Chapter 10 Multiple-choice questions

Price Decisions
In marketing terms, ___________ refers to what we get for what we pay:

Sunday newspapers (in Britain, France, Thailand, Sweden) often contain numerous supplements (e.g. fashion, entertainment, property) to make the newspaper appear greater value for money. These are called:_______________

This is the cost of plant, equipment and machinery owned by a business:

These are costs which do not vary according to the number of units of product made or service sold:

This is the price band against which customers judge the purchase price of offerings in their own minds.

This business-to-business pricing approach seeks to understand customers' needs before pricing the offering according to those needs in order to generate a long-term relationship. This is referred to as::

____________ occurs when companies temporarily reduce their prices below the standard price for a period of time to raise awareness of the offering to encourage trials and raise short-term brand awareness.

This allows us to determine how the quantity of an offering relates to the price at which it is offered:

This occurs when a company charges more than governments perceive is fair for products and/or services; typically by taking advantage of demand where customers/consumers are reliant on a particular product/service:

The pricing approach where prices are set based on costs is called:___________

_____________ is influenced by perceptions of the fairness of prices set, latitude of price acceptance (customers appear willing to accept a price within a range of prices suggesting a 'price zone of tolerance'), magnitude (absolute price) and frequency of purchase, price presentation (how prices are presented might produce different levels of willingness to pay) and advertising.

Our perception of risk is greater if we are continually reminded of it than if we consider it only at the point of purchase. This is referred to as::

When customers assess prices, they estimate value using __________, because they do not always know the true cost and price of the item that they are purchasing. These pricing cues include sale signs; odd-number pricing; the purchase context; and price bundling and rebates.

A 10% increase (decrease) in price produces a 10% decrease (increase) in quantity demanded. This is referred to as:

Segmentation pricing is where varying prices are set for different groups of customers. Economists call this approach:

This approach is fairly standard for high-technology offerings or for those offerings that require substantial research and development cost input initially.

The pricing approach where prices are set based on what customers believe to offer value is called the:

Which of the following are aimed at providing customers with the peace of mind of knowing that the company they are purchasing from is competitive in price?

This is an assumption that as price increases so does quality, and that in general price reflects quality.

With this pricing approach, the pricing process begins with the customer; not the cost of the product offering:

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