Which of the following statements is true about customers' interpretation and response to price?
A) An internal reference price is a comparison price provided by others such as friends and relatives.
B) An external reference price is a price developed in the buyer's mind through experience with the product.
C) Prestige-sensitive customers are concerned about both the price and quality aspects of a product.
D) At times, customers interpret a higher price as higher product quality.
E) Customers do not consider the resources required to maintain a product after purchase.
Question 2A unique cap or applicator is an example of secondary-use packaging.
Indicate whether the statement is true or false
Question 3Which of the following statements is true about the factors that affect pricing decisions?
A) In the long term, a firm may sell products below cost to match competition.
B) Marketers should set prices that are consistent with the organization's goals and mission.
C) Pricing decisions should not influence activities associated with the other marketing mix variables.
D) Price is not linked to elements of the distribution variable of the marketing mix.
E) Costs should not be an issue when establishing price.
Question 4The similar jar shapes for mayonnaise products are an example of category-consistent packaging.
Indicate whether the statement is true or false
Question 5____________ are reductions off the list price given by a producer to an intermediary for performing certain functions.
A) Trade discounts
B) Quantity discounts
C) Cumulative discounts
D) Non-cumulative discounts
E) Cash discounts
Question 6A red-and-white label on a soup can is an example of innovative packaging.
Indicate whether the statement is true or false
Question 7Which of the following statements is true about breakeven analysis?
A) The breakeven point can only be stated in terms of sales revenue.
B) At the breakeven point, the firm's fixed costs are greater than its variable costs.
C) At the breakeven point, the firm's fixed costs are less than its variable costs.
D) At the breakeven point, the firm's sales price per unit equals its variable cost per unit.
E) At the breakeven point, the firm's sales revenue equals the sum of its fixed and variable costs.
Question 8The Cool Whip container is an example of a secondary-use package.
Indicate whether the statement is true or false
Quick Reply
