC) oligopolistic competitionD) pure monopolyE) capitalismAnswer: CDiff: 2Page Ref: 302Skill: ConceptObjective: 10-4a few sellerswho are highlysensitive15) _ are the sum of the _ and _ for any given level of production.A) Fixed costs; variable; total costsB) Fixed costs; total; var
13、iable costsC) Variable costs; fixed; total costsD) Total costs; fixed; variable costsE) Break-even costs; fixed; total costs Answer: DDiff: 2Page Ref: 296Skill: ConceptObjective: 10-316) Which of the following statements about break-even analysis is true?A) It is used to determine how much productio
14、n experience a company must have to achieve desired efficiencies.B) It is a technique used to calculate fixed costs.C) It determines the amount of retained earnings a company will have during anaccounting period.D) It is a technique marketersuse to examinethe relationship between supplydemand.andE)
15、It is calculated using variable costs, the unit price, and fixed costs. Answer: EDiff: 3Page Ref: 298Skill: ConceptObjective: 10-317) Whencompanies set prices,the government and socialconcerns are two _affecting pricing decisions.A) external factorsB) internal factorsC) economic conditionsD) demand
16、curvesE) temporary influencesAnswer: ADiff: 1Page Ref: 305Skill: ConceptObjective: 10-418) AmosZook, an Amish farmer, sells organically grown produce. Often he will trade some of his produce for dairy products produced by other Amish farmers. The sumof the values that others exchange is called a _.A
17、) priceB) cost-plus priceC) dynamic priceD) common value priceE) penetration price Answer: ADiff: 1Page Ref: 290AACSB: Reflective ThinkingSkill: ApplicationObjective: 10-119) Trader Joes offers an assortment of exclusive low prices. These prices are not limited-time offersgourmet products at impossi
18、bly or special discounts. Instead,they reflect Trader Joes _ strategy.A) everyday low pricingB) cost-plus pricingC) dynamic pricingD) value-based pricingE) cost-based pricing Answer: ADiff: 2Page Ref: 293AACSB: Reflective ThinkingSkill: ApplicationObjective: 10-220) A manufacturer is trying to deter
19、mine its break-even volume. With fixed costs of $100,000, a variable cost of $10, and expected sales of 50,000 units, what should the manufacturers unit cost be to break even?A) $10B) $12C) $16D) $20E) none of the above Answer: BDiff: 3Page Ref: 298AACSB: Analytic SkillsSkill: ApplicationObjective:
20、10-321) As a manufacturer decreases price, _ volume increases. A) targetB) break-evenC) cost-plus pricing D) total costE) salesAnswer: BDiff: 3Page Ref: 299AACSB: Analytic SkillsSkill: ApplicationObjective: 10-322) P&G surveyed the market and identified an unserved segment of electrictoothbrush mark
21、et. Using these results, they created Spinbrush. The unorthodox order of this marketing mix decision is an example of _.A) competition-based pricing B) cost-plus pricingC) target costingD) value-based pricingE) penetration pricing Answer: CDiff: 2Page Ref: 300AACSB: Reflective ThinkingSkill: Applica
22、tionObjective: 10-423) PoolPak produces climate-control systems for large swimming pools. The companys customers are more concerned about service support for maintaining a system than its initial price. PoolPak may use this knowledge to become more competitive through _.A) target costing B) value pr
23、icingC) cost-plus pricingD) a nonprice positionE) skimming pricingAnswer: DDiff: 2Page Ref: 300AACSB: Reflective ThinkingSkill: ApplicationObjective: 10-324) By pledging to be a leader in providing clean, renewable energy sources anddeveloping products and services that help consumers protect the en
24、vironment, Green Mountain Power competes successfully against cheaper brands that focus on more price-sensitive consumers.Green Mountain Power has the firm belief that even kilowatt-hours can be _.A) cost-plus pricedB) a demand curveC) differentiatedD) value-based pricedE) none of the aboveAnswer: C
25、Diff: 3Page Ref: 300AACSB: Analytic SkillsSkill: ApplicationObjective: 10-425) In Vin del Mar, Chile, there are a dozen stores specializing in selling thesamequality of seafood products on one street. An individual store dare not charge more than the going price without the risk of losing business t
26、o the other storesthat are selling the fish at a common price. This is an example of what type of market?A) pure competitionB) monopolistic competitionC) oligopolistic competitionD) pure monopolyE) socialistAnswer: ADiff: 2Page Ref: 302AACSB: Reflective ThinkingSkill: ApplicationObjective: 10-426) A
27、scot Tires has decided to decrease its prices. The company can expect that_ for their product will increase. A) cost-plus pricingB) value-based pricing C) demandD) the experience curveE) competition Answer: CDiff: 1Page Ref: 303AACSB: Reflective ThinkingSkill: ApplicationObjective: 10-427) If Canon
28、Camera Companyfollows a high-price, high-margin strategy, what will competitors such as Nikon, Minolta, and Pentax most likely do?A) They will go out of business.B) They will want to compete against Canon.C) They will advertise less.D) They will bundle their products.E) none of the aboveAnswer: BDif
29、f: 2Page Ref: 304AACSB: Analytic SkillsSkill: ApplicationObjective: 10-428) If Canon CameraCompanyfollows a low-price, low-margin strategy for a product, what will competitors most likely do?A) They will not be able to compete or may leave the market.B) They will want to compete against Canon.C) The
30、y will advertise less.D) They will advertise more.E) none of the aboveAnswer: ADiff: 3Page Ref: 304AACSB: Analytic SkillsSkill: ApplicationObjective: 10-429) Whenfaced with price competition cutting prices is often not the best answer. Answer: TRUEDiff: 2Page Ref: 293AACSB: Analytic SkillsSkill: App
31、licationObjective: 10-130) Consumers will base their judgments of a products value on the prices that competitors charge for similar products.Answer: TRUEDiff: 2Page Ref: 304Skill: ConceptObjective: 10-431) Value-based pricing uses the companys perception of value. Answer: FALSEDiff: 2Page Ref: 291S
32、kill: ConceptObjective: 10-232) Value-based pricing is the reverse of cost-based pricing. Answer: TRUEDiff: 2Page Ref: 291Skill: ConceptObjective: 10-233) Using value-based pricing, a marketer would not design a product and marketing program before setting the price.Answer: TRUEDiff: 3Page Ref: 291AACSB: Analytic SkillsSkill: ApplicationObjective: 10-234) EDLP is very similar to high-lo
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