Transcript Slide 1

Kotler / Armstrong 11e, Chapter 10
_____ is the sum of values that consumers
exchange for the benefits of having or using a
product or service.
1. Place
2. Purchase
3. Price
4. Premium
Kotler / Armstrong 11e, Chapter 10
_____ is the sum of values that consumers
exchange for the benefits of having or using a
product or service.
1. Place
2. Purchase
3. Price
4. Premium
Kotler / Armstrong 11e, Chapter 10
The Internet is potentially changing pricing
practices from _____ to _____.
1. fixed; dynamic
2. dynamic; fixed
3. value; premium
4. external; internal
Kotler / Armstrong 11e, Chapter 10
The Internet is potentially changing pricing
practices from _____ to _____.
1. fixed; dynamic
2. dynamic; fixed
3. value; premium
4. external; internal
Kotler / Armstrong 11e, Chapter 10
eBay.com is an example of a company that uses
_____ pricing.
1. fixed
2. dynamic
3. prestige
4. value
Kotler / Armstrong 11e, Chapter 10
eBay.com is an example of a company that uses
_____ pricing.
1. fixed
2. dynamic
3. prestige
4. value
Kotler / Armstrong 11e, Chapter 10
Which of the elements in the marketing mix
produce revenue?
1. promotion
2. product
3. price
4. all of the above
Kotler / Armstrong 11e, Chapter 10
Which of the elements in the marketing mix
produce revenue?
1. promotion
2. product
3. price
4. all of the above
Kotler / Armstrong 11e, Chapter 10
One problem with pricing is that managers are
often too quick to reduce their price, rather
than to convince their buyers that their
product is worth the higher cost.
1. True
2. False
Kotler / Armstrong 11e, Chapter 10
One problem with pricing is that managers are
often too quick to reduce their price, rather
than to convince their buyers that their
product is worth the higher cost.
1. True
2. False
Kotler / Armstrong 11e, Chapter 10
Which of the following is not an internal factor
affecting pricing?
1. marketing objectives
2. marketing mix strategy
3. costs
4. competition
Kotler / Armstrong 11e, Chapter 10
Which of the following is not an internal factor
affecting pricing?
1. marketing objectives
2. marketing mix strategy
3. costs
4. competition
Kotler / Armstrong 11e, Chapter 10
A product that is high in quality and available in
a limited number of outlets will probably have
a _____.
1. high price
2. low price
3. discounted price
4. none of the above
Kotler / Armstrong 11e, Chapter 10
A product that is high in quality and available in
a limited number of outlets will probably have
a _____.
1. high price
2. low price
3. discounted price
4. none of the above
Kotler / Armstrong 11e, Chapter 10
Target costing involves designing a new product,
determining its cost, and then asking, “Can
we sell it for that?”
1. True
2. False
Kotler / Armstrong 11e, Chapter 10
Target costing involves designing a new product,
determining its cost, and then asking, “Can
we sell it for that?”
1. True
2. False (Target costing starts with setting an
ideal price based on customer
considerations then targets the costs to
see that the price is met.)
Kotler / Armstrong 11e, Chapter 10
_____ costs do not vary with production or sales
level.
1. Materials
2. Fixed
3. Total
4. Value
Kotler / Armstrong 11e, Chapter 10
_____ costs do not vary with production or sales
level.
1. Materials
2. Fixed
3. Total
4. Value
Kotler / Armstrong 11e, Chapter 10
The _____ shows the drop in average costs with
accumulated production experience.
1. learning curve
2. demand curve
3. cost curve
4. all of the above
Kotler / Armstrong 11e, Chapter 10
The _____ shows the drop in average costs with
accumulated production experience.
1. learning curve
2. demand curve
3. cost curve
4. all of the above
Kotler / Armstrong 11e, Chapter 10
Which type of market consists of many buyers
and sellers who trade over a range of prices
rather than a single market price?
