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Baines, Fill, & Rosengren: Marketing 4e

Chapter 9: Multiple choice questions

Instructions

Answer the following questions and then press 'Submit' to get your score.

Question 1

In marketing terms, ___________ refers to what we get for what we pay:

Question 2

___________ act as cues by indicating to a potential customer that there is a bargain to be had.

Question 3

This is the cost of plant, equipment and machinery owned by a business:

Question 4

These are costs which do not vary according to the number of units of product made or service sold:

Question 5

This is when a product or service is offered together with an offering to make the price look more reasonable:

Question 6

This business-to-business pricing approach seeks to understand customers' needs before pricing the offering according to those needs in order to generate a long-term relationship. This is referred to as::

Question 7

____________ occurs when companies temporarily reduce their prices below the standard price for a period of time to raise awareness of the offering to encourage trial, and raise short-term brand awareness.

Question 8

This allows us to determine how the quantity of an offering relates to the price at which it is offered:

Question 9

This occurs when a company charges more than governments perceive is fair for products and/or services; typically by taking advantage of demand where customers/consumers are reliant on a particular product/service:

Question 10

This pricing approach is used when the firm sets prices according to how much customers are prepared to pay:

Question 11

_____________ is influenced by perceptions of the fairness of prices set, latitude of price acceptance (customers appear willing to accept a price within a range of prices suggesting a 'price zone of tolerance'), magnitude (absolute price) and frequency of purchase, price presentation (how prices are presented might produce different levels of willingness to pay) and advertising.

Question 12

Our perception of risk is greater if we are continually reminded of it than if we consider it only at the point of purchase. This is referred to as::

Question 13

When customers assess prices, they estimate value using __________, because they do not always know the true cost and price of the item that they are purchasing. These pricing cues include: sale signs; odd-number pricing; the purchase context; and price bundling and rebates.

Question 14

A 10% increase (decrease) in price produces a 10% decrease (increase) in quantity demanded. This is referred to as:

Question 15

Segmentation pricing is where varying prices are set for different groups of customers. Economists call this approach:

Question 16

The pricing approach where prices are set based on what competitors are charging is called the:

Question 17

The pricing approach where prices are set based on what customers believe to offer value is called the:

Question 18

Which of the following are aimed at providing customers with the peace of mind of knowing that the company they are purchasing from is competitive in price?

Question 19

Which of the following occurs when competitors' pricing policies are almost exclusively focused on competitors rather than customers?

Question 20

With this pricing approach, the pricing process begins with the customer; not the cost of the product offering: