A break-even chart shows the total cost and total revenue expected at various sales volume levels.

• A) False
• B) True
• C)
• D)

Environmental elements are categorized as external factors that affect pricing decisions.

• A) False
• B) True
• C)
• D)

Cost-based pricing relies on consumer perception of value to drive pricing.

• A) False
• B) True
• C)
• D)

Programs that include public health campaigns to reduce smoking, alcoholism, drug abuse, and overeating are examples of the social idea known as social marketing.

• A) True
• B) False
• C)
• D)

Value-based pricing is the reverse of cost-based pricing.

• A) False
• B) True
• C)
• D)

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering them, it is able to reduce the main product’s price to make it more competitive.

• A) False
• B) True
• C)
• D)

Product support services identify the product or brand, describe several things about the product, and promote the product through attractive graphics.

• A) True
• B) False
• C)
• D)

In industrial markets, product managers have an influence on the company’s price-setting decisions.

• A) True
• B) False
• C)
• D)

One important quality for a brand name is that it should translate easily into foreign languages.

• A) False
• B) True
• C)
• D)

Product costs set a floor to the price; consumer perceptions of the product’s value set the ceiling.

• A) False
• B) True
• C)
• D)

In a product business, products are fairly standardized and can sit on shelves waiting for customers. In a service business, the customer and front-line service employee interact to create the service.

• A) False
• B) True
• C)
• D)

Internal marketers face special challenges. They must figure out what products to introduce to other countries.

• A) False
• B) True
• C)
• D)

Pricing often plays an important role in helping to accomplish a company’s multi-level objectives.

• A) False
• B) True
• C)
• D)

In industrial markets, salespeople outrank top management in determining the sales price of products.

• A) False
• B) True
• C)
• D)

The simplest pricing method is break-even pricing—adding a standard markup to the cost of the product.

• A) False
• B) True
• C)
• D)

An aspect of managing service differentiation is in the company’s service delivery.

• A) False
• B) True
• C)
• D)

The brand of a product can determine its consumer value.

• A) False
• B) True
• C)
• D)

Companies that set a low initial price in order to get their “foot in the door” quickly and deeply, attract a large number of buyers quickly, and win a large market share practice market-skimming pricing.

• A) False
• B) True
• C)
• D)

Co-branding is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. Examples are banking, hotel, airline, retail, tax preparation, and home repair.

• A) False
• B) True
• C)
• D)

We define a service as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.

• A) False
• B) True
• C)
• D)