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
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
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
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
Kotler / Armstrong, Chapter 10
Fixed costs (overhead) plus variable costs
equals _______ costs.
1. semi-variable
2. equilibrium
3. total
4. semi-fixed
Kotler / Armstrong, Chapter 10
Fixed costs (overhead) plus variable costs
equals _______ costs.
1. semi-variable
2. equilibrium
3. total
4. semi-fixed
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
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
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
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
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
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
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
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
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
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.)
Kotler / Armstrong, Chapter 10
_____ costs do not vary with production or sales
level.
1. Variable
2. Fixed (overhead)
3. Total
4. Value
Kotler / Armstrong, Chapter 10
_____ costs do not vary with production or sales
level.
1. Variable
2. Fixed (overhead)
3. Total
4. Value
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
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
Kotler / Armstrong, Chapter 10
Total revenue equals total cost at break-even.
1. true
2. false
Kotler / Armstrong, Chapter 10
Total revenue equals total cost at break-even.
1. true
2. false
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Kotler / Armstrong, Chapter 10
Value-based pricing uses the buyer’s perception
of value to set prices.
1. true
2. false
Kotler / Armstrong, Chapter 10
Value-based pricing uses the buyer’s perception
of value to set prices.
1. true
2. false
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
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