A company building its pricing strategy around the experience curve would be likely to _____
price its products low
Price competition is minimized when all firms use this pricing method
Many people feel that _____ pricing is fairer to both buyers and sellers. Sellers earn a fiar return on their investment but do not take advantage of buyers when buyers' demand becomes great
Which of the following is an external factor that affects pricing decisions?
A) the salaries of production management
C) the salaries of finance management
D) funds expensed to clean production equipment
E) A, B, and C
_____ is the amount of money charged for a product or service
The break-even volume is the point at which _____.
A) demand equals supply
B) a firm's profit goal is reached
C) total revenue and total cost lines intersect
D) the company can pay all of its l-t debt
E) the production of one more unit will not increase profit
Which of the following statements about break-even analysis is true?
A) it is a technique used to calc fixed costs
B) it is used to determine how much production experience a company must have to achieve its desired efficiencies
C) it is calculated using variable costs, the unit price, and fixed cost
_____ that influence pricing decisions include the nature of the market and demand and competitors' prices
Which of the following is a reason why markup pricing is NOT practical?
A) with a standard markup, consumers know when they are being overcharged
B) by tying the price to cost, sellers simplify pricing
C) sellers earn a fair return on their investment
D) this method ignores demand
In _____, price is considered along with the other marketing mix variables before the marketing program is set.
Wal-Mart is famous for using what important type of value pricing?
everyday low pricing
Rent, electricity, and executive salaries are examples of _____
Fixed costs _____ as the number of units produced increases.
stay the same
When there is price competition, many compamies adopt _____ rather than cutting prices to match competitors
Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the _____ level.
With _____, price is set to match consumers' perceptions of product value
_____ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks.
_____ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing
If a seller charges _____ than the buyer's perceived value, the company's sales will suffer
_____ involves charging a constant, everyday low price with few or no temporary price discounts
Consumer perceptions of the product's value set the _____ for prices.
value-based pricing is the reverse process of _____
price is the only element in the marketing mix that produces _____
_____ is a company's power to excape price competition and to justify higher prices and margins.
some companies have adopted a _____ strategy, offering just the right combination of quality and good service at a fair price
To maintain and increase a company's _____, a firm must retain or build the value of its marketing offer.
_____ is an important element in the marketing mix. It is the only element that does not represent cost
Product costs set a(n) _____ to a product's price.
Which of the following is a customer-oriented approach to pricing?
A) value-based pricing
B) sealed bid pricing
C) break-even pricing
D) target profit pricing
E) C and D
Costs that do not vary with production or sales level are referred to as _____
Ryanair offers free flights to a quarter of its customers and rock-bottom prices to many of its other customers. Ryanair then charges for all the extra services, such as baggage handling and in-flight refreshments. Which pricing method best describes Ryanair's pricing method?
Measuring _____ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer
_____ involves attaching features and services to differentiate a company's offer.