I have 7 multiple choice questions (below). I would greatly appreciate your help.
4) Which of the following is true of value-based pricing?
A) The cost of making a product and the desired profit margin are the two primary determinants in setting a value-based price.
B) Value-based pricing does not consider what customers require from a product in terms of performance and price.
C) Value-based pricing takes customer needs into account, but fails to consider customers’ price sensitivity.
D) In value-based pricing, price is developed around a product’s relative strengths to give customers greater benefits than competing products offer.
E) Value-based pricing is based on features of the product, but fails to consider the prices of similar products in the market.
5) For which of the following products or services is the seller most likely to use life-cycle value pricing?
A) lottery tickets
B) a hotel reservation
C) shampoo
D) a meal at a restaurant
E) a car
6) ________ pricing allows buyers of a product to select the performance configurations that best fit their needs and price budgets.
A) Customerization value
B) Performance-based
C) Perceived-value
D) Life-cycle value
E) Value-in-use
7) In order for a company to use single-segment pricing, it is necessary that ________.
A) the company set a higher price than competitors for its product
B) the company first use a price skimming strategy when entering the market
C) the total cost of ownership of the company’s product be less than that of competing products
D) the company set the lowest product price among similar products
E) there be no other competitor in the market
8) Which of the following is the primary objective of penetration pricing?
A) to increase profit by increasing prices
B) to gain higher margins by reducing market share
C) to build sales volume in a market
D) to increase product differentiation
E) to increase price in order to reduce volumes
9) A ________ market-based pricing strategy product position is one in which a business can equal competitors on all areas of product and service quality but can find one area of meaningful performance in which it is clearly superior.
A) penetration
B) multi-segment
C) plus-one
D) reduce-focus
E) harvest
10) Harvest pricing is usually used in the ________ stage of the product life cycle.
A) introduction
B) growth
C) mature
D) decline
E) conception
