PRICING STRATEGY – REVISION
Đề 121
1. Which one is a principle for setting prices?
B. Make sure that people with elastic demand pay less
2. What can be seen from this chart?
C. Percentage change in price leads to a bigger percentage
change in demand
3. When will the demand be price elastic?
A. The change in quantity demanded will be proportionately higher than the reduction in price
4. We call points A, and B in this chart below are
A. Price elastic
5. Cost-based pricing does NOT reflect
D. Raw materials
6. Point B in the picture is called
C. Constant return to scale
7. Different name of full-cost pricing is
C. Absorption-cost pricing (định giá chi phí hấp thụ)
8. Total costs of 50,000 units are $600,000; required return = 33.33%. Unit selling price:
(33.33% x 600,000) + 600,000 = 799,980; 799,980 / 50,000 = 15,999 = 16
B. $16
9. Which pricing strategy below is illegal?
A. Predatory pricing (giá cắt cổ)
10. Why doesn't a company use competition pricing?
D. Long-term competition pricing can damage a company
11. Which step in strategic pyramid pricing does NOT communicate, capture, and share value?
C. Value creation
12. Which statement below about CVM is FALSE?
A. Total economic value and psychological terms (do not) have a single linear relationship to price
13. What will we do in the step "create detailed segment descriptions"?
A. Build a customers-controlled scheduling
14. Bundle pricing helps customers
C. Easy to choose the package and save time
15. Which one is NOT an advantage of bundle pricing to retailers?
B. Enjoy the versatility in a single act of purchase
16. Which one can be seen as insurance that insures the seller does not undercharge the buyer
A. Performance-based pricing
17. Which one is NOT an advantage of performance-based pricing?
A. The buyer knows clearly about the cost of a purchase before it is used
18. Which one is NOT an example of a tie-in?
D. Adding a feature that raises the value of the discounted offer to only the low-price segment
19. "Means to charge different customers with different price levels for the same products and
services" is the definition of
B. Prices fences (rào cản về giá)
20. Which one below does NOT belong to "purchase quantity fences"?
A. Periodic sale (bán định kỳ) (Time of purchase fences)
21. "What is the role of costs in setting my initial price range" is the question in which step below?
A. Define price window
22. What will we do in the step "define price window"
A. Set initial price range based on differential value and relevant costs
23. The price ceiling of positive differentiated products is ___ the price ceiling of negative differentiated
product
A. Greater than
24. How many considerations are when determining where in the price window to set the initial price?
B. 3
25. Which case below is when "costs are primarily fixed"?
A. In software, pharmaceutical, publishing
26. In the factor of "price farming", buyers are more price sensitive when
B. They perceive the price as a "loss" rather than a forgone "gain"
27. The disadvantage of price experimentation is
C. Leads to customer backlash (phản ứng dữ dội của khách hàng)
28. In the case of "automobiles and enterprise software", which method below should be used for
estimating customer response
A. Purchase invention survey
29. What is pure competition?
B. The market consists of many buyers and sellers trading in a uniform commodity. No single buyer or
seller has much effect on the going market price
30. A marketer's fixed costs are $400,000, the variable cost is $10, and they expect the product to sell for
$24 at markup profit = 33.33%. What is their break-even point in dollar sales?
- 24 = price at markup = 133%
- total unit cost (no profit) = 24/1.33 = 18
- Unit FC = 18 – 10 = 8
- Volume = 400,000/ 8 = 50,000
- Break even point in dollar sales = 50,000 x 18 = 900,000
B. $900,000
31. Consumer perceptions of the product's value set the ___ for prices.
C. ceiling
32. ___ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.
A. Value-based pricing
33. ___ involves attaching features and services to differentiate a company's offers and to support
charging higher prices.
C. Value-added pricing
34. ___ is a company's power to escape price competition and to justify higher prices and margins.
B. Pricing power
35. Ryanair offers free flights to a quarter of its customers and rock-bottom prices to many of its other
customers. Ryanair then charges for all extra services, such as baggage handling and in-flight
refreshments. Which of the following best describes Ryanair's pricing method?
