Fixed costs (overhead) plus variable costs equals _______ costs. semi-variable equilibrium total

1. _____ is the sum of values that consumers exchange for the benefits of having or using a product or service. Place Purchase Price Premium Kotler / Armstrong, Chapter 10

2. _____ is the sum of values that consumers exchange for the benefits of having or using a product or service. Place Purchase Price Premium Kotler / Armstrong, Chapter 10

3. Setting your price based on your customer’s perception of value rather than on your cost is called __________ pricing. value-based cost-based price-based demand-based Kotler / Armstrong, Chapter 10

4. Setting your price based on your customer’s perception of value rather than on your cost is called __________ pricing. value-based cost-based price-based demand-based Kotler / Armstrong, Chapter 10

5. Fixed costs (overhead) plus variable costs equals _______ costs. semi-variable equilibrium total semi-fixed Kotler / Armstrong, Chapter 10

6. Fixed costs (overhead) plus variable costs equals _______ costs. semi-variable equilibrium total semi-fixed Kotler / Armstrong, Chapter 10

7. The addition of a standard markup to the cost of your product is the simplest pricing method referred to as _______ pricing. cost-plus markup-plus price-plus elasticity Kotler / Armstrong, Chapter 10

8. The addition of a standard markup to the cost of your product is the simplest pricing method referred to as _______ pricing. cost-plus markup-plus price-plus elasticity Kotler / Armstrong, Chapter 10

9. 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. true false Kotler / Armstrong, Chapter 10

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. true false Kotler / Armstrong, Chapter 10

11. Which of the following is not an internal factor affecting pricing? marketing objectives marketing mix strategy costs competition Kotler / Armstrong, Chapter 10

12. Which of the following is not an internal factor affecting pricing? marketing objectives marketing mix strategy costs competition Kotler / Armstrong, Chapter 10

13. A product high in quality and available in a limited number of outlets will probably have a _____. high price low price discounted price rebate included Kotler / Armstrong, Chapter 10

14. A product high in quality and available in a limited number of outlets will probably have a _____. high price low price discounted price rebate included Kotler / Armstrong, Chapter 10

15. Target costing involves designing a new product, determining its cost, and then asking, “Can we sell it for that?” true false Kotler / Armstrong, Chapter 10

16. Target costing involves designing a new product, determining its cost, and then asking, “Can we sell it for that?” true 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, Chapter 10

17. _____ costs do not vary with production or sales level. Variable Fixed (overhead) Total Value Kotler / Armstrong, Chapter 10

18. _____ costs do not vary with production or sales level. Variable Fixed (overhead) Total Value Kotler / Armstrong, Chapter 10

19. The _____ shows the drop in average costs with accumulated production experience. learning curve demand curve cost curve supply curve Kotler / Armstrong, Chapter 10

20. The _____ shows the drop in average costs with accumulated production experience. learning curve demand curve cost curve supply curve Kotler / Armstrong, Chapter 10

21. Kotler / Armstrong, Chapter 10 Total revenue equals total cost at break-even. • true • false

22. Kotler / Armstrong, Chapter 10 Total revenue equals total cost at break-even. • true • false

23. Which type of 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 Kotler / Armstrong, Chapter 10

24. Which type of 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 Kotler / Armstrong, Chapter 10

25. Which type of market has few sellers who are very sensitive to each other’s prices? pure competition monopolistic competition oligopolistic competition monopoly Kotler / Armstrong, Chapter 10

26. Which type of market has few sellers who are very sensitive to each other’s prices? pure competition monopolistic competition oligopolistic competition monopoly Kotler / Armstrong, Chapter 10

27. A(n) _____ curve shows the number of units the market will buy in a given time period at different prices that might be charged. demand elastic experience supply Kotler / Armstrong, Chapter 10

28. A(n) _____ curve shows the number of units the market will buy in a given time period at different prices that might be charged. demand elastic experience supply Kotler / Armstrong, Chapter 10

29. If demand changes greatly with a small change in price, we say the demand is _____. inelastic elastic sensitive reversed Kotler / Armstrong, Chapter 10

30. If demand changes greatly with a small change in price, we say the demand is _____. inelastic elastic sensitive reversed Kotler / Armstrong, Chapter 10

31. Which of the following is(are) not an external consideration when setting prices? costs federal government social responsibility resellers Kotler / Armstrong, Chapter 10

32. Which of the following is(are) not an external consideration when setting prices? costs federal government social responsibility resellers Kotler / Armstrong, Chapter 10

33. If a reseller buys a product from a manufacturer for $20 and wants to mark it up 50 percent, what will the new price be? $30 $40 $25 none of the above Kotler / Armstrong, Chapter 10

34. If a reseller buys a product from a manufacturer for $20 and wants to mark it up 50 percent, what will the new price be? $30 $40 (markup price = unit price/[1-desired return on sales]) $25 none of the above Kotler / Armstrong, Chapter 10

35. What is the break-even unit volume for a company with fixed costs of $50k, variable costs of $20, and a price of $30/unit? 500 1000 5000 2500 Kotler / Armstrong, Chapter 10

36. What is the break-even unit volume for a company with fixed costs of $50k, variable costs of $20, and a price of $30/unit? 500 1000 5000 (BE volume = FC/[price–VC]) 2500 Kotler / Armstrong, Chapter 10

37. Value-based pricing uses the buyer’s perception of value to set prices. true false Kotler / Armstrong, Chapter 10

38. Value-based pricing uses the buyer’s perception of value to set prices. true false Kotler / Armstrong, Chapter 10

39. According to the text, competition-based pricing is popular in _______ markets. pure competition monopoly monopolistic competition oligopolistic competition Kotler / Armstrong, Chapter 10

40. According to the text, competition-based pricing is popular in _______ markets. pure competition monopoly monopolistic competition oligopolistic competition Kotler / Armstrong, Chapter 10