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