ASSIGNMENT – 3
1. ________ communicates to the market the company’s intended value positioning of its product or brand.
a.
b.
c.
d.
e.
Packaging
Price
Place
Promotion
Product features
2. Executives often complain that pricing is a big headache. Common mistakes include: price is not revised often
3.
enough to capitalize on market changes; price is set ________ of the rest of the marketing mix rather than an
intrinsic element of a market-positioning strategy.
a. divergently
b. too high
c. intrinsically
d. independently
e. concurrently
Pricing cues such as sale signs and prices that end in 9 become more influential when ________.
a. consumer price knowledge is poor
b. items are purchased frequently
c. items have been on the market a long time
d. prices are consistent year-round
e. they are employed frequently
4. Companies pursue survival as their major objective if they are plagued with ________.
a.
b.
c.
d.
e.
legal prosecution
weak competition
static consumer wants
shareholder activism
overcapacity
5. The concept of the lowest ________ means that a seller can charge a higher price if they can convince the
customers that price is only a small part of the total cost of obtaining, operating, and servicing the product over
its lifetime.
a. prestige pricing
b. total cost of ownership
c. convenience pricing
d. key price points
e. none of the above
6. If demand hardly changes with a small change in price, we say that the demand is ________.
a.
b.
c.
d.
e.
equal
marginal
inelastic
elastic
none of the above
7. The decline in the average cost of production with accumulated production experience is called the ________.
a.
b.
c.
d.
e.
demand curve
cost curve
learning curve
cost target
indifference band
8. The three major considerations in price setting are: costs set the floor price; ________; and customers’
9.
10.
assessment of unique features establishes the price ceiling.
a. competitors’ prices and the price of substitutes provide an orientation point
b. competitors’ prices establishes a “target price” goal
c. the price of substitutes establishes a “target price”
d. the price of competitors and substitutes does not enter into the pricing considerations.
e. none of the above
Consumer use price less to judge the quality of a product when they ________.
a. Lack Information
b. Have experience with the product
c. Are shopping for a specialty item
d. Cannot physically examine the product
At breakeven point which of the following holds true?
a. Total expense=Total revenue
b. Total expense>Total revenue
c. Total expense<Total revenue
d. All of the above