Description of this paper

Business True or False Set III




True or False;1) Prices have a direct impact on a firm's bottom line.()Page Ref: 290;2) Customer perceptions of the product's value set the floor for prices.()Page Ref: 291;3) Product costs set the ceiling for prices.()Page Ref: 291;4) In customer value-based pricing, price is considered along with all other marketing mix variables before the marketing program is set.()Page Ref: 291;5) Value-based pricing uses the sellers' perception of value as the key to pricing.;()Page Ref: 291;6) Using value-based pricing, a marketer would not design a product and marketing program before setting the price.()Page Ref: 291;7) Cost-based pricing is often product driven.()Page Ref: 291;8) Department stores that practice everyday low pricing (EDLP) typically provide frequent sale days, early-bird savings, and bonus earnings for store credit-card holders.()Page Ref: 293;9) Overhead costs are costs that do not vary with production or sales level.;()Page Ref: 296;10) Cost-based pricing involves setting prices based on consumer perception of value.;()Page Ref: 295;11) Average cost tends to increase with accumulated production experience.;()Page Ref: 296;12) A downward-sloping experience curve is indicative of a company's rapidly increasing production costs.()Page Ref: 297;13) The simplest pricing method is cost-plus pricing, which involves adding a standard markup to the cost of the product.()Page Ref: 297;14) Markup pricing is popular because when all firms in the industry use this pricing method, prices tend to be similar, so price competition is minimized.()Page Ref: 297;15) Markup pricing is used when a firm tries to determine the price at which it will break even or make the target return it is seeking.()Page Ref: 297;16) A break-even chart shows the total cost and total revenue expected at various sales volume levels.()Page Ref: 298;17) Internal factors affecting pricing include the company's overall marketing strategy, objectives, and marketing mix.()Page Ref: 299;18) Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing mix program.;()Page Ref: 300;19) In a pure monopoly, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.()Page Ref: 303;20) A demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.()Page Ref: 303;21) If a company faces competition, its demand at different prices will depend on whether competitors' prices stay constant or change with the company's own prices.;()Page Ref: 304;22) If demand changes greatly with price, the demand is inelastic.()Page Ref: 304;23) The more elastic the demand, the more it pays for the seller to raise the price.;()Page Ref: 304;24) Buyers are more price sensitive when the product they are buying is unique or when it is high in quality, prestige, or exclusiveness.()Page Ref: 304;25) If demand is elastic rather than inelastic, sellers will consider lowering their prices.;()Page Ref: 304


Paper#24146 | Written in 18-Jul-2015

Price : $42