B. low-cost pricing
36. Which of the following is a risk a company takes when building a strategy around the experience
curve?
E. Aggressive pricing may give the product a cheap image, causing customers to lose interest.
37. A company building its pricing strategy around the experience curve would be likely to ___
A. price its products low
38. Target profit pricing uses the concept of a ___ and total revenue expected at different sales volume
levels.
B. break-even chart
39. To form a consistent and effective integrated marketing program, price decisions should be
coordinated with each of the following EXCEPT ___
C. competitors' prices
40. With target costing, marketers will first ___ and then ___.
E. determine a selling price; target costs to ensure that the price is met
Đề 120
Câu 1 Total costs of 50,000 units are $600,000; required return = 33.33%. Unit selling price is:
B) $16
Output = 80,000 units, fixed costs = $400,000, variable cost = $7, profit margin = 50%. The
Câu 2
unit selling price is
C) $18
Câu 3 A marketer's fixed costs are $400,000, the variable cost is $16, and they expect the product
to sell for $24. What is their break-even point in units?
B) 50,000
Câu 4 A marketer's fixed costs are $400,000, the variable cost is $16, and they expect the product
to sell for $24. What is their break-even point in dollar sales?
A) $1,200,000
Câu 5 What price elasticity depends on what factors?
C) Price and quantity
Câu 6 What are the total costs of the product based on?
B) Fixed and variable costs
Câu 7 How to calculate full cost pricing of 25000 output. Fixed cost is $100000 and Variable cost
is $4. Assume that the profit margin is 25%
B) 10
Câu 8 ….. is an approach in products and services pricing that defines various prices, discounts,
and offers consistent with the organization's goals and strategy. It can affect how the
company grows and is perceived by the customers
B) Price Structure
Câu 9 Many producers who use captive-product pricing set the price of the main product
________ and set ________ on the supplies necessary to use the product.
D) low; high markups
Câu 10 A situation in which a company targets the whole market with one similar offer is called as
A) mass marketing
Câu 11 The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a
________ decrease in the quantity demanded
B) 50 percent
Câu 12 If demand is price elastic,
A) a 1 percent decrease in the price leads to an increase in the quantity demanded that exceeds
1 percent
Câu 13 All of the following are considered to be forms of a cost-based approach to pricing.
EXCEPT
C) going-rate pricing
Câu 14 The pricing objectives are
D) All of the above
Câu 15 In _________ company may not focus on long-run performance by ignoring the impact of
other marketing mix variables
B) Maximum current profit
Câu 16 The pricing objective of a university is
A) Partial cost recovery
Câu 17 Which statement is not true about the conjoint analysis?
C) Conjoint analysis extrapolates the respondent's preference for a quantitative measurement.
Câu 18 What are segmentation methods?
A) Geographic, Demographic, Behavioural, Psychographic.
Câu 19 What is needs-based segmentation?
D) Need-based segmentation classifies customer segments based on a common set of needs
(met or unmet) and/or purchase behavior.
Câu 20 With the bundle pricing, the sellers can combine several products and offer the bundle
______________.
C) at a reduced price
Câu 21 What is NOT the case of bundling pricing?
D) Increase variable costs when combining different offers.
Câu 22 What is the case of bundling pricing?
A) Adding the feature that raises the value of the discounted offer to only the low-price
segment.
Câu 23 Which below are major flaws in pricing?
A) Cost-plus, customer-driven, and share-driven pricing
Câu 24 What are the benefits of strategic pricing?
D) Both A, B, and C
Câu 25 When no customer surplus
C) Willingness to pay price = market price
Câu 26 When the products of enterprises the different compared with competing products and these
differences are accepted by customers, the enterprise should:
C) Pricing is lower than competing products
Câu 27 Objective valuation of profit maximization, the corresponding type of pricing strategy:
C) Skim the delicious
Câu 28 ....... define the terms of exchange in terms of what the buyer receives per unit of price paid.
