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Ch 10 Student Derived Test QuestionsWritten by: Miranda Adcock, Brent McIntyre, James Krape, Kristan Salazar, Alex Lozano, Clay Creighton, Payton Thomas, Quinn Spear, Angel Avila, Lenea GuruleWhich of the following is NOT a pricing objective?ProfitCustomer SatisfactionMarkups and MarginsImage EnhancementWhat would cause a downward shift in demand?Demand suddenly dropsDemand increases Supply suddenly dropsSupply increases Which of the following would be considered a variable cost?Rent on the office buildingInsurance for the companyLabor costs of workersElectricity bill for office buildingThe amount added to the cost of the product to create a price at which the channel member will sell the product is called a ________.Break-Even PointPrice ElasticityProfit ObjectivesMarkup______ demand is when changes in price have large effects on the amount demanded.InelasticElasticRubberBouncy______ is an online strategy where the price of an item can easily be adjusted to meet changes in the marketplace.Price LiningFreemium StrategyDynamic PricingPrice DiscriminationWalmart uses a ______ strategy to promise value to customers.Penetration PricingValue Pricing/EDLPPrice LeadershipDemand Based Pricing_______ is when one dominant company sets the price for a product, which is usually followed by the smaller competitors.Price LeadershipDynamic PricingDemand Based PricingPenetration Pricing_______ is a marketing strategy in which a product or service is offered for free, but a premium version with extra benefits is also offered at a price.Trial PricingYield Management PricingFreemium StrategyCaptive PricingBreak-even analysis tells marketers what?How retailing evolvesHow to choose a target marketWhich pricing strategy to useHow many units must be sold in order to cover all costsWhich of the following is NOT part of the pricing environment?EconomyPeer InfluenceInternational EnvironmentGovernment RegulationWhich of the following is a pricing tactic for multiple products?Two-Part PricingDecoy PricingPayment PricingPrice BundlingCosts that do not vary with the number of units produced are called ______ costs.FixedVariableSupplyProductionThe price or price range that a consumer has in mind when evaluating a product’s price is called their ______.a. Internal Guideb. Internal Pricing Referencec. Guesstimated. ExpectationBait-and-Switch is a legal pricing strategy.a. Trueb. FalseWhat is the law of demand?a. People buy what they wantb. Changes in price always lead to changes in demandc. As price goes up, quantity demanded goes downd. The percentage change in unit sales that results from a percentage change in priceThe break-even point is equal to:a. Units/Fixed Costb. Variable Cost/Fixed Costc. Variable Cost/Unitsd. Total Fixed Costs/Contribution per Unit to Fixed CostsWhat is the most frequently used Cost-based pricing?a. Cost-Plusb. Cost-Minusc. Risk-Freed. Yield-ManagementWhat is penetration pricing?a. A very high premium is charged when the product first hits the marketb. The product is priced very low in order to build unit sales very quicklyc. Sets a low price initially but only for a limited timed. The price will be lowered in the futureWhich new product pricing strategy did Microsoft use when they first introduced Access for $99?a. Skimmingb. Penetrationc. Triald. Decoy ................
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