Chapter 9 Multiple-Choice Questions

Chapter 9 Multiple-Choice Questions

Price and Customer Value 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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