Module 5 quiz
Question 1:Development
costs are best described as:
costs that are associated with individual
products that do not vary with sales volume.
expenses involved in bringing new products to
the market.
costs that must ultimately be covered by
revenues from individual products, but are not associated with any one product.
the per-unit costs of making the product or
delivering the service.
Question 2. Which
of the following best describes the pricing objective typically used by
regulated utilities such as gas and electricity?
Penetration pricing
Skimming
Investment pricing
Competitive pricing
Question 3. High buyer power tends to __________ prices, and
high supplier power __________ the floor beneath which prices cannot be set.
inflate; raises
inflate; lowers
depress; raises
depress; lowers
Question 4. Which
of the following statements is true about value pricing?
It is also known as penetration pricing.
It gives customers more value than they expect
for the price paid.
It gives the seller most of the value—cost
difference.
It implies low price alone.
Question 5. Which
of the following pricing strategies is the most appropriate when costs are not
related to volume and managers are less concerned about building significant
market share?
Penetration pricing
Skimming
Market share pricing
Competitive pricing
Question 6. As
the price of a product gets closer to customer value,:
price elasticity will decrease.
price elasticity will be unaffected.
price elasticity will increase.
product will become perfectly inelastic.
Question 7. Strategically
pricing below customer value is called:
price skimming.
value pricing.
pricing to value.
price discrimination.
Question 8. Which
of the following best describes a trend in business to purchase a service from
an outside vendor to replace the company’s operation?
Insourcing
Outsourcing
Joint venture
Horizontal integration
Question 9. Which
of the following pricing strategies is used to gain as much market share as
possible?
Penetration pricing
Skimming
Prestige pricing
Competitive pricing
Question 10. Identify
the concept related to the psychological aspects of price.
Skimming price
Reference price
Prestige price
Penetration price
Question 11. If
there is no legal way to keep competitors out of the market, these costs must
be viewed as sunk costs that do not affect decision making after the product is
introduced into the market. Identify the type of cost being discussed.
Development cost
Variable cost
Direct fixed cost
Overhead cost
Question 12. Which
of the following best describes the costs that must ultimately be covered by
revenues from individual products, but are not associated with any one product?
Development costs
Variable costs
Direct fixed costs
Overhead costs
Question 13. What
a product or service is worth to a customer is the:
brand value.
customer value.
profit potential.
market potential.
Question 14. Which
of the following statements is true about variable costs?
The corporate jet expenditure is an example of
a variable cost.
These costs must be recovered by the price.
The marketing manager’s salary is an example
of a variable cost.
These costs are independent of sales volume.
Question 15. An
understanding of the cost structure of the market provides marketing managers
with:
an idea of how low some competitors can price.
the demographics of target markets.
the behavioral segmentation of target markets.
an accurate idea of customers’ willingness to
pay.
Question 16. Price
variations within a product category are called:
price slots.
price ranges.
price groups.
price bands.
Question 17. Which
of the following describes the per-unit cost of making the product or
delivering the service?
Development costs
Variable costs
Direct fixed costs
Fixed costs
Question 18. When
marketing mangers see that the sales curve has flattened out and few new buyers
are in the market, they know that they are in this stage of the product life
cycle. Identify the stage.
Introduction stage
Growth stage
Maturity stage
Decline stage
Question 19. Identify
the stage in the product life cycle at which fierce battles for market share
take place.
Introduction stage
Growth stage
Maturity stage
Decline stage
Question 20. Which
of the following statements is true regarding the growth stage of the product
life cycle?
The growth rate and the size of the market are
low.
The market growth becomes flat.
Usually, competition is most intense in this
phase.
The rate of growth begins to decrease in this
stage.
