Text Bank For Marketing An
Introduction14th Edition with All
Chapters
,What is the amount charged for a product or service, or the sum of the values that
customers exchanged for the benefit of having or using the product or service? -
answer-Price
What is the only element in the marketing mix that produces revenue and is the one of
the most flexible marketing mix elements? - answer-Price
What sets the ceiling price for products? - answer-Customer perceptions of the
product's price
What sets the floor for a product's price? - answer-Product Costs
What sets prices based on buyers' perceptions of value rather than on the seller's cost?
- answer-Customer Value-Based Pricing
What means the marketer can't deign a product and marketing program and then set
price? - answer-Value Based Pricing
True or False. Costs are an important consideration in setting prices, cost based pricing
is often product driven. - answer-True
What is the process of cost based pricing? - answer-Company adds up the costs of
making the product and sets a price that covers costs plus a target profit. Marketing
must convince buyers that the product's value at the price justifies its purchase.
What is the process of value based pricing? - answer-The company first assess
customer needs and value perceptions. It sets the target price based on customer
perceptions of value and the decides the costs to be incurred. They design product to
deliver desired value at target price.
What are other measures of satisfaction that are hard to assign value to? - answer-
Taste, environment, relaxation, conversation, and status,
Fill in the Blank. If the seller charges more than the customer's value, the company's
sales will _______. If the seller charges less, its products will sell, but produce
________ revenue if they were priced at the level of the perceived value.. - answer-
suffer // less
What are two types of value based pricing? - answer-Good Value Pricing and Value -
Added Pricing
What strategy offers just the right combination of quality and good service at a fair
price? - answer-Good Value Pricing
, What has helped involve introducing less expensive versions of established brand name
products or new lower price lines? - answer-Good Value Pricing
What involves redesigning existing brands to offer more quality for a given price or the
same quality for less? - answer-Good Value Pricing
What involves charging a constant, everyday low price with few or no temporary price
discounts? - answer-Everyday Low Pricing (EDLP)
Who is the king of EDLP? - answer-Walmart.
What involves charging higher prices on an everyday basis, but running frequent
promotions to lower prices temporarily on selected items? - answer-High Low Pricing.
Think of Kohl's & Macy's
What involves attaching value added features and services to differentiate a company's
offers and charging higher prices? - answer-Value Added Pricing
What involves setting prices based on the costs of producing, distributing, and selling
the product plus a fair rate of return for effort and risk? - answer-Cost Based Pricing
What is a benefit of lower costs producers? - answer-They can set lower prices that
result in smaller margins, but greater sales and profits.
What costs do not vary with production or sales level? - answer-Fixed Costs/Overhead
Costs
What costs vary directly with level of production? - answer-Variable Costs
What is the sum of the fixed and variable costs for any given level of production? -
answer-Total Costs
What happens if it costs the company more than its competitors to produce and sell a
similar product? - answer-The company will need to charge a higher price or make less
profit which puts it at a competitive advantage.
What is the simplest pricing method? - answer-Cost Plus Pricing / Markup Pricing
What pricing method added a standard markup to the cost of the product? - answer-
Cost Plus Pricing
Why do standard markups to set prices NOT make sense? - answer-Any pricing method
that ignores consumer demand and competitor prices is not likely to lead to the best
price.
Introduction14th Edition with All
Chapters
,What is the amount charged for a product or service, or the sum of the values that
customers exchanged for the benefit of having or using the product or service? -
answer-Price
What is the only element in the marketing mix that produces revenue and is the one of
the most flexible marketing mix elements? - answer-Price
What sets the ceiling price for products? - answer-Customer perceptions of the
product's price
What sets the floor for a product's price? - answer-Product Costs
What sets prices based on buyers' perceptions of value rather than on the seller's cost?
- answer-Customer Value-Based Pricing
What means the marketer can't deign a product and marketing program and then set
price? - answer-Value Based Pricing
True or False. Costs are an important consideration in setting prices, cost based pricing
is often product driven. - answer-True
What is the process of cost based pricing? - answer-Company adds up the costs of
making the product and sets a price that covers costs plus a target profit. Marketing
must convince buyers that the product's value at the price justifies its purchase.
What is the process of value based pricing? - answer-The company first assess
customer needs and value perceptions. It sets the target price based on customer
perceptions of value and the decides the costs to be incurred. They design product to
deliver desired value at target price.
What are other measures of satisfaction that are hard to assign value to? - answer-
Taste, environment, relaxation, conversation, and status,
Fill in the Blank. If the seller charges more than the customer's value, the company's
sales will _______. If the seller charges less, its products will sell, but produce
________ revenue if they were priced at the level of the perceived value.. - answer-
suffer // less
What are two types of value based pricing? - answer-Good Value Pricing and Value -
Added Pricing
What strategy offers just the right combination of quality and good service at a fair
price? - answer-Good Value Pricing
, What has helped involve introducing less expensive versions of established brand name
products or new lower price lines? - answer-Good Value Pricing
What involves redesigning existing brands to offer more quality for a given price or the
same quality for less? - answer-Good Value Pricing
What involves charging a constant, everyday low price with few or no temporary price
discounts? - answer-Everyday Low Pricing (EDLP)
Who is the king of EDLP? - answer-Walmart.
What involves charging higher prices on an everyday basis, but running frequent
promotions to lower prices temporarily on selected items? - answer-High Low Pricing.
Think of Kohl's & Macy's
What involves attaching value added features and services to differentiate a company's
offers and charging higher prices? - answer-Value Added Pricing
What involves setting prices based on the costs of producing, distributing, and selling
the product plus a fair rate of return for effort and risk? - answer-Cost Based Pricing
What is a benefit of lower costs producers? - answer-They can set lower prices that
result in smaller margins, but greater sales and profits.
What costs do not vary with production or sales level? - answer-Fixed Costs/Overhead
Costs
What costs vary directly with level of production? - answer-Variable Costs
What is the sum of the fixed and variable costs for any given level of production? -
answer-Total Costs
What happens if it costs the company more than its competitors to produce and sell a
similar product? - answer-The company will need to charge a higher price or make less
profit which puts it at a competitive advantage.
What is the simplest pricing method? - answer-Cost Plus Pricing / Markup Pricing
What pricing method added a standard markup to the cost of the product? - answer-
Cost Plus Pricing
Why do standard markups to set prices NOT make sense? - answer-Any pricing method
that ignores consumer demand and competitor prices is not likely to lead to the best
price.