B) Price metrics
Câu 29 Which of the following criteria for an ideal price metric enables a company to distinguish
between measurements of profit and performance?
C) Is easy to measure and force
Câu 30 ....... define the terms of exchange in terms of what the buyer receives per unit of price paid.
B) Price metrics
Câu 31 Which of the following criteria for an ideal price metric enables a company to distinguish
between measurements of profit and performance?
C) Is easy to measure and force
Câu 32 In Vietnam, the price of cars imported from Japan is very high.
B) Purchase location fences
Câu 33 Costs of selling and servicing an account generally
A) Do not increase proportionately with the volume of purchases
Câu 34 Which is NOT a type of quantity discount tactic?
C) Quantity discount
Câu 35 Please fulfill a definition of freight absorption. “ Freight absorption is an agreement by the
seller to bear part of the ... of the product, the amount which depends upon the buyer’s
location”
A) Shipping costs
Câu 36 Why do most companies still offer each customer volume at only one price?
D) A & C (Segmenting different purchases by each customer is possible only under limited
conditions & It is profitable only when the volume demanded by individual buyers is
significantly price-sensitive)
Câu 37 Customers who buy in large volume
B) Are usually more price-sensitive
Câu 38 All of the following conditions support market-penetration pricing EXCEPT
A) The product's quality and image must support the price.
Câu 39 When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers they were
using, Pepsi was using ________.
B) Market-penetration pricing
Câu 40 In a neutral strategy, the prices are set by:
A) General market
Câu 41 The importance of end-benefit is buyers are less price sensitive when the product is a small
part of the cost of a benefit with______ or _____ importance
D) High economic, psychological
Câu 42 Price _____ perceptions: Buyers are less sensitive to a product’s price to the extent that
price is a proxy for the likely______of the purchase.
A) Quality, quality
Câu 43 Choose the wrong sentence. Skimming pricing is to be used in the following cases:
D) When a company launches its new product
Câu 44 Profit-maximizing prices are found at the point on the demand curve where:
A) marginal revenue = marginal cost
Câu 45 Can be used when price experimentation is impractical, as is the case for many large,
infrequently purchased products (such as automobiles and enterprise software) that don’t
lend themselves to experimentation.
B) Purchase intention surveys
Câu 46 _______ provide a means to explore systematically the effects of competitor reactions to
customer responses to price change
C) Simulations
Câu 47 Why is it necessary to educate buyers about the benefits of the product?
A) Customers can realize the benefits of the product
Câu 48 What are the drawbacks of trial promotions?
C) Expensive costs
Câu 49 What kind of business is suitable for innovation?
D) All businesses
Câu 50 With a ______ strategy, the firm focuses its marketing efforts on developing unique
attributes (or images) for its product.
A) Differentiated product
Câu 51 With a ______ strategy, the firm directs its marketing efforts toward becoming a low-cost
producer.
B) Cost leadership
Câu 52 What strategy can also be either focused or more broadly based?
C) Both a and b are correct (Differentiated product & Cost leadership)
Câu 53 Ecstasy Pharmaceuticals faces fixed costs with their new drug of $1,000,000. The company
sells the drug in bottles of 50 pills for $10.00. They estimate that they must sell 200,000
bottles to break even. What is the variable cost to produce a bottle of 50 pills?
C) $5.0
Câu 54 We will attract “early adopters” customers in which stage of PLC?
B) Growth
Câu 55 The marketing objectives in the “decline” stage of the PLC model are
D) Reduce expenditure and milk the brand
Đề 122
Câu 1: We call points A, and B in this chart
below are
A) Price elastic
Câu 2: The name of this curve
B) Learning curve (experience)
Câu 3: Different name of break-even pricing is
A) Target profit pricing
Câu 4: Output = 80,000 units, fixed costs = $400,000, variable cost = $7, profit margin = 50%. The unit
selling price is
C) $18
Câu 5: Which pricing strategy below matches with competitors’ pricing?
