1. MKT 365 - Chapter 6: Pricing

Which of the following is not a revenue objective?

• Seek profit

• Increase morale

• Cover costs

• Build demand

Which of the following is not a non-monetary pricing objective?

• Ensure fairness, equity, and affordability for the markets served

• Focus on positive attitudinal and behavioral response

• Minimize production costs to increase margins

• Express the organization's principles and values, as well as the value offered to its customers and the community

What is meant by the term 'functional role' when referring to the role of price in a marketing strategy?

• To help generate sales, revenue, cash flow, and profits.

• To minimize market competition.

• To differentiate the brand based on non-pricing attributes.

• To solely focus on building brand loyalty.

Which of the following is not a 'strategic role' of the role of price in a marketing strategy?

• To symbolize quality and value offered

• To help position and differentiate a service

• To manage demand

• To maximize financial performance

• To post-empt competitors

Which of the following is not a foundation of a pricing strategy?

• Costs

• Geographic location of the business.

• Value to customer

• Competition

Which of the following statements is false?

• Fixed costs are incurred if no services were provided

• Service firms tend to have high fixed costs

• Variable costs are zero for services

• Variable costs fluctuate as a result of serving an additional customer

Which of the following is not what a customer may perceive value as?

• Value is whatever the customer wants in a product

• Value is the quantity the customer gets for the price they pay

• Value is low price

• Value is what the customer gets for what they give

Which of the following is not a type of value?

• Functional value or instrumental value

• Hedonic or experiential value

• Symbolic value or expressive value

• Price value or sacrifice value

Which of the following does not intensify price competition?

• An increase in the number of competitors

• An increased surplus capacity in the industry

• A decline in customer sensitivity to price changes

• An increase in substituting offers

Which statement best explains the term 'revenue management'?

• Revenue management allocates perishable capacity units to existing demand in a way that maximizes revenues, not patronage.

• Revenue management focuses solely on maximizing market share.

• Revenue management aims to eliminate customer segmentation.

• Revenue management is primarily about minimizing costs across all operations.