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Chapter 10 Pricing Products: Understanding and Capturing Customer Value
Which of the following is an external factor that affects pricing decisions? A) the salaries of production management
B) competition
C) the salaries of finance management
D) funds expensed to clean production equipment E) A, B, and C
Answer: B
Diff: 1 Page Ref: 299
Skill: Concept
Objective: 10-4
Price setting is usually determined by ________ in large companies. A) top management
B) divisional managers
product line managers
pricing departments
both B and C
Answer: E
Diff: 2 Page Ref: 300
Skill: Concept
Objective: 10-4
In industrial markets, ________ typically has the final say in setting the pricing objectives and policies of a company.
A) the sales manager B) top management
C) the production manager D) the finance manager E) the pricing department Answer: B
Diff: 2 Page Ref: 300
Skill: Concept
Objective: 10-4
Consumer perceptions of the product's value set the ________ for prices. A) demand curve
B) floor
ceiling
variable cost
image
Answer: C
Diff: 2 Page Ref: 291
Skill: Concept
Objective: 10-2
Product costs set a(n) ________ to a product's price. A) demand curve
B) floor C) ceiling
D) break-even cost E) experience curve Answer: B
Diff: 2 Page Ref: 291
Skill: Concept
Objective: 10-2
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
C and D Answer: A
Diff: 2 Page Ref: 291
Skill: Concept
Objective: 10-2
The relationship between the price charged and the resulting demand level can be shown as the ________.
demand curve
variable cost
target cost
break-even pricing
experience curve
Answer: A
Diff: 1 Page Ref: 303
Skill: Concept
Objective: 10-4
In ________, price is considered along with the other marketing mix variables before the marketing program is set.
value-based pricing
cost-based pricing
variable costs
price elasticity
building the marketing mix Answer: A
Diff: 2 Page Ref: 291
Skill:
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