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

• A) True
• B) False
• C)
• D)

Customer retention is perhaps the best measure of quality—a service firm’s ability to hang on to its customers depends on how consistently it delivers value to them.

• A) True
• B) False
• C)
• D)

The more elastic the demand, the more it pays for the seller to raise the price.

• A) True
• B) False
• C)
• D)

Competitors’ prices and offers are external factors that companies have to deal with.

• A) True
• B) False
• C)
• D)

Customers come to know a brand through a wide range of contacts and touch points. These include word of mouth, personal interactions with company people, telephone interactions, and company Web pages. Many brands are not maintained by advertising but by brand experience.

• A) False
• B) True
• C)
• D)

Style is a larger concept than design. Design describes the appearance of a product.

• A) True
• B) False
• 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) False
• B) True
• C)
• D)

If demand changes greatly, we say the demand is inelastic.

• A) False
• B) True
• C)
• D)

A company’s product mix has four important dimensions: width, length, depth, and consistency.

• A) True
• B) False
• C)
• D)

Demand and consumer value perceptions set the floor for prices.

• A) True
• B) False
• C)
• D)

The service-profit chain means the set of all product lines and items that a particular seller offers for sale.

• A) False
• B) True
• C)
• D)

When a major moving van company sells accessory products that must be used in moving a household’s furniture, it is practicing captive-product pricing.

• A) True
• B) False
• C)
• D)

If Canon Camera Company follows a high-price, high-margin strategy, it may attract competition from Nikon, Minolta, and Pentax.

• 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)

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) False
• B) True
• C)
• D)

Manufacturers may offer an allowance in return for the retailer’s agreement to feature the manufacturer’s products in some way.

• A) True
• B) False
• C)
• D)

The producer and intermediaries need to agree on the terms and responsibilities of each member. They should agree on price policies, conditions of sale, territorial rights, and specific services to be performed by each party.

• A) True
• B) False
• C)
• D)

Major factors are changing the face of today’s marketing communications. Mass markets have fragmented; thus, marketers are shifting away from mass marketing.

• A) False
• B) True
• C)
• D)

Slice of life, lifestyle, and personality symbol are all parts of public relations.

• A) False
• B) True
• C)
• D)