1. pure competition
2. monopolistic competition
3. oligopolistic competition
4. pure monopoly
Kotler / Armstrong 11e, Chapter 10
Which type of market consists of many buyers
and sellers who trade over a range of prices
rather than a single market price?
1. pure competition
2. monopolistic competition
3. oligopolistic competition
4. pure monopoly
Kotler / Armstrong 11e, Chapter 10
Which type of market has few sellers who are
very sensitive to each other’s prices?
1. pure competition
2. monopolistic competition
3. oligopolistic competition
4. pure monopoly
Kotler / Armstrong 11e, Chapter 10
Which type of market has few sellers who are
very sensitive to each other’s prices?
1. pure competition
2. monopolistic competition
3. oligopolistic competition
4. pure monopoly
Kotler / Armstrong 11e, Chapter 10
A(n) _____ curve shows the number of units the
market will buy in a given time period at
different prices that might be charged.
1. demand
2. elastic
3. experience
4. reverse
Kotler / Armstrong 11e, Chapter 10
A(n) _____ curve shows the number of units the
market will buy in a given time period at
different prices that might be charged.
1. demand
2. elastic
3. experience
4. reverse
Kotler / Armstrong 11e, Chapter 10
If demand changes greatly with a small change
in price, we say the demand is _____.
1. inelastic
2. elastic
3. sensitive
4. reversed
Kotler / Armstrong 11e, Chapter 10
If demand changes greatly with a small change
in price, we say the demand is _____.
1. inelastic
2. elastic
3. sensitive
4. reversed
Kotler / Armstrong 11e, Chapter 10
Which of the following is(are) not an external
consideration when setting prices?
1. costs
2. the government
3. social concerns
4. resellers
Kotler / Armstrong 11e, Chapter 10
Which of the following is(are) not an external
consideration when setting prices?
1. costs
2. the government
3. social concerns
4. resellers
Kotler / Armstrong 11e, Chapter 10
The simplest pricing method is _____.
1. break-even pricing
2. cost-plus pricing
3. value-based pricing
4. competition-based pricing
Kotler / Armstrong 11e, Chapter 10
The simplest pricing method is _____.
1. break-even pricing
2. cost-plus pricing
3. value-based pricing
4. competition-based pricing
Kotler / Armstrong 11e, Chapter 10
If a reseller buys a product from a manufacturer
for $20 and wants to mark it up 50%, what will
the new price be?
1. $30
2. $40
3. $25
4. none of the above
Kotler / Armstrong 11e, Chapter 10
If a reseller buys a product from a manufacturer
for $20 and wants to mark it up 50%, what will
the new price be?
1. $30
2. $40 (Markup price = unit price/(1-desired
return on sales)
3. $25
4. none of the above
Kotler / Armstrong 11e, Chapter 10
What is the break-even volume for a company
with fixed costs of $50k, variable costs of $20
and a price of $30/unit?
1. 500
2. 1000
3. 5000
4. 2500
Kotler / Armstrong 11e, Chapter 10
What is the break-even volume for a company
with fixed costs of $50k, variable costs of $20
and a price of $30/unit?
1. 500
2. 1000
3. 5000 (BE volume = FC/(Price–VC)
4. 2500
Kotler / Armstrong 11e, Chapter 10
Value-based pricing uses the buyer’s perception
of value to set prices.
1. True
2. False
Kotler / Armstrong 11e, Chapter 10
Value-based pricing uses the buyer’s perception
of value to set prices.
1. True
2. False
Kotler / Armstrong 11e, Chapter 10
According to the text, competition-based pricing
is popular in _______ markets.
1. pure competition
2. pure monopoly
3. monopolistic competition
4. oligopolistic competition
Kotler / Armstrong 11e, Chapter 10
According to the text, competition-based pricing
is popular in _______ markets.
1. pure competition
2. pure monopoly
3. monopolistic competition
4. oligopolistic competition