SOLVED

31) The method of setting prices in which marketers total all the costs for the product and then add an amount to arrive at the selling price is called ________. A) supply-based pricing B) target costing C) cost-plus pricing D) yield management pricing E) demand-based pricing 32) Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This is known as ________. A) target costing B) value pricing C) cost-plus pricing D) break-even pricing E) penetration pricing 33) In which type of pricing is the selling price based on an estimate of volume or quantity a firm can sell in different markets at different prices? A) capacity management B) target costing C) demand-based D) penetration E) distribution-based 34) With target costing, marketers first ________ and then ________. A) build the marketing mix; identify the target market B) identify target markets; set different prices for each market C) design the product; determine its cost D) use skimming pricing; use penetration pricing E) determine a reasonable selling price; target costs to ensure that the price is met 35) Two forms of demand-based pricing are ________. A) price bundling and captive pricing B) price skimming and penetration pricing C) fixed pricing and variable pricing D) target costing and yield management pricing E) price leadership and everyday low pricing 36) Which of the following is an example of a pricing strategy that focuses on customers’ needs? A) price leadership B) everyday low pricing C) distribution-based pricing D) cost-plus pricing E) skimming 37) A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. A) a skimming price B) trial pricing C) value pricing D) penetration pricing E) prestige pricing 38) Which of the following should be true for a skimming price to be successful? A) Target consumers should be price sensitive. B) Supply should exceed demand. C) Demand must be stabilizing. D) The producer should use intensive distribution. E) There should be little chance that competitors can quickly enter the market. 39) A firm is using a(n) ________ strategy when it introduces a product at a very low price to gain market share early on. A) skimming pricing B) trial pricing C) intensive pricing D) penetration pricing E) price bundling 40) Which of the following is a reason that a marketer would choose a penetration pricing strategy? A) to ensure the company has the ability to increase prices once demand decreases B) to focus on the rapid achievement of profit objectives C) to appeal to different consumer segments with different levels of price sensitivity D) to create markets for highly technical products E) to discourage competition from entering the market