B) Parity (Going rate pricing)
Câu 6: Which pricing strategy below neglects customers’ needs? (bỏ qua nhu cầu khách hàng)
D) A and B are correct
Câu 7: The aim of conjoint analysis
D) Use model interactions between attributes to develop need-based segmentation
Cau 8: Disadvantage(s) of need-based segmentation
D) A and C are correct
Câu 9: What is a consumer surplus?
C) Willing to pay price - market price
Câu 10: At a local farmer's market, one puppy is offered for $600. Jane's willingness to pay the price is
$900.
A) Jane's consumer surplus is +$300
Câu 11: Which case below cannot apply bundle price?
D) The product is differentiated
Câu 12: "Health club charges its member per hour of use". This is an example of
B) Price metrics
Câu 13: Which one is vertical tie-in?
B) Selling related products together for promotional purposes
Câu 14: Factor does not affect to price of fences
D) Quality
Câu 15: "What are the non-value related determinants of price sensitive" is the question in which step
below? (chap 6 – p.2)
B) Set initial price
Câu 16: The price ceiling of negative differentiated products is
A) Reference price
Câu 17: The price floor of a positive differentiated product is… the price floor of a negative
differentiated product
A) Greater than
Câu 18: Even though customers may very much want (or need) some of the differentiated value of your
offering, they would buy a competitor's product if
B) Your price ceiling is higher than total economic value
Câu 19: When the competitors should not be able to enter the market easily, we should apply
A) Market skimming strategy
Câu 20: In which case, we can apply a market skimming strategy?
A) Buyers have high PE
Câu 21 Which one is not an advantage of market penetration?
C) Maximize revenue
Câu 22 Which question should be answered when defining price-volume tradeoff?
B) How much volume could I afford to lose before a particular price increase would be unprofitable?
Câu 23: In the factor of "perceived risk", the buyers are less price sensitive when (chap 6)
C) It is difficult to compare suppliers
Câu 24: In the case of "products that price changes are not very costly to make or reserve", which method
below should be used for estimating customer response
C) Incremental implementation
Câu 25 What is oligopolistic competition?
A) The market consists of few sellers who are highly sensitive to each other's pricing and marketing
strategies
Câu 26: A marketer's fixed costs are $400,000, the variable cost is $16, and they expect the product cost
is $24. What is their break-even point in dollar sales?
A) $1,200,000
Câu 27: In pure monopoly condition, the seller may be a
A) Government
Câu 28: Which statement below is NOT a problem that companies encounter with pricing and price
competition?
C) Pricing takes the rest of the marketing mix into account.
Câu 29: The act of merging two or more organizations into one in the maturity stage of PLC is
A) Amalgamation strategy
Câu 30: The internet has influenced dynamic pricing in
D) A and B are correct
Câu 31: Price setting is usually determined by…… in small companies.
A) top management
Câu 32: Under…. the market consists of many buyers and sellers trading in a uniform commodity such as
wheat, copper, or financial securities.
A) pure competition
Câu 33: Under … the market consists of many buyers and sellers who trade over a range of prices rather
than a single market price
B) monopolistic competition
Câu 34: A company should set prices that will allow…..to receive a fair profit.
A) resellers
Câu 35: Companies facing the challenge of setting prices for the first time can choose between two broad
strategies: market-penetration pricing and…
C) market-skimming pricing
Câu 36: When amusement parks and movie theaters charge admission plus fees for food midpoint and
other attractions, they are following a(n)… pricing strategy.
C) captive product
Câu 37: What type of pricing is being used when a company temporarily prices its product below the list
price or even below cost to create buying excitement and urgency?
D) promotional pricing
Câu 38: Which of the following is a major factor that influences price increases?
A) cost inflation
Câu 39: If a large retailer sold numerous items below cost to punish small competitors and gain higher
long-run profits by putting them out of business, the retailer would be guilty of….
C) predatory pricing
Câu 40: When Circuit Town Electronics sets its televisions at three price levels of $699, $899, and
$1,099, it is using…
A) product line pricing
Test 121
1) A marketer's fixed costs are $700,000, the variable cost is $10, and they expect the product to sell for
$30 at markup profit = 25%. What is their break-even point in dollar sales?
