Chapter 7 Multiple choice questions

Chapter 7 Multiple choice questions

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

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

. Where the price is set low relative to the competition to gain market share, this strategy is known as:

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

. This is when a product or service is offered together with another typically complementary product or service:

. 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:

. Where the winning bidder obtains an unprofitable contract that he/she is duty bound to deliver because their bid price was set so low, this is known as:

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

. In B2B contexts, ___________ occurs in large organizations where considerable internal dealing between different company divisions occurs, often across national boundaries.

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

. _____________ 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.

. 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:

. 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.

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

. In B2B contexts, prices are set according to specific agreements between a company and its clients or customers (e.g. professional services such as architectural or structural engineering).This pricing approach is known as:

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

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

. 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?

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

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

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