Chapter 10

Principles of Marketing, 14e (Kotler)
Chapter 10 Pricing: Understanding and Capturing Customer Value

1) ________ is the amount of money charged for a product or service.
A) Value
B) A demand
C) Price
D) A wage
E) Salary
Answer: C
Diff: 1 Page Ref: 290
Skill: Concept
Objective: 10-1

2) Price is the only element in the marketing mix that produces ________.
A) revenue
B) variable costs
C) expenses
D) outfixed costs
E) stability
Answer: A
Diff: 2 Page Ref: 290
Skill: Concept
Objective: 10-1

3) ________ is an important element in the marketing mix. It is the only element that does not represent costs.
A) Profit maximization
B) Market share leadership
C) Price
D) Product quality leadership
E) The target market
Answer: C
Diff: 2 Page Ref: 290
Skill: Concept
Objective: 10-1

4) Consumer perceptions of the product's value set the ________ for prices.
A) demand curve
B) floor
C) ceiling
D) variable cost
E) image
Answer: C
Diff: 2 Page Ref: 291
Skill: Concept
Objective: 10-2
5) Product costs set a(n) ________ to a product's price.
A) demand curve
B) floor
C) ceiling
D) break-even cost
E) experience curve
Answer: B
Diff: 2 Page Ref: 291
Skill: Concept
Objective: 10-2

6) Which of the following is a customer-oriented approach to pricing?
A) customer value-based pricing
B) sealed-bid pricing
C) break-even pricing
D) target profit pricing
E) C and D
Answer: A
Diff: 2 Page Ref: 291
Skill: Concept
Objective: 10-2

7) ________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.
A) Customer value-based pricing
B) Cost-based pricing
C) Variable cost
D) Price elasticity
E) Product image
Answer: A
Diff: 1 Page Ref: 291
Skill: Concept
Objective: 10-2

8) In ________, price is considered along with the other marketing mix variables before the marketing program is set.
A) value-based pricing
B) cost-based pricing
C) variable costs
D) price elasticity
E) markup pricing