Question 11 (1 point)

Pricing a product mix is often difficult because various products have related demand and costs, and they face different degrees of competition.

True

False

Question 12 (1 point)

Some industries commonly use two-part pricing, where the price is broken down into a fixed fee and a fixed usage rate.

True

False

Question 13 (1 point)

The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged. In normal cases, the higher the price, the higher the demand.

True

False

Question 14 (1 point)

The practice of a manufacturer requiring a dealer to charge a set retail price for its product, also known as retail price maintenance, is illegal.

True

False

Question 15 (1 point)

The simplest pricing method is break-even pricing, which involves adding a standard markup to the cost of the product.

True

False

Question 16 (1 point)

Used too frequently, promotional pricing can have the negative effect of decreasing the brand's value in the eyes of customers.

True

False

Question 17 (1 point)

Value-based pricing is the reverse of cost-based pricing.

True

False

Question 18 (1 point)

When consumers cannot judge the quality of a product because they lack information or skill, they are likely to perceive a higher-priced product as having higher quality.

True

False

Question 19 (1 point)

When Johnny On the Spot, a house mover, sells boxes and pads that must be used in moving a household's furniture, the company is practicing by-product pricing.

True

False

Question 20 (1 point)

When using product bundle pricing, sellers combine several of their products and offer the bundle at an increased price for increased profit.

True

False