1. Kotler / Armstrong 11e, Chapter 10
_____ is the sum of values that consumers exchange for the benefits of having or using a product or service.
Place
Purchase
Price
Premium

2. Kotler / Armstrong 11e, Chapter 10
_____ is the sum of values that consumers exchange for the benefits of having or using a product or service.
Place
Purchase
Price
Premium

3. Kotler / Armstrong 11e, Chapter 10
The Internet is potentially changing pricing practices from _____ to _____.
fixed; dynamic
dynamic; fixed
value; premium
external; internal

4. Kotler / Armstrong 11e, Chapter 10
The Internet is potentially changing pricing practices from _____ to _____.
fixed; dynamic
dynamic; fixed
value; premium
external; internal

5. Kotler / Armstrong 11e, Chapter 10
eBay.com is an example of a company that uses _____ pricing.
fixed
dynamic
prestige
value

6. Kotler / Armstrong 11e, Chapter 10
eBay.com is an example of a company that uses _____ pricing.
fixed
dynamic
prestige
value

7. Kotler / Armstrong 11e, Chapter 10
Which of the elements in the marketing mix produce revenue?
promotion
product
price
all of the above

8. Kotler / Armstrong 11e, Chapter 10
Which of the elements in the marketing mix produce revenue?
promotion
product
price
all of the above

9. Kotler / Armstrong 11e, Chapter 10
One problem with pricing is that managers are often too quick to reduce their price, rather than to convince their buyers that their product is worth the higher cost.
True
False

10. Kotler / Armstrong 11e, Chapter 10
One problem with pricing is that managers are often too quick to reduce their price, rather than to convince their buyers that their product is worth the higher cost.
True
False

11. Kotler / Armstrong 11e, Chapter 10
Which of the following is not an internal factor affecting pricing?
marketing objectives
marketing mix strategy
costs
competition

12. Kotler / Armstrong 11e, Chapter 10
Which of the following is not an internal factor affecting pricing?
marketing objectives
marketing mix strategy
costs
competition

13. Kotler / Armstrong 11e, Chapter 10
A product that is high in quality and available in a limited number of outlets will probably have a _____.
high price
low price
discounted price
none of the above

14. Kotler / Armstrong 11e, Chapter 10
A product that is high in quality and available in a limited number of outlets will probably have a _____.
high price
low price
discounted price
none of the above

15. Kotler / Armstrong 11e, Chapter 10
Target costing involves designing a new product, determining its cost, and then asking, “Can we sell it for that?”
True
False

16. Kotler / Armstrong 11e, Chapter 10
Target costing involves designing a new product, determining its cost, and then asking, “Can we sell it for that?”
True
False (Target costing starts with setting an ideal price based on customer considerations then targets the costs to see that the price is met.)

17. Kotler / Armstrong 11e, Chapter 10
_____ costs do not vary with production or sales level.
Materials
Fixed
Total
Value

18. Kotler / Armstrong 11e, Chapter 10
_____ costs do not vary with production or sales level.
Materials
Fixed
Total
Value

19. Kotler / Armstrong 11e, Chapter 10
The _____ shows the drop in average costs with accumulated production experience.
learning curve
demand curve
cost curve
all of the above

20. Kotler / Armstrong 11e, Chapter 10
The _____ shows the drop in average costs with accumulated production experience.
learning curve
demand curve
cost curve
all of the above

21. Kotler / Armstrong 11e, Chapter 10
Which type of market consists of many buyers and sellers who trade over a range of prices rather than a single market price?
pure competition
monopolistic competition
oligopolistic competition
pure monopoly

22. Kotler / Armstrong 11e, Chapter 10
Which type of market consists of many buyers and sellers who trade over a range of prices rather than a single market price?
pure competition
monopolistic competition
oligopolistic competition
pure monopoly

23. Kotler / Armstrong 11e, Chapter 10
Which type of market has few sellers who are very sensitive to each other’s prices?
pure competition
monopolistic competition
oligopolistic competition
pure monopoly

24. Kotler / Armstrong 11e, Chapter 10
Which type of market has few sellers who are very sensitive to each other’s prices?
pure competition
monopolistic competition
oligopolistic competition
pure monopoly

25. Kotler / Armstrong 11e, Chapter 10
A(n) _____ curve shows the number of units the market will buy in a given time period at different prices that might be charged.
demand
elastic
experience
reverse

26. Kotler / Armstrong 11e, Chapter 10
A(n) _____ curve shows the number of units the market will buy in a given time period at different prices that might be charged.
demand
elastic
experience
reverse

27. Kotler / Armstrong 11e, Chapter 10
If demand changes greatly with a small change in price, we say the demand is _____.
inelastic
elastic
sensitive
reversed

28. Kotler / Armstrong 11e, Chapter 10
If demand changes greatly with a small change in price, we say the demand is _____.
inelastic
elastic
sensitive
reversed

29. Kotler / Armstrong 11e, Chapter 10
Which of the following is(are) not an external consideration when setting prices?
costs
the government
social concerns
resellers

30. Kotler / Armstrong 11e, Chapter 10
Which of the following is(are) not an external consideration when setting prices?
costs
the government
social concerns
resellers

31. Kotler / Armstrong 11e, Chapter 10
The simplest pricing method is _____.
break-even pricing
cost-plus pricing
value-based pricing
competition-based pricing

32. Kotler / Armstrong 11e, Chapter 10
The simplest pricing method is _____.
break-even pricing
cost-plus pricing
value-based pricing
competition-based pricing

33. Kotler / Armstrong 11e, Chapter 10
If a reseller buys a product from a manufacturer for $20 and wants to mark it up 50%, what will the new price be?
$30
$40
$25
none of the above

34. Kotler / Armstrong 11e, Chapter 10
If a reseller buys a product from a manufacturer for $20 and wants to mark it up 50%, what will the new price be?
$30
$40 (Markup price = unit price/(1-desired return on sales)
$25
none of the above

35. Kotler / Armstrong 11e, Chapter 10
What is the break-even volume for a company with fixed costs of $50k, variable costs of $20 and a price of $30/unit?
500
1000
5000
2500

36. Kotler / Armstrong 11e, Chapter 10
What is the break-even volume for a company with fixed costs of $50k, variable costs of $20 and a price of $30/unit?
500
1000
5000 (BE volume = FC/(Price–VC)
2500

37. Kotler / Armstrong 11e, Chapter 10
Value-based pricing uses the buyer’s perception of value to set prices.
True
False

38. Kotler / Armstrong 11e, Chapter 10
Value-based pricing uses the buyer’s perception of value to set prices.
True
False

39. Kotler / Armstrong 11e, Chapter 10
According to the text, competition-based pricing is popular in _______ markets.
pure competition
pure monopoly
monopolistic competition
oligopolistic competition

40. Kotler / Armstrong 11e, Chapter 10
According to the text, competition-based pricing is popular in _______ markets.
pure competition
pure monopoly
monopolistic competition
oligopolistic competition