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Module 1 > MM 34 Exam Group 3&4 > Flashcards

MM 34 Exam Group 3&4 Flashcards

1
Q

are two different concepts that affect how consumers evaluate and purchase products or services.

A

Price and perceived value

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2
Q

is the amount of money that a seller charges for a product or service

A

Price

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3
Q

this is a type of price that is based on the cost of production, distribution, and marketing of a product or service, plus a desired profit margin.

This type of price is easy to calculate and implement, but it does not consider the customer’s willingness to pay or the competitive situation.

A

Cost-based pricing

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4
Q

is the customer’s own assessment of the benefits and costs of a product or service, especially in comparison to other alternatives.

A

Perceived value

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5
Q

this is a type of price that is based on the perceived value of a product or service to the customer, rather than the cost of production.

This type of price aims to capture the maximum value that customers are willing to pay for a product or service, and it requires a good understanding of the customer’s needs, preferences, and willingness to pay.

A

Value-based pricing

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6
Q

this is a type of price that is based on the prices of similar products or services offered by competitors in the market.

This type of price aims to match or undercut the competitors’ prices, and it requires a good knowledge of the market conditions and the competitive advantages and disadvantages of the product or service.

A

Competitive pricing

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7
Q

this is a type of price that is based on the psychological effects of price on customer perception and behavior.

This type of price uses various techniques, such as odd pricing (e.g., $9.99 instead of $10), prestige pricing (e.g., $999 instead of $1000), or bundle pricing (e.g., buy one get one free), to influence the customer’s perception of value and quality.

A

Psychological pricing

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8
Q

this is a type of perceived value that is based on the utility and performance of a product or service.

It reflects how well a product or service meets the customer’s functional needs and expectations, such as quality, reliability, durability, convenience, etc.

A

Functional value

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9
Q

this is a type of perceived value that is based on the feelings and emotions that a product or service evokes in the customer.

It reflects how a product or service makes the customer feel happy, satisfied, proud, confident, etc., or how it reduces negative emotions such as fear, anxiety, guilt, etc.

A

Emotional value

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10
Q

This is a type of perceived value that is based on the social benefits and costs of a product or service.

It reflects how a product or service affects the customer’s social status, image, reputation, relationships, etc., or how it conforms to or deviates from social norms and expectations.

A

Social value

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11
Q

this is a type of perceived value that is based on the curiosity and novelty of a product or service.

It reflects how a product or service satisfies the customer’s desire for new knowledge, experiences, discoveries, etc., or how it challenges or surprises the customer.

A

Epistemic value

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12
Q

are three important factors that affect customer’s perception of value and their buying behavior.

A

Price, quality, and sacrifice

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13
Q

is the amount of money that customers pay for a product or service.

A

Price

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14
Q

is the degree to which the product or service meets or exceeds customer’s expectations.

refers to the level of excellence or superiority of a product or service.

A

Quality

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15
Q

is the total cost of acquiring and using the product or service, including money, time, effort, etc.

refers to the cost or negative aspects associated with obtaining or using the product or service.

A

Sacrifice

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16
Q

means providing customers with clear and consistent information about these factors and how they relate to each other.
This can help customers to compare different products or services and make informed decisions based on their preferences and needs.

A

Integrating price, quality, and sacrifice information

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17
Q

In a study by Kent B.Monroe, he proposed a model for decomposing perceived product value into three components:

A

Quality, Sacrifice and Benifits

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18
Q

refer to the positive aspects associated with obtaining or using the product or service

A

Benefits

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19
Q

the aesthetic appeal of the physical design of a product.

A

Form utility

20
Q

the value attached to a service that saves the customer time, effort, or money.

A

Task utility

21
Q

the ease of access to a service or product.

A

Time utility

22
Q

the convenience of the location.

A

Place utility

23
Q

the ease of purchasing the product.

A

Possession utility

24
Q

is a marketing strategy that involves comparing your product or service to a competitor’s product or service.This technique can help drive brand awareness and convince consumers to do business with one brand over another.

encourages product improvement and innovation, and can lead to lower prices in the marketplace.

A

Comparative advertising

25
Q

has issued a statement of policy regarding comparative advertising.
According to the FTC, comparative advertising is a source of important information to consumers and assists them in making rational purchase decisions.

A

Federal Trade Commission (FTC)

26
Q

Is the sum of all values that consumers exchange for
the benefits of having or using the product or service.
Price is the only element in the marketing mix that
produces revenue; the others produce cost.

A

PRCE

27
Q

are the methods and
procedures companies employ to
determine the rates they charge for their
goods and services

A

Pricing strategies

28
Q

Companies pursue survival as their major objective if they are plagued with
overcapacity, intense competition, or changing consumer wants. As long as prices cover variable
costs and some fixed costs, the company stays in business.

A

Survival

29
Q

Many companies try to set a price that will maximize current
profits.They estimate the demand and costs associated with alternative prices and choose the
price that produces maximum current profit, cash flow, or rate of return on investment.

A

Maximum current profit

30
Q

Some companies believe a higher sales
volume will lead to lower unit costs and higher long-run profit. They set the lowest price, assuming
the market is price sensitive.

A

Maximum Market Share/Market-penetration Pricing

31
Q

Companies unveiling a new technology favor setting high prices to maximize
market skimming, prices start high and slowly drop over time

A

Market Skimming

32
Q

A company might aim to be the product-quality leader in the
market. Product or services characterized by high levels of perceived quality, taste, and status
are priced just high enough not to be out of consumers’ reach.

A

Product-Quality Leadership

33
Q

Nonprofit and public organizations may have other pricing objectives
such as partial cost recovery knowing that it must rely on private gifts and public grants to cover
its remaining costs

A

Partial Cost Recovery

34
Q

costs that don’t vary with production or sales revenue.

A

Fixed costs/overhead

35
Q

vary with the level of production.

A

Variable costs

36
Q

sum of fixed and variable costs at a given level of production.

A

Total costs

37
Q

cost per unit at a given level of
production = total cost/quantity of production

A

Average cost

38
Q

are also influenced by quality of offering relative to competition

A

Pricing decisions

39
Q

No possible
profit at this
price

A

Low Price

40
Q

No possible
demand at
this price

A

High Price

41
Q

is just adding a standard mark-up to the product’s cost.

A

Markup Pricing

42
Q

pricing used to achieve a planned or target rate of return
on investment

A

Target-Return Pricing

43
Q
  • Companies base their price on the customer’s perceived value
  • to deliver more value than the
    competitor and to demonstrate this to perspective buyers.
A

Perceived-value Pricing

44
Q

Win loyal customer by charging a fairly low price for a high-quality offering

A

Value Pricing

45
Q

the firm bases its price largely on competitors’ prices. It is quite popular
where costs are difficult to measure or competitive response is uncertain.

A

Going-Rate pricing

46
Q

One major purpose of auctions is to dispose of excess inventories or
used goods.

A

Auction-Type pricing

Module 1 (17 decks)

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