MKTG 361- EXAM 3 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. ____________________________________________ is the only marketing mix element that translates
the value created for customers back into revenues and profits for the company.
Answer:
price
Question:
2. Pricing is one of the ______________marketing mix elements
Answer:
most flexible
Question:
3. Pricing is considered one of the most critical decisions in marketing because price
____________________________________________ and
____________________________________________
Answer:
directly affects profitability; helps create customer value as part of the value proposition
Question:
4. Customer perceptions of value set a(n) ____________________________________________ for
product prices.
Answer:
upper limit or ceiling
Question:
5. Product costs set the_______________________________ for a product price.
Answer:
lower boundary or floor
Question:
6. ____________________ refers to setting price based on buyers' perceptions of value rather than on the
seller's cost.
Answer:
customer value based pricing
Question:
7. Value-based pricing:
a. ____________________________________________
b. ____________________________________________
c. ____________________________________________
d. ____________________________________________
, Answer:
assesses customer needs assesses customer perceptions most profitable way to price products and services
set to match perceived value
Question:
8. in __________, the strategy is to offer the right combination of quality and good service at a fair price
Answer:
good value pricing
Question:
9. Products sold at the same low price every day without any limited time offers nor special discounts is
considered ___________________.
Answer:
everyday low price
Question:
10. ____________ pricing involves charging higher prices on an everyday basis but running frequent
promotions to lower prices temporarily on selected items
Answer:
high low
Question:
11. __________________________ pricing is a strategy where a company charges a premium price by
enhancing the product or service with additional features, quality improvements, or unique benefits that
justify a higher price.
Answer:
value-added
Question:
12. ________________ pricing involves setting price based on the costs of producing, distributing, and
selling the product plus a fair rate of return for effort and risk. It is straightforward and ensures costs are
covered, but it does not directly consider customer demand or competitive pricing.
Answer:
cost based
Question:
13. costs that change with the level of production are referred to as _____________
Answer:
variable costs
Question:
14. As production moves up, the average cost per unit decreases because ________________.
Answer:
fixed costs are spread over more units
CORRECT ANSWERS
Question:
1. ____________________________________________ is the only marketing mix element that translates
the value created for customers back into revenues and profits for the company.
Answer:
price
Question:
2. Pricing is one of the ______________marketing mix elements
Answer:
most flexible
Question:
3. Pricing is considered one of the most critical decisions in marketing because price
____________________________________________ and
____________________________________________
Answer:
directly affects profitability; helps create customer value as part of the value proposition
Question:
4. Customer perceptions of value set a(n) ____________________________________________ for
product prices.
Answer:
upper limit or ceiling
Question:
5. Product costs set the_______________________________ for a product price.
Answer:
lower boundary or floor
Question:
6. ____________________ refers to setting price based on buyers' perceptions of value rather than on the
seller's cost.
Answer:
customer value based pricing
Question:
7. Value-based pricing:
a. ____________________________________________
b. ____________________________________________
c. ____________________________________________
d. ____________________________________________
, Answer:
assesses customer needs assesses customer perceptions most profitable way to price products and services
set to match perceived value
Question:
8. in __________, the strategy is to offer the right combination of quality and good service at a fair price
Answer:
good value pricing
Question:
9. Products sold at the same low price every day without any limited time offers nor special discounts is
considered ___________________.
Answer:
everyday low price
Question:
10. ____________ pricing involves charging higher prices on an everyday basis but running frequent
promotions to lower prices temporarily on selected items
Answer:
high low
Question:
11. __________________________ pricing is a strategy where a company charges a premium price by
enhancing the product or service with additional features, quality improvements, or unique benefits that
justify a higher price.
Answer:
value-added
Question:
12. ________________ pricing involves setting price based on the costs of producing, distributing, and
selling the product plus a fair rate of return for effort and risk. It is straightforward and ensures costs are
covered, but it does not directly consider customer demand or competitive pricing.
Answer:
cost based
Question:
13. costs that change with the level of production are referred to as _____________
Answer:
variable costs
Question:
14. As production moves up, the average cost per unit decreases because ________________.
Answer:
fixed costs are spread over more units
