CHAP 2: PRICING

1/ ___________ are the basis for tracking the value customers receive and how they pay for it. For example, car rental companies used a time-based value metric and charged customers for the time duration.

• a. Metrics
• b. Measurements
• c. KPI
• d. Analytics

2/ Because of their subjective nature of psychological values, pricing researchers must rely on a variety of _____________ (for example: conjoint analysis) to estimate the worth of a product’s differentiated features.

• a. quantitative techniques
• b. ethnographic techniques
• c. qualitative techniques
• d. story-telling techniques

3/ ______________represents the financial outcomes via tangible cost reductions or revenue increases that a customer accrues as a result of purchasing a product.

• a. Use value
• b. Exchange value
• c. Psychological value
• d. Monetary value

4/ Though eventual pricing strategy will rely on value-based segmentation, communications and sales strategies are likely to be heavily dependent on those obvious customer characteristics such as demographics in consumer markets and _______________in business markets.

• a. Firmographics
• b. Ownership
• c. Revenue
• d. Profitability

5/ In the EVE model, the ____________a company’s offering is the sum of differentiation value and reference value.

• a. economic value
• b. Psychological value
• c. use value
• d. Utilities

6/ _____________ are those policies, rules, programs, and structures that customers must follow to qualify for price discounts or rewards. For example, minimum volume requirements, time-based membership requirements, bundled purchase requirements, and so on.

• a. Measurements
• b. KPI
• c. Metrics
• d. Fences

7/ To estimate the economic value, the price researcher needs to identify reference value (price) and then try to estimating the differentiation value between the value of the firm’s offering and its competitor. The differentiation value could be mainly monetary value or ________________ or both.

• a. utility value
• b. human value
• c. ecological value
• d. psychological value

8/ The term __________commonly refers to the overall satisfaction that a customer receives from acquisition or consumption of a product or service offering. Economists call this use value—the utility gained from the product.

• a. cost
• b. value
• c. price
• d. Convenience

9/ Understanding value is the only way to develop effective communications campaigns to increase customer’s ___________. Most customers are not so well informed, and it is the job of the seller to get the value message across.

• a. Reluctance-to-pay
• b. indifference-to-pay
• c. Passion-to-pay
• d. willingness-to-pay

10/ In order to estimate the monetary value, the price researcher should go through 3 steps. In step 1, he/she must collect specific data to understand how the product category affects the customer’s costs and revenues, that is customer _____________.

• a. growth model
• b. profitability model
• c. business model
• d. cost model