【正文】 o understand what affects price sensitivity. Generally speaking, customers are most price sensitive to products that cost a lot or are ________. a. priced low to begin with b. lowcost c. bought frequently d. bought infrequently e. none of the aboveAnswer: c Page: 439 Level of difficulty: Easy 17. Consumers ________ to lowcost products or items they buy infrequently. a. prefer the lowest total cost of ownership b. remember prices of products c. are ambivalent to prices d. are more price sensitivee. are less price sensitive Answer: e Page: 439 Level of difficulty: Easy18. The concept of the lowest ________ means that a seller can charge a higher price if they can convince the customers that price is only a small part of the total cost of obtaining, operating, and servicing the product over its lifetime. a. prestige pricingb. total cost of ownership c. convenience pricing d. key price pointse. none of the above Answer: b Page: 439 Level of difficulty: Medium 19. If demand hardly changes with a small change in price, we say that the demand is ________. a. equal b. marginalc. inelasticd. elastice. none of the aboveAnswer: c Page: 440 Level of difficulty: Easy20. If demand changes considerably, we say that the demand is ________. a. equalb. elastic c. inelasticd. marginal e. none of the above Answer: b Page: 440 Level of difficulty: Easy 21. Price elasticity depends on the magnitude and direction of the price change. If may differ for a price cut versus a price increase. When the price changes have little or no effect there might exist a ________ for your product. a. selective price b. price indifference band c. substitute productd. promotional price e. collective price Answer: b Page: 441 Level of difficulty: Hard22. ________ sets a ceiling on the price the pany can charge for its products. a. Government regulationsb. Market forcesc. Costsd. Demand e. Competition Answer: d Page: 441 Level of difficulty: Easy23. A pany’s costs take two forms. ________ are costs that do not vary with production or sales revenue. a. Fixed b. Variablec. Adjustedd. Attributede. None of the above Answer: a Page: 441 Level of difficulty: Easy 24. ________ costs amounts differ greatly depending upon the level of production. a. Fixed b. Adjustedc. Attributedd. Unknown e. Variable Answer: e Page: 441 Level of difficulty: Easy25. ________ consists of the sum of the fixed and variable costs for any given level of production. a. Total costsb. Manufacturing costsc. Delivery costsd. Fixed costse. Variable costsAnswer: a Page: 442 Level of difficulty: Easy26. Today’s panies try to adapt their offers and terms to different buyers. ________ accounting tries to identify the real costs associated with serving each customer. It allocates indirect costs to the activities that use them and are tagged back to each customer. a. Cost accounting b. Experience cost c. Target costingd. Direct product profitability e. Activitybased cost Answer: e Page: 443 Level of difficulty: Hard27. The three major considerations in price setting includes, costs set as the “floor,” ________, and customers’ assessment of unique features establishing the price ceiling. a. petitors’ prices and the price of substitutes provide an orientation point b. petitors’ prices establishes a “target price” goalc. the price of substitutes establishes a “target price” d. the price of petitors and substitutes does not enter into the pricing considerations. e. none of the above Answer: a Page: 444 Level of difficulty: Hard28. An increasing number of panies now base their price on the customer’s ________ of their products. a. usage b. EDLP pricing c. everyday value pricing d. perceived valuee. value proposition Answer: d Page: 445 Level of difficulty: Easy29. The key to perceivedvalue pricing is to deliver more value than your petitors and to ________ this to prospective buyers. a. demonstrate b. municate c. advertised. promotee. convince Answer: a Page: 446 Level of difficulty: Easy30. Value pricing is not a matter of simply setting lower prices。 it is a matter of reengineering the pany’s operations to bee a lowcost producer without sacrificing quality。 and lowering prices significantly to attract a large number of ________ customers. a. expert customers b. priceorientatedc. valueconsciousd. productorientated customers e. none of the aboveAnswer: c Page: 447 Level of difficulty: Medium 31. When a firm charges the same, more, or less than its major petitors do, it is using a pricing strategy that is called ________. a. perceived value pricing b. value pricing c. highlow pricing d. everyday low pricing e. goingrate pricing Answer: e Page: 447 Level of difficulty: Medium32. Auctiontype pricing is being very popular today due to the Internet. The three types of auctiontypes of pricing include sealedbid auctions, descending bids auctions, and ________. a. EDLPb. ascending bids c. highlow bidsd. goingrate bidding e. value pricing Answer: b Page: 448 Level of difficulty: Medium33. Pricing methods narrow the range from which the pany selects its final price. In selecting that price, the pany must consider additional factors, including the impact of other marketing activities, pany pricing policies, gainandrisksharing pricing, and the impact of price on ________. a. other partiesb. channels of distribution c. channel partnersd. marketing activities e. none of the above Answer: a Page: 448 Level of difficulty: Med