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Reviewer > Marketing Summative Test 2 > Flashcards

Marketing Summative Test 2 Flashcards

1
Q

Monetary worth of Goods/Services.

A

Price

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2
Q

The process of estimating the worth of a product or service.

A

Pricing

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3
Q

Covers the cost and profit.

A

Product Price

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4
Q

Lowering expenses is the most efficient approach to product pricing.

True or False

A

True

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5
Q

Prices should not be reviewed regularly to reflect the dynamics of
cost, market demand, reaction to competition, and profit objectives.

True or False

A

False

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6
Q

Prices must be set to ensure sales.

True or False

A

True

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7
Q

The element in the marketing mix that generates revenue.

A

Price

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8
Q

Traditional Pricing Strategies

A
  1. Cost-based Pricing
  2. Cost-plus Pricing
  3. Customer Value-based Pricing
  4. Competition-based Pricing
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9
Q

Based on the costs for producing, distributing, and selling the product or service with a reasonable return for the company’s investment and risks.

A

Cost-based Pricing

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10
Q

Considered the simplest pricing method; also known as markup pricing.

A

Cost-plus Pricing

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11
Q

Involves understanding how much consumers value the market offering based on the benefits and satisfaction; not based on the seller’s cost but on the buyer’s perception.

A

Customer Value-based Pricing

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12
Q

Entails setting prices based on
competitors’ tactics, costs,
price, and market offers; pays attention to the price levels currently set in the market.

A

Competition-based Pricing

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13
Q

Internal Factors Affect Pricing Decisions

A
  1. Cost
  2. Marketing Mix Strategy
  3. Product Life Cycle
  4. Image of the Firm (Brand Image)
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14
Q

It is the reason for the price that can be paid for goods and services.

A

Cost

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15
Q

When setting rates, the company should cover fixed and variable costs.

True or False

A

True

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16
Q

Price decisions, product coordination, placement, and advertising decisions must be organized marketing priorities of your business like your target market and positioning strategies.

A

Marketing Mix Strategy

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17
Q

Price is an essential marketing mixing method that aims to attain marketing goals.

True or False

A

True

18
Q

The various stages of the product life cycle affect on pricing decisions.

A

Product Life Cycle

19
Q

The identity and credibility of the company is another aspect that affects the decision on pricing.

A

Image of the firm (Brand Image)

20
Q

External Factors Affect Pricing Decision

A
  1. Competition
  2. Consumers/Customers
  3. Economic terms and conditions
  4. Government Regulated Economy
21
Q

When determining the price of the product, the company must consider the degree of competition in the marketplace.

A

Competition

22
Q

Keep the consumer’s buying power and price sensitivity in mind when setting the price.

A

Consumers/Customers

23
Q

Indicators include interest rate, inflation, economic growth, and recession.

A

Economic terms and conditions

24
Q

Is another aspect that needs to be recognized.

A

Government Regulated Economy

25
Q

Is a key to business success.

A

Price

26
Q

Effective pricing decreases revenue, laying the groundwork for a thriving business.

True or False

A

False

27
Q

New Product Pricing Strategies

A
  1. Market-skimming pricing
  2. Market-penetration pricing
  3. Product-mix pricing
28
Q

Establishes a high price for the new product to skim maximum revenues; fewer but more lucrative
sales.

A

Market-skimming pricing

29
Q

Sets a low price for the new product or service to attract many buyers and a large market share; commonly used as market entry pricing.

A

Market-penetration pricing

30
Q

Product-mix pricing

A
  1. Product line pricing
  2. Optional-product pricing
  3. Captive-product pricing
  4. By-product pricing
  5. Product bundle pricing
31
Q

Sets the price steps in a product line based on cost differences, customer evaluations, and competitors’ prices.

A

Product line pricing

32
Q

To sell optional or accessory products to their main product.

A

Optional-product pricing

33
Q

Sets a price for products that must be used with the main product.

A

Captive-product pricing

34
Q

Sets a price for by-products to make the main product’s price more competitive.

A

By-product pricing

35
Q

Combines several products and offers the bundle at a reduced price.

A

Product bundle pricing

36
Q

Prices are the final price consumer paid throughout history; a result of bargaining between seller and buyers.

A

Buyer-Seller Interactivity

37
Q

A method of establishing multiple prices, discounts, and offers for products and services that are compatible with the organization’s
goals and strategy.

A

Price Structure

38
Q

Pricing Structure

A

Free
Basic
Premium
Enterprise

39
Q

Entails charging different prices to different clients for the same or comparable goods or services.

A

Price Segmentation

40
Q

Involves how a price is expressed when it is communicated to potential customers.

A

Price Format

Reviewer (6 decks)

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