A) $ 1,050,000
Với câu hỏi là break-even poit in dollar sales? Với câu hỏi là sale revenue tại P = $30
Break-even point in unit = Total FC / (Selling 30 = price at markup = 125%
price – unit VC) total unit cost (no profit) = 30/1.25 = 24
= 700,000/ (30-10) = 35,000 (units) Unit FC = 24 – 10 = 14
break even in dollar sales: 35,000 x 30 = $ Volume = 700,000/ 14 = 50,000
1,050,000 Sales revenues at P = $30: = 50,000 x 30 =
1,500,000
2) A marketer's fixed costs are $400,000, the variable cost is $16, and they expect their product to sell for
$24. If the marketer has sales of $1,440,000, what is their profit on this product?
B) $80,000
Cách 1 Cách 2
Q = 1,440,000/24 = 60,000 (units) Revenue = selling price x Q = 24 x Q = 1,440,000 ($)
Total Variable costs = 16 x 60,000 = $ 960,000 Q = 1,440,000 : 24 = 60,000 (units)
Total costs = $400,000 + 960,000 = $1,360,000 Total FC = 400,000 ($) = Q x Unit FC
Profits = 1,440,000 – 1,360,000 = $80,000 Unit FC = 400,000 / 60,000 = 6.67 ($)
Total unit cost = Unit FC + Unit VC = 6.67 + 16 =
22.67 ($)
Total cost = Total unit cost x Q = 22.67 x 60,000 =
1,360,000 ($)
Profits = 1,440,000 – 1,360,000 = 80,000 ($)
Test 122
1) A marketer's fixed costs are $850,000, the variable cost is $15, and they expect the product to sell for
$40 at markup profit = 25%. What is their sale revenues?
- 40 = price at markup = 125%
total unit cost (no profit) = 40/1.25 = 32
- Unit FC = 32 – 15 = 17
- Volume = 850,000/ 17 = 50,000
- Sale revenues = 50,000 x 40 = $ 2,000,000
2) A marketer's fixed costs are $600,000, the variable cost is $15, and they expect their product to sell for
$30. If the marketer has sales of $1,500,000, what is their profit on this product?
- Revenue = selling price x Q = 30 x Q = 1,500,000 ($)
Q = 1,500,000 : 30 = 50,000 (units)
- Total FC = 600,000 ($) = Q x Unit FC
Unit FC = 600,000 / 50,000 = 12 ($)
- Total unit cost = Unit FC + Unit VC = 12 + 15 = 27 ($)
- Total cost = Total unit cost x Q = 27 x 50,000 = 1,350,000 ($)
- Profits = 1,500,000 – 1,350,000 = 150,000 ($)
CHỨNG MINH ĐIỂM HOÀN VỐN
Sales revenues = Total costs
P X Q = Total VC + Total FC
P xQ = unit VC x Q + Total FC
Q x (P – unit VC) = Total FC
Q = Total FC / (P – Unit VC)
CHAP 1: CALCULATION
(cost-based pricing/break–even pricing)
CHAP 2: VALUE
Total economic value (selling price) = reference value (competitor’s price) + differentiation value (+ / -)
CHAP 3: BUNDLE PRICING
(segmented pricing/bundle/unbundle/tie–in/price metrics/fences)
CHAP 6: PRICE LEVEL
Price-setting process
1. Price window
- Ceiling price = total economic value = reference value + differentiation value (+/-)
- Floor price:
o (+) differentiation value = reference value
o (-) differentiation value = relevant costs
2. Set initial price:
- Business objectives:
o Skimming (increase profit)
o Penetrating (decrease market share gain)
o Neutral (observation/competition)
- PE:
o Price
o Volume trade-off
- Customer response
3. Communicate price to market
- Low price -> high price?
increase raw materials
increase quality/value-added
CHAP 8: PRICING THROUGH PRODUCT LIFE
Sales, Costs, Profits, 4P
