Pricing Basics
______ is the amount of money changes for a product or service.
a. Experience curve
b. Price
c. Salary
d. Wage
Price
Costs, like rent, electricity, and executive salaries, that do not vary with production or sales level are referred to as _______.
a. Variable Costs
b. Total Costs
c. Unit Costs
d. Fixed Costs
Fixed Costs
______ involves charging a constant, everyday low price with few or no temporary price discounts.
a. High-low pricing
b. Target pricing
c. EDLP
d. Costs-plus pricing
EDLP
Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.
Pure competition
Monopolistic competition
Oligopolistic competition
Pure monopoly
Monopolistic Competition
As workers become more efficient, the average cost per unit decreases. This is called the ________.
Experience curve
Demand curve
Short-run average
Cost curve
Experience curve
Price is the only element in the marketing mix that produces ______.
a. Variable Cost
b. Expenses
c. Revenue
d. Fixed Costs
Revenue
Costs that vary directly with the level of production are referred to as ______.
a. Target Costs
b. Total Costs
c. Variable Costs
d. Unit Costs
Variable Costs
_______ involves attaching features and services to differentiate a companyś offers and to support charging higher prices.
a. Break-even pricing
b. Cost-plus pricing
c. Value-added pricing
d. pricing down
Value-added pricing
Consumers usually perceive higher-priced products as ________.
High profit margins
cost-based prices
High Quality
Out of reach for most people
High Quality
Companies may set prices low for several reasons EXCEPT ________.
To prevent competition from entering the market
To stabilize the market
To create excitement for a product
To prepare for an easy exit from a market
To prepare for an easy exit from a market
Consumer perceptions of the productś value set the _____ for prices.
a. Demand Curve
b. Ceiling
c. Floor
d. Image
Ceiling
_______ are the sum of the _______ and _______ for any given level of production.
a. Total costs; Fixed; Variable Costs
b. Break-even costs; Fixed; Total costs
c. Fixed costs; Variable; Total costs
d. Fixed costs; Total; Variable costs
Total costs; Fixed; Variable costs
The company designs a product, totals expenses, and sets a price by adding a mark-up to costs. This is called ________.
Value-based pricing
Fixed-cost pricing
Cost-plus pricing
Skimming pricing
Cost-plus pricing
In Vin del Mar, Chile, a dozen stores sell seafood at the same price. This is an example of ________.
Pure completion
Monopolistic competition
Socialist
Oligopoly
Pure competition
________ is a cost-based approach to pricing.
Value-based pricing
Going-rate pricing
Good value pricing
Cost-plus pricing
Cost-plus pricing
_______ uses buyers´ perceptions of what a product is worth, not the sellerś cost, as the key to pricing.
a. Value-based pricing
b. Value-added pricing
c. Price elasticity
d. Variable cost
Value-based pricing
The break-even volume is the point at which ______.
a. The total revenue and total costs lines intersect
b. Demand equals supply
c. The production of one more unit will not increase profit
d. The company can pay all of its long-term dept
The total revenue and total costs lines intersect
Price competition is minimized when all firms in an industry use ________.
Markup pricing
When a downward-sloping experience curve exists, a company should usually ________ the selling price.
decrease
Price competition is minimized when all firms in an industry use ________.
Markup pricing
The relationship between the price charged and the resulting demand level can be shown as the ______.
a. Demand Curve
b. Target Cost
c. Break-even pricing
d. Experience Curve
Demand Curve
Price elasticity of demand is _____ divided by ______.
a. demand; price
b. percent change in price; percent change in quantity demanded
c. the going price; the asking price
d. percent change in price; the asking price
percent change in quantity demanded; percent change in price
________ pricing works only if that price actually brings in the expected level of sales.
Target Profit
PoolPak competes by emphasizing service support rather than price. This is an example of ________.
nonprice position
The market where consumers spend less time hunting for bargains and prefer constant pricing is served by ________.
EDLP