MKTG 2500 QUIZZES AND ANSWERS WITH COMPLETE
SOLUTIONS
Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost
to produce each unit is $3.50. The company has decided to add a $1.50 markup,
so the unit price to distributors will be $5. Lovely Skin is using a ________
approach to price the new moisturizer.
cost-plus
A ________ pricing strategy for an offering begins with an assessment of
customer needs and perceptions. Then a target price is set based on customer
perceptions of worth.
value-based
Unlike the other marketing mix elements, price plays a minor role in creating
customer value and building customer relationships. true or false
false
Dynamic pricing is particularly suitable for Internet-based companies like
Amazon who want to be responsive to shoppers' desires and marketplace
changes. true or false
true
Which of the following statements about break-even analysis is most likely true?
A) It determines how customer-perceived value changes with value-added
pricing.
B) It is a tool used to calculate fixed costs.
,C) It is used to determine the maximum price that can be set on a product.
D) It is a tool marketers use to examine the relationship between supply and
demand.
E) It fails to consider customer value and the relationship between price and
demand.
E.It fails to consider customer value and the relationship between price and demand.
If demand hardly changes with a small change in price, the demand is ________.
inelastic
Establishing prices for razor blades that must be used with a razor blade system
is known as ________ pricing.
captive-product
When establishing prices, it's important for a manager to understand that "good
value" is not the same as ________.
low price
The first Target store opened in 1962. Its initial strategy was to set prices low to
attract a large number of buyers quickly and win a large market share. This is
referred to as ________.
market-penetration pricing
The first generation Apple iPod was introduced in 2001 and sold for $500. The
following year a mini version was introduced for $250. Apple initially used a
________ strategy to price their digital music innovation.
market-skimming
, Which of the following sets the upper limit for a product's pricing?
A) profits
B) product costs
C) consumer perceptions of value
D) elements of the product mix
E) competition
c. consumer perceptions of value
________ pricing involves setting prices based on the costs for producing,
distributing, and selling the product plus a fair rate of return for the company's
efforts and risks.
cost-based
Salon Du Jour offers special combination packages at a reduced price.
Separately, a haircut is $30 and a conditioning treatment is $35. But the combo
price is $50. This is referred to as ________ pricing.
product bundle
Some companies deemphasize price and use other marketing mix tools to create
non-price positions in the marketplace. true or false
true
Which of the following is true of an intensive distribution strategy?
It strives to make products available where and when consumers want them.
Introducing intermediaries into a distribution chain increases the number of
direct channel transactions between a manufacturer and its customers. true or
false
SOLUTIONS
Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost
to produce each unit is $3.50. The company has decided to add a $1.50 markup,
so the unit price to distributors will be $5. Lovely Skin is using a ________
approach to price the new moisturizer.
cost-plus
A ________ pricing strategy for an offering begins with an assessment of
customer needs and perceptions. Then a target price is set based on customer
perceptions of worth.
value-based
Unlike the other marketing mix elements, price plays a minor role in creating
customer value and building customer relationships. true or false
false
Dynamic pricing is particularly suitable for Internet-based companies like
Amazon who want to be responsive to shoppers' desires and marketplace
changes. true or false
true
Which of the following statements about break-even analysis is most likely true?
A) It determines how customer-perceived value changes with value-added
pricing.
B) It is a tool used to calculate fixed costs.
,C) It is used to determine the maximum price that can be set on a product.
D) It is a tool marketers use to examine the relationship between supply and
demand.
E) It fails to consider customer value and the relationship between price and
demand.
E.It fails to consider customer value and the relationship between price and demand.
If demand hardly changes with a small change in price, the demand is ________.
inelastic
Establishing prices for razor blades that must be used with a razor blade system
is known as ________ pricing.
captive-product
When establishing prices, it's important for a manager to understand that "good
value" is not the same as ________.
low price
The first Target store opened in 1962. Its initial strategy was to set prices low to
attract a large number of buyers quickly and win a large market share. This is
referred to as ________.
market-penetration pricing
The first generation Apple iPod was introduced in 2001 and sold for $500. The
following year a mini version was introduced for $250. Apple initially used a
________ strategy to price their digital music innovation.
market-skimming
, Which of the following sets the upper limit for a product's pricing?
A) profits
B) product costs
C) consumer perceptions of value
D) elements of the product mix
E) competition
c. consumer perceptions of value
________ pricing involves setting prices based on the costs for producing,
distributing, and selling the product plus a fair rate of return for the company's
efforts and risks.
cost-based
Salon Du Jour offers special combination packages at a reduced price.
Separately, a haircut is $30 and a conditioning treatment is $35. But the combo
price is $50. This is referred to as ________ pricing.
product bundle
Some companies deemphasize price and use other marketing mix tools to create
non-price positions in the marketplace. true or false
true
Which of the following is true of an intensive distribution strategy?
It strives to make products available where and when consumers want them.
Introducing intermediaries into a distribution chain increases the number of
direct channel transactions between a manufacturer and its customers. true or
false
