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

• A) False
• B) True
• C)
• D)

An increasing number of retailers and wholesalers have created their own brands—such as Hyper Star offering variety of food products. This is called co-branding.

• A) False
• B) True
• C)
• D)

The brand of a product can determine its consumer value.

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

Value-based pricing is when costs vary directly with the level of product.

• A) True
• B) False
• C)
• D)

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)