 Question 1

0 out of 1 points

When the absolute value of price elasticity of demand is ________, the category is price elastic.

Correct  

Answer: greater

than 1

Response Page Ref: 252

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 Question 2
0 out of 1 points

An understanding of the cost structure of the market provides marketing managers with:

Correct  

Answer: an idea of how low some

competitors can price.

Response Page Ref: 259

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 Question 3
0 out of 1 points

Which of the following statements is true about perceived value?

Correct  

Answer: Perceived value is

always relative.

Response Page Ref: 249

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 Question 4
0 out of 1 points

Which of the following statements is true regarding the first-degree of price discrimination?

Correct  

Answer: It involves charging different prices to segments of the market

according to their price elasticity or sensitivity.

Response Page Ref: 247

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 Question 5
0 out of 1 points

Which of the following pricing tactics applies to products that are used together when one of the

products is a consumable that must be replenished continually?

Correct  

Answer: complementar

y pricing

Response Page Ref: 269

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 Question 6
0 out of 1 points

Identify the correct formula for the calculation of price elasticity of demand.

Correct  

Answer: E = percent change in

demand/percent change in price

Response Page Ref: 252

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 Question 7
0 out of 1 points

Skimming is also known as ________ pricing.

Correct  

Answer: prest

ige

Response Page Ref: 262

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 Question 8
0 out of 1 points

High buyer power tends to ________ prices and high supplier power ________ the floor beneath

which prices cannot be set.

Correct  

Answer: depress;

raises

Response Page Ref: 266

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 Question 9
0 out of 1 points

Which of the following is the maximum price someone is willing to pay for a product?

Correct  

Answer: reservatio

n price

Response Page Ref: 249

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 Question 10
0 out of 1 points

The concept of "value-in-use" is a useful method of estimating customer value for:

Correct  

Answer: industrial

products.

Response Page Ref: 253

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