【正文】 evel 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。 upperbound price (reservation price or what most consumers would pay)。 and usual discounted price. Page: 435 Level of difficulty: Hard103. In setting the “price” for their products or services, firms must stop and pause to reflect on the many factors affecting its pricing policy. List these six factors and briefly the subsequent ponents of each one of them. Suggested Answer: The sixstep procedure includes: Step 1: selecting the price objective—there are five objectives available here: survival, maximum current profit, maximum market share, maximum market skimming, or productquality leadership. Step 2: determining demand—price sensitivity, estimating demand curves, and price elasticity. Step 3: estimating costs—fixed and variable costs, accumulated production, activitybased cost accounting, and target costing. Step 4: analyzing petitors’ costs, prices, and offers—reviewing the market and noting petition. Step 5: selecting a pricing method—use markup or margin, perceivedvalue pricing, value pricing, EDLP, highlow, goingrate pricing, and auctiontype pricing. Step 6: sele。 petitor price。 typical price。Chapter 14: Developing Pricing Strategies and ProgramsChapter 14: Developing Pricing Strategies and ProgramsGENERAL CONCEPT QUESTIONSMultiple Choice 1. ________ municates to the market the pany’s intended value positioning of its product or brand. a. Packaging b. Price c. Placed. Promotione. Physical evidence Answer: b Page: 431 Level of difficulty: Easy2. Price has operated as the major determinant of buyer choice among poorer nations, among poorer groups, and with ________ products. a. identical b. over the Internet c. similard. moditytype e. none of the above Answer: d Page: 432 Level of difficulty: Medium3. Companies price their products in a number of ways. Small panies prices are set by the boss, in larger panies, pricing is handled by division and productline managers. In industries where price is a key factor, panies often establish a ________ department reporting to other internal departments. a. financial b. pricingc. sales d. marketing e. distribution Answer: b Page: 433 Level of difficulty: Easy4. Executives often plain that pricing is a big headache. One of the mon mistakes made are: Price is not revised often enough to capitalize on market changes。 and lowering prices significantly to attract a large number of ________ customers. a. expert customers b. priceorientatedc. valueconsciousd. productorientated custo