1. Kotler / Armstrong, 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

2. Kotler / Armstrong, 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

3. Kotler / Armstrong, Chapter 10 Setting your price based on your customer’s perception of value rather than on your cost is called __________ pricing. 1.value-based 2.cost-based 3.price-based 4.demand-based

4. Kotler / Armstrong, Chapter 10 Setting your price based on your customer’s perception of value rather than on your cost is called __________ pricing. 1.value-based 2.cost-based 3.price-based 4.demand-based

5. Kotler / Armstrong, Chapter 10 Fixed costs (overhead) plus variable costs equals _______ costs. 1.semi-variable 2.equilibrium 3.total 4.semi-fixed

6. Kotler / Armstrong, Chapter 10 Fixed costs (overhead) plus variable costs equals _______ costs. 1.semi-variable 2.equilibrium 3.total 4.semi-fixed

7. Kotler / Armstrong, Chapter 10 The addition of a standard markup to the cost of your product is the simplest pricing method referred to as _______ pricing. 1.cost-plus 2.markup-plus 3.price-plus 4.elasticity

8. Kotler / Armstrong, Chapter 10 The addition of a standard markup to the cost of your product is the simplest pricing method referred to as _______ pricing. 1.cost-plus 2.markup-plus 3.price-plus 4.elasticity

9. Kotler / Armstrong, 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

10. Kotler / Armstrong, 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

11. Kotler / Armstrong, Chapter 10 Which of the following is not an internal factor affecting pricing? 1.marketing objectives 2.marketing mix strategy 3.costs 4.competition

12. Kotler / Armstrong, Chapter 10 Which of the following is not an internal factor affecting pricing? 1.marketing objectives 2.marketing mix strategy 3.costs 4.competition

13. Kotler / Armstrong, Chapter 10 A product 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.rebate included

14. Kotler / Armstrong, Chapter 10 A product 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.rebate included

15. Kotler / Armstrong, 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

16. Kotler / Armstrong, 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.)

17. Kotler / Armstrong, Chapter 10 _____ costs do not vary with production or sales level. 1.Variable 2.Fixed (overhead) 3.Total 4.Value

18. Kotler / Armstrong, Chapter 10 _____ costs do not vary with production or sales level. 1.Variable 2.Fixed (overhead) 3.Total 4.Value

19. Kotler / Armstrong, Chapter 10 The _____ shows the drop in average costs with accumulated production experience. 1.learning curve 2.demand curve 3.cost curve 4.supply curve

20. Kotler / Armstrong, Chapter 10 The _____ shows the drop in average costs with accumulated production experience. 1.learning curve 2.demand curve 3.cost curve 4.supply curve

21. Kotler / Armstrong, Chapter 10 Total revenue equals total cost at break-even. 1.true 2.false

22. Kotler / Armstrong, Chapter 10 Total revenue equals total cost at break-even. 1.true 2.false

23. Kotler / Armstrong, 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

24. Kotler / Armstrong, 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

25. Kotler / Armstrong, 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.monopoly

26. Kotler / Armstrong, 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.monopoly

27. Kotler / Armstrong, 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.supply

28. Kotler / Armstrong, 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.supply

29. Kotler / Armstrong, 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

30. Kotler / Armstrong, 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

31. Kotler / Armstrong, Chapter 10 Which of the following is(are) not an external consideration when setting prices? 1.costs 2.federal government 3.social responsibility 4.resellers

32. Kotler / Armstrong, Chapter 10 Which of the following is(are) not an external consideration when setting prices? 1.costs 2.federal government 3.social responsibility 4.resellers

33. Kotler / Armstrong, Chapter 10 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? 1.$30 2.$40 3.$25 4.none of the above

34. Kotler / Armstrong, Chapter 10 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? 1.$30 2.$40 (markup price = unit price/[1-desired return on sales]) 3.$25 4.none of the above

35. Kotler / Armstrong, Chapter 10 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? 1.500 2.1000 3.5000 4.2500

36. Kotler / Armstrong, Chapter 10 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? 1.500 2.1000 3.5000 (BE volume = FC/[price–VC]) 4.2500

37. Kotler / Armstrong, Chapter 10 Value-based pricing uses the buyer’s perception of value to set prices. 1.true 2.false

38. Kotler / Armstrong, Chapter 10 Value-based pricing uses the buyer’s perception of value to set prices. 1.true 2.false

39. Kotler / Armstrong, Chapter 10 According to the text, competition-based pricing is popular in _______ markets. 1.pure competition 2.monopoly 3.monopolistic competition 4.oligopolistic competition

40. Kotler / Armstrong, Chapter 10 According to the text, competition-based pricing is popular in _______ markets. 1.pure competition 2.monopoly 3.monopolistic competition 4.oligopolistic competition