Overhead cost is another term for variable cost.

• A) True
• B) False
• C)
• D)

An example of service variability is that within a given Marriott hotel, one registration-desk employee may be cheerful and efficient, whereas another may be unpleasant and slow.

• 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) False
• B) True
• C)
• D)

Packaging does not include the material necessary to ship a product.

• A) False
• B) True
• C)
• D)

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

• A) False
• B) True
• C)
• D)

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)